KPMG, an organization of firms that provide audit, tax and advisory services, surveyed 100 U.S. building material manufacturing executives to understand what technological investments they had made—or were planning to make—and why.
These digital developments range from Building Information Management (BIM) integration to e-commerce and online delivery. Regardless of the method, KPMG pulled out four surprising insights from the results of the survey.
Overall, half of building product manufacturers plan to invest in one or more areas of technology in the next three years. The survey breaks down technology categories by product journey, from pre-sale, sale to shipping, operations, and post-sale groups. Pre-sale technology would include BIM systems and AR/VR design, for example.
![Technologies implemented by building materials manufacturers data graph](/sites/default/files/inline-images/Screen%20Shot%202023-05-04%20at%202.26.11%20PM.png)
1. Connected capabilities can work without ‘smart’ products
In the study, KPMG expected to see post-sale connected capabilities to only be applicable to smart products, such as thermostats, security systems, and air conditioners. However, 42% of respondents that have already implemented such connected capabilities have no products with any smart features.
Likewise, 67% of respondents who plan to implement these technologies in the next three years said the same.
![Share of revenue from "smart" products within companies that have implemented and plan to implement connected capabilities data graph](/sites/default/files/inline-images/Screen%20Shot%202023-05-04%20at%201.29.32%20PM.png)
2. Technology can drive both revenue and cost benefits
What are the largest influences behind implementing new technologies? Over half (56%) of building materials manufacturers report cost savings as one of the biggest reasons. Forty-two percent attribute their influence towards the labor/talent shortage, while 75% of manufacturers planning to implement new technologies do so for a competitive advantage.
Alternatively, one-quarter (26%) of respondents listed ESG concerns as an influence, and just 22% said that customers were requesting it. KPMG finds that the reasons did not differ significantly across company types or types of technology.
![Stated reasons for implementing new technologies data graph](/sites/default/files/inline-images/Screen%20Shot%202023-05-04%20at%201.44.47%20PM.png)
3. AR/VR technology is in addition to—not a replacement for—outreach teams
Rather than displacing the role of sales support teams, AR/VR tech was found to be an additional tool for architects, engineers, and consultant outreach teams. The survey shows that 78% of companies investing in AR/VR and remote monitoring to help the pre-sale process have a dedicated support team.
This is above the general average of 50% of respondents with the same teams, but without AR/VR technology in place, according to the report.
![Presence of pre-sale support teams at companies planning augmented or virtual reality implementations data graph](/sites/default/files/inline-images/Screen%20Shot%202023-05-04%20at%202.09.04%20PM.png)
4. Companies overestimate their technological sophistication levels
When asked about their companies’ technological maturity compared to competitors, a majority of respondents (70%) believe they are more advanced than average. Only 9% believe their company is below average, but no respondents claimed to be “the least advanced of all our competitors in digital maturity.”
Furthermore, KPMG saw that the more technologies a company selected as “implemented,” the more likely they were to self-rate as being above average or best-in-class.
![Building products manufacturer respondents self-rating of their companies' technological maturity data graph](/sites/default/files/inline-images/Screen%20Shot%202023-05-04%20at%202.21.28%20PM.png)
“While quantity certainly helps, quality of execution is a determining factor in how effective these technologies are,” says Serena Crivellaro and Len Prokopets, Managing Directors, Advisory, KPMG. “Unfortunately, with technological deployments being so broad-based across the industry, competitors may be more advanced than companies expect.”
Click here to view the entire report.
Related Stories
Modular Building | Jan 19, 2024
Building with shipping containers not as eco-friendly as it seems
With millions of shipping containers lying empty at ports around the world, it may seem like repurposing them to construct buildings would be a clear environmental winner. The reality of building with shipping containers is complicated, though, and in many cases isn’t a net-positive for the environment, critics charge, according to a report by NPR's Chloe Veltman.
AEC Tech | Jan 8, 2024
What's driving the surge of digital transformation in AEC today?
For centuries, the AEC industry has clung to traditional methods and legacy processes—seated patterns that have bred resistance to change. This has made the adoption of new technologies a slow and hesitant process.
Sustainability | Nov 1, 2023
Researchers create building air leakage detection system using a camera in real time
Researchers at the U.S. Department of Energy’s Oak Ridge National Laboratory have developed a system that uses a camera to detect air leakage from buildings in real time.
Building Owners | Aug 23, 2023
Charles Pankow Foundation releases free project delivery selection tool for building owners, developers, and project teams
Building owners and project teams can use the new Building Owner Assessment Tool (BOAT) to better understand how an owner's decision-making profile impacts outcomes for different project delivery methods.
Transportation & Parking Facilities | Aug 23, 2023
California parking garage features wind-activated moving mural
A massive, colorful, moving mural creatively conceals a newly opened parking garage for a global technology company in Mountain View, Calif.
Digital Twin | Jul 31, 2023
Creating the foundation for a Digital Twin
Aligning the BIM model with the owner’s asset management system is the crucial first step in creating a Digital Twin. By following these guidelines, organizations can harness the power of Digital Twins to optimize facility management, maintenance planning, and decision-making throughout the building’s lifecycle.
Designers | Jul 25, 2023
The latest 'five in focus' healthcare interior design trends
HMC Architects’ Five in Focus blog series explores the latest trends, ideas, and innovations shaping the future of healthcare design.
Digital Twin | Jul 17, 2023
Unlocking the power of digital twins: Maximizing success with OKRs
To effectively capitalize on digital twin technology, owners can align their efforts using objectives and key results (OKRs).
Standards | Jun 26, 2023
New Wi-Fi standard boosts indoor navigation, tracking accuracy in buildings
The recently released Wi-Fi standard, IEEE 802.11az enables more refined and accurate indoor location capabilities. As technology manufacturers incorporate the new standard in various devices, it will enable buildings, including malls, arenas, and stadiums, to provide new wayfinding and tracking features.
Virtual Reality | Jun 16, 2023
Can a VR-enabled AEC Firm transform building projects?
With the aid of virtual reality and 3D visualization technologies, designers, consultants, and their clients can envision a place as though the project were in a later stage.