Attached is white paper by BuiltWorlds member David Hettinger, Founder and Principle of Entropy.Build seeking to address some common misconceptions or places of confusion around an article published by McKinsey in 2015 entitled, The Construction Productivity Imperative. The article contained a chart comparing “Productivity” in the construction and manufacturing industries. Hettinger seeks to speak to some common misconceptions about the chart—by highlighting one of the key drivers of “Productivity” (or gross value added) in manufacturing: Intangible Assets. The paper provides examples of Intangible Assets in construction, the growing trend of Intangibles in the global economy, strategies to close the gap between construction and manufacturing, some of the consequences of misinterpreting the chart, select AEC industry players who are currently investing in Intangibles, and finally where some of the opportunities still lie.
Read about Dave’s discoveries in the White Paper below:
Join us August 18th for our Training and Development Analyst Call “What Actually is ‘Productivity in Construction'” where Dave Hettinger will be joined by BuiltWorld’s Director of Technology Adopter Programs Eveart Foster and WakeCap’s Founder and COO Ishita Sood Kochhar for a discussion of Hettinger’s recent work around how groups like McKinsey have historically looked at productivity in the industry, and how those metrics were derived, and where and how emerging technology is actually improving technology and how those improvements can be measured. It is a subtle but critically important discussion, as the industry needs appropriate and measurable benchmarks in order to determine if and where we are improving.