The housebuilding sector is on the verge of a substantial paradigm shift. There is a number of factors which have slowed down this substantial transformation for housebuilders. Low productivity and high rework rates in combination with the lack of skilled labour has put the entire industry under extreme pressure.
Despite how crucial the condition of the sector is, there are some very good indications that things are changing and that a brighter future is around the corner. Good news is that the advent of cutting-edge technology has started changing the scenery in the sector for the better.
Of course, there are still many steps that need to be taken before we can claim that the housebuilding industry has changed and that it functions according to its full potential. It is undoubtable, though, that digital tools will play a decisive role in the next day of the housebuilding industry.
In a nutshell, here are five vital reasons why the housebuilding sector is changing:
1. Data
In one of their recent articles, the Economist referred to data as one of the most valuable resources on Earth. For others, it could be named as the oil of our times. When it comes to data, it is true that so far we have seen only a small part of the potential that it holds for the whole world.
The homebuilding industry is no exception to that. There is a plethora of ways in which these valuable bits of information are expected to transform the way we design, collaborate and eventually build.
Most importantly, data can help the industry become smarter. Being able to collect vast amounts of data signifies that the industry has finally the ability to examine scientifically the outcome of prior projects and come up with essential conclusions based on which a more efficient and open construction process will be created.
On top of that, data can bring the sector one step closer to its standardisation. By this, we mean that homebuilders can now identify certain patterns based on the location and the season in which their project is built. In that way, they can save both time and money and start working on their project while being better prepared.
2. Housebuilding software
Homebuilding software is gradually gaining significant momentum in the industry. This makes total sense if we take into consideration the need for homebuilders to collect and analyse their data.
A reliable software can help the project stakeholders with keeping track of every single detail in terms of planning and task updates. Project overview, mobile field reporting and real-time communication are some of the substantial benefits of trusting a top-performing housebuilding software.
What is more, digital tools can boost transparency and accountability on site. Everyone remains on the same page and there is a clear understanding of who should what and when. That being said, it becomes evident that it is time for the housebuilding sector to start considering digital solutions as a necessity instead of a luxury.
3. Housing crisis
Affordable housing is one of the biggest problems for the entire world. Due to the recent financial crisis, a big number of people are continuously moving to larger urban centers with the hope of a better future.
This social tendency has created an extremely high demand for affordable houses close the center of the bigger cities. The example of the United Kingdom is very representative, as the government has set as a goal the creation of 300,000 homes per year in order to keep up with amount of people who are in need for a place to live. In the same sense, London has expressed the intention to build 10,000 new council homes by 2022.
This problematic situation underlines the need for the housebuilding sector to become better in recognising what the market really needs. For instance, in Germany there is an imminent need for 350,000 homes per year until 2022 in order for the housing crisis to be relieved.
With these numbers in mind, it becomes clear that the future for the sector lies in the production of affordable apartments instead for big pricey houses which are more pricey and as a result a less attractive choice for the majority of the population.
4. New workforce generation
In the introduction, we referred to the lack of skilled labour. To this problem, add also another crucial parameter which has to do with the type of workforce that the industry needs in order to enter the digital era.
The homebuilding sector is in need of ambitious tech-savvy workforce which can take the project process by storm and introduce revolutionising tools, materials and techniques. It goes without saying that such an indispensable change doesn’t come in one day.
In other words, it’s not an exaggeration to claim that knowledge workers are the construction workers of the future. For that reason, it is vital for homebuilders to start already investing in the attraction young and skilled workforce who is after a competent, long-term career in a data-related industry.
5. Stricter regulations
Last but certainly not least, the stricter regulations that the governments across the world have introduced to the homebuilding sector in the course of the last years should also be regarded as big ‘game-changers’.
This is a fundamental parameter which often is forgotten. Many things in the way we build and operate on-site are about to change. First and foremost, stricter fire safety regulations are expected to be introduced. Especially after the recent terrible accident at Grenfell Tower in the UK, the discussion around fire safety has been more intense than ever.
Another type of regulations which are already changing the industry is dedicated directly to the building process. For example, the BIM Level 2 mandate introduced by the UK government a year ago is a solid step toward a more productive and digitised homebuilding sector.
Final thoughts
Wrapping it up, it doesn’t take much to realise that the housebuilding sector is in a period of dramatic changes which in the end can contribute to a more productive future with fewer project delays and lower budgets. Homebuilders have a unique opportunity to transform their field, but they need to believe in the power of data and invest in digital tools which can support their ambitious vision.
