More companies are adopting cloud-first strategies, indicating the long-term importance of the cloud. Adopting the cloud and associated technologies can help develop strategies to protect against universal industry challenges. Here we look at some key trends impacting cloud computing in construction, as identified by GlobalData.

The agreement of a new trade deal between the UK Government and the EU also bodes well for the construction industry. The trade deal ensures zero tariffs on all goods and continued market access for UK firms that trade with the EU. The trade agreement was welcomed by industries bodies, with the Federation of Master Builders stating that the industry would welcome the certainty that the deal will provide.

However, while the deal is preferable to a no-deal Brexit scenario, companies importing from the EU will face additional checks, and construction companies will also find it more difficult to hire workers from the EU due to the end of free movement of labour between the EU and UK.

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Delivery

The increasing complexity of projects is leading to significant challenges in delivering on time and budget. Project monitoring is primarily focused on monitoring cost overruns and delays. A forward-looking, smart project management approach is needed to help translate data insights into actions and help keep projects on track and costs down.

Sustainability

Construction will need to adapt as consumers and corporations turn to more sustainable practices. Sustainability in construction encompasses the use of more sustainable materials and improved management of construction waste. As global demands on the industry continue to increase, efficient resource management is needed to address these issues.

Sourcing

Contractors face challenges in securing people, materials and equipment in the right place at the right time. Issues of long delays, bureaucratic procurement processes and economic factors all drive up project costs. At the same time, the negative perception of the industry is a significant obstacle in attracting the young and talented to help reinvigorate the industry.

Costs

Increased project complexity, low-profit margins and a shifting competitive landscape have all put pressure on profitability and have made cost control vital for survival. Firms have seen project expenses increase steadily in the past few years due to rising material costs and future costs are likely to increase even more.

Collaboration

As projects become increasingly challenging and complex, higher levels of coordination are needed between all stakeholders, including project owners, designers, engineers and contractors. Construction companies are looking to collaborate across the construction cycle through integrated contracts, joint ventures, or mergers and acquisitions.

Data resources

As companies have adopted new technologies, the amount of data produced has increased. Data is quickly becoming an asset in helping effective decision making. To maximise return on investment for a project, data must be collected, stored, managed and used efficiently.

Digitalisation

The industry has been traditionally slow to adopt technology. However, productivity has been idle in the construction sector due to the extensive regulation, a fragmented construction cycle, and misaligned incentives among contractors and owners. Thin margins have no doubt invested in digital innovation difficult in recent years, but the productivity-boosting effects of digital are gradually being realised and becoming more widespread in construction.

Safety

Despite improvements, construction remains a dangerous profession. Although improvements can come from better enforcement of health and safety regulations and training, advances are being made in the adoption of new technologies and the use of robotics to replace the need for humans to undertake dangerous tasks.

Data security

As more of the construction process becomes digitalised, vulnerabilities have arisen from the fragmentation of construction into multiple enterprises. There is growing concern over the security of data and the threat of cyber-attacks.

This is an edited extract from the Cloud Computing in Construction – Thematic Research report produced by GlobalData Thematic Research.