State of data capabilities

in construction
Autodesk
2023
State of data capabilities in construction

Expanding the toolkit: Report coverage

This report, commissioned by Autodesk, explores the use of data in the construction industry. The report seeks to provide
insights to construction executives on the wide-ranging uses of data, the benefits of data-informed decision-making, and
industry best practices in developing data capabilities.

The research provides a global industry perspective with a specific focus on 12 countries: Australia, Canada, France, Germany,
India, Ireland, Japan, the Netherlands, the Philippines, Singapore, the United Kingdom and the United States of America.

To inform the analysis, Deloitte Access Economics conducted a bespoke survey of 1,275 construction leaders, undertook six
consultations with leading construction businesses and conducted extensive desktop research.

This survey was used to develop a comprehensive Data Capability Assessment (DCA), designed to assess the data capabilities
of construction businesses based on 13 key indicators.

Further details about the methodology for the research are available in the Appendices.

Countries in focus for this report

Netherlands
Germany

UK
Canada
Ireland
France
USA Japan

Philippines

Singapore
India

Australia

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State of data capabilities in construction

Contents

Executive summary....................................................................................................................5

Outlook for the construction industry..................................................................................8

State of data in the construction industry........................................................................ 12

Benefits of data........................................................................................................................ 28

Taking the next step................................................................................................................ 31

Appendices................................................................................................................................38

References................................................................................................................................. 42

Contact us.................................................................................................................................. 43

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State of data capabilities in construction

Expanding the toolkit: use of data in the construction industry

The use of data to inform decision making is vital to thrive in a competitive industry like construction. There is an enormous amount of data being
generated by business and consumers. Businesses need to view data as an asset and make sure it is being utilized effectively.
The Data Capability Assessment (DCA) provides a holistic and tailored construction industry benchmark to assess the data capabilities of a business.
It classifies businesses into the three categories: beginner, emerging and leader. We find that 80% of construction businesses could lift their data capabilities.

Leaders report a
The prize for lifting data
50% increase in average profit
Leader
(20% of businesses) capabilities are clear
growth rate when compared to
beginners….
Emerging
(60% of businesses) This is equivalent to a
When comparing our DCA 2.7 percentage point increase in
methodology with self-assessed data expected average profit each year.
Beginner
capabilities, we find 25% of businesses
(20% of businesses)
overrate their abilities.

Benefits of greater Barriers to integrating Next steps for

data use data driven insights businesses
Develop business- Build motivation
Reduced costs Access to skilled staff
wide strategy for change

Business growth Develop in-house Identify

Data quality
through new projects data skills quick wins

Track and measure Build standards and

Data security and risk
performance procedures
4
State of data capabilities in construction

Executive summary

Data is vital for a thriving future construction industry The two most common challenges raised by construction
The global construction industry plays a key enabling role businesses in our survey were cost pressures – namely
in the economy and society by designing, building and cost of raw materials (cited by 52% of business), followed
The average construction
maintaining buildings and critical infrastructure. The industry by labor costs (37%). Economic uncertainty (35%) and a business expects 4.4%
delivers facilities for every industry including manufacturing, lack of workers with suitable skills (34%) were also commonly
professional services and health care, and provides housing cited challenges.
profit growth over the
for the global population.
Data provides a critical asset for businesses to help
next five years.
Given the importance of the construction industry, Autodesk overcome these challenges and thrive in a competitive
has commissioned this research to analyze the outlook for the industry. This report focuses on a variety of different types of
industry and the benefits of data-informed decision-making.
The report is informed by a survey of 1,275 construction leaders
data including financial information, project information, supplier
information and others.
97% of surveyed
from 12 countries: Australia, Canada, France, Germany, India, businesses identified
The most common benefit of using this data directly addresses
Ireland, Japan, the Netherlands, the Philippines, Singapore,
the key challenges for businesses, with reduction in costs being one benefit from
the United Kingdom, and the United States of America.
the most common benefit from greater use of data (cited by greater use of data, with
Where the construction industry is today a third of businesses). In fact, 97% of businesses were able to
The construction industry has faced significant challenges identify at least one benefit associated with greater use of data. reduction in costs the
over the past three years from COVID-19 restrictions and
So how does the global construction industry fare when it comes
most common benefit
identified by 33% of
supply chain disruptions.
to the collection of data and its use to support decision making?
Despite the challenging global macroeconomic environment, it
is clear that a recovery is underway in the industry. Our survey
businesses.
found that average profit growth for the industry was 14.2% in
FY23. Looking forward, construction leaders are expecting the
recovery to stablize to 4.4% profit growth per year on average “We are already using data for reducing
for the next five years.
costs, forecasting revenue and margins,
Achieving the expected profit growth will not be a
straightforward task for the construction industry.
improving our environmental impact and
Construction businesses will also have to contend with making strategic adjustments throughout
a number of barriers to business growth.
a project.”
- Bart Pigge, Director, Dura Vermeer

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State of data capabilities in construction

Executive summary

State of data capabilities in the construction industry The prize for lifting data capabilities
There are various ways to assess the data capabilities of There are clear business performance benefits from improving
a business. For example, we could look at the number of data capabilities. Modelling for this report finds the impact When asked to self-assess,
data types being collected or analyzed. Our survey found the of increasing data capabilities from beginner to leader
average business collects 11 different types of data out of levels is associated with a 2.7 percentage point increase in we find 25% of businesses
a list of 13 options, including financial information or employee expected profit growth per year over the next five years. overrate their ability
information. This figure drops to only 3 types of data when This represents a 50% increase in the average expected profit
considering businesses that collect, analyze and use the growth for construction businesses (increasing from 4.4% to
to use data effectively
information for business decision-making. 7.1% per year). For a business with $25 million USD in profits, the when compared to their
uplift would be worth $0.7 million in additional profits per year.
Another way to assess data capabilities is the frequency of DCA score.
actionable insights. Nearly one in five construction businesses Improving data capabilities also enables the use of more
get daily insights on project performance but obtain insights advanced digital technologies. When comparing leaders in data
from administrative or supplier data less frequently. capabilities with those in the beginner category, we find that
leaders are:
While these indicators are useful starting points, a holistic Leaders in data
perspective is needed. To provide a comprehensive view we • 9 times more likely to be using Internet of Things (IoT) and
capabilities could see a
have developed a Data Capabilities Assessment (DCA) tool smart sensors
to provide a tailored construction industry benchmark.
• 4 times more likely to be using mobile apps
2.7 percentage point
The DCA considers a business’ use of data collection and
• 4 times more likely to be using construction wearable devices
increase in expected profit
analytics tools, the data strategy and the data talent within a
business. Using these three pillars, we classify businesses as growth compared with
• 7 times more likely to be using artificial intelligence (AI) or
having beginner, emerging or leader levels of data capabilities
machine learning (ML). beginners.
using 13 different indicators.

Using this approach, we classify 80% of construction

This suggests improving data capabilities could be This uplift represents a
a key foundational step to unlock more advanced
business as beginner or emerging levels of data capabilities,
digital technologies within the construction industry. 50% increase in average
suggesting there is room for improving data capabilities in
the industry. The remaining 20% of the industry can be
These digital technologies will also have a range of financial profit growth from 4.4%
and non-financial benefits (like improved worker safety)
considered leaders in terms of their data capabilities.
that businesses can realise.
to 7.1% per year.
We find there is significant variation in data capabilities across
and within different countries.

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State of data capabilities in construction

Taking the next step

What are the next steps organizations can take to Centralize data team and implement
succeed?
organization-wide standards Key factors for lifting data capabilities
In order to lift their data capabilities, construction businesses
A quarter of construction businesses do not have any data
must overcome a number of barriers. The most common
analytics roles or have even outsourced capabilities to another 100%
barriers are access to skilled staff (cited by 24% of businesses),
organization. Yet businesses with a centralised data team are
data quality (21%), data security (20%) and a lack of funding
nearly twice as likely to be data leaders compared with those
(19%). In order to address these common barriers and others,
who do not have central data resource within their organizational 26%
this report recommends that businesses focus on progressing
structure. A centralized team with unified data standards
these five key priority areas.
and procedures can reduce the occurrence of data silos and 80% 39%
maximise any efficiencies in data collection or analysis.
51% 52%
Develop in-house data literacy and skills
Building motivation for change
Access to skilled talent was the most common barrier to
achieving greater data insights. Data training to increase data 60%
Achieving a smooth transition to more data-orientated
literacy or skills in analysis can be effective in addressing this
processes requires the active acceptance of the team members
barrier, with our survey finding that businesses that provide
implementing the change. Businesses must proactively identify
training to all team members are 2.5 times more likely to be data
user needs and clearly articulate the benefits of transformation
leaders compared with those who do not offer training to all 53%
to build enthusiasm, which requires a solid change
levels of employee. This training should be directed to all staff 40%
management strategy. Leading from the top will be important.
regardless of seniority, from new starters to senior executives.
Businesses where the senior executive team were identified as 53%
the data champions were 30% more likely to be data leaders
compared with those who did not identify the executive team 47% 45%
Develop an organization-wide data strategy
as data champions.
20%
Three quarters of businesses have an investment budget for
data and analytics, but far fewer (only 24%) have clear priorities
Identify quick wins
identified within the investment budget. Having identified
13%
priorities with specified timelines for testing, piloting, and scaling 7%
There are many quick wins for businesses looking to uplift their 3%
will be required for businesses to achieve goals identified in 2%
data capabilities. Finding and prioritizing these different tools 0%
Data Organization-wide Centralised Senior
the data strategy. Businesses with an organization-wide data
or use cases can help get a business started and build a greater training investment data team executives
investment budget were 2.5 times more likely to be data leaders
momentum for change. budget champion data
compared with those businesses who do not allocate specific
funding towards investment in data. Beginner Emerging Leader

