Construction crunch forces industry rethink as digital methods gain ground

• Multi-storey build times have risen 30% in a decade, fuelling the housing shortfall
• Traditional construction methods are prone to delays, overruns and disputes
• Options to streamline constructions with digital-led approaches are being explored by industry heavyweights Bluescope, Adbri and Lendlease, as well as smaller players such as PT Blink

Special Report: Australia is in the middle of a construction crunch with housing affordability at crisis levels and new projects taking longer and costing more.

Meanwhile, the sector is also grappling with labour shortages and volatile supply chains. For asset owners, developers and governments, the question is no longer if something has to change, but how quickly.

Traditional construction relies on lengthy on-site builds that are prone to delays, overruns and disputes. Industry data shows average build times for multi-storey projects have blown out by more than 30% in the past decade, while costs have surged at double-digit rates. In short, the system is struggling to keep up with demand.

The rise of digital-first building

A global shift is underway, moving construction closer to advanced manufacturing. Instead of building piece by piece on-site, the new model resolves everything in the digital world first, through detailed digital twin models, then assembles prefabricated parts on location.

The benefits are significant: faster delivery, cost certainty, higher quality control and greater transparency across the lifecycle of a project.

ASX-listed heavyweights are watching closely. Bluescope Steel (ASX:BSL) has flagged advanced modular methods as a key driver of future demand. Adbri (ASX:ABC), a critical supplier of cement and concrete, faces pressure to deliver more efficiently. Lendlease Group (ASX:LLC) has also acknowledged the need to embrace offsite manufacturing and digitalisation to regain competitiveness.

How digital can cut wait times

Another Australian company imploring innovations to shake up the industry is PT Blink. Its “Design-Manufacture-Integrate” platform enables developers to create a fully resolved digital model of a building before any physical work begins. Every component is fabricated off-site and assembled on-site like a kit of parts, cutting timelines and virtually eliminating overruns.

“We’re not a builder, we’re a technology company,” says PT Blink CEO Wayne Larsen. “The platform we are creating lets developers fully resolve a digital twin of their project before a shovel hits the ground.”

PT Blink has already proven its approach on major projects in Queensland, including an eight-storey apartment block in Spring Hill delivered in half the time of a conventional build. Founder Murray Ellen says the payoff for developers is clear: “If you can deliver a building in half the time, the internal rate of return doubles. That’s why we called it Blink.”

Why steel matters

The company’s approach relies heavily on Australian steel, putting it in the frame for the revival of the Whyalla steelworks, long considered a cornerstone of domestic supply.

“By converting even 5-10% of Australia’s multi-storey buildings from concrete to steel frame, you create a whole new market for Australian steel,” Ellen says.

Analysts note that such shifts could represent incremental demand in the millions of tonnes for Bluescope and other listed steel producers.

Jobs, quality and trust

Some developers worry that faster delivery compromises quality, but PT Blink argues the opposite. “Every element is precision-manufactured,” Ellen says. “Developers and asset owners also gain complete transparency on cost, timing and warranties through the digital twin.”

That transparency, coupled with the creation of new manufacturing jobs, underscores why digital-first methods are drawing attention from across the $150 billion construction sector.

This article was developed in collaboration with PT Blink, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.