Contractors and developers will need to forge closer links with tech companies if they aren’t to get left behind in the smart building revolution over the next few years.
This is one of the findings in a new report by law firm Charles Russell Speechly, The New Real: Unlocking new gains through smart buildings.
The report examined the progress in development of smart buildings across the UK and found that while three quarters of property professions expect the it to be financially beneficial, less than a quarter of landlords and developers have actually made any progress in adopting it and thus it could potentially take up to 10 years to realise the potential of smart technology.
The report calls for UK contractors to reposition themselves in the sector and look to be tougher on who they partner with and why.
A total of 273 respondents were surveyed from the UK’s commercial real estate sector, including corporate occupiers, landlords, developers, lenders, investors and advisers and an additional 30 in-depth interviews were conducted with technology, construction and property experts.
In order to properly get to grips with the prospective smart benefits on offer, 56% said they saw a need for new collaborations, with indications that there may be a significant rise in associated merger and acquisition activity.
Half the respondents questioned also said that acquiring businesses with “smart”-related skills was an important part of their growth strategy and, specifically among those already taking action, some 65% were currently seeking to establish new partnerships with technology providers.
David Savage, head of construction & infrastructure at Charles Russell Speechleys, said: “The new reality is that businesses will need to be more concerning about who they’re associated with, it’s not about one particular tech company but looking across the spectrum and the compound effect of numerous technology in construction.”
He added that success for developers and contractors will be determined by business judgement calls, most notably on product development, positioning and investment – a tough task in such a fast-moving environment.