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State of data capabilities in construction

1 Outlook for the

construction industry

8
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State of data capabilities in construction

Global construction continuing on the path of recovery

Profit growth is expected to cool down from 14.2% in FY23 Despite the challenging global macroeconomic environment, Average profit growth for FY23 and forecast growth in
to 4.4% on average over the next five years it is clear that a recovery in the construction industry next five years, by region
The construction industry plays a key role in the economy. is well underway. Deloitte’s Construction Data Survey,
25%
The economic value of the global construction industry which included responses from 1,275 construction leaders
was estimated at $9.7 trillion USD in 2022 when measured globally, found that average profit growth for a business 19.9%
20%
by gross output.1 The industry represents 13% of global was 14.2% in FY23. The strongest growth in the industry
Gross Domestic Product (GDP) and employs 7% of the was seen in North America, reflecting the stronger economic 14.2%
15%
global working age population. Beyond the direct economic recovery seen in North America than the rest of the developed 12.8%

contribution, the construction industry is also involved in world in 2023.5 10.4%

10%
developing the buildings and critical infrastructure required Looking forward, while the growth of profits in the industry is
5.3% 5.3%
by the rest of the global economy to operate. not expected to match the rapid pace in FY23, businesses on 5% 4.4%
3.4%
Like many other industries involving physical tasks, construction average forecast that their profit growth over the coming
was significantly impacted by the COVID-19 pandemic and five years will be 4.4% each year. 0%
Global Europe North America Asia Pacific
associated supply chain disruptions. Physical restrictions and Over half (52%) of businesses are optimistic about industry
lockdowns meant that many construction sites were forced to performance in the short-term with only 18% being pessimistic. Average profit growth in FY23 Forecast profit growth
suspend operation or operate at limited capacity, which led to When asked about the performance of their own business, Source: Deloitte Construction Data Survey (2023)
global construction output falling by 2.4% in 2020.2 More recently, construction leaders were more bullish, with 58% being optimistic
the war in Ukraine has placed upwards pressure on costs, about their own business’ growth and profitability in the short-
while rising global interest rates are creating pressures for Short-term outlook for the financial performance of the
term, compared with only 15% being pessimistic about their
funding new projects. construction industry
business performance in the same period.
2%
The combined impacts of these forces have already forced
many construction businesses to shut down. In Australia, 27%
18%
of business failures in the first quarter of 2023 were in the
construction industry,3 while over 4,200 construction businesses
in the UK became insolvent in the 12 months to June 2023.4
52%

28%

Pessimistic Neither pessimistic nor optimistic

Optimistic Don't know/Not sure

Source: Deloitte Construction Data Survey (2023)

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State of data capabilities in construction

Yet higher costs and economic uncertainty could prevent businesses

realizing strong future growth
Over half of businesses believe that cost of raw materials Another significant challenge facing the industry is a lack More importantly, finding employees with the right data or
is the top barrier to business growth of workers with suitable skills, which was identified as a technology skills is increasingly difficult. This issue is explored
Achieving the expected profit growth will not be a significant challenge by more than one third (34%) of businesses. further in a later section of this report (Section 4 – Taking the
straightforward task for the construction industry. This has been a significant issue across economies recently as next step).
The International Monetary Fund (IMF) forecasts global real international migration was lower through the COVID period,
economic growth to be at 3.0% for 2023 and 2024, and only and labor force participation rates dipped, particularly in the
about 1.5% and 1.4% for developed economies.5 These forecasts United States.
represent a downgrade in expected economic performance
compared to previously released estimates. While economic Most common barriers to business growth
growth does not translate directly into business profitability,
it does provide an indication that business conditions are Cost of raw materials 52%
weakening in the short-term future, which will impact
business profitability. Higher labour costs 37%

Construction businesses will also have to contend with a number

of key barriers to business growth, according to the Deloitte Economic uncertainty 35%

Construction Data Survey. The two most common challenges

raised by construction businesses were around variable Lack of workers with suitable skills 34%

cost pressures – namely cost of raw materials (cited by

52% of business), followed by higher labor costs (37%). Supply chain lead times/delays 30%

Cost of raw materials was cited as the most common barrier

for 11 out of the 12 countries surveyed, with the one exception New regulations and compliance requirements 21%
being Ireland. The IMF forecasts average inflation globally to be
Other operational costs
at 5.2% throughout 2024, which will maintain cost pressure on 20%
(rent, maintenance and repair, marketing, etc.)
the profitability of the construction industry.5
Staff turnover 20%
The third most common barrier to growth identified by
businesses was uncertainty in the broader economy (35%).
Lack of demand for projects 18%
Interestingly, construction leaders reported higher levels of
optimism for the performance of the construction industry
Inability to access investment/capital 11%
(52%), compared with the broader economic environment (39%).
This gap between expected growth in the broader economy,
0% 10% 20% 30% 40% 50% 60%
and in the construction industry, suggests that achieving the
anticipated level of revenue growth will require significant action Source: Deloitte Construction Data Survey (2023)
by businesses to realise this growth.

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State of data capabilities in construction

Data will be critical to overcoming barriers and reinforcing the

recovery
97% of businesses identify benefits from greater use of More than just improving margins on existing projects, the Another significant benefit of improved data usage is its ability
data, with reducing costs being the most common increased use of data has the potential to identify new projects to improve safety conditions on site, identified as a significant
The use of data will play a crucial role in realising this profit and by extension grow the business (28%). This was the second benefit by 24% of businesses. By pre-emptively identifying risks,
growth and for business to thrive in a competitive environment. most common reported benefit of data in the industry. businesses aim to prevent accidents and hazards, rather than
The effective implementation of data will also enable businesses simply responding to them. This is of particular importance to the
The greater use of data can have benefits across the entire
to respond to the most pressing challenges facing them in the construction industry, with it having one of the highest rates of
lifecycle of a building project. Beyond helping businesses
short- to medium-term. work-related accidents of any industry globally.6
win more projects, it allows them to optimize supply chains
Businesses indicated that the most common benefit from the and planning, effectively track progress, and improve client
greater use of data is the reduction in project costs (33%), which satisfaction with their work.
directly addresses the two most common challenges facing the
industry, being high material and labor costs.

Significant benefits to businesses from greater use of data

35%
33%

30%
28%
27% 27%
25%
25% 24%

21% 21%
20%
20% 19% 18%
18%

15%

10%

5%

0%
Reduce costs Grow the Track and Improve Streamline Improve Identify and Increase Inform Mitigate Optimize Inform the
(operational, business measure customer business processes worker manage sustainability company risk supply chain marketing and
project, or through performance experience (operational safety subcontractors strategy communication
supply & identification and return on efficiency, automation) strategy
materials) of new projects investment

Source: Deloitte Construction Data Survey (2023)

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State of data capabilities in construction

2 State of data in the

construction industry

12
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State of data capabilities in construction

Opportunities for construction businesses to utilize data assets

The average construction business captures 11 different The multitude of data that a business collects is as an asset One example is financial data, which is the most commonly
types of data, but only analyzes 3 types that allows a business to gain valuable insights and improve collected type of data (86% of businesses capture financial data).
There is an enormous amount of data being generated by their operations. Analyzing data in a timely manner also allows Only one third (33%) of businesses reported that financial data
business and consumers. By 2025, the global data volume will businesses to quickly and effectively respond to changing was analyzed and used to inform business decisions.
reach 175 zettabytes, or 175 billion terabytes. This figure will conditions in the business or industry.
Many companies have invested in improving their ability to
represent a five-fold increase on the figure from 2018.1 The construction industry is already aware of the importance effectively capture and analyze data. Yet this analysis suggests
Data comes in a number of forms – from numeric and textual of capturing data and analyzing data. The average construction the greatest return on investment could be from using the data
data to more rich and complex data sources such as sound, business collects 11 out of the 13 potential types of data already being collected and analyzed to help guide businesses
images and videos. presented in in our survey. Yet this figure shrinks to only 8 when in their decision-making.
considering businesses that both collect and analyze the data,
and diminishes further to 3 when considering the data types that
businesses collect, analyze and use to make decisions.

