Research reveals 90% of respondents confident about industry conditions over the next 12 months
CARPINTERIA, Calif. — (BUSINESS WIRE) — June 22, 2023 — Procore Technologies, Inc., a leading global provider of construction management software, released its construction industry benchmark report How We Build Now: Technology and Industry Trends Shaping U.S. and Canadian Construction. Procore partnered with Censuswide to investigate how general contractors, business owners and specialty contractors view the industry today.
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Confidence around construction industry market conditions (Graphic: Business Wire)
Gathering insights from more than 1,000 construction professionals, the report examines the current construction climate in the U.S. and Canada, the digital maturity and adoption of construction technologies, as well as the most pressing challenges and opportunities presented by the skilled workforce shortage.
"We are excited to unveil this comprehensive industry report, which sheds light on key trends and insights shaping the future of our industry," said Anthony Frattali, head of region, North America, Procore. "With this report, we aim to empower industry stakeholders with valuable knowledge and actionable strategies to thrive in the evolving construction landscape.”
Construction Industry Remains Optimistic
Construction leaders are optimistic as they look towards the next 12 months with 90% of respondents stating they are confident about industry conditions. Despite persistent challenges such as the increasing cost of materials and supply chain issues, 74% of respondents expect the number and value of projects completed by their organization to increase in the coming year.
The rising cost of materials and supply chain disruptions have spawned economic headwinds, impacting margins and profitability. Approximately 33% of general contractors and specialty contractors report that volatile material costs have eroded their profit margins, while 38% of owners indicate higher project costs as a result of these fluctuations.
Current State of Digital Transformation
There is significant digital transformation underway in both markets, led by owners. Approximately one in four (27%) owners consider themselves to be a digital-first business and roughly two in five (44%) owners say they are well on their way to adopting digital formats and workflows.
This high level of digital adoption by owners contrasts with the state and speed of digital transformation in the rest of the construction sector. Approximately one in three general contractors (30%) and specialty contractors (32%) are either just starting out or have not yet started on their digital transformation journey.
Construction decision makers recognize that technology provides benefits, particularly early on during planning and preconstruction stages of a project. Respondents (32%) selected preconstruction as one of the top choices for improving productivity and profitability within their business. Adopting a construction management platform can play a major role in making this a reality – helping unify teams, reduce project risks and establish realistic budgets.
Embracing Data as a Competitive Advantage
Construction businesses are realizing the benefits of efficient data management, with 43% of respondents stating they would make better decisions if they had greater access to real time and historic information on project performance. Additional data insights include:
- 45% of respondents indicated that they have a foundation to learn from data but without a dedicated data team
- 21% noted that their data mostly exists in spreadsheets or paper
- 26% have highly data-driven decision making facilitated by dedicated data teams
“Data can help the industry gain never-before-seen insights, promote better decision making and create a culture of safety and well-being for their teams,” said Anthony Frattali, head of region, North America, Procore. “Better access to real-time and historic data means that organizations can work proactively instead of reactively. As the industry continues to transform, data will be paramount to driving innovation, improving efficiency and achieving sustainable growth."
Labor Shortage Remains Key Concern
Respondents consider hiring and retaining skilled labor as one of the top challenges they expect to face over the next 12 months. In fact, nearly 29% of respondents have been unable to take on more projects in the past three to six months due to labor shortages.
A total of 30% of respondents express concerns that some of their most experienced employees will retire within the next few years, resulting in the loss of valuable knowledge. Despite these challenges, respondents are optimistic about the future. 84% of those surveyed express confidence in having enough workers with the right skills to meet their organizational needs in the next 12 months.
Additional highlights from the report include:
- Improving payment processes is a necessity – Over half (55%) of respondents feel the industry can do a better job of leveraging existing data to simplify payments and improve insurance programs.
- Leveraging modern approaches to drive sustainability – Overall, the industry is eager to adopt more environmentally-conscious and sustainable building practices. Approximately one in two (50%) respondents report focusing on strategies like prefabrication and improved material selection in order to reduce the carbon footprint of projects.
- Workplace diversity and inclusion in construction – Organizations are placing greater emphasis on workforce wellbeing through fostering an inclusive, diverse and safe environment. 45% of respondents have a diversity and inclusion policy in place already, and 43% plan to implement one in the next 12 months.
Download How We Build Now: Technology and Industry Trends Shaping U.S and Canadian Construction here.
About Procore
Procore Technologies, Inc. (NYSE: PCOR) creates software for people who build the world. With a focus on providing timely and accurate data for all, Procore transforms the construction industry one project at a time - from hospitals and skyscrapers to airports and stadiums. Beyond its connected, innovative technology, Procore empowers the industry and its communities through Procore.org. For more information, visit www.procore.com.
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Contact:
Andee Brooker
press@procore.com