Construction Industry Needs to Make the Connection Between Improved Efficiency and Greater Competitiveness, According to New McGraw Hill Construction Report

NEW YORK, Nov. 12, 2013 /PRNewswire/ -- A gap exists in the construction industry's awareness of the inefficiencies inherent in construction processes, according to a new report by McGraw Hill Construction on Lean construction in partnership with Dassault Systemes. Lean practices are defined as activities that eliminate waste from construction processes, and adopting these practices can help address these issues. However, the industry must recognize the need for Lean to see wider adoption of this approach.

• Over half (55%) of contractors not familiar with Lean practices find the construction industry efficient/highly efficient, compared to just 14% of those who have implemented Lean.
• In contrast, 62% of contractors that have implemented Lean find the construction industry to be inefficient/highly inefficient, compared to just 19% of all other respondents.

The research demonstrates that once contractors recognize and address these inefficiencies, the greatest benefit they experience is competitiveness.

• 84% of Lean practitioners find that Lean practices lead to higher quality projects.
• 80% report greater customer satisfaction due to Lean.

In fact, in a qualitative study of Lean experts included in the research, one firm reports that they "never experienced a downturn" because of high customer satisfaction with their work. The Lean experts also report that greater reliability of outcome, including a reliably consistent profit margin, is among the most critical benefits they experience from Lean.

"The construction industry is evolving, and our study reveals that firms with strong Lean practices will have an advantage in the future," said Harvey M. Bernstein, vice president, Industry Insights & Alliances, McGraw Hill Construction. "They will be able to deliver higher quality projects for their clients—on schedule and on budget. As owners become more familiar with Lean, they will increasingly demand this level of service."

Contractors that are familiar with Lean construction but have not adopted any Lean practices find that improved productivity and profitability would be influential in their decision to pursue Lean at their company. Therefore, it is important to note that over three quarters (77%) of Lean practitioners find that they have achieved greater productivity and almost two thirds (64%) find that they are more profitable due to Lean.

"The AEC industry is undergoing an important transformation in the way work is performed and managed," said Marty Doscher, vice president, Architecture, Engineering and Construction, Dassault Systèmes. "This research highlights the industry's need for a collaborative backbone and data consistency. All team members need to share the same consistent set of data and to arrive at a shared understanding of objectives, plans and status to be successful."

The study demonstrates that using the right tools can support a firm's efforts to increase efficiency. It reveals that the ability of a firm to be more efficient is enhanced by a centralized enterprise backbone and design and management tools that integrate with it.  The study found that only 34% of firms currently use an enterprise software backbone to manage their data. Of those that do, 65% of the firms find that it supports their efficiency efforts, especially those like prefabrication and worker studies that depend on better data.

The research demonstrates that collaboration is a critical component of Lean, and other McGraw Hill Construction studies have revealed that collaboration is also a rising trend in the industry. The ability to exchange data among project team members is critical to collaboration.

On Tuesday, November 12 during the 2pm to 4pm (PST) session, McGraw Hill Construction will be presenting key findings at Dassault Systeme's 3DEXPERIENCE Forum in Las Vegas, NV. Follow the event on twitter #3DXforum.  

Dassault Systemes, the 3DEXPERIENCE Company, provides business and people with virtual universes to imagine sustainable innovations. Its world-leading solutions transform the way products are designed, produced, and supported. Dassault Systemes' collaborative solutions foster social innovation, expanding possibilities for the virtual world to improve the real world. The group brings value to over 170,000 customers of all sizes, in all industries, in more than 140 countries. For more information, visit www.3ds.com.

To download a copy of the Lean Construction SmartMarket Report, visit analytisstore.construction.com/LeanSMR13 or www.3ds.com/industries/architecture-engineering-construction/

About McGraw Hill Construction:
McGraw Hill Construction provides essential data, news, insights, and intelligence to better inform construction professionals' decisions and strengthen their market position. McGraw Hill Construction's data, analytics, and media businesses – Dodge, Sweets, Architectural Record, and Engineering News-Record – create opportunities for owners, architects, engineers, contractors, building product manufacturers, and distributors to strengthen their market position, size their markets, prioritize prospects, and target and build relationships that will win more business. McGraw Hill Construction serves more than one million customers through its trends and forecasts, industry news, and leading platform of construction data, benchmarks, and analytics, including Dodge MarketShare™, Dodge BuildShare® and Dodge SpecShare®. Construction data is available for North American and global markets.  To learn more, visit http://www.construction.com.

About McGraw Hill Financial:
McGraw Hill Financial (NYSE: MHFI), a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Iconic brands include: Standard & Poor's Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, J.D. Power, McGraw Hill Construction and Aviation Week. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com.

Media Contact:
Kathy Malangone, Senior Director, Marketing Communications,
McGraw Hill Construction, +1 212-904-4376, [email protected]

SOURCE McGraw Hill Construction