Types of data captured and used for decision-making

100%

28%
34% 34% 36% 34% 37% 36% 42%
80% 40% 37% 42% 45% 44%

60%
39%
36% 39% 40%
37% 37% 39%
34% 38%
40% 37% 37% 34% 37%

20%
33% 30% 27% 27% 26% 26% 26% 25% 24% 21% 21% 21% 19%

0%
Financial Building Project Project Labour Supplier and Permits and Safety and Client Machine and Communication Geographic Change orders
data materials information progress data subcontractor regulatory incident information equipment data Information and RFIs
data data data data data data System

This data is captured, analysed, and used to make business decisions This data is captured and analysed This data is not captured or captured but not analysed

Source: Deloitte Construction Data Survey (2023)

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State of data capabilities in construction

Opportunities to increase frequency of actionable insights

Only one third of construction businesses get daily Real-time data is becoming increasingly common to
insights from at least one data source identify faults and unexpected issues in the construction How does the construction industry compare?
The ability of a business to effectively capture and generate process. The use of real time 4D Building Information Modelling
(BIM) software has been estimated to generate up to an 80% A survey of businesses from a range of industries
insights from data is extremely important to thrive in a
competitive environment like construction. Just as important is reduction in project operations and maintenance as users found that more than three quarters (77%)
the timeliness of the insights generated. In order to prevent a can identify problems more efficiently.2 generate actionable insights from data at least
cost overrun, or a project delay, a business must quickly identify Less than half (47%) of businesses generated weekly insights weekly or daily, compared with the 71% of
potential issues and respond effectively. from administrative or supplier data. This suggests that there construction businesses that generate insights
The Deloitte Construction Data Survey found businesses were are potential improvements businesses can make to their data
at the same frequency. This suggests that there
more likely to get more frequent insights on project information collection and analysis capabilities for back-office operations
or suppliers. Improving these capabilities could assist the 30% may be some gains to be made in the construction
and progress, with the majority (55%) of them getting insights at
least weekly, and nearly one in five (18%) getting daily insights in of businesses who reported supply chain issues as one of industry simply increasing the frequency of
their projects. their top challenges. actionable insights generated by their data.3

Frequency of actionable insights from data

Administrative data
18% 37% 28% 9% 9%
(e.g. financial data, labour data, inventory)

Supplier data
16% 31% 35% 10% 8%
(e.g., partners, specialty contractors, supply chain)

Project information & progress

14% 30% 35% 10% 10%
(e.g., requests for information, change orders, schedules)

0% 20% 40% 60% 80% 100%

At least daily At least weekly At least monthly At least every year Less frequently

Source: Deloitte Construction Data Survey (2023)

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State of data capabilities in construction

A holistic model for assessing data capabilities

Using 13 indicators to assess data capabilities across the Data Capability Assessment categories (DCA)
construction industry
To assess data capabilities of businesses within the construction
industry, the Data Capability Assessment (DCA) was
developed. The DCA provides a standard benchmark to assess
Leader
an organization’s data collection processes and analytical
capabilities. To calculate the DCA, the survey responses from
each businesses were scored against three pillars: use of data,
data strategy and data talent. These three pillars and their
13 indicators were selected to provide a holistic assessment
of data capabilities within a business. Emerging
The scores from each pillar are then summed together and
grouped based on the criteria outlined below to categorise
the overall data capabilities of the business. The data capability
categories include beginner, emerging and leader, as shown
in the table below.
The categorisation of businesses using the DCA depends on
Further detail on the methodology to develop the Data Capability Beginner
three pillars: use of data, data strategy and data talent
Assessment is provided in the Appendix.

Beginner Emerging Leader

Use of data Minimal data collection and analysis Forms of data are being collected but only limited datasets Many sources of data are being collected and most datasets are
takes place are analyzed being analyzed
Data analysis occurs fairly infrequently, with the use of Data analysis occurs frequently and with a variety of analytical tools
analytical tools limited to spreadsheets, etc. and predictive tools, and is used to inform strategic decision-making

Data strategy There is no current plan for the wider Future planning for the use of data is limited to operational The data strategy is comprehensive and holistic, with future
adoption or use of data functions, with no overarching strategy planning clearly communicated across the organization

Data talent There is no strategy to identify existing There is recognition of the need for data skills, but central Talent is cultivated and directed, maximising the contributions
or required data skills, or to develop planning for skill development is limited of those possessing data skills and offering appropriate training
these through further training across different levels of familiarity
Further training is supported but self-directed

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State of data capabilities in construction

Most construction businesses can improve their data capabilities

Four in five construction businesses could improve their Distribution of data capability scores
data capabilities, with many opportunities to increase How does the construction industry compare?
data talent
While this study focuses on the data capabilities 3%

Using our DCA methodology, we classify 80% of construction

of construction businesses, previous studies

Share of businesses
businesses as having either beginner or emerging levels
of data capabilities, as shown in the chart on the top right. have looked at data maturity across businesses 2%

This suggests there is room for improving data capabilities in a range of industries, including construction.
across the industry as a whole. Although the indicators and categories are not 1%

When looking at the three underlying data capability pillars, most directly comparable, the Demystifying Data report
businesses could improve components related to data talent, developed for Amazon Web Services used a data 0%
with businesses achieving just over half (53%) of the indicators 0 25 50 75 100
maturity model to consider businesses within
necessary to achieve full capabilities in that pillar. Data Capability Score
eight industries across the Asia-Pacific region.
The average construction businesses achieved 59% of the Beginner (0-46) Emerging (47-72) Leader (73-100)
That study found that construction businesses
total indicators when it came to use of data, while the average Source: Deloitte Access Economics using the Deloitte Construction Data
was 64% for data strategy indicators. These results suggest had the equal greatest share of businesses in the Survey (2023)
that while construction businesses may have developed a bottom two categories of the data maturity (60%),
forward-looking strategic plan and investment budget for along with organizations within health care and Average score in the three data capability pillars
data collection and analysis, this hasn’t yet translated into
social assistance. Finance and insurance had the
greater data collection capability and sufficient building of 70%
64%
data talent within the business. lowest share of businesses (a quarter) within the
59%
60%
bottom two categories.3 53%
The following pages provide a breakdown of the DCA scores and
analysis for three geographic regions: North America, Asia-Pacific 50%

and Europe.
40%

30%

20%

10%

0%
Use of data Data strategy Data talent

Source: Deloitte Access Economics using the Deloitte Construction Data

Survey (2023)

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State of data capabilities in construction

How do data capabilities compare across regions?

Europe
The European businesses surveyed had the highest
share of emerging data capabilities and a lower share
of leader businesses compared to other regions
surveyed. European countries have a relatively high
average score for data talent.

Netherlands
Germany

UK
Canada
Ireland
France
USA Japan
North America
North America has the
lowest share of construction Philippines
businesses classified as
beginners, with only 16% Singapore
within that category according India
to the DCA. Underlying the
higher capability score is
Australia
relatively more advanced use
of data scores on average
compared to global average
(62% compared to 59%).
Meanwhile, the average score Asia-Pacific
for data talent is marginally The Asia-Pacific region has the largest variation of data
lower in North America capabilities between countries of any region considered
compared with the global in this study, which reflects the diversity of economies in
average, suggesting this might the region. The largest opportunity area for businesses
be an area of improvement. in this region is to improve their scores for use of data.

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Spotlight on North America Key stats for North America

Distribution of data capability scores

North America is at the forefront of the use of data, Barriers remain and more benefits may still be realized 16% 59% 26%

but can uplift capabilities by focusing on data talent North American businesses are more likely to report that
Strong public spending will support the industry they store their data across too many platforms, meaning
Beginner Emerging Leader
The North American construction industry is estimated that consolidating data is a potentially significant change that
to be have a value of $2.35 trillion and employs 18 million businesses can make in order to develop their data capabilities.
people across the US, Canada and Mexico.4, 5 The majority Other common barriers for North American businesses Average score in the three data pillars
of employment, and value add, in the region occurs in the include access to skilled staff, data security and risk and data
80%
United States, being the largest economy in the region. quality.6 The average score for data talent is marginally lower 62%
68%

in North America, suggesting training to increase data literacy 60% 52%

The construction industry in the US is currently very two paced,
with rising interest rates dampening demand for residential should be an area of focus. 40%
construction. At the same time, significant capital spending from The most common benefit from greater data use is a reduction 20%
the government, particularly as part of the Inflation Reduction in costs. Given the thin margins in the construction industry
Act, has spurred non-residential construction. In order to 0%
and high level of competition in the North America, even Use of data Data strategy Data talent
respond to the changing workforce, the industry will have to minor cost savings can translate to significant increases
rely more on automating manual processes and technology. in financial performance.
Top three benefits of data
A leader in data usage
North America has the lowest regional share of construction
Reduce costs
businesses classified as beginners, with only 16% within that
category according to our DCA methodology. Underlying the
Track and measure performance and return
relatively high capabilities for North American construction
on investment
businesses are relatively more advanced use of data scores
on average compared to the global average business (62%
compared to 59%). In fact, North American construction Streamline business operations
businesses have the highest share of businesses capturing
and analyzing data, only behind Asia-Pacific in the capture Top three barriers to greater data use
of client information.

This may be reflective of the large capital markets and highly Access to skilled staff
digitized economies of the United States and Canada, which
encourages businesses to invest in cutting-edge technologies. Data security and risk
Both the US and Canada have very competitive construction
industries, which forces businesses to invest in new technology
to improve productivity and reduce costs. Data quality

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Benefits of data Taking the next step 18
construction industry construction industry
State of data capabilities in construction

Case study: DPR Construction

DPR Construction is based in California, and operates across the US, Europe, and Asia. DPR specializes in technically complex and
sustainable projects for the advanced technology, life sciences, health care, education, and commercial office markets.

