Levels of innovation in the construction sector are on the increase, according to a bi-annual report from the Department of Business Innovation & Skills (BIS). But the survey also showed the sector is lagging behind other industries in terms of technological and process innovation.
The survey showed that 46% of construction companies that responded to the sector saw themselves as innovative, compared to 42% when the survey was last carried out in 2013.
But this compares to an all-sector total of 53% of respondents, and more than 70% for the manufacturing sector.
The report does not identify in particular the reasons for the improvements in the construction sector, but Mark Wary of Innovate UK speculated that much of the drive behind it relates to BIM and the mandated BIM Level 2 from April 2016.
He said: “Whilst the report does not specifically identify why innovation levels have risen for construction, I suspect, given that the highest levels of innovation activity relate to the purchase of new computer software and hardware, that much of the drive behind innovation in construction relates to the emergence of digitally enabled technologies.
“In particular I suspect that the rapid expansion in the take-up of BIM-related activities has led to increased investment from companies, wanting to remain competitive and to secure contracts with the early adopters bidding for government centrally-procured works, which has mandated the use of BIM Level 2 from April 2016 for all of its works.”
"I suspect, given that the highest levels of innovation activity relate to the purchase of new computer software and hardware, that much of the drive behind innovation in construction relates to the emergence of digitally enabled technologies"
Mark Wary, Innovate UK
This correlates with the information from the report that the most commonly reported activities were acquisition of computer software and computer hardware (27% and 24%, respectively). These proportions went up from 23% of computer software and 20% of hardware in the previous survey.
But Wray also linked construction’s underperformance on innovation to the sector’s project-driven nature. “The report does not make any concluding statements on this but does offer some general insights on barriers to innovation. I suspect many of these ring true for construction, particularly cost factors and market factors – specifically the cost of finance and the perception of uncertainty of investment.
“Whilst it may feel like we operate in a heavily regulated sector sometimes, we actually operate in a heavily market-driven sector. This creates volatile and often very cost-focused trading, which does not make for a stable platform for a business case for long duration investments.
“Interestingly the report shows that only 6-7% consider that innovation is constrained by regulation, be it derived from the UK or EU. Cost and market factors are far more significant.”
Geographically the report showed England was the leading country when it came to innovative- active businesses, with 54%, followed closely by Wales at 51%, Scotland also 51% and finally Northern Ireland at 45%.
Meanwhile, a second survey of senior IT decision-makers in 12 countries by software company IFS also found that the construction sector was lagging behind the manufacturing and retail sectors in its attitude to adopting innovative technologies.
It found that 21% of chief information officers and senior IT managers in construction typically relied on government spending programmes and policy initiatives as the driver for change, but only 7% of respondents in the manufacturing sector viewed government policy as instrumental.
In construction, 21% waited for a lead from senior leadership changes, a factor cited by only 5% in manufacturing and 22% in retail.
Instead, manufacturers took their lead from disruptive technology, cited by 41% as the key driver for adopting innovation, while 21% of construction respondents saw it as critical.
