Construction Industry Outlook

The construction industry needs to business transformation by utilizing digital technology

The Japanese construction market experienced robust activity driven by Great East Japan Earthquake reconstruction projects , urban redevelopment, and special demand from the Tokyo Olympics. However, it has slowed down more recently, affected by the COVID-19 pandemic and a lull in redevelopment projects.This has resulted in large corporations bidding for smaller projects, intensifying the competition.

In addition, the decline in the working-age population of society as a whole and the aging of skilled workers in the construction industry, as well as the departure of young people from the industry, are exacerbating labor shortages and technical succession problems, making it imperative to address not only productivity improvement but also work style reform.

Recently, the entire supply chain of the construction industry is accelerating its efforts to decarbonize in order to achieve carbon neutrality in the future, and efforts are being strengthened in preparation for the maximum working hour regulations applicable from April 2024.

Under these circumstances, construction companies are required to review the value they provide through business transformation, in addition to improving productivity by shifting to more efficient ways of working. To achieve this, it will be essential to acquire digital capability in business operation using data. This report describes how construction companies should innovate their business models and business processes and expand their business domains in the future.

Table of Contents

Construction Industry Trends and Outlook in Japan

• Industry Trend
• Construction Companies Trend
• Construction Industry Business Transformation

Industry Topics

• Value Proposition by Digital Transformation
• Data usage beyond BIM
  
• Diverse Business Models
• New Business Creation