DPR Construction’s focus on highly complex and technical projects means that using data Data is also seen as a key tool in meeting sustainability targets. DPR are targeting ambitious
to improve decision-making is critical to business success. Both Hrishi Maha, who is the DPR goals to reduce their waste, water, sewage, electrical usage and overall carbon footprint.
lead on artificial intelligence, data science, and data engineering, and Rob Altomare, who Work is underway to ensure data analytics can support these targets, building towards the
leads the data analytics space, have seen the transformation of DPR toward being data-led production of a comprehensive sustainability dashboard. This isn’t currently required by
and are looking for opportunities to push the boundaries further. legislation, and DPR believe that they are ahead of their competitors in this regard, with
Rob noting that both DPR Construction and its clients believe this is the right thing to do.
Hrishi, who has been working at DPR for 14 years, has seen the evolution of data analytics
capabilities grow significantly. Where previously data was held in Microsoft Excel and data One challenge to achieving data insights, according to Hrishi, is the potential disconnect
spread in multiple databases, leading to silos and duplication, DPR have now transitioned between data and operations staff. When Hrishi first joined DPR he personally visited a lot
to a centralized data warehouse and data-driven model, enabling user-friendly data of job sites to learn the industry, explaining that:
collection. DPR Construction have also moved completely to cloud-based systems and
processes to enable greater access to those working on-site. “People on-site didn’t necessarily understand how data worked for them. This led to
Now DPR Construction have a formal software development, data analytics and AI team, skipping non-mandatory data entry, as they didn’t understand the value. However, as
based across the US and India. Currently DPR had dedicated teams in all these areas, with the data team started to reach out to operational colleagues in the field to explain the
Rob noting that Data and Development is viewed as a growth priority: potential benefits, we saw improvements in reporting.”

“As the business has grown, the hunger for data has increased rapidly. We have had Another challenge Rob points out is the potential for 'data overload,' or when there is so
to make sure our investments in capabilities match not what we are currently doing, much reporting it becomes hard to identify key pieces of information. In response to this
but what we want to be doing 5 or 10 years from now.” issue, Rob’s team recently implemented ‘Project Noise,' which seeks to reduce non-critical
reporting and instill confidence in the reliability and accuracy of the data by providing a
central repository for vetted and certified dashboards and reports.
Currently, DPR use operational data to understand high-level priorities such as growth
areas and areas for improvement. The operational data DPR collects is used for detailed Hrishi suggested that while DPR are happy with progress to date. DPR’s ambition is
analysis, with the firm employing analytical tools such as PowerBI and internally developed to increase the use of predictive analytics across financial, sales and marketing, and
applications to deliver insights. One of the priorities at DPR is safety, with data used to track scheduling data. Hrishi emphasized that this would represent a major step forward.
incident reporting, near misses, observations, inspections, and other leading and lagging
indicators. This information is consumed via reports and dashboards on which safety “Leveraging data to improve decision-making and deliver customer value is our
metrics are tracked over time to allow DPR to see month-on-month improvements and objective every day, where DPR truly becomes data-driven. Our job is to figure out
take learnings from project to project. the steps required to reach this point and respond to the latest developments in the
industry and technology.”

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Benefits of data Taking the next step 19
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State of data capabilities in construction

Case study: Suffolk

Suffolk has operated across the United States for the past forty years and now has 10 offices across the country. Suffolk specializes
in complex construction projects and emphasizes the integration of advanced technologies and data-driven strategies.

Recognizing the transformative potential of data and technology for the construction When it comes to measuring the impact of investments in data analytics, Jit Kee cautions
industry, Suffolk has made a concerted effort to integrate an innovative culture into its against exclusively focusing on measuring financial returns. While efficiency dividends are
daily operations. For that reason, Suffolk became one of the first major US construction easier to measure, other benefits are harder, e.g., the value of better decisions. Additionally,
companies to appoint a dedicated Chief Data Officer (CDO) in 2016, a role held by Jit Kee larger-scale transformations often require changing entire workflow processes, and success
Chin. Jit Kee recognises the significance of this appointment, stating that: relies on other factors, e.g., change management. That makes simplistic before and after
comparisons difficult. Jit Kee states that:
“Creating the CDO role was cutting edge for the construction industry at the time.
The role has an important function in the organization, but is also an important signal “Sometimes it can be a leap of faith at the start of a project. There are so many factors
to everyone at Suffolk about the importance of data and innovation to what we do.” at a project level influencing whether you see an improvement or efficiency that you
often can’t clearly show the impact. One more important measure I use is whether
As CDO, Jit Kee recognised the importance of achieving some quick wins and short-term people on the ground find it useful. If the answer is yes, its very likely to be working.”
targets to build appetite for longer-term objectives. Jit Kee recalls that undertaking data
analysis to improve the safety of workers was useful in demonstrating the importance In fact, Jit Kee believes getting the input from operational staff is critical to the success of
and power of data across the company. This helped to create the rationale for building the any data or tech investment in Suffolk. Jit Kee notes that there can be suspicion by staff that
longer-term strategy for improving data processes and analysis at Suffolk. recording and tracking progress can be used as a performance metric that can lead to tools
not being used or not used correctly. To address this issue, Jit Kee emphasised a ‘no-fault’
To ensure Suffolk was at the forefront of adopting innovative tech solutions, Suffolk
culture when launching dashboards and metrics, explaining that:
Technologies was formed in 2019, which is a venture capital platform aiming to invest
in high potential start-ups developing construction-related technology. This enables
Suffolk to adopt and scale some of the leading technologies that are most applicable to “When we first start measuring a process through data, we are conscious there may
the industry and generate financial returns by supporting founders in the early stages of be issues in how we are collecting the data or why this project differs from previous
their business journey. To date, Suffolk Technologies has invested in 30 start-ups, of which ones, which makes interpretation difficult.
approximately 15 participated in their Boost accelerator program. Yet we also know that data can be very helpful for project teams to track progress.
One of the businesses supported by the Suffolk Technologies fund was able to develop So we made sure to talk not about ‘data-driven’ decision-making, but instead about
software which automates the taking of images by a 360-degree camera and maps them ‘data-assisted’ decision-making to emphasise to our staff that they are the ones who
to the design drawings. This allows Suffolk to more efficiently track the progress of projects are making the decision at the end of the day."
and have an accurate record of construction progress for different project components to
share with stakeholders and clients. This solution replaced the labor-intensive process of Suffolk wants its employees, many of whom have decades of experience in the industry,
taking photos, uploading and tagging them, and sharing with relevant clients. to feel as though they are being supported by data. This results in a workplace where new
tech solutions achieve high adoption rates faster and where data champions exist at all
levels of the business.

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Benefits of data Taking the next step 20
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State of data capabilities in construction

Spotlight on Europe Key stats for Europe

Distribution of data capability scores

Transitioning to a more sustainable economy driving This is likely driven in part by the fact that European businesses 22% 67% 11%

demand for the construction industry in the past have struggled more than those in other regions to
Economic headwinds persist on the continent, but public integrate data projects across their organization, or to develop
Beginner Emerging Leader
investment will support the industry long term roadmaps for digital investment.10 Of course there
The European construction industry is a major driver of is also variation across and within countries, for example,
employment and economic activity in the region, supporting construction businesses in the Netherlands lead the region on Average score in the three data pillars
18 million jobs and contributing 9% of the GDP of the European average in the capture and application of data in construction.
80%
Union (EU).7 European construction businesses face a relatively There is also variation across and within countries. For example, 60%
60% 57%
53%
more sluggish economic environment compared to other parts construction businesses in the Netherlands lead the region on
of the global economy at present. Inflation in the both the EU average in the capture and application of data in construction. 40%
and UK remain above the average level in other developed To thrive in the challenging economic environment, and to 20%
nations, while GDP growth of all members of the EU and UK only effectively transition towards more sustainable operations,
grew by 0.5% and 0.6%, respectively, in the 12 months to June 0%
businesses will have to harness the power of data and Use of data Data strategy Data talent
2023, below the 2.6% observed in the United States over the technology or risk being left behind global peers.
same period of time.8
Overcoming the regulatory burden Top three benefits of data
The transition to a more sustainable industry is a significant Accessed to skilled staff and data security and risk were the
trend for European construction businesses. This trend is two most common barriers to greater data use reported by Reduce costs
driven by regulation as well as business and client preferences. European construction businesses. These align closely with
The transition for the construction industry will be supported businesses in North America and the Asia-Pacific. Grow the business through the identification
by the €800 billion Next Generation Fund, an EU initiative
One barrier cited by European businesses that was less of new projects
designed to support the continent in reaching net-zero carbon
emissions. Construction in the UK will be supported by the common in other regions was government regulation and
Track and measure performance and return
similar National Productivity Investment Fund, a £31 billion legislation. Nearly one in five (18%) of European businesses listed
on investment
fund designed to support investment in transport, housing government regulation and legislation as one of their top three
and digital infrastructure.9 barriers to data adoption. Europe is known to have a relatively
Top three barriers to greater data use
strict regulatory environment compared with other regions.11
A high share of middling data capabilities Government regulation can have a mixed impact on data
Surveyed European businesses had the highest share of Access to skilled staff
capabilities, with regulations like GDPR requiring more oversight
emerging data capabilities and a relatively lower share of leader for data processing and usage. While regulatory requirements
businesses compared to other regions considered in this study. may necessitate investment in data collection and analysis as Data security and risk
The difference in data capabilities holds after considering other businesses track and report on a number or metrics, regulations
factors such as the business size or years in operation. may focus businesses on compliance reporting rather than using
data to generate commercial or innovative insights. Government regulation and legislation

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State of data capabilities in construction

Case study: Dura Vermeer

Dura Vermeer is one of the top construction companies in the Netherlands with over 165 years of experience. The company
now employs over 3,000 employees. Dura Vermeer is involved in all aspects of a project lifecycle for residential, non-residential,
infrastructure and technology developments across the Netherlands.

