The UK construction industry is set to see some significant changes over the coming years.
Although there was a decline in construction projects in 2023, this trend is expected to be curtailed with an 8% growth in 2024 and a further 7% growth through 2025, according to recent studies by the Glenigan Construction Industry Forecast. This is partly owing to reduced levels of inflation and an increase in growth.
Aside from the overall upturn in the industry, however, what changes can be expected of the UK construction industry in 2024 in terms of the technologies being used, the workforce, and the industry itself?
IT in the Construction Industry in 2024
Studies have shown that there is a significant shift towards investment in IT in construction industries and other technologies in 2024.
A survey carried out by PlanRadar covering 1300 industry professionals across 15 countries found that 97% of construction professionals are expecting to see increased investment in digitalisation at their companies over the next three years
95% of those surveyed said that the use of the software has meant a cost reduction in their projects, 35% of those estimate it to be between a 10% and 30% reduction in costs.
Project Management Software and Building Information Modelling Taking Significant Portion of Investment Spending
Some of the biggest investments in the next three years are projected to be in project management software, with around 77% of respondents stating an increase in investment was planned. 68% of construction professionals globally are set to invest in digital solutions for improved energy efficiency and sustainability, with 66% looking to invest in Building Information Modeling (BIM) software.
Through increased investment in IT solutions for construction companies, the industry is looking to refine its processes, improve productivity and cut down on some of the time-consuming and repetitive tasks that impact output levels.
Shift Towards Cloud-based Technology in the UK Construction Industry in 2024
The UK construction industry is expected to see a dramatic increase in the use of cloud-based technologies over 2024, according to the UK Cloud Survey from PWC.
74% of construction firms say they will increase their cloud budget this year, with 66% of them expecting to have all operations in the cloud within the next two years.
What this means is that by 2026, more than half of construction firms will be working on a fully remote basis—no servers or infrastructure hardware and no desktop PCs needed. Even the desks and the office space itself would be surplus to requirements and can be cut out of the equation, saving those construction firms that shift towards a remote setup a lot of time and resources that can be spent elsewhere.
Advantages of Cloud Technology for the UK Construction Industry in 2024
There is a wide range of advantages for construction companies who adopt cloud solutions as part of their normal processes, fuelling the recent rise in cloud services within the construction industry. Some of the advantages of using cloud technology in construction include
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Enables remote work either on-site or working from home
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Saves time
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Saves money
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Unlimited storage
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Unlimited computational power
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Streamlines the working process and makes operations more efficient
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More flexible to fit in with the shifting needs of the business
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Scalable in comparison to traditional methods
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No investment is needed in infrastructure or expensive equipment
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Increased productivity
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Improved decision-making and control over projects
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Greater visibility of ongoing work progress
Emerging Technology in Construction Projects
For construction projects throughout the remainder of 2024, there is expected to be an increased use of emerging technologies and radical methods of constructing buildings and carrying out infrastructure projects.
For example, this year has seen several 3D-printed buildings being finalised and open for use, including data centres and whole villages. The use of swarms of drones for digging tunnels and similar infrastructure projects is currently in development and there have been a number of radical building projects such as the floating cities in Maldives and the ambitious if slightly terrifying, The Line project in Saudi Arabia.
Whilst these are in no way representative of the mainstream of construction projects in 2024, these emerging technologies and radical methods will continue to be refined and have an ever-increasing impact on the industry over the coming years.
What are the Changes to the Workforce and the Industry Itself That are Expected in Construction Over the Next Year?
Apart from the advances in technology and construction firms receiving increased benefits from improved software solutions, there are a number of changes expected for the industry as a whole that should be factored into any decision-making process.
In 2024, there will be more women in the construction workforce than ever before, according to recent figures from the ONS. This trend is set to continue, with more female employees entering the construction sector over the coming years.
A large portion of construction firms are making changes to their business to accommodate neurodivergent employees, such as those with dyslexia, ADHD, and autism. The National Federation of Builders found that around a quarter of the construction workforce is neurodivergent, so making changes to accommodate those employees is clearly a step in the right direction.
What are the Challenges Facing the Construction Industry in 2024?
Some of the key challenges facing the construction industry over the next year are the increasing drive to become a sustainable industry with a reduced carbon footprint, issues with rising costs of materials and labour, and an ongoing problem due to the overall labour shortage in the UK.
Contact Lyon
If you are thinking about enhancing your construction technology and working processes, contact our expert advisors today.
We provide construction companies with the cutting-edge technology and dedicated professional support needed to remain competitive and become key players in their industry.
Whether you are looking to move towards a fully cloud-based environment or to utilise the most sophisticated software solutions for your business, we can give you a full rundown of the available options and advise which setup would most suit the needs of your construction business.
