Study: 'Meager' Advancements in Construction Productivity Costing Industry Billions
From Article by By Kim Slowey| May 6, 2016 Construction Dive.
In Brief:
A World Economic Forum study found the construction industry's productivity advancements have been "meager" compared to those in the rest of the world's industries during the last 50 years, according to the Engineering News-Record. Construction has been notoriously slow at adopting the latest tools and products.
The Swiss business organization, along with The Boston Consulting Group, said the industry must focus on "digitalization and construction techniques" if it wants to catch up to global business communities.
The study said that reducing construction costs by only 1% through productivity improvements would save the construction industry approximately $100 billion each year.
Insight:
Despite the potential of billions in savings, the study reported that the construction industry has actually lost productivity over the last 40 years. This lack of "forward-thinking" is steering much-needed talent into other industries. If the trend is to be reversed, all aspects of the construction business, including products, methods and operations, must be addressed.
