These are deep issues that require new ways of thinking and working. And the shortage of skilled labor and supervisory staff will only get worse. The growing demand for environmentally sensitive construction means traditional practices must change. Projects are ever more complex and larger in scale. However, none of this is going to get easier. And given the varying sophistication levels of smaller construction firms that often function as subcontractors, building new capabilities at scale is another challenge. Rolling out solutions across construction sites for multiple sectors that are geographically dispersed-compare an oil pipeline, say, with an airport-is no easy task. Please email us at: challenges specific to the construction sector have a role in the slow pace of digitization. If you would like information about this content we will be happy to work with you. We strive to provide individuals with disabilities equal access to our website. This is also true for spending on information technology, which accounts for less than 1 percent of revenues for construction, even though a number of new software solutions have been developed for the industry. R&D spending in construction runs well behind that of other industries: less than 1 percent of revenues, versus 3.5 to 4.5 percent for the auto and aerospace sectors. The industry has not yet embraced new digital technologies that need up-front investment, even if the long-term benefits are significant (Exhibit 3).
Contracts do not include incentives for risk sharing and innovation performance management is inadequate, and supply-chain practices are still unsophisticated. Project planning, for example, remains uncoordinated between the office and the field and is often done on paper. Please email us at: the construction sector has been slow to adopt process and technology innovations, there is also a continuing challenge when it comes to fixing the basics.
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