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Keeping up with the pace of digitization: The case of the Australian construction industry

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  • Leviäkangas, Pekka
  • Mok Paik, Seong
  • Moon, Sungkon

Abstract

The most significant current technological trend is digitization, the impacts of which will be faced by all levels of society. This paper addresses how the Australian construction industry has kept up with the pace of digitization compared with other industries in Australia. The data is drawn mainly from the national accounts hosted by the Australian Bureau of Statistics, within the time period of 1995–2015. Construction has developed into one of the most important industries in Australia. Together with mining and the financial and insurance sector, it has contributed to a significant gross added value (GVA) in the economy. The construction industry has invested around 1% or less in information and communication technologies (ICT) as their share of GVA; however, it has invested about 15% in ICT of their total investments (gross fixed capital formation). Among the selected industries, construction's labour productivity measured by GVA per hour was the third highest, despite low level of investments in digitization. The observed correlation between ICT investments and productivity is weak when using industry level data from the national accounts. Any big leap towards digitization is not recognised for the construction industry; rather there appears to be steady acceptance of the technology.

Suggested Citation

  • Leviäkangas, Pekka & Mok Paik, Seong & Moon, Sungkon, 2017. "Keeping up with the pace of digitization: The case of the Australian construction industry," Technology in Society, Elsevier, vol. 50(C), pages 33-43.
    • Handle: RePEc:eee:teinso:v:50:y:2017:i:c:p:33-43
    DOI: 10.1016/j.techsoc.2017.04.003
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    References listed on IDEAS

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    3. Strauss, Hubert & Samkharadze, Besik, 2011. "ICT capital and productivity growth," EIB Papers 6/2011, European Investment Bank, Economics Department.
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    Cited by:

    1. Luo, Lan & Chen, Hao & Yang, Yue & Wu, Guangdong & Chen, Long, 2022. "A three-stage network DEA approach for performance evaluation of BIM application in construction projects," Technology in Society, Elsevier, vol. 71(C).
    2. Coskun-Setirek, Abide & Tanrikulu, Zuhal, 2021. "Digital innovations-driven business model regeneration: A process model," Technology in Society, Elsevier, vol. 64(C).
    3. Osama Mohamed ElSahly & Salma Ahmed & Akmal Abdelfatah, 2023. "Systematic Review of the Time-Cost Optimization Models in Construction Management," Sustainability, MDPI, vol. 15(6), pages 1-20, March.
    4. Agus Salim & Jun Wen & Anas Usman Bello & Firsty Ramadhona Amalia Lubis & Rifki Khoirudin & Uswatun Khasanah & Lestari Sukarniati & Muhammad Safar Nasir, 2024. "Does information and communication technology improve labor productivity? Recent evidence from the Southeast Asian emerging economies," Growth and Change, Wiley Blackwell, vol. 55(1), March.
    5. Stavros Kalogiannidis, 2020. "Impact of Plant Closures on Urban and Regional Communities: A Case Study of South Australian Gas Industry and its Workers," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 994-1010.
    6. James Bell & Henry Chan & Michael Chan & Sungkon Moon, 2022. "COVID-19 and Construction: Impact Analysis on Construction Performance during Two Infection Waves in Victoria, Australia," Sustainability, MDPI, vol. 14(5), pages 1-18, February.
    7. Andersson Niclas & Lessing Jerker, 2020. "Industrialization of construction: Implications on standards, business models and project orientation," Organization, Technology and Management in Construction, Sciendo, vol. 12(1), pages 2109-2116, January.
    8. Savindi Caldera & Sherif Mostafa & Cheryl Desha & Sherif Mohamed, 2021. "Exploring the Role of Digital Infrastructure Asset Management Tools for Resilient Linear Infrastructure Outcomes in Cities and Towns: A Systematic Literature Review," Sustainability, MDPI, vol. 13(21), pages 1-25, October.

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