Digital investment in construction & manufacturing

Being a digitally enabled business means more than just remote work. For many medium construction and manufacturing businesses, technology is offering a return on investment not always measurable in numbers – in everything from improved collaboration with customers to more efficient quoting and invoicing. This is particularly true as the need to access and process files digitally becomes increasingly important. 

It’s unsurprising that according to Rockwell Automation’s 2024 State of Manufacturing report, 73% of UK manufacturing companies spend between 21% and 50% of their operating budget on technology investment.

We recently interviewed 400 medium-sized UK businesses (50-250 employees) about their plans for the coming years*. The vast majority (86%) of our respondents stated that they plan to increase their investment in technology, while 76% said technology will help them achieve their goals. With that in mind, let’s explore the key ways to use digital investment as an enabler for business growth.

At the core of successful digital transformation is the strong connectivity powering it. A nationwide logistics company is using mobile connectivity to help mobile teams stay connected wherever they are: on-site, in the office or on the road. This involves connectivity both on handsets but also through mobile broadband.

5G broadband – or fixed wireless access (FWA) – means businesses can power up their 5G network without having to rely on a fixed line or existing infrastructure.

As more than two-thirds (70%) of respondents across all industries experienced setbacks from poor connectivity, a reliable connection across the workforce can keep business moving without barriers.

The rapid sharing of information through low latency 5G connectivity helps avoid bottlenecks and prevents operational downtime. This has been demonstrated in the HS2 construction project, where a 5G sensor-based system not only drives efficiency but helps reduce risk to workers and machinery.

5G enables the connectivity of millions of devices – meaning employees can communicate with one another, but also access data from devices across the entire business.

In our research, more than a third (38%) of both manufacturing and construction businesses said enhanced connectivity would drive innovation through smart devices. Clearly, connectivity has advanced far beyond solely enabling one-to-one collaboration and is now a critical part of running a successful digitally-enabled business.

Mobile tools and apps and are streamlining operations and enabling inter-team collaboration. Today, custom-built mobile apps streamline tasks like inventory management and enable the sharing of information without delay – between the likes of designers, engineers, and testers.

Beyond Microsoft Teams, construction-focused apps like Construct enable collaboration through real-time sharing of project information. In manufacturing, Prodsmart shares production updates directly from the shop floor. With this, there is increased pressure to work securely, as more data is passed through connected devices and stored in the cloud.

Real-time remote asset management and monitoring is also enabled by mobile tools: 5G-powered sensors installed in manufacturing assets transmit performance and supply level data in real-time. This is what civil engineering business Jones Bros are discovering with connectivity from Three Business, particularly through the integration of IoT devices, which enable predictive maintenance.

In construction, teams can use mobile apps to access the latest blueprints and schematics, saving valuable time and money, while speeding up the compliance process.  

Of course, technology is only effective if teams are empowered to use it in the best way. And as the number of digitally native businesses increases globally, digital skills are becoming less of an operational add-on and more of a strategic imperative.

In manufacturing, as production processes have digitised, production levels and productivity has increased, meaning there’s a need to bridge any remaining gaps in digital skills. It’s a similar story in construction, where digital skills are essential for using software tools such as computer-aided design (CAD) and building information modelling (BIM).

Investing in training programmes is now more important than ever. In construction, augmented reality (AR) and virtual reality (VR) can prevent safety issues and assist active learning in a risk-free environment.

In manufacturing, VR training can educate maintenance professionals faster to help detect product defects and streamline production. Notably, almost half (47%) of respondents in construction said connectivity would support the use of AR and VR.

Business leaders should think strategically when it comes to digital skills. This includes assessing the tools and systems that are being adopted to identify what skills are missing, and prioritising internal communication platforms to increase accessibility. Thanks to their size, medium businesses can be nimble; meaning skills can be shared more easily or reviewed on-the-go. 

With technology facilitating smoother operations and constant communication between on-the-go teams, businesses are discovering that an investment in digital is an investment in growth.

In fact, while 57% of construction businesses and 61% of manufacturing businesses cite technology as essential for achieving business goals, 93% of all respondents that experienced revenue growth in the last two years plan to invest further in tech.

Further digitisation is already anticipated across construction and manufacturing. Improving digital skills, embracing new tools and enhancing connectivity will facilitate cooperation, improve visibility, and simplify decision-making – creating the right environment for growth.