Future Fit businesses are outperforming their peers. They have prospered by delivering on goals like business growth, increased innovation and enhanced sustainability. Their forward planning and agility have enabled them to drive through execution despite all the uncertainty.

Here are some highlights from our Future Fit data, which show how organisations that effectively integrate sustainability into their operations and projects are better positioned to thrive in the evolving construction landscape.

Strategic insights for construction businesses

• Embrace digital transformation: Advanced technologies enhance project planning, improve efficiency, and enable real-time monitoring and predictive maintenance.
• Prioritise sustainability: Respond to growing demand throughout the value chain by committing to building practices that incorporate greener materials and energy efficient designs.
• Commit to the future workforce: Invest in training and development to expand the pipeline of talent.

The construction sector has endured significant challenges amid economic volatility. However, our Future Fit research indicates that leading firms have remained ambitious and optimistic despite these difficulties.

“What we’ve seen from construction businesses is real resilience, grit and determination to look forward,” says Laura Capper, Head of Manufacturing and Construction, “Those are really valuable qualities that these businesses can now build on in a hopefully more stable economic environment – by focusing on innovation, productivity and talent.”

• Leverage technology at the design and build stage to work more effectively and efficiently, which could reduce costs in the long term.
• Work with supply chain partners, localising where possible, to build a more sustainable value chain. This is essential across the supply chain to meet market demand and increasing regulatory requirements.
• Proactively develop a sustainability strategy – this could help increase new business opportunities and retain existing contracts with clients that have shifted their expectations.
• Investigate circular economy models that emphasise reuse and recycling, particularly where existing buildings are being demolished.

Sustainability pressures drive the need for green practices and materials, influencing project requirements and market expectations. Sustainability is now a board-level issue, driven by both responsibility and a strategic path to growth. Nearly 69% of construction firms believe investment in sustainability offers a competitive advantage and 72% report that their workforce is motivated by a sense of purpose.

Greater sustainability in construction provides a competitive advantage by reducing costs, meeting market demand, accessing capital and driving innovation. Companies that effectively integrate sustainability into their operations and projects are better positioned to thrive in the evolving construction landscape.

• Build the business case for investment in new technology by focusing first on tools that enhance efficiency and provide a rapid return.
• Implement robust data analytics platforms to collect, analyse and utilise data for informed decision-making and improved project outcomes.
• Investigate a wide range of use cases for artificial intelligence (AI), from the planning stage through to compliance, predictive maintenance and health and safety.
• Embrace tools such as digital twins, which enable an approach to building design that optimises usage.

The construction sector has long been associated with traditional practices and a slow adoption rate of innovative technologies. However, in recent years there has been a remarkable shift towards digitalisation, as firms embrace innovative tools and processes to enhance efficiency, productivity, and sustainability.

Leading construction businesses are making significant new investments in emerging technologies and transformation – more than two-thirds (67%) have invested in data science capabilities; 49% of businesses having implemented AI tools; and 52% have created cross-functional teams to lead on digital innovation programmes.

Future Fit businesses place data at the centre of their decision-making: and becoming data-driven could help construction businesses innovate and respond to disruption and customer needs more quickly.

“Even minor improvements from new technologies can have a meaningful impact in a sector with tight margins,” Laura says. There are also some big opportunities, she adds. “The rise of AI has the potential to revolutionise many facets of construction from design and planning to project management and maintenance. Embracing AI could lead to higher quality outcomes, safer work environments and substantial cost savings.”

The good news is the majority of construction companies are now determined to be more scientific about how they run their businesses. More than two-thirds (69%) say they no longer make any significant investments without empirical evidence of the benefits.

• Be supportive of suppliers by being prepared to share risk – including regulatory changes and more positively to foster collaboration and loyalty.
• Embrace sustainability as an opportunity to drive value chain partnerships, working together to embed sustainable practices, greener materials, and more environmentally friendly building techniques.
• Improve transparency with suppliers to support open and honest dialogue, improving supply chain efficiency, resilience, and agility.

The pandemic and rising raw material costs have exposed vulnerabilities in supply chains. Leading construction firms address these issues by building stronger partnerships. Half (50%) say they regularly collaborate with key suppliers or always include them in strategic decision-making and almost a third (32%) regularly collaborate with customers.

Many also focus on supplier roles in addressing sustainability challenges, with 47% screening suppliers based on ESG criteria.

• Identify and showcase the skills of the future, particularly in the context of decarbonisation – look at what will excite the next generation of employees.
• Build closer relationships with education and training providers able to deliver the focused learning that potential construction company employees need.
• Renew and strengthen the focus on health and wellbeing in a sector often perceived as taking such issues less seriously.

The ability to attract and retain talent is likely to determine future success. Yet only 22% of construction firms have mapped long-term skills needs and 48% are unsure how their strategies will impact future skills requirements.

“There’s a significant opportunity to secure future talent around some of that transition,” says Laura. “Different skills are going to be needed here – people who can install heat pumps, for example, and experts in smart building technology.”

Partly, the challenge is to increase the size of the pipeline into the industry. Some construction businesses are expanding apprenticeship schemes and working more closely with education providers to make sure the skills they will need tomorrow are being taught today.

But businesses will still need to compete for that talent – both to recruit and to retain – and this requires more than just financial reward. Leading businesses in this research are focused on providing career development opportunities, supporting health and wellbeing, and  issues related to culture and to diversity, equality, and inclusion.

Our research outlines the construction sector’s current standing on key themes for future success. The practices of Future Fit businesses offer a blueprint for peers striving to catch up.

Leading with intent is crucial for a Future Fit business, says Laura. “By actively horizon scanning, leaders can seize emerging opportunities and anticipate challenges, ensuring their company not only adapts but thrives in the evolving landscape.”

By acting now to prioritise change, your business could be more ready to boost future resilience, meet market demand, reduce costs, or access capital. Find out about all ways we could support you.

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