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Construction IT: Industry Lags All Others in Technology Spend

By Dick Weisinger

The construction industry has consistently ranked last among all industries in terms of investment in technology.  More than one-third of companies spend less than 1 percent of their revenue on IT, and more than half spend less than 2 percent.  The 2015 Gartner IT Key Metrics Data shows spending in construction averages just  1.2% of revenue.

Despite the fact that IT spending is low, it is still surprising to see in a 2015 survey by Software Advice that more than half of businesses in the construction management industry are still using paper to create estimates and manage bids.  But one-third of construction businesses say that they are ready to use technology to help them cut costs and streamline workflows.

James Benham, CEO of JBKnowledge, said that “it’s very concerning,..  It means that technology is so unimportant to most contractors that they’re not even assigning a single person to be responsible for it… But we all know that if you take something seriously in your company, at some point you have to have at least one or two people in the company dedicated to it.”

The 2015 JBKnowledge survey of technology in the construction industry said that “year after year, the integration section of this survey elicits the snarkiest comments from survey participants. While entertaining to read, the comments reinforce the fact that technology providers are neither meeting expectations nor promises in data integrations. For that reason, builders insist that spreadsheets and manual processes serve as valid integration methods because they are the only methods available.”

 

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