Australia’s construction industry continues to face significant challenges impacting productivity amidst economic uncertainty, including skilled labour shortages, supply chain disruptions, and a lack of digital expertise to implement technology solutions that will support them, according to the latest report.

Autodesk’s Constructing tomorrow: building a dynamic workforce for the future eBook discusses how the challenges facing construction are creating productivity problems in the industry, characterised by inefficiencies, delays, and cost overruns in project execution.

According to Sumit Oberoi, Senior Manager, Industry Strategist, APAC at Autodesk, “In a post-pandemic landscape, the construction industry continues to face significant hurdles and is still grappling with an undersupply of skilled labour, costly materials and supply chain disruptions.

“These challenges are being underpinned by a lack of digital skills and an ageing labour force – two key barriers to digital adoption,” says Oberoi.

Digital skills shortage a key issue

According to 41 per cent of businesses surveyed for the 2023 Deloitte and Autodesk report, State of Digital Adoption in Construction, a common barrier to digital adoption is uncertainty about the skills and capabilities required for technology.

In Singapore, 55 percent of businesses reported the skills gap, followed by 43 percent for Australia, suggesting that businesses may not have enough information around various technologies to build their skills and capabilities.

The digital skills shortage is not only impacting the construction industry. The APEC Digital Skills Gap survey found 75 percent of businesses across all sectors identified a significant digital skills gap in their country. This presents a serious obstacle for businesses in the construction and engineering industry, as they face strong competition from other sectors vying for a limited pool of talent.

Businesses are positive about the future

Despite the broader macro-economic challenges the construction industry is facing, businesses are still feeling positive about the future. In the recent State of Digital Adoption in Construction 2023 report Autodesk conducted with Deloitte Access Economics, it was found that 60 per cent of businesses surveyed across Asia Pacific were expecting positive revenue growth over the 2023 financial year.

Many of these businesses are looking to improve efficiency by increasing technology adoption. Nearly nine in 10 (89 percent) of businesses reported investments or purchases of new technology during FY2022.

“There is a sense of optimism in the industry, with organisations investing in new technologies that provide opportunities for change such as common data environment and cloud-based project management software. These tools have the potential to increase productivity, enhance competitiveness, improve safety outcomes for the construction workforce and deliver a significant return on investment,” says Oberoi.

“Embracing technology can help shed the perception of an industry behind the times, foster innovation, and attract tech-savvy talent.”

Businesses must address the digital skills divide

To realise a transformative impact, businesses must address the current digital skills divide. According to the eBook, skilled labour shortages have magnified the need for cultural reform, with digitalisation helping to attract a broader range of skills required for transformation and companies at the forefront of technology better-positioned to attract the next generation of workers.

“A key factor in successful digital transformation is a technology partner that can offer comprehensive support, training, and a commitment to keeping the workforce up-to-date with the latest advancements, as well as helping to build resilience among employees,” says Oberoi.

“Technology plays a significant role in empowering workers – the effective adoption and use of new digital technology will play a crucial role in realising revenue growth, and for business’ survival,” says Oberoi.

Image: https://digital4business.eu/the-importance-of-digital-skills-for-smes/

Branko Miletic

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