designbuild 2018 report an insight into the ever …€¦ · interior decorator architect designer...

CURRENT MARKET TRENDS AND FUTURE CHALLENGES

AN INSIGHT INTO THE EVER-CHANGING SPECIFIER BUYING CYCLE

DESIGNBUILD 2018 REPORT

DESIGNBUILDEXPO.COM.AU / DIVCOM.NET.AU

PROUDLY BROUGHT TO YOU BY

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TABLE OF CONTENTSABOUT Data, Insights & Trends ............................................. 3

EXECUTIVE SUMMARY Building on solid foundations ................................ 4

RESPONDENTS Surveying the landscape ........................................ 5

BUSINESS PRIORITIES & CHALLENGES Adapting to an ever-changing market ....................7

TECHNOLOGY Better design. Better construction .........................16

SUSTAINABILITY Built to last ...............................................................19

CONCLUSION Navigating the road ahead .................................... 22

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ABOUTDATA, INSIGHTS AND TRENDS

Based on a comprehensive survey of architecture, design and construction professionals, the DesignBUILD 2018 Report presents a snapshot of the building industry in Australia, including insights into current market trends and future challenges.

DesignBUILD is Australia’s only dedicated trade event for the built environment.

Attracting over 6,000 industry professionals across design, architecture and construction, and featuring more than 300 distributors and manufacturers from both Australia and overseas, DesignBUILD showcases the latest products, materials and innovations in the building industry.

Diversified Communications Australia is a third-generation family owned communications company that specialises in delivering industry-specific trade events.

Our teams are strategically located around the world to provide market access, resources, services and education to the business communities in the industry sectors we serve. We have divisions located in the United States, Australia, Canada and the UK.

Diversified events combine traditional media, face-to-face, digital communications, social media and word-of-mouth to create powerful platforms for brands and memorable experiences for guests.

Explori conducted this research on behalf of Diversified Communications Australia.

Established in 2011, Explori has become the event industry’s biggest repository of benchmarking data and insight with over two million responses across 1,600+ shows and conferences.

The company serves exhibition organisers in every market in the world, and counts some of the biggest global event organisers as clients.

DESIGNBUILD 2018 REPORT 3

EXECUTIVE SUMMARYBUILDING ON SOLID FOUNDATIONSUsing information provided by attendees of the annual DesignBUILD exhibition held biennially in Sydney and Melbourne, the DesignBUILD 2018 Report presents valuable insights into the current construction market, as well as predictions for the next five years and beyond.

According to statistics from the Australian Construction Industry Forum, the AUD$218 billion construction market has seen the mining boom replaced by residential housing boom, which is now being replaced by an infrastructure construction boom.

Whilst building and construction work is at the forefront of change and transition in the Australian economy; the end of the mining construction boom and now the end of the boom in the housing market will challenge growth in building and construction work.

On the back of this volatile economic climate, there are a number of core issues currently affecting the industry, namely:

• Tightening regulations around product compliance;

• An increased focus on technology to drive project efficiency and collaboration; and

• Sustainability across the entire supply chain.

Whether the survey respondent was an Architect, Designer, Builder or Project Manager, there was general consensus across the board on a number of important issues. Business priorities centred around sourcing new clients and driving growth, while business challenges

included attracting and retaining top talent and staying up-to-date with the latest products, technology and regulations.

In what can only be described as good news for exhibitors and suppliers, three-quarters of the survey respondents said trade shows were their main source of product information. This is certainly a positive statistic for all those involved in the annual DesignBUILD exhibition.

Furthermore, the majority of respondents recognised the significant role technology is playing in the construction market, helping create design, product, labour and cost efficiencies for the industry.

Overall, the sentiment across the survey group was that sustainable design and construction was a must in today’s building industry, with client expectations driving an increasing focus on sustainability. What’s more, it was felt that all industry stakeholders have a role to play in ensuring products (particularly from overseas) meet Australian compliance standards and regulations.

We hope you find the DesignBUILD 2018 Report an insightful and valuable resource for you and your business.

94% of respondents

are involved in the product specification

process.

71% of respondents

source their product information from

trade shows.

63% of respondents believe

imported products have a negative impact on

the market.

“ Over the next 10 years, we’ll see a huge influx of sustainable and energy saving technologies ”

R E S P O N D E N T, 2 0 1 8

RESPONDENTSSURVEYING THE LANDSCAPEThe findings presented in this report come from a diverse cross-section of professionals directly involved in the Australian building industry. From architects and designers through to residential and commercial construction professionals, the research captures a wide range of data, insights and opinions.

Results showed that 30% of respondents indicated they worked in Architecture, 22% in Residential Construction, 16% in Design and 13% in Commercial Construction.

When we drilled down further, the Architecture group was mainly made up of Architects (56%), with Building Designer (23%) and Draftsperson (10%) also having representation.

The Designer group was comprised of Designers (21%) and Interior Architects (17%), however 36% indicated their role as ‘Other’, which included Business Owners, Teachers and Engineers.

