Digitalisation in Construction Report 2024 by Royal Institution of Chartered Surveyors (RICS) – A Detailed Summary
The construction industry is experiencing a significant transformation through digitalization in recent years. The Digitalisation in Construction Report 2024 highlights the current state of digitalisation within the construction industry emphasizing both advancements and ongoing challenges. The report reveals that while there has been some progress in adopting digital tools, the overall usage remains low, particularly in critical areas such as data sharing and environmental sustainability. Let us look at some key highlights from this report and understand how it is shaping the state of project management.
Key Findings
1. Barriers to Digitalisation
The report identifies several significant barriers hindering the adoption of digital technologies:
– Cost and Effort: Many organizations perceive the financial and operational effort required to implement digital solutions as prohibitive.
– Skill Shortages: There is a notable shortage of skilled personnel equipped with the necessary digital capabilities, which limits the industry’s ability to leverage new technologies.
– Client Demand: A lack of clear demand from clients and stakeholders further complicates the push for digitalisation.
2. Data Sharing Challenges
Data sharing remains a critical issue, with the report indicating:
– Low Sharing Rates: In 2023, 42% of global respondents reported not sharing data and information, with 49% of UK&I respondents indicating the same.
– Specific Areas of Concern: The sharing of data related to production and fabrication was reported at 26%, while life cycle carbon emissions saw only 21% of respondents sharing data in both directions.
3. Incorporating ESG Principles
The integration of Environmental, Social, and Governance (ESG) principles is highlighted as a low priority:
– Focus on Carbon Footprint: There is a pressing need for improved carbon footprint calculations and reporting, with only 11% of respondents actively incorporating ESG principles into their practices.
4. Skill Development and Training
The report emphasizes the importance of investing in skill development:
– Diverse Talent: Organizations are encouraged to focus on attracting and training a diverse talent pool to enhance digital capabilities across the industry.
– Continuous Learning: Ongoing skill development is essential for adapting to evolving digital tools and practices.
5. Recommendations for Improvement
To accelerate the adoption of digital tools, the report provides several high-level recommendations:
– Data-Driven Processes: Implementing data-driven processes and systems to achieve better social, environmental, and economic outcomes.
– Effective Information Management: Emphasizing the importance of effective information management practices to support data-driven approaches.
– Integration Across Disciplines: Leveraging digitalisation to enhance integration across various disciplines and project phases.
– Comprehensive Life Cycle Perspective: Encouraging a holistic view that considers the entire life cycle of assets to improve sustainability and efficiency.
6. Overall Digital Tool Usage
Despite advancements in technology, the report notes that:
– Low Adoption Rates: The overall usage of digital tools in construction remains low, with only 41% of respondents using digital tools on most or all projects.
– Gaps in Specific Areas: There are notable gaps in areas such as enhancing progress monitoring and cost estimation, indicating room for improvement.
Conclusion
In conclusion, the Digitalisation in Construction Report 2024 suggests the need for a concerted effort to overcome barriers to digitalisation, improve data sharing practices and integrate ESG principles into the construction industry. By focusing on skill development and adopting a some comprehensive approach to digital tools, the industry can work towards more sustainable and equitable outcomes. You can download and read the full report here. To learn different concepts in project management and prepare for PMP certification exam, check out this PMP training program.
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