Bart Pigge, Director at Dura Vermeer, and Gert-Jan Ditsel, Digital Construction Manager, Achieving data-driven insights has required Dura Vermeer to use a mix of products from
are quick to realise that the use of data analytics has been critical to the success and tech vendors and self-developed platforms. One of the products used by Dura Vermeer is a
longevity of Dura Vermeer. Bart reveals that: digital cloud-based system for supply chain data management called 12Build, which helps
when selecting subcontractors or suppliers. Another use of external data software at Dura
“We certainly value the insights data can provide. We are already using data for Vermeer is the BIM360 hosted on the Autodesk Construction Cloud platform, which is used
reducing costs, forecasting revenue and margins, improving our environmental to track active projects progress, number of active users, documents and manage issues.
impact and making strategic adjustments throughout a project. But there are so
Using these products provides Dura Vermeer with analytic capabilities they would not
many more uses for our data and we are working towards making the most of the
be able to achieve otherwise, yet Gert-Jan recognises the need to think long-term when it
data we do collect.”
comes to the use of products and platforms, noting that:

Dura Vermeer’s bespoke ERP system, Projectmaster, collects and analyzes financial data
and other project data including the number of working hours for each project. With this “We are more than willing to partner with different providers when it comes to
data, Kental, another software application used by Dura Vermeer, provides forward-looking data analytics products or platforms, but we need to consider how these all fit
insights about the tenders Dura Vermeer are considering to bid for based on benchmarks together. Otherwise, we will quickly run into interoperability issues with our systems.
from previous projects. This includes details from previous projects such as the Finding solutions that are compatible with our existing systems is a key priority at
groundwork and roofing, and stores the costs of the components. Dura Vermeer.”

With this information, Dura Vermeer can readily estimate the costs for similar prospective
projects within 1-2 days, a task which can take up to 8 weeks normally. When asked about their tips for other construction businesses looking to improve
their data analytics capabilities, Bart and Gert-Jan point out the importance of having
Data is also used to make sure projects are efficiently managed. For example,
executive-level support to make sure strategic investments are made with clearly defined
Dura Vermeer collects data on road usage around their construction sites and uses it
use cases for data from the start. This ensures the building of data analytics capabilities
to plan future transport routes and times with the goal of reducing time for employees
of a business is focused on where there is the largest potential for efficiencies and returns.
and suppliers navigating peak periods. Gert-Jan adds:

“Our data analytics aims to improve both our efficiency and the sustainability of
our operations. We are using our data to estimate and forecast costs and waiting
times as well as CO2 and NOx emissions from our operations. This data enables us
to make informed decisions which are crucial for meeting our sustainability goals
and obligations.”

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Benefits of data Taking the next step 22
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State of data capabilities in construction

Case study: Morgan Sindall Construction

Morgan Sindall Construction is part of Morgan Sindall Group, a UK-based construction and urban regeneration business founded
in 1977, which now generates £3.6 billion annually. Morgan Sindall Construction undertakes projects for both the public and
commercial sectors where people live, learn, work, play are cared for and protected.

The use of data and technology is deeply embedded into Morgan Sindall Construction, Realising the potential of data analytics at Morgan Sindall Construction requires addressing
with the business actively using or trialling technology such as drones, automated imagery, some existing challenges. One focus area for Morgan Sindall Construction is removing data
automated excavation, people and plant sensors, and BIM modelling. They collate project- silos. As the business operates across multiple regions with a decentralised structure, this
specific and operational data internally, and also purchase pipeline and market intelligence has led to data being stored separately by teams, without a common data repository.
data from external providers. Steffan Speer is a Technical Director whose role focuses To address this issue, Morgan Sindall Construction is looking at investing in data
on identification of competitive advantages, with the use of data being a key focus area. warehousing technology. Once operational, this platform will increase the interoperability
Steffan explains that: of systems, and improve communication and analysis across regions and functions.

Another barrier to achieving data-driven insights is the data quality. In particular,

“There are a myriad of technologies that have recently been applied to construction consistency of definitions and data collection processes is important to achieve improved
and the field is evolving rapidly. This can make it hard to decide what to invest in, analytics. Steffan explains:
but our simple rule of thumb is that if project teams can see a benefit, then things
get implemented.”
“Data cleaning and improving data quality is the foundational step required for our
business to reap greater benefits from data analytics. We can have all the latest,
Per Steffan, the executive leadership at Morgan Sindall Construction are highly supportive cutting-edge data analytics platforms and tools but to make sure we are getting the
of increasing data analytics capabilities. When assessing proposed investments, the best return from the systems we need a high-quality data.”
executive leadership look to identify direct links to improved operational efficiency and
improved user experience, and for longer-term projects this can require detailed analysis
In order to build out data analytic capabilities quickly, Morgan Sindall Construction is
prior to implementation. A strategic goal from the leadership is to build capabilities in
partnering with external contractors or consultants for data-specific tasks. Steffan points
predictive analytics to complement the existing data collection and analytics tools that
out that carefully selecting the partners is important to achieve the desired outcome.
provide a basis for retrospective analytics.
Over the longer-term, the Morgan Sindall Construction is looking to increase the size of
To realise these goals, Steffan explains that the business also has a specific team tasked the in-house data analytics team to increase internal capabilities required to achieve the
with investigating the future of work, alongside the ongoing work on data collection. strategic objectives of the business.
This team is investigating the potential to use tools such as PowerBI, alongside
early stage exploration of the potential uses of AI/ML and middleware solutions in
Morgan Sindall Construction operations.

Outlook for the State

State of
of data in the
data in the
Benefits of data Taking the next step 23
construction industry construction industry
construction industry
State of data capabilities in construction

Spotlight on Asia-Pacific Key stats for Asia-Pacific

Distribution of data capability scores

Asia-Pacific is a diverse region with the largest variation In addition to this, businesses in Asia-Pacific are leaders in the 21% 49% 29%

among individual countries use of data to track the environmental impact of their projects,
An already strong region, where construction will with businesses in India, the Philippines, and Singapore the most
Beginner Emerging Leader
continue to be supported by growing incomes likely to use data to track this.
The Asia-Pacific region, home to the two most populous Lack of funding holding back data capabilities
countries on the planet, is a major driver of global construction. Average score in the three data pillars
Lack of funding was the most common barrier identified by
The region produced an estimated $4.36 trillion US of output in businesses within Asia-Pacific. Those businesses which do 80%
67%
2022, representing 45% of the global industry, a figure which is not have a dedicated investment budget to improving data 59%
60% 54%
forecast to grow to 49% by 2030.12 capabilities are 57% more likely to cite lack of funding as a barrier
to digital adoption than other businesses, suggesting developing 40%
For many countries in Asia-Pacific, population growth, combined
with significant economic development, is expected to drive an investment strategy with clear priorities could lead to an 20%
strong growth for both residential and civil engineering projects. increase in data capabilities across the region.
0%
Other countries – such as Australia and Japan – face ageing Data security and risk and data quality were identified as the Use of data Data strategy Data talent
populations but have significant private and public investment to next most common barriers for greater use of data. The issue
stimulate local construction industries.11 with data quality may be a factor which is driving a relatively Top three benefits of data
A diverse region with varying levels of data adoption lower score in the use of data pillar.
Construction businesses in the Asia-Pacific region have relatively Reduce costs
higher levels of data talent compared with global peers.
As expected for such a diverse region, the Asia-Pacific region Grow the business through the identification
has the largest variation of data capabilities between countries. of new projects
Interestingly, variation in data capabilities are not entirely Track and measure performance and return
correlated with levels of economic development. In fact, on investment
Japanese construction businesses were the least likely to report
that they are making the most of data. Conversely, businesses Top three barriers to greater data use
in India and the Philippines are leaders in the application of
data to construction operations alongside Australian and Lack of funding
Singaporean businesses.

Data security and risk

Data quality

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Benefits of data Taking the next step 24
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State of data capabilities in construction

Case study: Lendlease

Lendlease is a global company that employs over 7,600 people across four continents and has over $120 billion in the development
pipeline. The company has over 60 years of experience and has capabilities that span all stages of the property lifecycle across
investment, development and construction.

Lendlease relies on strong data foundations to manage a portfolio of 250+ large-scale Making the most of the data Lendlease collects has required identifying and removing
projects, with potentially 20-30 subcontractors involved in each project. Andrew Rampton, data silos. This is not an easy or simple task, as it requires integrating a variety of data
Group Executive - Construction at Lendlease, is quick to recognize that the success of points from a vast range of contributors. The issue is exacerbated when companies across
the company is increasingly driven by the way it views data and the role data plays in the the value chain are using different systems to collect, store and analyze their data, which
organization’s decision-making, saying that: may not be interoperable.

Partially in response to this challenge, Lendlease is developing its own data platform and
“The way that Lendlease operates means that sound data collection and analysis is software applications, to enable greater sharing and analysis across relevant stakeholders
core to our business. These days, we are not so much a construction company and and which will hopefully generate time and cost efficiencies in future. Andrew notes that
more of an 'information management company,' which means our data management this is a trend across the industry; tech vendors are increasingly developing a platform-
and analytics should be more like a Google than a traditional construction company.” approach that enables data integration across applications.

