Just The Good Stuff, Please
For those of you too busy to read through forty pages, here are the headlines and numbers from Procore’s latest survey of Owners, General Contractors and Specialty Contractors. (See “How We Build Now, June 2023, Procore Technology”.) I won’t editorialize here, but will add my comments in a future post.
Headlines from the Report
- Owners want a single source of project “truth” in digital data form.
- Preconstruction (prefab, digital design) is the priority for better productivity and profit.
- Data maturity model scores are still quite low across the industry.
Takeaways
- Prioritize preconstruction for near term productivity and profitability
- Adopt multi-dimensional labor acquisition strategy
- Standardize data for decision making
- Use existing data to improve A/R and payments
- Invest in a construction management platform for strategic advantage
General Industry Results
- 90% are confident the industry can address its challenges
- 43% believe decision making using historical data is the future
- 47% of projects have A/R and cash flow issues
- 28% of all construction labor is rework
- 18% of all construction labor is searching for the right data
- 32% believe digital data is necessary to address volatile markets
- 49% of projects overrun their budget
Positive Sector Sentiments
- 79% Energy/Utilities
- 79% Civil/Infrastructure
- 73% Multifamily
- 71% Commercial
- 68% Healthcare
- 64% Residential
- 57% Education
Materials
- 33% experienced material cost disruption
- 50% are optimizing material carbon footprint
- 48% are localizing material sourcing
Payments
- 55% believe existing data if shared would improve A/R, payments
- 38% owners say invoices received do not match work completed
Insurance
- 12% project costs are insurance, claims, etc.
- 36% believe times to quote are too slow
Technology/Digital Sentiment
- 32% believe they need new technologies to improve
- 22% believe they need to adopt existing proven tech
- 23% believe they need to consolidate their existing tech
- 44% of owners are adopting digital
- 30% of GCs are just starting a digital program
- 32% of Specialties are just starting a digital program
Technologies of Interest
- BI/Analytics
- BIM
- Construction Management Platform
- Drones
- Prefabrication
- Telematics
- IoT
- Clean/Green Materials & Processes
- Robotics
- AR/VR
- AI/ML
Technologies of Interest Adoption
- 25% using one or more
- 30% plan to use one or more
- 20% will consider using later
- 25% don’t know
Process Technologies Used
- 40% office productivity tools
- 34% applications/point solutions
- 34% suite/platform
- 33% customer in-house apps
- 26% paper form processes
Productivity
- 37% believe technology improves productivity
- 34% believe upskilling improves productivity
- 32% believe new contract terms (design/build) improve productivity
Profitability
- 39% technology needed to improve profitability
- 34% upskilling needed to improve profitability
- 32% different contract terms are needed
Labor
- 29% have labor shortage issues today
- 30% believe they will lose up to 47% of their experienced project managers
- 84% are optimistic shortages can be solved
- 45% believe diversity and equity programs help
Challenges to More Adoption
- Owners: Key tech is missing; budget constraints; information security
- GCs: Change management; information security; key tech missing
- SCs: Key tech missing; budget constraints