AFTER two tumultuous years of a slowdown in construction projects, the Philippine construction industry is making a rapid recovery to make up for lost time.
Experiencing a record-high growth rate in 2021, bolstered by public spending on major infrastructure projects, the Philippine construction industry is expected to continue on an uptrend in 2022. With construction being prioritized as a pillar of economic recovery, the local government has also allocated 28.1 percent of its fiscal year 2022 total budget to the Department of Public Works and Highways. The Build, Build, Build program also received a new lease on life, with the new administration vowing to continue the country’s ambitious infrastructure program.
The positive news and developments have made their rounds across the construction industry, and the optimistic outlook can be felt from the ground up. In Procore’s recently released “How We Build Now — Tracking Technology in Asia Pacific Construction” in 2022 benchmark report, about 98 percent of Filipino respondents expressed confidence about industry conditions over the next 12 months.
The Philippines is in a unique position to lead the pack when it comes to laying a digital foundation in construction. In fact, the country has shown itself to be a frontrunner on the digital maturity curve. Of all five markets surveyed in the report, the Philippines stands out for its optimism and rapid technology adoption — a winning formula for future success.
With strong governmental support, increased funding and investment into the local construction industry, there seems to be no stopping the upward trajectory. Though, despite the bright future ahead for the Philippines construction industry, there remain some dark clouds on the horizon.
Caution! Work in progress
High material costs and equipment, the labor shortage and an increasing number of safety incidents continue to plague the construction industry.
The cost of construction materials has soared to their highest level in the last 13 years. The high demand for workers remains, with nearly 6,000 construction workers falling out of work as a result of temporary closures and retrenchments following the pandemic. This past July, a rise in the number of workplace accidents in the country also prompted the House of Representatives to implement measures to criminalize violations of occupational safety and health standards.
Laying a digital foundation
The Philippine construction sector may be on a fast track to returning to pre-pandemic levels, but this calls for a shift in the structure and traditions of an industry rooted in its traditional methods and ways of thinking.
Construction is widely known to be one of the slowest adopters of technology, ranking second from the bottom, ahead of only agriculture and hunting. But the last two years have served as a wake-up call. Businesses are recognizing the benefits of construction technology as a means to mitigate challenges of productivity, efficiency, cost, manpower and safety.
We see a clear digitalization trend in the Philippine construction landscape. Procore’s report revealed that local construction businesses have accelerated their digital transformation journeys; with 65 percent of construction decision-makers reporting an increase in digital investments during the last 24 months. There are strong business cases for technology in the construction industry, from improving data management, productivity and safety, helping drive overall growth.
Technology as a tool
It might be surprising to some but the use of paper continues to be common practice in the construction industry — whether to scribble plans or to note safety issues. More than 3 in 10 (36 percent) local construction businesses still use paper to track and manage data, according to the report. As we enter the age of smarter construction, data will become increasingly critical to the future of the industry. There’s an untapped opportunity for businesses to leverage the massive amounts of data generated by using technology to make more data-driven decisions across every stage of the construction life cycle. Digital tools, such as connected construction platforms, improve data management significantly and are linked to an improved deployment of resources. This delivers better quality outcomes for customers and enhances the bottom-line profit forecasts for businesses.
To mitigate the impact of the labor shortage, construction platforms help improve productivity and efficiency when workers are on the clock. Integrated construction platforms bring all apps, documents and people into one place, allowing multiple stakeholders to collaborate, interact and share information with one another in real time, eliminating wasted time. With streamlined collaboration, workers are empowered to do more in less time — a huge leg up on the competition in today’s labor market.
Finally, technology plays a key role in facilitating a culture of safety and reducing safety incidents. As the number of construction projects increases, the demand and pressure to meet deadlines may result in safety oversights. With actionable insights, real-time communication, and a comprehensive quality and safety solution, integrated construction platforms can ensure jobs are built to quality standards, budgets and deadlines are met, and job sites are safer.
Applying a strong technological adhesive
With construction projects resuming, demand is quickly outpacing the supply. While this presents local construction firms with huge opportunities to grow their businesses, some may have to walk away due to their struggles with the persistent challenges in the industry. Ultimately, technology will be the competitive differentiator between construction businesses that are managing and those that thrive.
Originally published in The Manila Times
