In this article, Paul Devlin, chief operating officer at Causeway Technologies, discusses the urgent need for digital transformation in the UK construction industry, highlighting challenges such as poor data utilisation and fragmented systems.

 

Paul Devlin is COO at Causeway Technologies.

He emphasises that adopting a software mindset and integrating digital solutions can significantly enhance productivity, streamline processes, and attract new talent to the sector.

The UK construction industry, despite its immense value (worth £69.2bn in 2023 according to Barbour ABI), has a reputation for lagging behind others in digital adoption. Coming back to the sector following a long stint working in software companies, I am inclined to agree.

I started out my career as an apprentice plumber before moving into the world of business where I spent 25 years working for software companies all over the world. My transition to chief operating officer at construction technology provider Causeway Technologies has been an eye-opener. 

It surprised me how little has changed over the years. While there have been great strides in health and safety, there remains way too little automation, technology and data to support better outcomes.  

I have identified three key challenges the industry is facing in this area: a lack of digital transformation, a poor exploitation of data, and fragmented systems that hinder integration.

Any reluctance to change needs to be addressed, sooner rather than later. Economic headwinds have exposed vulnerabilities in a sector that has become notorious for poor productivity and waste. Over 4,370 construction businesses were declared insolvent in 2023 according to the Office for National Statistics and the sector is struggling to get into recovery mode in 2024.  

Causeway’s recent research revealed the benefits of digital transformation, including an almost 50% potential increase in productivity, a substantial boost in employee satisfaction, and even a reduction in employee fatigue.  

The numbers demonstrate how digitalisation can benefit a business and foster a more positive work environment. 

The software mindset 

It’s my belief that we need to start thinking like the software companies I have worked for in the past to help the industry turn the corner.  

This means consistently collecting and following data to identify insights and areas for improvement before acting on them in real-time – not relying on how it has always been done.  

At Causeway, we talk about “marginal gains” – identifying small changes that can be made throughout the business that add up to huge gains over time. This is the software company mindset.  

Companies that leverage their data hold immense power. Standardising collection methods and democratising data so it is accessible to everyone who needs it can not only unlock transformative change but also drive productivity gains.

Streamlining efficiency through integration 

One of the biggest barriers to achieving this is the fragmented nature of digitalisation in construction. Organisations are currently using an average of seven different industry-specific solutions – the majority (57%) of which are not integrated with one another.  

Fragmented systems, data, people and processes waste valuable time, causing inefficiencies, productivity losses, delays, and poor allocation of resources. These issues can occur at each and every stage of a project and in every part of the organisation, from site to back office.  

Currently, we are unable to use data and we’re slowing down processes by fragmenting them. We are unable to quickly act on data – meaning we only get intelligence after the facts.  

Meanwhile, old-fashioned paper processes remain ubiquitous, and employees are spending a considerable amount of time moving data around rather than using it to improve the business. 

By eliminating system fragmentation and fostering seamless data flow, companies can streamline workflows and eliminate inefficiencies that hinder progress.  

A vision for a better construction industry 

Imagine a world where data flows freely between business departments and is combined to deliver actionable insights at the touch of a button or even a voice command.   

No more duplicated data entry, no more digging through multiple systems to understand what is happening on your site, and no more delays in receiving the vital data that keeps a project profitable.   

Productivity is constantly improved in every aspect of a business and the full value of data is realised.  

Beyond this, businesses are connected into an ecosystem of customers, contractors and suppliers with information shared seamlessly throughout a project, reducing friction and delivering even greater insights.   

That’s the construction industry we should be aiming for. 

Getting started in digitalisation 

At Causeway, we champion this vision. We recognise the value of integrating systems, combining data from multiple sources and making it readily available to stakeholders across the value chain. We’ll soon be launching a platform called CausewayOne that will help companies achieve this.

The benefits of achieving this vision will go beyond profitability. I believe digital transformation is the key to unlocking net-zero in construction and to attracting the next generation of talent. Gen Z is seeking modern, progressive careers; an industry stuck in the past is not attractive to them. In this way, digital transformation is not just about short-term gains – the future of the industry quite literally depends on it.