Construction 2025 – SkillsPlanner

We need to tackle some of the fundamental issues in the construction industry before we can effectively change “the image of construction”, and wider sharing of data should be part of the solution.

“The image of construction” has featured heavily this week for me (to be honest, it often does – as previous posts probably show).

On Tuesday, I was part of a CIMCIG-led roundtable discussion in London with Mark Farmer, the consultant helping the Construction Leadership Council to address issues relating to construction skills and the future needs of the industry (see gov.uk news release).

Yesterday I joined a panel discussion at the Women in Construction and Engineering Awards day, part of which focused on how current images of construction and engineering make them unattractive to potential entrants, parents, teachers and even careers advisors.

And today, I have been reading in Construction News (YouGov poll finds two-thirds of public would not consider career in construction) about a survey for Construction United showing:

more than half of the public view construction work as ‘strenuous’ or ‘dirty’, with just 11 per cent saying it was ‘exciting’
23 per cent viewed construction work as creating ‘mess, traffic and inconvenience’
people do not see the industry as academically driven, with 41 per cent saying it was one the least likely sectors to require a further or higher education qualification

Such survey findings are nothing new. They simply confirm that the “image” problem persists year after year despite numerous campaigns to change popular perceptions. Industry insiders maintain that we need to “present how fantastic it is to work in construction and change some of those perceptions… all of us who work in construction love it; we just haven’t been very good collectively at expressing that message” (to quote Suzannah Nicol of Build UK).

To change the image, first change construction

At this week’s CIMCIG meeting, I repeated my view that the “image of construction” is a symptom of a more deep-rooted reputation issue. Bluntly, the industry’s reputation is not just the result of what it says and what others say about it, but – importantly – about what it does and how it behaves.

The reality, evidenced in report after report (read my Ethos blog post: Building a better built environment industry), is that the UK construction industry has for decades been recognised as:

overly-complex, fragmented and price-fixated in its procurement approaches
adversarial in its supply chain relations
poor in its payment practices
wasteful in its project execution
conservative in its adoption of new technologies, and
short-termist and reactive in its approach to human skills development and R&D.

Add to this the ‘macho’ culture on many sites and the painfully slow progress in addressing diversity issues (see: Let’s share more data on skills and diversity), is it any wonder that the industry currently known as construction has an image problem?

At a Constructing Excellence conference in 2014, I said the industry needed to stop thinking of itself as a monolithic entity and start to identify changes it could make across its many disciplines, and then get them communicating, running long-term, integrated, pan-sector campaigns, and working collaboratively with partners, trade bodies and (most importantly, perhaps) its customers and end-users. Currently though, we seem to be more focused on trying to fix the image, rather than fixing the reasons behind that image.

It’s not just about campaigns

CITB’s Jane Gleave was at the CIMCIG meeting and talked about the GoConstruct campaign (read my pwcom post); last month I noted the launch at Ecobuild of Build UK’s new video; and this week’s story in Construction News (which launched its own #LoveConstruction campaign in July 2013) is based on a poll undertaken for yet another campaign, Construction United, launched in February 2016 and building towards a week of events in October.

And while we’re talking about “image”, to me it is unfortunate that the campaign’s home page perpetuates a view of construction as site-based. Efforts are being made by the Chartered Institute of Building, among others, to get government agencies to accept wider definitions of construction that take account of the inputs of product manufacturers and of professions such as architects, engineers and quantity surveyors, according to a Construction Index report today. We also tend to underplay the key roles played in many construction businesses by accountants, lawyers, marketing, PR, HR and IT people, plus a myriad of administrators.

Nonetheless, Construction United does recognise that there is already an industrial strategy looking to address some of the underlying problems:

“Construction 2025 identified a number of areas that needed addressing, so Construction United aims to bring everyone with a vested interest in construction together to raise awareness of the key issues facing the sector, including image, skills gaps and the wellbeing of employees at all levels.”

It’s not just about raising awareness of the key issues, but actually doing something about them. Construction 2025 and the Government Construction Strategy 2016-2020 (see previous post: Tackling skills gaps – can we learn from BIM?) prescribe a suite of changes aimed at making construction and the built environment more cost effective and sustainable. The BIM programme has shown that the industry can collaborate to tackle the underlying fragmented structures, silo-based attitudes, anti-collaborative behaviours and out-dated technologies – and BIM shows we can be sophisticated users of technology and data, not just stereotyped wielders of bricks, concrete and steel.

If government can inspire such changes in project delivery, surely it can work with industry so that construction skills provision also benefits from even more collaboration and more sharing of data? Incidentally, the UK was confirmed yesterday as the world’s leader in Open Data (see the 3rd Open Data Barometer report).

Where the Work Is

Through the SkillsPlanner project, we see some signs this is beginning to happen. Yesterday, for example, SkillsPlanner programme director Rebecca Lovelace attended an Institute for Public Policy Research launch of a jobs and skills tool called Where The Work Is. This jobs data platform draws on historic data on over 1.5 million jobs posted online by employers across all sectors in the UK from 2012 to 2014 and normalised against government data on vacancies, and we have incorporated some of the same datasets into our developing SkillsPlanner data catalogue. Clearly, we would welcome more contributions of data to help improve our understanding of the construction skills supply and demand challenges.

