According to a McKinsey study, productivity in manufacturing has nearly doubled since 1995. In construction it has remained stubbornly flat. Their analysis was based on data from Western Europe and the USA.
They cite a number of reasons why construction seems unable to up its game compared to other sectors. These include:
- Poor organisation.
- Inadequate communication.
- Contractual misunderstandings.
- Missed connections between high level and day to day planning.
- Poor short-term planning.
- Insufficient risk management.
- Limited talent management as companies defer to familiar people and teams.
Among the remedies proposed, greater use of prefabrication and offsite manufacturing is highlighted.
The KPMG report Smart Construction published in April 2016 builds on this picture, looking specifically at the challenges and threats faced by the UK construction industry. The picture it paints is of an onsite dominated sector with significant issues over productivity, certainty of delivery, skills shortages and data transparency.
Digital Transformation
Another factor in construction’s lagging productivity is that other sectors have been able to achieve improvements through digital transformation. A construction sector still reliant on traditional skills and onsite operations has found it harder to reap the benefits of digital technology, despite advances with BIM and collaborative planning tools.
Although marginal improvements may be possible, it seems difficult for the construction sector to break out of its productivity trap if we continue to build using the same old techniques. There are too many players, too many interdependencies in scheduling, and too many variables such as weather and the supply of labour and materials.
Panelised offsite construction, such as the system is largely a digital process. More planning and technical decisions are made in a digital environment using 3D modelling tools. Partners are brought into the process much earlier and technical challenges either eliminated or allowed for in the planning stage.
Fabrication of the main building elements also takes place in a computer-controlled advanced manufacturing facility so the need for onsite operations is greatly reduced.
These productivity benefits are not lost on the industry. Another telling trend from the KPMG report was that growing demand for offsite was being driven by the supply chain rather than by client requests. Contractors are more aware than most of the benefits of improving output and reliability.
Even more variables are removed from the construction process when you work with a partner, like Innovaré, that controls every stage from design, engineering and manufacture, right through to installation on site. It’s great to see independent reviews like these reinforcing the benefits that offsite delivers.
If you have a project that offsite construction could bring multiple benefits to, get in touch with Innovaré on 0845 674 0020 or take a look at our website.