Andrew recognizes that this interoperability issue points to the need to reimagine business
Andrew points out that while the use of lagging indicators is well established in Lendlease processes and challenge some outdated concepts to realize the full transformative
and the construction industry more broadly, there is now a greater focus on using leading potential of data in the construction industry. In particular, Andrew points out that how a
indicators to inform decision-making. Lagging indicators such as time, cost, quality and construction business views intellectual property (IP) needs to change by stating:
environmental, health and safety are used to inform and adjust projects frequently.
Yet the nature of these indicators means they will always be reactive. Leading indicators
“Intellectual property in the construction industry has historically been focused on
that provide benchmarks and insights for products, projects and teams will increasingly
the plans and designs we produce. We guard designs jealously like they are our keys
be used to plan outcomes and inform future decisions.
to our success. Going forward, IP will be more about how construction companies
While the use of both lagging and leading indicators can produce significant efficiency compile and consolidate data - and the processes and models used - to inform our
and quality improvements, the leading indicators offer greater dividends. Andrew explains ability to plan and execute efficiently.”
one example:

When this approach takes hold, construction will fundamentally change from a cost-
In a typical procurement process, many project teams will start the design largely from competing industry towards an industry that focuses on and recognizes the importance
scratch and take weeks coming up with time and cost forecasts. Yet we’ve all done of data sharing and collaboration to produce higher-quality places that better respond to
hundreds of similar projects before. Every business should be able to pull on data from the challenges society will face in the future.
past projects and produce accurate forecasts within a matter of days (or hours?).”

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Benefits of data Taking the next step 25
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State of data capabilities in construction

Case study: Hansen Yuncken

Hansen Yuncken is one of the oldest construction businesses in Australia, and is a world leader in sustainable architecture.
They have built some of the most iconic buildings in Australia, including the Museum of Old and New Art in Tasmania and are
using technology to continuously improve their operations.

Innovative construction techniques have been a part of Hansen Yuncken as far back as the Data analytics is key in addressing one of the biggest risks Hansen Yuncken face according
1920s, when the company was the first to use a suspended scaffold to restore the dome of to Rexine – time overruns. Rexine notes that more than half of the cost overruns in recent
the State Library of Victoria. In more recent years, Hansen Yuncken developed an award- years have been attributed to issues related to timing. For example, unexpected delays can
winning management system, HYway, which combines geographic information with project have knock-on impacts for other subcontractors who are unable to start. Better and more
planning and management systems. HYway provides the Hansen Yuncken team, clients frequent data analytics are able to better sequence a build and better utilise subcontractor
and partners with a holistic view of the project, and has recently won a Platinum Award in time to make sure workflows are able to progress efficiently. Rexine explains:
Intranet Innovation.

Rexine Jones, the Chief Financial and Information Officer of Hansen Yuncken, recognises “Sometimes we get fixated on chasing big time-saving applications, but more often
that this innovative culture does not happen by default, but needs to be actively and it’s the tech that can save a few minutes here and there that has the biggest impact
continuously encouraged. Rexine notes that as a national company there are often when they are scaled up across the entire business.”
opportunities to learn from what teams are doing in different jurisdictions, explaining that:
Another key benefit of data analytics is preemptively identifying and mitigating risks
“We have noticed that business champions can have a significant impact on the Addressing potential mistakes before they materialize is not only more efficient but also
quality and use of data in a region. In some regions of the business we’ve seen a significantly cost-effective. This is particularly important for construction management
strong bottom-up demand for technology, which has driven uptake. This has allowed companies, given they take on the ultimate risk for a project. If a defect is discovered
to us to figure out successful models and apply them to other geographies.” months down the track, the cost of repair generally is borne by Hansen Yuncken, as the
work by contractors will often already be signed off.

One important learning to encourage adoption and use of data was ensuring the Rexine highlighted the benefits of using of 4D modelling, which allowed the company
technology was user friendly. Even technology that had provided significant increases to look back on construction projects, both to identify when a mistake may have been
in capabilities did not lead to material results in terms of capability uplift as staff found made, and analyze the potential causes of it. This has resulted in continuous learnings
the device less user friendly, which led to lower usage rates among staff. For this reason, from significant experience of the business that can be applied to all future projects the
Hansen Yuncken has focused on making sure devices are user friendly and the benefits business undertakes.
to staff from using the technology are clearly communicated. Rexine emphasises that:

“Once our team knows that the tech is designed to make their job easier or safer,
they are more likely to go beyond the functions that were simply demonstrated to
them. This is when the real benefits of the tech will be realised.”

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Benefits of data Taking the next step 26
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State of data capabilities in construction

Spotlight on business functions

Data usage differs across business functions Distribution of data capability score – by business functional area
The surveyed building information modelling/virtual design
and construction (BIM/VDC) businesses had the highest share
Field/Operations 18% 61% 22%
of leaders in data capability at 24%, with this being slightly
higher than the Field/Operations (22% data leaders) and
Preconstruction (19% data leaders). BIM/VDC businesses also
took the lead in the use of data pillar and data talent pillar, Preconstruction 14% 67% 19%

scoring respectively 61% and 62%.

Surveyed businesses specializing in Field/Operations

BIM/VDC 19% 56% 24%
displayed higher level of data strategy than businesses with
other specialties at 66%. However, these businesses only
scored a modest 53% in data talent, suggesting that there are 0% 20% 40% 60% 80% 100%
components in data talent that Field/Operations businesses
could improve on. Beginner Emerging Leader

Surveyed businesses specializing in Preconstruction, which Source: Deloitte Construction Data Survey (2023)
offer services that support owners, architects, and engineers in
making decisions prior to construction beginning, had the lowest Average score in the three data capability pillars - by business functional area
share of beginners, and the highest share of emerging data
capabilities businesses. In terms of the underlying components 70% 64% 66% 66%
61% 62% 60% 60%
of data capability, survey results show that Preconstruction 60% 56%
53%
performed admirably in data strategy, but slightly lagged behind
50%
BIM/VDC businesses when it comes to data talent.
40%
30%
20%
10%
0%
BIM/VDC Preconstruction Field/Operations

Use of data Data strategy and governance Data talent

Source: Deloitte Construction Data Survey (2023)

Outlook for the State of data in the

Benefits of data Taking the next step 27
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State of data capabilities in construction

3 Benefits of data

Outlook for the State of data in the

Benefits of data Taking the next step 28
construction industry construction industry
State of data capabilities in construction

The benefits of data leadership

Businesses with leading data capabilities are more • Leaders in data capabilities are 1.7 times more likely to be • Businesses that have leader levels of data capabilities are
optimistic, more likely to have international operations optimistic about the future financial performance and growth likely to have already adopted advanced technologies such
and more likely to adopt advanced tech of their businesses, compared with businesses with beginner as drones, BIM, and digital twins. In fact, leaders have on
The vast majority (94%) of construction businesses believe levels of data capabilities average adopted 9 technologies out of 17, compared with
that data collection and analysis has been effective for an average for only 1 for beginners and 5 for emerging.*
• Leaders are 3 times more likely to have international
decision making, with nearly a third (31%) reporting it has operations when compared with businesses with beginner From an industry perspective, the greater use of data allows
been extremely effective. levels of data capabilities for better communication and planning between businesses,
Businesses that embrace data for decision making are realising clients and subcontractors. This can improve knowledge sharing
significant benefits in their business performance. Consider the and increase productivity by ensuring materials are delivered
following insights from our survey: when needed and workflows can be efficiently managed through
out a project.

Technology adoption rates, by Data Capability Assessment category Effectiveness of data collection and analysis for decision
making
80%

69%
67% 2%
66%
60%
60% 56% 56%
4%

40%
23% Not at all effective
40% 38%
33% 33% 32% 32% 31% Somewhat effective
25% 25% Moderately effective
20% 16% 16% Extremely effective
13% 12%
10% Don't know/Not sure
8% 7%
6% 6%
4%
0%
Artificial Mobile Internet of Construction Construction Building 3D Digital
40%
Intelligence/ apps Things and management wearables Information printing twin
Machine Learning smart sensors cloud software (power gloves) Modelling (BIM)
Source: Deloitte Construction Data Survey (2023)

Beginner Emerging Leader

Source: Deloitte Construction Data Survey(2023)

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State of data capabilities in construction

The data dividend

More than 50% increase in average expected profit growth These results align with other modelling around the benefits
is associated with a move from beginner to leader of data collection and data analytics. A survey of over 3,100
Most businesses understand the value of data to streamline organizations across Asia-Pacific, including construction, Leaders report a
found that businesses with higher data maturity earned
operations or improve decision making, although it can often
be difficult to measure the impact. 8.7% higher revenue per year.1 1 Other research has found 50% increase in average
evidence that investment in data and the efficient sharing of
To assess the value of being data driven, Deloitte Access profit growth rate when
data has been shown to reduce costs and improve the quality
Economics has modelled the relationship between expected of construction projects.2,3,4 compared to beginners.
financial performance and data capabilities.
This is equivalent to a 2.7
The results show that a leader in data capabilities have, on
average, a 2.7 percentage point higher expected annual
percentage point increase
profit over the next five years in comparison to a business with in expected average profit
beginner data capabilities. For the average business, this uplift each year.
could increase the average profit growth over the next five years
from 4.4% per year to 7.1% per year.

