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March 17, 2020

Construction work halted on key site in the UK: a harbinger of further disruption?

Although the UK Government has thus far avoided taking the drastic measures implemented by other European markets to try to contain the spread of the coronavirus, there are already signs that the virus outbreak is adversely affecting the construction industry in the UK, with the risk of works on major projects being halted.

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Internet of Things set to transform the construction industry

The Internet of Things (IoT) is proving hugely beneficial to the construction industry, allowing different assets and people to be monitored and accounted for across a traditionally fragmented industry. As a result, companies that invest in IoT now promise to make long-term gains in the industry. According to GlobalData forecasts, spending on IoT in construction will reach $9.6bn by 2025. For an industry that has large sites to manage, strict project timelines, hazardous working conditions, and tight profit margins, IoT can create a manageable view of construction sites for project managers, streamline operations, and protect workers. In addition, it allows real-time data streams of assets, automates time-consuming tasks, and ensures employee safety and productivity. IoT integration with equipment manufacturing also has rich advantages for asset monitoring sensors. This, combined with artificial intelligence (AI) can help forecast materials and workers needed during the procurement stage and assist in forecast financing. Read GlobalData’s whitepaper to find out more, including information on:
  • IoT value chain
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  • Leading IoT adopters in construction
  • Specialist IoT vendors in construction
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by GlobalData
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Lendlease, a multinational construction company, announced on 13 March that work on its Google headquarters project would be temporarily suspended following a worker testing positive for the coronavirus. The UK construction project is worth an estimated £1bn ($1.3bn), the temporary halting of this project will be a worrying sign of things to come in the industry as the virus outbreak worsens in the country.

The construction industry is particularly at risk from the spread of the virus due to the nature of work: while many offices can instruct their employees to self-isolate and work remotely, once self-isolation takes place at a work site, all project work is halted. For this reason, the construction industry, along with hospitality and tourism, are likely to be the most severely impacted sectors by the spread of the coronavirus. More projects are expected to be temporarily halted, ushering in a difficult period for the construction industry.

GlobalData has revised down its forecast for construction output growth in 2020 to 0.8%, from 1.0% previously. However, stimulus measures are being provided to support the economy and reassure investors. The Bank of England recently cut interest rates by 50 basis points to 0.25% and announced measures to support lending to small and medium sized businesses. In his budget announcement on 11 March, the Chancellor, Rishi Sunak, revealed plans for the biggest infrastructure spending increase since the financial crisis. The increase in spending for key infrastructure such as roads and railways and also for new homes is expected to support growth in the construction industry once the impact of the coronavirus subsides.

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Free Report
img

Internet of Things set to transform the construction industry

The Internet of Things (IoT) is proving hugely beneficial to the construction industry, allowing different assets and people to be monitored and accounted for across a traditionally fragmented industry. As a result, companies that invest in IoT now promise to make long-term gains in the industry. According to GlobalData forecasts, spending on IoT in construction will reach $9.6bn by 2025. For an industry that has large sites to manage, strict project timelines, hazardous working conditions, and tight profit margins, IoT can create a manageable view of construction sites for project managers, streamline operations, and protect workers. In addition, it allows real-time data streams of assets, automates time-consuming tasks, and ensures employee safety and productivity. IoT integration with equipment manufacturing also has rich advantages for asset monitoring sensors. This, combined with artificial intelligence (AI) can help forecast materials and workers needed during the procurement stage and assist in forecast financing. Read GlobalData’s whitepaper to find out more, including information on:
  • IoT value chain
  • Market size and growth forecasts
  • Mergers and acquisitions
  • Leading IoT adopters in construction
  • Specialist IoT vendors in construction
Don’t get left behind – find out how IoT can fortify your operations and make investments now.
by GlobalData
Enter your details here to receive your free Report.

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