The Residential Construction group saw 46% of respondents identifying as Builders, 10% as Project Managers and 19% as ‘Other’, which comprised Developers, Renovators and Sub Contractors.

And finally, the Commercial Construction group was comprised of Estimators (22%), Construction Managers (11%) and ‘Other’ (33%), which included Managers and Sales/Marketing Professionals.

When asked about the sectors in which they operated, 63% of survey respondents were involved in the residential sector, 28% in retail, 22% in corporate and 21% in education.

In terms of business size, more than half (59%) of respondents said they worked for a company that had less than 10 employees, while 11% worked for a company that had more than 500 employees.

Sector

Which of the below sectors does your job title most relate?

Position - Architecture


0

5

10

15

20

25

30

Design CommercialConstruction

Other

19%

13%

16%

Architecture

30%

ResidentialConstruction

22%

0

10

20

30

40

50

60

Architect Draftsperson Interior Architect

Other

9%

1%

10%

56%

Building Designer

23%

LandscapeArchitect

1%


Position – Residential Construction


0

10

20

30

40

50

Other, please specify

InspectorEstimator/Procurement

Building Surveyor

Speci�erBuilding Consultant

Project Manager

Builder

46%

10%8% 7%

3%3%3%

19%

Position – Design


0

5

10

15

20

25

30

35

40


Lighting Designer

Speci�erGraphic Designer

Digital Designer

Retail Designer

Industrial Designer

DecoratorInterior Architect

Designer

36%

2% 2% 2% 2%

5% 5%7%

17%

21%

Position – Commercial Construction


0

5

10

15

20

25

30

35


PlannerBIM Manager

Building Surveyor

Building Consultant

Construction Coordinator

Contract Manager

Construction Manager

Estimator/Procurement

33%

3% 3%

6% 6%

8%8%

11%

22%

Areas of operation

Which of the following best describes the sector(s) that you operate within the construction industry

0

10

20

30

40

50

60

70

80


TransportationUrban Planning

Energy and Utilities

InfrastructureSocial / Community

Infrastructure

HealthcareGovernmentHospitalityEducationCorporateRetailResidential

63%

28%

22% 21%

16% 15% 14%10%

8%6% 5% 4% 6%

63% of respondents

were involved in the residential sector in

some capacity


“ One of our top business priorities is to stay current with new products and regulations”

R E S P O N D E N T, 2 0 1 8

BUSINESS PRIORITIES & CHALLENGESADAPTING TO AN EVER-CHANGING MARKETFaced with new products and technology, increased competition, tighter regulations and shifting client demands, today’s building industry professionals have evolving priorities and challenges. So what are the key priorities and challenges, and how are they best managed?

When asked about the top priorities currently for their business, there were four main areas respondents identified: growth, attracting new clients, meeting existing client expectations, and staying up-to-date with the latest products.

Keeping abreast of new products was noted as being particularly important, as it enables businesses to recommend and source the right solution to meet customer demand. Staying up-to-date with the latest technology, regulations and sustainability issues also helps position a business as a trusted and knowledgeable leader in their field. As we’ll see later in the report, trade shows such as DesignBUILD are still an important source of information and education for industry professionals.

Respondents were then asked about their main business challenges. Staffing issues rated a number of mentions, particularly attracting and retaining top talent and the availability of the right

people for certain projects. Other challenges raised included finding new clients, increased competition, and lack of knowledge around sustainable products and materials.

When pressed about possible solutions to these challenges, respondents identified things such as more time devoted to training and education, taking advantage of more networking opportunities, and making more of an effort to keep up-to-date with the latest industry developments. Again, this links back to the critical role industry trade shows play in delivering wide-ranging education, training and networking opportunities.

And finally, in answer to the question: “Do you expect your current main business challenges to change over the next 3-5 years?” the majority of respondents said “yes”, predicting more demanding clients and increased competition across the industry.


Changing business challenges

Do you expect your current main business challenges to change over the next 3-5 years? If so, how? Verbatim responses from survey

“Yes to suit customer needs”

“Yes, the market has had some big changes in recent months and looks to be changing further”

“Yes, more competition”

“Yes , there are always new issues arising”

YES

“I don’t see this changing within 3-5 years, however over the next 10 we will see a huge influx in sustainability and energy saving technologies that will be backed by code requirement changes”

“Indications are that it gets worse with every year”

“Unlikely to change”

“No...unfortunately I foresee it getting worse as there is are some local government areas where there is no connection to responsible service nor respect for owners and their consultants”

NO

“Yes, due to our aim of growth our challenges may become

staff or cash flow”

“Yes, more demanding clients, greater workload and different

payment pathways”

“No changes expected, as there are more projects in pipeline”

“No, I think they will get worse”

Solutions to challenges

What do you see as being the solutions to these challenges? Verbatim responses from survey

“More time!”