For a business with $25 million USD in annual profits, the step
up in data capabilities from beginner to leader could be worth $0.7 million USD
an additional $0.7 million USD per year in additional profits.
is the expected additional
This result holds after accounting for years in operation, location,
annual profit which can
employment size and areas of construction specialisation.
Further detail on the methodology used for these modelling be generated as a result
results are available in the Appendix. of stepping up from
Beginner to Leader in data
capabilities, for a business
earning $25 million USD in
annual profits

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State of data capabilities in construction

4 Taking the next step

31
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Overcoming the barriers to being data driven

Over 90% of construction businesses face at least one • Data training can build in-house data skills – a quarter • A clear investment strategy with senior executive
barrier to being data driven of businesses report access to skilled staff as a key barrier to support can reduce lack of funding for data analytics –
To realise the potential of data in the construction industry, a integrating data-driven insights. This issue is shared across all funding challenges require senior executive buy-in. Businesses
number of barriers to collecting and analyzing data will have to industries and reflects the high demand for such skills in the where the senior executive team were identified as the data
be overcome. Nearly 90% of businesses operating in the industry modern economy. One solution is to develop in-house data champions were 30% more likely to data leaders compared
face at least one barrier to integrating data-driven insights into skills for existing staff. Our survey finds that businesses who with those who did not identify the executive team as data
business processes, with access to skilled staff, data quality, and provide training to all team members are 2.5 times more likely champions, while those with an organization-wide data
data security and risk identified as the most common barriers to be data leaders compared with those who do not offer investment budget were 2.5 times more likely to be data
faced by construction businesses. training to staff. leaders compared with those businesses who do not allocate
specific funding towards investment in data.
Taking action to effectively address these barriers can • Centralised data teams and standards can improve
significantly enhance the data capabilities of a business. Looking data quality and data security – the quality and security
specifically at the key challenges identified our research finds: of data can be improved by standardised data team structure
and processes. Businesses with a centralised data team
are nearly twice as likely to be data leaders compared with
those who do not have central data resources within their
organizational structure.

Barriers to integrating data driven insights

25% 24%

21%
20% 19%
20%
18%
17% 17%
15% 15%
15% 14% 14% 14% 14%
12% 12%
10%
10%

5%

0%
Access to Data Data security Lack of Tools and Strategy Workplace Government Lack of Lack of Data Data is C-suite Short Fragmented The organisation
skilled staff quality and risk funding technology culture and regulation and integration access to access stored in too sponsorship/ funding ownership is not prevented
politics legislation into other skilled external many places leadership cycles from achieving
critical business partners data driven insights
platforms

Source: Deloitte Construction Data Survey (2023)

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State of data capabilities in construction

Importance of data training

New starters are most likely to benefit from data training, Data literacy of construction industry employees
with a third having basic levels of data literacy
A lack of access to skilled staff was the most common barrier
to achieving greater data insights, with nearly a quarter of all
businesses reporting this issue. Data training to increase data
literacy or skills in analysis can be effective in addressing this Managers 46% 35% 11% 9%
barrier, with our survey finding that businesses who provide
training to all team members are 2.5 times more likely to
be data leaders compared with those who do not offer training
to all levels of employees.

Data training should be directed to all levels of staff. Our

survey found that new starters typically have the lowest
levels of data literacy in a construction business, with All employees
23% 38% 28% 11%
33% only possessing basic skills. This finding contradicts (excluding data team or new starters)
expectations of generational gaps in tech familiarity and
capabilities of ‘digital natives,' instead suggesting that industry
or workplace-specific data skills are developed through
experience and job-specific training.

The importance of job-specific training reinforced by project

managers possessing the highest proportion of advanced
New starters (who have
data skills and most likely to receive data training of any 19% 35% 33% 13%
joined the workforce in last 3 years)
employee group in the business, with nearly two thirds (63%)
undergoing training on using or interpreting data.

Despite the demonstrated importance of training, our survey

found 13% of businesses don’t offer data training of
any kind, to any of the listed team members. Given the 0% 20% 40% 60% 80% 100%
importance of data training across all levels of seniority, this
finding suggests an important action for business looking to Advanced Intermediate Basic Not sure/Don't know/NA

improve their data capabilities.

Source: Deloitte Construction Data Survey (2023)

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Improving data quality and security through centralized processes

and teams
A quarter of businesses do not have any data analytics 2. D
 ata security and risk. Concerns surrounding the security Structure of the data analytics team
roles or outsourced capabilities to another organization of data, and the associated risks of any security breaches,
Less than a third of construction businesses have a centralised were highlighted as a significant barrier to data use.
data team, with teams commonly operating in silos. This can Security and risk processes would benefit from a centralised
create inconsistency across data standards and processes. data team but beyond that, 12% of construction businesses
In fact, a quarter of businesses do not have any data analytics reported that they do not have a well-defined data governance
roles in their business, nor have they outsourced capabilities policy. Similarly, 24% of businesses do not view loss of data 24%
to another organization. or data breaches as a risk, which suggests that such risks
28%
may not have been fully evaluated. Improvements around
A centralised data team and standardised processes data security do not have to extend to large-scale investment
can address two key barriers for businesses seeking to in systems, as improvement in these procedural elements
increase data capabilities: would immediately mitigate some of the risk associated with
1. I mproving data quality and access. Issues relating to data data usage.
7%
quality often result from inefficiencies in the storage and
analysis of data. Yet 29% of businesses state that they store
data on too many different platforms. Further to this, 26% of
businesses are experiencing difficulties integrating data across
their various platforms, highlighting the need for investment in
centralised data warehousing. Poor data quality and processes 19% 22%
are a key barrier to greater data capabilities and associated
benefit. Another study finds that ‘bad data’ costs the global
economy more than $1.84 trillion USD each year.1

There is a centralised data and analytics team that works across the
Improved access to data can also benefit operational organisation to capture and analyse data
efficiency. Management and executive-level employees in the
Every department/team has its own dedicated data and analytics professionals
construction industry spent an average of 11.5 hours per week
Some departments/teams have dedicated data and analytics professionals
researching and analyzing data. However, much of this time
The organisation's data and analytics functions are outsourced
is spent inefficiently, suggesting that improvements in data
We do not have formal data and analytics roles
availability could have an immediate impact on productivity.

Source: Deloitte Construction Data Survey (2023)

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An investment budget to prioritize use cases

Three quarters of businesses have an investment budget Investment approach towards data analytics capabilities
for data and analytics
An effective approach to investment is key to building data 7%
capabilities. While 16% of businesses reported that they had
no specific provision in their budget for investment dedicated 16% 24% There is an organization-wide investment budget and there is a clear prioritization of investments
to data analytics capabilities, over three quarters of businesses
There is an organization-wide investment budget but there is no clear prioritization of investments
have a dedicated budget to develop their data capabilities.
However, this investment is often not clearly targeted, with Some teams have an investment budget but there is no coordination at an organization level and no clear prioritization

just 24% of businesses having a clear strategy for There is no investment budget in data analytics capabilities
investment prioritization. None of the above
25%
In terms of investment allocated to data analytics, twice 28%
as many businesses report investment in data as
increasing as those that report investment decreasing.
The most common area to increase investment is in data
Source: Deloitte Construction Data Survey (2023)
collection or analytical tools or software categories followed
by data architecture and training and recruitment practises.
Overall, more businesses expect to invest in internal recruitment Investment allocation in data analytics
and training relative to external contracting to develop their data
capabilities, suggesting a desire for businesses to retain control Data collection or analytics tools or software 32% 47% 12% 8%
of their data capabilities within the company.

Having a ‘data champion’ can help to develop an investment Training existing staff in data and analytics 31% 49% 12% 8%

budget with a clear list of priorities. ‘Data champions’ are most

commonly project leaders rather than executives, suggesting Data architecture 28% 48% 12% 12%
that those working with data have a clear view on its value.
Yet businesses where the senior executive team were
Hiring internal data and analytics professionals 28% 47% 14% 11%
identified as the data champions were 30% more likely to
be data leaders compared with those who did not identify their
External data analytics services
executive team as data champions. Despite this clear benefit, (e.g. from a contractor)
25% 51% 12% 12%

nearly one in five businesses did not believe that there is a data
0% 20% 40% 60% 80% 100%
champion within their business and a further 9% could not
identify a data champion. Investment in this item has increased Investment in this item has stayed the same
Investment in this item has decreased Not sure/don't know

Source: Deloitte Construction Data Survey (2023)

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Overconfidence in data capabilities

When businesses were asked to self-assess their Comparison of self-assessment and Data Capability Assessment (DCA)
business’s data capabilities, we found an overconfidence
100%
bias across all geographies
The Data Capability Assessment (DCA) used in the evaluation
20%
of construction businesses’ use of data is calculated across
13 indicators to provide a comprehensive, robust test of 33%
the competency. However, the survey also included a self- 80%
assessment, where businesses were asked to rank their ability to
utilise data across four categories – collection, storage, analysis,
and strategy. Comparing the two metrics provides a view of how
businesses perceive their data capabilities relative to the output
of the DCA. 60%

Typically, businesses overrated their data capabilities, with

60%
33% self-assessing their capabilities as aligned with the
leader categorisation, versus only 20% of businesses
50%
identified as leaders through the DCA. This overconfidence 40%
effect is a common phenomenon and well-established source
of bias in survey results, with participants subjective confidence
in their abilities normally greater than an objective assessment
of those judgments.
20%
In practise though, this bias can represent a barrier to increased
data usage. If businesses believe that they are already operating
at the leading edge of technology with regards to their data 17% 20%
usage, then they are less likely to explore how they can
further improve their capabilities. This inability to recognise 0%
the true extent of their capabilities can limit the investment Self-assessment Data Capability Assessment
and the strategic planning necessary to further integrate
data into business practises, with follow-on implications for Beginner Emerging Leader
operational performance.
Source: Deloitte Construction Data Survey (2023)

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Taking action

In order to address the barriers and challenges identified, this report recommends businesses focus on progressing five key priority areas
Improving data capabilities for many businesses may not require significant changes to their ways of working or extensive funding. Instead, taking early and effective action towards progressing
priority areas will ensure that businesses have the potential to realise the numerous benefits that come from more technologically advanced operations.

