The construction industry is expected to face several challenges in 2023, including disruptions to the supply chain and productivity. Despite some stabilization in materials costs, global issues will continue to pose a threat to the industry.
The building sector is responsible for a significant proportion of global carbon dioxide (CO2) emissions, with the production of cement, steel, glass, and other building materials accounting for around 10% of global emissions. The challenge for the industry is to find ways to reduce these emissions while continuing to meet the ever-growing demand for new buildings and infrastructure.
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Inefficient supply chain
Ironically, the construction materials supply chain is fragmented, with many small and medium-sized suppliers. This creates problems with coordination and delivery as its completely labor dependent, as well as a lack of standardization.
Need for cost optimization
In addition, the construction industry is notorious for its low-profit margins. This means that there is little room for error in the supply chain. If one company makes a mistake, it can have a domino effect that impacts the entire chain, leading to delays and cost overruns—faced to remain competitive and profitable.
Lack of digital traceability and isolated systems
It is difficult to track and trace the origin and movement of building materials, which can lead to inefficiencies and potential risks, such as counterfeiting, fraud and lack of data integration and information flow between different departments.
Lack of information and network security
The building materials industry is vulnerable to cybercrimes such as hacking and data breaches. Companies need to invest in information security and protect their control network infrastructure from advanced cyber-crimes to prevent data theft resulting in financial losses, and also protect the environment in the process.
To address these challenges, many companies in the building materials industry are adopting digital technologies, such as blockchain and secure networking solutions to improve traceability, security, and collaboration. These technologies can help to improve the efficiency and transparency of the supply chain, as well as protect against potential security threats.