Incidentally, Where The Work Is also provided supporting data for a report, “Jobs and Skills in London: Building a More Responsive Skills System in the Capital” (download PDF), which recommended that the Greater London Authority might be given a more active role in funding adult education providers, and be given the capability to shift to a results-based funding model for adult skills in the future. This fits neatly with some of the aspirations we have for SkillsPlanner – if we can demonstrate its success in construction, we feel its data-driven approach can be applied to many other sectors of the economy too.

With collaborative platforms, mobile, BIM, ‘Big data’, the ‘internet of things’, we are tinkering with enablers of change. “Digital Built Britain” envisages entirely new business models for the industry currently known as construction.

21 years (and more) of industry reports

While some industry sectors have changed profoundly in recent decades, some have remained resistant to change. The UK construction industry, for example, has for decades been recognised as overly-complex, fragmented and price-fixated in its procurement approaches, adversarial in its supply chain relations, wasteful in its project execution, conservative in its adoption of new technologies, and short-termist and reactive in its approach to human skills development and R&D.

Such issues have been debated many times in a sequence of industry reports stretching back to World War 2: Simon, Emmerson, Banwell, Latham, Egan …. The ripples of the 1994 Report by Sir Michael Latham continue to be felt, not least because it stimulated some changes to procurement (we started to talk about strategic partnering and frameworks), and the change potential of IT was eventually picked up by Sir John Egan in his 2002 report Accelerating Change, and later championed by the first chief construction advisor, Paul Morrell from late 2009 onwards.

By this stage, the global financial crisis was scything through weak companies, projects were being moth-balled or cancelled altogether, thousands of workers lost their jobs, and the industry was desperate to find positive routes forward. Morrell responded to the challenge. Low Carbon Construction (2010) set the foundations, then the 2011 Government Construction Strategy instigated a more wide-ranging set of measures.

To many, this has all been about building information modelling (BIM), but it also created the conditions to test new models of construction procurement. Much of the endeavour, however, has remained siloed. To deliver the latest industry strategy (Construction 2025, published in 2013), we need to break down these silos, build on the progress made during the recession (lessons learned are being forgotten and businesses are ‘reverting to type’), and ensure they extend beyond just the progressive fringe.

‘Disruptive’ trends

The web, broadband and Software-as-a-Service (SaaS) have all helped change perceptions about technology and information management (a once paper-centric industry is moving more online). Information mobility has been a factor since the advent of smartphones (c. 2007) and tablets (c. 2010). BIM has, of course, been an increasingly dominant theme over the past five years and is set to continue as the government’s 2016 mandate comes into effect; social media has – maybe somewhat grudgingly – begun to challenge existing models of communication; and we have also become more aware of the power of data – ‘Big data‘, interoperability, linked open data, and outputs from the ‘Internet of Things‘ (in short, some of us are no longer document-centric but data-centric).

However, these technological changes are not, on their own, going to overhaul the construction industry. They are, at best, enablers. We also have to tackle the existing siloed structures, attitudes, cultures and resulting behaviours within the industry. These are holding back business; they helped create the industry’s poor reputation, and this reputation makes construction less attractive to potential home-grown employees at a time when there are deep skills shortages and the existing workforce is ageing.

The future direction and shape of the industry currently known as construction is more likely to be influenced by political, economic, social, legal and environmental factors. Globalisation, carbon, population growth and resource shortages will have an increasingly important and direct bearing on what industry clients identify as desirable business outcomes, making them more alert to whole-life performance and to wider business, social, economic and sustainability outcomes.

New business models

Digital Built Britain, published in February 2015, is therefore a key document. It synthesises four industry strategies: Construction 2025, Information Economy, Smart Cities, Business & Professional Services; it tells a wider audience than construction that it needs to build and exploit a “new digital economy”. It talks about the need for:

New ways of doing things
New business models
New business relationships
New institutions
New performance metrics

This fits with the Ethos VO view and with Constructing Excellence’s vision which says delivering ‘best practice’ is not enough. The successful businesses of tomorrow will break through the current industry ceiling, making radical changes and building collaborative business relationships so they can deliver exceptional performance:

BIM, mobile and data are part of this picture but only as enablers. Over time, they will become normal – as much part of the way of doing things as CAD, spreadsheets and email. Supply chain organisations in the industry currently known as construction will be rationalised and more integrated, transformed into providers of leaner, safer, lower-carbon and data-supported “asset services” (delivering ‘illumination’, not light fittings, for example – “Buildings-as-a-Service”, BaaS perhaps), rewarded across the life-cycle for the value delivered by the built assets they create, and having the reputations and market valuations more commonly found among sophisticated manufacturers.

And workers will be rewarded for their value-adding contributions; many will be recruited and trained to apply their skills in off-site manufacturing facilities; there will be a more strategic and long-term view of employment supply and demand (managed through platforms such as Ethos’s SkillsPlanner project), and new professions will emerge as we start to exploit the rich data opportunities of Future Cities.

This is not achieved by focusing on technology – it is achieved by radically overhauling existing structures, processes and cultures, driving out waste, creating collaborative business relationships (both corporate and interpersonal) that nurture innovation, and having supply chains focus on what delivers best whole life value.