Time for construction digitisation is now

Peak national advocacy group for start-ups, StartupAUS has unveiled its latest report detailing how construction tech can significantly change the face of Australia’s $134 billion construction industry, and key recommendations for implementation across the sector.

The report, titled Digital Foundations: How Technology is Transforming Australia’s Construction sector, was a collaborative effort between StartupAUS and several construction and government organisations including Aconex, Lendlease, EY and the Victorian Government. It was released at the Construction Technology Summit held in Melbourne last week.

This comes as research done earlier this year by telematics company, Teletrac Navman, showed a large number of construction companies are looking to spend big on technologies to improve efficiencies and reduce accidents.

According to StartupAUS' report, over $98 million has been invested in digital construction technology start-ups since the start of 2016 in Australia.

The global construction output was valued at over US$8 trillion in 2015 and forecast to grow to US$15.5 trillion by 2030, creating many opportunities for Australian start-ups to export their technology overseas.

“Australian start-ups are providing world-leading innovation in the construction space and between mapping technologies like Building Information Modelling (BIM), Virtual Reality (VR), project management technology, licensing and workplace safety software, and digital hardware like drones, there are a wealth of ways in which technology can have a huge impact on this sector, both here and overseas,” says StartupAUS CEO, Alex McCauley.

“Start-ups can’t take on billion-dollar construction projects by themselves – instead, they’re looking at ways to integrate with existing firms to use digital technology to increase safety, quality and efficiency.”

According to the Australian Bureau of Statistics, construction data for the June quarter showed a 9.3 per cent increase in the seasonally adjusted estimate for total construction to $51.7 billion.

The report draws on detailed discussions with 42 individuals from 31 organisations in the construction sector and construction-focused technology space. The interviews included 16 representatives of the start-up community and 26 construction stakeholders – including tier one and two construction company representatives, engineers, investment asset managers and sub-contractors.

The Victorian Government has already used digital technology like advanced building information modelling, 3D drafting and virtual reality components in key construction infrastructure projects such as the Victorian Comprehensive Cancer Centre, Melbourne Park Redevelopment and the Level Crossing Removals project.

“Victoria is the nation's leader in construction technologies thanks to a massive pipeline of infrastructure projects,” says Victorian Minister for Industry and Employment, Ben Carroll.

“Through our Future Industries Fund, we are investing in high-growth sectors of our economy to secure Victoria’s future as the innovation capital.”

Lendlease Building General Manager for Applied Insight, Steve Thomas, says smarter use of technology in the design and construction space could be a major game changer.

“As an international property and infrastructure group, Lendlease has a vested interest in supporting the emergence of new technologies that will help us create the best places and continue to push the boundaries of our building and development projects globally, but we also have a responsibility – to challenge and change the industry for the better,” he says.

“That can only be achieved through disruptive thinking and increasingly, the availability and adoption of digital solutions. We’re confident this report will drive innovation and help unlock the potential of the industry.”

The report also outlined a set of recommendations to bring digital construction technology to the fore, including:

1. Develop a consistent set of standards around technology adoption and use, with support from government.

2.   Federal and State governments to lead by proactively incorporating adoption of new technology for large infrastructure projects.

3.   Establish a dedicated co-working space for construction technology start-ups, alongside a ConstructionTech accelerator program.