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If the UK wants to be serious about becoming a global tech powerhouse, it must place a construction technology strategy at the heart of innovation efforts, argues Haman Manak, procurement director at Stanmore
Rishi Sunak’s plan to grow the UK into a world technology superpower has well and truly petered out. Stakeholder businesses – approximately 350,000 of them, at least – have recorded dissatisfaction with how the government’s International Technology Strategy has progressed.
These businesses do not have the facilities or the infrastructure to realise the strategy’s goal.
Clearly, Sunak is passionate about this strategy – among his Goldman Sachs credentials, he co-founded an investment firm that worked with the best and brightest Silicon Valley had to offer.
But as it nears closer and closer towards a failed PR stunt, the Prime Minister and his government must now reevaluate their framework.
So, here’s my message: if you’re really serious about placing the UK on the global tech podium, you must look at construction. That’s where tech innovation could make a real, tangible impact.
By no fault of its own, construction has faced a challenging past 12 months. In the less-than-favourable economic environment, we struggled and continue to struggle with insolvencies.
Housebuilding slumped and, as evident from the recent S&P PMI statistics, activity has only just started to pick up.
The industry is slowly and tenderly emerging from the rubble of crisis. Firms, having now experienced the realities of poor margins and less business, are rushing to now find safety nets to cover their backs in the future.
The sector should be collectively trying to find ways to make processes more efficient, take on more projects and – ultimately – generate more revenue.
But the current state of on- and off-site work doesn’t quite tick those boxes. Processes are outdated; machinery is old and clunky – the industry hasn’t kept up with the developments and innovation of the modern world.
That’s where tech could really benefit. Whether through enhanced augmented reality in the design process, automation across the mundane estimation stages or even through artificial intelligence (AI) across BIM, tech could have many applications.
Developments could be better informed through data-driven insights and sector-wide efficiency could be at an all-time high.
Embracing a construction technology strategy
For technology-oriented entrepreneurs, the construction industry is a blank canvas – your ideas could drastically modernise the sector and make groundbreaking improvements across all major processes.
Unfortunately, our industry and its dire need for technological advancement do not get addressed. Of course, this is all because key policymakers still tend to gravitate towards ‘trendier’ sectors.
From one side of the coin, I can partially understand that. AI, fintech, e-commerce, SaaS, blockchain and the like are all highly lucrative – and seem to form the bulk of the interest from tech fans across the globe.
On the other hand, these sectors are highly congested. The competition is so fierce and the probability of standout success – perhaps on the levels of OpenAI – is shockingly slim.
Construction doesn’t have this issue. Startups are ready to take on the prospect of an industry ready for the taking, while – as shown from NBS’ Digital Construction Report – there is clearly an increasing demand for high-level, complex innovation across the sector.
It seems like a win-win. If construction embraces tech, firms will be able to reduce the construction cycle, take on more projects at a time, complete more developments and make the healthy margin they have missed so dearly.
If tech entrepreneurs look to tackle construction, they have the opportunity to establish their magnum opus – and create impact across a sector that desperately needs modernisation.
There is an issue holding this back, however. Awareness.
Investment in a widespread construction technology strategy
Construction is a major part of the UK’s economy – and contributes around 7% to its GDP.
The sector is a determining force behind the economy’s success and forms a major backbone of day-to-day life.
However, while this status cannot be denied, its issues – namely, its outdated operations – are not talked about enough.
Sunak and his cabinet should be looking at construction’s troublesome past months, as well as their failing technology strategy, and be doing all they can to direct entrepreneurs to the sector.
They could even roll out tax breaks or other incentives to start-ups looking to tackle the industry – and, of course, with net zero also in mind, that would benefit the UK’s decarbonisation efforts nicely.
But construction firms cannot revert to the status quo of industry processes. They have to ditch any reluctance and open the sites up to innovators and entrepreneurs across Britain.
Construction could be ground zero for a widespread technology strategy for innovation. It could see a drastic transformation into the technologically sophisticated modern world and a makeover from its current financial struggles.
The industry could make the government’s International Technology Strategy a faultless success. The UK would be at the top of the construction game and finally brush the shoulders of the tech titans in the USA and Asia.
Forget the past. Construction is ready for innovation.
Haman Manak
Procurement director
Stanmore
Tel: +44 (0)1322 446 446
mail@stanmore.co.uk
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