Global Construction Survey 2017 | Who’s ahead of the digital game?

Who’s ahead of the digital game?

KPMG International

—

kpmg.com/gcs

Technology adoption in the global

engineering and construction industry

Insights from the Global

Construction Survey 2017

2

About the Global Construction Survey 2017Who took part?

— 201 senior executives: 97 from major project

owners, and 104 from engineering and

construction companies.

— Participating organizations included both

private (listed) companies and government

agencies.

— Respondents’ companies’ turnover ranged

from less than US$1 billion to more than

US$20 billion.

— Owner entities came from many industries.

© 2017 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG

International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis

third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

3© 2017 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG



Survey respondents are aware of the threats and opportunities from technological disruption

55% believe the

industry is

ripe for

disruption

92% feel that technology will

significantly change their

business

72% say technology,

innovation or use of

data plays a

prominent role in

their strategic plan

or vision




Source: Make it, or break it, 2017 Global Construction Survey, KPMG International, 2017.

4

But many are concerned about their own organization’s readiness

20% routinely use integrated

project management

information systems

(PMIS)

48% say their company has

a data/technology

strategy or roadmap

5% feel their company is

‘cutting edge’ when it

comes to technological

maturity 10% routinely employ

emerging

technologies

across all projects

Less than




Source: Make it, or break it, 2017

Global Construction Survey,

KPMG International, 2017.




Where are they placing their bets?Top four technologies survey respondents believe will be

embraced in the next 2 to 3 years:

49%

41%

45%

39%Advanced data

analytics (D&A)

Smart sensors

(tracking

people and

productivity,

security, etc.)

Building information

modeling (BIM)

Integrated project management

information systems (PMIS)





And which technologies are lagging?Technologies thought to be at least 5 years away from

industry adoption:

80%

76%

54%

44%

Cognitive machine learning

Robotics process

automation/digital labor

3D printing

Virtual reality





How do the opinions of respondents from different sectors compare?Technologies most embraced by the industry today:

73%

71%

61%

of financial services sector

respondents say drones

of healthcare sector

respondents say building

information modeling (BIM)

of media/telecom sector

respondents say integrated

project management

information systems (PMIS)

45%

40%

39%

of healthcare sector

respondents say virtual

reality

of natural resources sector

respondents say smart

sensors

of retail/consumer sector

respondents say radio

frequency identification

(RFID)





Technologies thought to be at least 5 years away from industry adoption

86% of real

estate/hospitality sector respondents say

cognitive

machine learning

64% of financial servicessector respondents say

virtual reality

45% of media/telecomsector respondents say

advanced D&A

65% of natural

resources/chemicalsector respondents say

3D printing

85% of industrial

manufacturing sector respondents say

robotics process

automation/digital labor





Respondents from the

financial servicessector are the most likely to say that the

engineering and construction industry is

adopting new technologies today.


healthcare/life sciences, media/telecom

and retail/consumer sectors are the next most optimistic.

Which sectors are the most optimistic about technology adoption?





And which sectors are most conservative about the pace of adoption?


real estate/hospitality sector are the most likely to

say that technology adoption

will take at least 5 years.





How do respondents in different geographies view the pace of technology adoption?Technologies most embraced by the industry today:

of respondents from China say building

information modeling (BIM)

of respondents from UK say drones

of respondents from India say integrated project

management information systems (PMIS)

of respondents from Central America say integrated

project management information systems (PMIS)

of respondents from China say mobile platforms

78%

55%

53%

53%

52% Source: Make it, or break it, 2017 Global Construction Survey, KPMG International, 2017.




Technologies thought to be at least 5 years away from industry adoption

80%

78%

50%

45%

40%

of respondents from North America say

cognitive machine learning

of respondents from India say robotics

process automation/digital labor

of respondents from the Middle East say

virtual reality

of respondents from North America say radio

frequency identification (RFID)

of respondents from North America say

advanced D&A





Which countries are the most optimistic about technology adoption?

— Respondents from China

are the most likely to say

that the engineering and

construction industry is

adopting new technologies

today.

— Respondents from the UK

are the next most

optimistic.








And which geographies are most conservative about the pace of adoption?

— Respondents from North

America are the most

likely to say that

technology adoption will

take at least 5 years.

— Respondents from India

and the Middle East are

the next most conservative.








Why is the construction and engineering industry slow to adopt technologies?Complex and fragmented supply chain, data scattered

across numerous organizations, systems, programs and

databases; in turn, making it hard to gain a project-wide

benefit from technology.




A three-step approach to get more out of technology

1. Today: optimize current

systems and leverage

D&A and visualization to

create insights that drive

performance.

2. Tomorrow: develop a

technology roadmap.

3. The future: adopt a

technology enabled

business strategy that

aligns technology and

business strategies —

and pilot new

technologies.

1

2

3

To learn more:kpmg.com/gcs

#construction

© 2017 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of

independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm

has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG

International have any such authority to obligate or bind any member firm. All rights reserved.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular

individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such

information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on

such information without appropriate professional advice after a thorough examination of the particular situation. The

KPMG name and logo are registered trademarks or trademarks of KPMG International.

Global Construction Survey 2017 | Who’s ahead of the digital game?

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