Introduction Let’s face it, for an industry ‘digital black hole’ has formed that uses increasingly cutting- in the construction industry. edge technology to execute It’s a widespread problem their clients’ complex projects, that attributes to some of the companies in the construction inefficiencies that cause large industry still struggle to projects to run on average embrace tech that provides 20% longer to finish than the same level of precision for scheduled and up to 80% 1 the internal workings of their over budget. businesses. Moreover, construction In fact, the McKinsey Global companies are spending an 90 hours Institute’s Industry Digitization average of 90 hours each per month are spent Index, rated construction as month searching for assets searching for assets the second LEAST digitized across construction sites. sector in the world. And yes, that can add up fast. With relatively few construction One elevator company found $200,000 companies digitizing their that it was spending $200,000 spent annually searching assets, business processes USD annually in time and cost for assets and working practices, a for asset management. Labor; material and 4% Profit Top costs for consumables; and tools and 6% Other 15% Subcontractor a construction equipment are a construction 15% Tools & Equipment company’s top three 20% Mtrl & Cons company 40% Labor expenditures. They’re also the most difficult to manage – especially when using a patchwork of paper-based systems, sticky notes, and spreadsheets. This way of working is baton if a key person is out neither transparent nor of the office. accountable, and it’s easy for asset management to Such systems also have become dependent on negative cost and efficiency specific individuals – meaning implications for managing both it’s difficult and complex for physical and administrative anyone else to pick up the assets. 2 ASSET AND EQUIPMENT MANAGEMENT