The UK construction industry has the highest share of data leaders (18%) among the five European countries analysed by Deloitte Access Economics, in a new study commissioned by Autodesk.

However, the use of data is being hampered by lack of access to skilled staff, with 26% of UK construction leaders citing this as a key concern preventing integrating data-driven insights into business processes.

Using Deloitte’s Data Capabilities Assessment Tool (DCA)* and a new survey of 609 construction leaders from the UK, Ireland, France, Germany and the Netherlands, Autodesk has revealed new insights into the outlook for the industry and the state of its data-driven decision making.

A down year turns to optimism for the future

The survey found that average profit growth for the industry in Europe was 12.8% in FY23, but in the UK specifically it shrunk by 3.6%, the worst performance of the five countries analysed. 23% of UK construction leaders cited the cost of raw materials as the biggest challenge affecting their business, with higher labour costs placing second.

However, there is positivity for the future, and according to the most recent S&P Global/Cips UK purchasing managers’ index, the UK construction industry returned to growth for the first time in seven months. Echoing this, 56% of UK construction leaders feel optimistic about the near-term financial performance of the industry. On average, those surveyed expect 3.4% profit growth over the next five years.

Data leadership not matched by processes

The use of data will play a crucial role realising this growth potential and driving the industry’s economic recovery. The Building Safety Act, passed into law two years ago almost to the day, places a responsibility on UK construction businesses to collect, store and share data and create a golden thread of information for each project.

However, there is clearly much more work to be done to improve data capability in the UK. According to Deloitte’s DCA tool, the UK has the highest share of data leaders (18%) of the five European countries but also the third highest share of beginners (23%).

36% of UK construction businesses currently capture progress data but do not analyse it, which is partly due to a lack of integration. 43% of leaders acknowledged that their organisation was storing data on too many different platforms, while 37% agreed that they were having difficulty integrating data across various platforms.

To read the report in full, along with a new Autodesk whitepaper on the Act and how construction businesses can comply, see the links below:

Deloitte report: https://getconstructioncloud.autodesk.com/autodesk-europe-construction-report

BSA white paper: https://getconstructioncloud.autodesk.com/building

Written by: Autodesk
Stand number: D320