In order to address the barriers and challenges identified, this report recommends businesses focus on progressing five key priority areas:

Develop an organization-wide data

Develop in-house data literacy and skills Build motivation for change
strategy and track progress
Developing businesses data capabilities is key to unlocking the Achieving a smooth transition to more data-orientated Through the development of a holistic data strategy, businesses
potential of technology in the construction and engineering processes requires the active acceptance of the team members can identify goals to progressively build their digital capabilities,
industry. The attraction and retention of team members with implementing the change. Businesses must proactively identify acting within specified timelines and alongside allocated funding.
digital skills will be an important aspect of this process, as will user needs and clearly articulate the benefits of transformation There is no budget allocated for investment in data analytics
the provision of data training designed to accelerate upskilling. to build enthusiasm, which requires a solid change management capabilities in 16% of construction businesses.
Currently, 24% of construction businesses do not have formal strategy. This should include skill development, transition
data analytics roles, while just 58% offer further training to support, clear communications of defined milestones, and
their data professionals. consistent tracking of success measures.

Build organization-wide standards and

Identify the quick wins
procedures
The adoption of common data standards and procedures will By adopting a flexible approach to transition, and listening
allow businesses to reduce data silos, increase efficiency in their to feedback at each step, businesses can identify aspects of
data recording and reporting processes, and improve their data their data process which may require additional attention,
quality. This will allow increase business’s analytical capabilities, but also those aspects where a successful trial could justify
providing richer insights from data. Just 59% of construction a wider implementation of technologies or data practises.
businesses reported that they gather data efficiently using By concentrating on solutions which are easy, fast, and
standardised processes. economical to implement, businesses can build momentum and
demonstrate the positive case for change through visible and
immediate impacts.

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Appendices

38
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Appendix A.1 This report

Deloitte Access Economics was commissioned by Autodesk to understand the use Survey respondents by business role
of data in the construction industry in Australia, Canada, France, Germany, India,
Ireland, Japan, the Netherlands, the Philippines, Singapore, the United Kingdom
and the United States of America. The report highlights the benefits and barriers
to these businesses from being data driven. 21%

This report is informed by a survey fielded by Dynata and Censuswide from Business Owner
36%
July to August 2023. Survey respondents were either construction managers or C-Level Executive
executive level. A total of 1,275 organizations participated in the survey (see table Senior Management
14%
for individual country sample breakdown). Middle Management

63% of the survey responses are from construction directors, c-suite or business
owners. The remainder of the sample are construction managers.
28%
Further breakdowns of the survey are shown below.
Source: Deloitte Construction Data Survey (2023)
Sample size of survey by country

Countries Sample size Services provided by respondent businesses

United Kingdom 115
80%
Ireland 126
68%
Germany 135
France 98 60%
Netherlands 135
United States of America 248
40%
Canada 67
27% 26%
Australia 78 24% 24% 23%
Singapore 52 20%
Japan 95 5%
India 73
0%
Philippines 49 Building and Engineering Residential Specialty Architecture Commercial Other
construction development trade development
Other 4
Total 1,275 Source: Deloitte Construction Data Survey (2023)
Note: Respondents could select multiple options
Source: Deloitte Construction Data Survey (2023)

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State of data capabilities in construction

Appendix A.2 Data Capability Assessment (DCA)

The Autodesk Data Capability Assessment (DCA) was used to 3. Responses were scored then summed together within Distribution of responses based on cut-off scores
assess the data capabilities of construction businesses. This will each pillar based on the scoring adopted in step 2.
provide a standard measure to compare digital capabilities 3%
4. The scores across the pillars were then summed to yield
across businesses in different countries. To measure the data
a total score ranging from zero to 183. In the sample, the

Share of businesses
capabilities, the following steps were undertaken.
average score is 108.12, the lowest score is 3 and the
2%
1. Survey questions were divided among the three major highest score is 170. These scores were then scaled to
data pillars: Use of data, Data strategy, and Data talent. indices between 0% and 100% based on the maximum
The number of questions vary between pillars and a total possible score. 1%
of 13 questions were used to inform the analysis.
5. Respondents were then grouped into three data maturity
2. Each response within each question was allocated a categories based on the cut-off scores shown in the 0%
score, based on the within-question level of data maturity. table below. 0 25 50 75 100
The maximum possible score in each question varied. Data Capability Score

Beginner (0-46) Emerging (47-72) Leader (73-100)

Source: Deloitte Construction Data Survey (2023)

Data Capability Assessment categories and cut off scores

Classification Description Lower bound Upper bound

Beginner Minimal data collection or analysis takes place. There is no current plan for wider adoption and use of data. No strategy exist 0 46.5
to identify data talent or to develop data skills through further training.

Emerging Forms of data are being collected but only limited datasets are analyzed. Data analysis occurs fairly infrequently. 46.5 72.5
Future planning for the use of data is limited to operational functions, with no overarching strategy. There is recognition
of the need for data skills, but central planning for skill development is limited.

Leader Many sources of data are being collected and most datasets are being analyzed. Data analysis occurs frequently and 72.5 100
with a variety of analytical tools to inform decision making. The data strategy is comprehensive and holistic, and clearly
communicated across the organization. Talent is cultivated and directed, maximising the contributions of those possessing
data skills. Appropriate training across different levels are offered.

Source: Deloitte Access Economics analysis and Deloitte Construction Data Survey (2023)

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Appendix A.3 Benefits modelling

A standard linear regression model was used to determine the impact of a step Econometric results
up in digital capabilities from the DCA Beginner category to the Emerging category
and Leader category. Results controlled for business length of operation, number Dependent variable 5-year Profit CAGR
of employees, region of headquarter and type of service provided. Including these
controls ensures that the results account for all the aforementioned factors.
Intercept 7.58 (1.85)***
5-year Profit CAGR (%)= β0 + β1 dca_category+ β2 age+ β3 no_employee+
β4 region+β_(5 ) functional_area+ ε
The results are in the adjacent. Some caveats apply, as detailed below: DCA Category: Emerging 1.72 (0.41)***

• There is likely a correlation where high profit growth expectation implies strong DCA Category: Leader 2.69 (0.52)***
financial performance and, as a result, more funds are provided to invest into
improving data capabilities.
Age [More than 1 year, up to 3 years] -3.00
• Business functional areas in the model, including BIM/VDC, Fields/Operations,
Preconstruction and Other, might not be specific enough to describe the Age [More than 3 year, up to 10 years] -3.99*
construction industry. Age [More than 10 years, up to 20 years] -3.87*
• R-square of the model is low indicating that other relevant variables explaining Age [More than 20 years] -4.92**
profit expectation are being omitted due to data limitation, or that the
relationship being digital capabilities and profit growth expectation might not be
strictly linear. Size 0.00
Results remain highly statistically significant even after controls for differences in
digital capabilities across the countries are applied.
Region [APAC] -0.07
There is strong evidence of profit growth expectation increasing along incremental
steps of the data scores index. In particular, a 10% movement up the DCA index Region [EMER] -1.71***
is found to be associated with a 0.6% increase in 5-year profit CAGR. This result is
statistically significant at the 1% level.
Functional area [Field/Operations] -0.36
Digital capabilities are also found to be positively associated with revenue growth
Functional area [Other] -1.40*
expectation with strong statistical significance. The relationships between digital
capabilities and both profit and revenue growth expectations suggests that digital Functional area [Preconstruction] 0.70
capabilities are closely and positively linked with construction businesses’ future
growth prospects. * p<0.05 ** p<0.01 *** p<0.001

There is also evidence that a positive relationship exists between digital Source: Deloitte Construction Data Survey (2023)
capabilities and profit and revenue growth in the previous financial year.

Source: Deloitte Access Economics analysis and Deloitte Construction Data Survey (2023)

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Forecast for Construction to 2030

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State of data capabilities in construction

Contact us

Primary authors Regional Subject Matter Experts

David Rumbens Michelle Shi
Partner Analyst Toshio Shoko
Deloitte Access Economics Deloitte Access Economics Senior Manager, Deloitte Tomatsu Consulting
+61 3 9671 7992 [email protected]
[email protected] Leonard Jayamohan
Partner, Deloitte Tomatsu Consulting

Christina Edwall
Nicholas Hull Victor Pham Partner, Deloitte Tax
Associate Director Analyst
Deloitte Access Economics Deloitte Access Economics
[email protected] [email protected]

Jack Crooks Chris Bates

Manager Graduate
Deloitte Access Economics Deloitte Access Economics
[email protected] [email protected]

Betty Wong
Senior Analyst
Deloitte Access Economics
[email protected]

Source: Deloitte Access Economics analysis and Deloitte construction data survey (2023)

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Benefits of data Taking the next step 43
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