There has been hardly any increase in labour productivity in the construction sector for a long time. However, since 2007, the average growth in labour productivity in construction (2007-2017: + 9.4%) has come into line with that of the economy as a whole. The growing labour productivity in construction since 2007 is striking since production in the sector has contracted significantly over the past ten years. A contraction in volume usually results in a worsening of productivity because it gives rise to overcapacity. It therefore appears that the growing productivity is also structural to some extent, due to innovation and more efficient construction methods.
"},"alignedImage":{"position":"bottom","transformBaseUrl":"https://assets.ing.com/transform/ad1b02bc-1377-4337-a341-f34350cecde6/ConTech_images-1_tcm162-164015","original":"https://assets.ing.com/m/2051b5f2ccb40d0/original/ConTech_images-1_tcm162-164015.png","extension":"png"}},{"componentType":"paragraph","title":"Construction companies fully engaged in digitalising...","richBody":{"value":"Construction companies have caught up significantly in terms of digitalisation over the past several years. In 2016, an employee in construction had almost €1,000 in software at their disposal – a value that has doubled since 2000. Digitalisation can provide many advantages in construction, where every project often has to be designed from scratch. It increases the efficiency of the design process and enables construction errors to be picked up as early as the design phase. But many other activities in construction are being performed more quickly as the world goes digital. For instance, estimates for minor maintenance jobs can be provided solely on the basis of digital photos, saving a visit to a potential customer.
"},"alignedImage":{"position":"bottom","transformBaseUrl":"https://assets.ing.com/transform/a5f4bd4f-0d0e-4dd6-8fb6-39f8ac028bfc/ConTech_images-2_tcm162-164014","original":"https://assets.ing.com/m/2366e6e51bfcaced/original/ConTech_images-2_tcm162-164014.png","extension":"png"}},{"componentType":"paragraph","title":"… but despite new technologies, industrialisation is still facing bottlenecks.","richBody":{"value":"Industrialisation has not been quick to take off in the construction sector. An employee in the sector has approximately €10,000 in machinery at their disposal – one fifth of the value available to employees in the manufacturing sector. This is because construction companies require a very high degree of flexibility. ‘Construction companies have to build something different each time, and each time at a different location,’ says Maurice van Sante of the ING Economics Department. ‘This is taking place in a volatile market that demands quick scaling up and down. It makes sense that many construction companies opt not to invest in machinery that puts significant pressure on the fixed costs and which can also only perform one type of task.’ Robotics (a robotic bricklayer, for instance) and 3D printing combined with prefab could offer a solution, as this allows the mass customisation and flexibility required. However, high investment costs and building at a different location each time continue to pose bottlenecks.
"}},{"componentType":"cta","textLink":{"url":"https://assets.ing.com/m/4f67df449cff8129/original/ING_EBZ-ConTech_Tehnology_in_construction-February_2019.pdf","text":"Read the ConTech report (PDF)"}},{"componentType":"accordion","accordionList":[{"title":"Disclaimer","richBody":{"value":"This publication has been prepared by the Economic and Financial Analysis division of ING Bank N.V. (“ING”) solely for information purposes without regard to any particular user’s investment objectives, financial situation, or means. The information in the publication is not an investment recommendation and it is not investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Reasonable care has been taken to ensure that this publication is not untrue or misleading when published, but ING does not represent that it is accurate or complete. ING does not accept any liability for any direct, indirect or consequential loss arising from any use of this publication. Unless otherwise stated, any views, forecasts, or estimates are solely those of the author(s), as of the date of the publication and are subject to change without notice. The distribution of this publication may be restricted by law or regulation in different jurisdictions and persons into whose possession this publication comes should inform themselves about, and observe, such restrictions. Copyright and database rights protection exists in this publication. All rights are reserved. The producing legal entity ING Bank N.V. is authorised by the Dutch Central Bank and supervised by the European Central Bank (ECB), the Dutch Central Bank (DNB) and the Dutch Authority for the Financial Markets (AFM). ING Bank N.V. is incorporated in the Netherlands (Trade Register no. 33031431 Amsterdam). In the United Kingdom this information is approved and/or communicated by ING Bank N.V., London Branch. ING Bank N.V., London Branch is subject to limited regulation by the Financial Conduct Authority (FCA). ING Bank N.V., London branch is registered in England (Registration number BR000341) at 8-10 Moorgate, London EC2 6DA.
\nFor US Investors: Any person wishing to discuss this report or effect transactions in any security discussed herein should contact ING Financial Markets LLC, which is a member of the NYSE, FINRA and SIPC and part of ING, and which has accepted responsibility for the distribution of this report in the United States under applicable requirements. ING joined the maximum of 100 global frontrunner corporations as an official Circular Economy 100 (CE100) corporate member of the Ellen MacArthur Foundation, the world’s leading platform on circular economy. Through the Ellen MacArthur Foundation, ING aims to grow its knowledge and network on this topic, collaborating with experts, partners and other CE100 members to promote the circular economy and unlock related business opportunities.
"}}]},{"componentType":"linkList","iconTitle":{"title":"Misschien ook interessant:"},"textLinks":[{"url":"/zakelijk/sector/building-and-construction","text":"Robotisation in construction"},{"url":"https://assets.ing.com/m/65370189ca1d907c/original/ING_EBZ_PropTech-Technlogy_in_the_real_estate_sector-June_2018_tcm162-148619.pdf","text":"PropTech reduces risks and increases value"},{"url":"/zakelijk/sector/building-and-construction","text":"Circular construction"}]},{"componentType":"linkList","iconTitle":{"title":"Read the report"},"textLinks":[{"url":"https://assets.ing.com/m/4f67df449cff8129/original/ING_EBZ-ConTech_Tehnology_in_construction-February_2019.pdf","text":"ConTech: Technology in Construction (PDF)"}]},{"componentType":"linkList","iconTitle":{"title":"Kennis over de economie"},"textLinks":[{"url":"/zakelijk/economie","text":"Onze economie"},{"url":"/zakelijk/sector/all-sectors","text":"Jouw sector"}]}]}}}