Poor product data costing UK construction £3.8bn a year

A new report reveals poor product information is undermining productivity, housing delivery and building safety compliance

The report, delivered by Barbour ABI and GS1 UK, says the UK construction industry is losing up to £3.8bn each year because product data remains fragmented, inconsistent and difficult to share.

At a time of rising material costs and pressure to deliver new homes, the findings reveal a sector facing a growing gap between awareness of regulatory requirements and its ability to put them into practice.

Iain Walker, director of industry engagement at GS1 UK, explained: “For years, construction’s digital debate has focused on systems, platforms and documents.

“The harder question is whether everyone involved in designing, specifying, purchasing, installing and maintaining products is working from the same trusted information.”

Construction is lagging behind in the digital uptake

The report found that 52% of construction professionals say a lack of digitalisation leads to revenue loss, rising to 69% among larger organisations.

What’s more, three out of five businesses say inefficiencies in managing construction product information are hampering progress, while 48% described current approaches as disorganised.

Gaps remain in meeting building safety standards

These same inefficiencies are also creating compliance and safety risks, while wider confidence in the sector’s ability to deliver remains low.

An overwhelming 98% of industry professionals report awareness of the Building Safety Act, yet only 21% say they are fully prepared to meet its requirements, despite the legislation coming into force in October 2023.

Similarly, nine in 10 industry professionals say they are aware of the concept of the ‘golden thread’ of information, which is designed to ensure safety and accountability across a building’s lifecycle, but just 14% say they fully understand it.

“The industry’s challenge is not a lack of awareness. The Building Safety Act and golden thread are now widely understood concepts. The challenge is creating reliable, consistent product information that can be shared and trusted across the lifecycle of a building,” Walker said

“Poor product data management is a core driver of the sector’s inefficiencies and safety challenges.”

Reliance on static documents makes it difficult to keep up with product data

The construction sector remains heavily reliant on static documents such as PDFs and brochures, making it difficult to maintain consistent, up-to-date product information across supply chains and building lifecycles.

This challenge becomes particularly acute when products are substituted on site, a practice reported by 84% of respondents.

Substitutions require accurate and accessible information to ensure safety, compliance and performance requirements continue to be met.

Many of the difficulties highlighted in the research stem from a fundamental issue: product information is often difficult to link consistently to a single product identity across organisations. Without this, tracking substitutions, demonstrating compliance and maintaining accurate records become significantly harder.

Digitisation is crucial for the future of the built environment

Barriers to adopting digital solutions are widespread. Almost all respondents identified at least one barrier to digitalisation, including a lack of clear direction, competing priorities, cost constraints, and limited digital skills.

These challenges are particularly acute for SMEs, which make up 99% of construction businesses and often lack the resources to invest in digital transformation.

Despite this, there is strong recognition that change is needed. Nearly three-quarters say digitalisation is essential to the future of the built environment, and 70% believe urgent reform is required to improve the management of construction product information.

Walker concluded: “Without addressing the fundamental problem of product data management, the golden thread risks becoming a repository of documents rather than a trusted record of what was actually specified, installed, substituted and maintained throughout a building’s life.

“The task now is to make product information easier to identify, share and trust. If the sector can achieve that, it can improve productivity, strengthen compliance and create a safer built environment.”

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Poor product data costing UK construction £3.8bn a year
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