PH construction keen on harnessing data

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The Philippines leads its counterparts in Southeast Asian on plans to adopt data strategy in the construction industry.

Findings of a research conducted by Procore Technologies Inc., a leading global provider of construction management software, showed eight in 10 of construction businesses in the Philippines plan to design and implement a data strategy over the next 12 months, higher than Malaysia and Singapore both at 76 percent, as well as the region’s average at 77 percent.

Specifically, the How We Build Now: Technology Trends Shaping and Shifting Construction — Southeast Asia 2023 industry benchmark report showed 84 percent of Filipino construction businesses are eager to increase their investment in technology as they see the benefits doing so: enhanced access to project information, remote work capabilities, automated project workflows, and leveraging historical data to optimize future projects.

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“Thus, they recognize the value of leveraging technology to improve productivity and profitability,” Procore said in a statement.

The study said construction professionals in the country are also keen on adopting technology and harnessing data to improve cost management, reduce reliance on human labor, more efficient work, improve build quality, and enhanced the ability to handle more projects.

However, only 6 percent of those surveyed in the region “have laid foundation for a data strategy, while 52 percent are somewhat confident that they have the ability to utilize data in their operations within a year.”

Nearly four in 10 businesses lack strong confidence in their preparedness to secure these projects successfully despite a high level of awareness on the benefits of harnessing data as well as a strong interest to adopt data strategy in the construction business.

This year, the report surveyed construction decision makers across Singapore, Malaysia, and the Philippines.

The report reveals insights into the construction industry’s overall sentiment, current challenges and opportunities for businesses, how businesses are managing risks to protect their bottom-line, and the level of digital maturity and adoption of construction technologies.

According to Procore’s research, construction professionals are increasingly aware of the role of technology and data in their businesses but are still hesitant about their data strategy.

Southeast Asia construction professionals who responded to the research unanimously agreed (99 percent) that better data management can bring benefits to their businesses.

Respondents also estimated that on average, 22 percent of total project spend could be saved through more efficient data management.

However, despite a high awareness of how data can be used to their advantage, only 6 percent of companies surveyed in Southeast Asia have laid the foundation for a data strategy. Additionally, although 77 percent are planning to design and implement a data strategy over the next 12 months, more than half of these companies (52 percent) are only somewhat confident in their ability to do so.

Despite the challenges in harnessing data, construction professionals in the region remain committed to embarking on their digital transformation journey.

Respondents cited improved cost management (42 percent), reduced reliance on human labour (39 per cent), resource efficiency through fewer errors or less rework (38 percent), improved build quality (38 percent), and improved ability to handle more projects (38 percent) as the benefits of technology adoption.

Correspondingly, more than three-quarters of businesses surveyed (77 percent) revealed that they are looking to increase their spending on construction technologies as a proportion of their annual budget. Interestingly, younger businesses that are aged below 10 years were found to be more likely to embrace technology (81 percent), as compared to established businesses of over 10 to 20 years (71 percent) and those over 20 years (68 percent).

Of the technologies that will be the biggest drivers of change in the next three years, construction management platforms take the lead (55 percent), followed by payments technologies (38 percent), pre-fabrication (34 percent), big data (33 percent), and next-generation BIM (30 percent).

Overall, there is optimism among the construction industry professionals surveyed. When polled on the construction industry outlook in Southeast Asia, 88 percent of respondents expressed confidence in the industry’s market conditions over the next 12 months. Driving this optimism was expectations for the increase in both the number (73 percent) and value of projects (71 percent) over the same period.

Respondents are also placing a larger emphasis on risk management to protect their bottom line. Almost four in 10 respondents (39 percent) are rethinking contracting models to protect margins or considering new payment methods, such as early payments at reduced margins (37 percent). A focus on risk management has become more important, especially in light of persistent challenges such as the increased cost of raw materials and equipment (44 percent) and winning competitive bids and tenders at a sustainable margin (32 percent), as revealed by respondents.

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