“Have more time to devote to developing and implementing such a program”

“Time, hard work, marketing & acceptance”

“Putting in the time to ask hard questions”

DEVOTING MORE TIME

“Educating clients about the time and effort that goes into designing and documenting projects”

“Education, exposure, and foresight”

“Online training for trades with practical as well”

“Training and development”

TRAINING AND EDUCATION

“Networking with others in the industry ”

“Networking and sharing information with other like organisations”

“Collaboration and networking”

“Networking and attending trade shows/exhibitions”

NETWORKING

“Development of internal systems and staff skills”

“Hiring of suitable staff”

“Balancing the right projects with the right staff”

“Experience of staff”

STAFF

“Research and examination of all available information”

“Information supply

“Keeping informed of all the latest information”

KEEPING INFORMED

Current business challenges

What are the current main business challenges for you / your organisation? Verbatim responses from survey

“Availablility of skilled tradespeople in remote tropical regions who are knowledgeable about healthy building materials and can supply”

“Labour quality & cost of ”

“Reliable & knowledgeable staff to handle the expansion”

“Staff retention and knowledge, productivity, efficiency”

“Finding more good people that make a good fit within the business”

STAFF

“Attract more clients for medium density developments”

“Obtaining a steady stream of inquiries and leads from potential clients”

“Sourcing new clients”

“Getting more paying clients”

“New clients and growing my business”

NUMBER OF CLIENTS

“ Stiff competition and product bastardization due to online sales and marketing”

“Competition from copycats”

“Countering competition from larger corporate organisations”

“Competition from large developers/builders”

“ Impact of the US dollar Competition”

COMPETITION

Top business priorities

What are the current top business priorities for you / your organisation? Verbatim responses from survey

“Continue our capital growth strategy”

“National growth, not just NSW”

“Steady on-going growth and stability”

“Growth, increasing exposure, increasing product range”

“Steady growth and improving turnover”

“Growth & expansion”

GROWTH

“Getting the current work done and sourcing new clients”

“Getting more clients”

“Developing new client relationships”

“New clients and growing my business”

“Getting more paying clients”

NEW CLIENTS

“Meeting the changing demands of clients”

“Ensure that existing clients are getting great service”

“Servicing clients well”

“Meeting clients expectations about level of service”

“To keep our clients happy and make a profit”

MEETING CLIENT’S NEEDS

“Sourcing suitable products for future construction projects”

“Being up-to-date with new products addressing innovation and sustainability”

“To stay current with new products and regulations”

NEW PRODUCTS


“ I’ll still need to see and feel the product and discuss the technical details one-on-one”

R E S P O N D E N T, 2 0 1 8

PRODUCT INFORMATIONDIGGING DEEPERProducts and materials are at the heart of any construction project. That’s why it’s imperative to have the right information on-hand when researching, selecting and sourcing products. But how do you access the right information and who do you trust to provide the details you need?

The survey produced some interesting (and encouraging results from a trade show perspective) when it came to obtaining information about products.

A large majority of respondents (71%) said that trade events such as DesignBUILD are a good source of product information and inspiration.

Other important sources of product information included architectural publications (60%), industry websites (59%), industry magazines (47%), referral/word of mouth (43%), and suppliers/sales reps (43%).

Respondents were then probed further about the product information they receive from suppliers. From the feedback provided, it’s evident that suppliers are a good source of market information (e.g. new product launches and the latest trends), as

well as more detailed product information (e.g. how a particular product performs compared to others). The fact that many suppliers also have product samples was noted as an important part of the information gathering process.

When respondents were asked whether they anticipate the methods in which they source product information will change in the next 3-5 years, there were mixed responses.

Of those respondents who said “yes”, a common feeling was that online platforms such as social media would play a bigger role, as will the potential ability to have more direct contact with product manufacturers. Those in the “no” camp indicated that trade shows and suppliers will continue to be the most trusted sources of product information, with online sources filling the gaps.

71% of respondents

source their product information from

trade shows.Sourcing product information

Where do you source your product information or find inspiration?

0

10

20

30

40

50

60

70

80

Trade shows / Exhibitions

Architectural Publications

Industry Websites

Industry Magazines

Referral / Word of Mouth

From Suppliers - sales reps

Other websites

Industry Association(s)

Journals and Books

Social media (e.g. Facebook, LinkedIn, etc)

Lunch and Learn sessions

Online videos (e.g. YouTube,

etc)

DirectoriesOther, please specify

None / Do not source

product information

1% 2%

9%

16%19%

23% 24%

32%34%

43% 43%47%

59% 60%

71%


Product information from suppliers

Please tell us more about the product information or inspiration your receive from suppliers (sales reps)? Verbatim responses from survey

Commentary from David Baggs, CEO of Global GreenTag

The building and interiors products sectors are rapidly changing, and in light of the compliance issue in the industry, specifiers are increasingly looking for help in verifying product claims, especially with new products and innovations.

The A&D sector is waking up to the fact that ecolabels like Global GreenTag wont certify something unless it independently certified and assessed as ‘fit for purpose’ so it makes their jobs easier and adds trust to each link in the value chain. Also, with the increasing focus on health and

toxicity, the last thing the industry needs is yet another topic of expertise to conquer.

Recognised third party ecolabel programs avoid this by doing most of the hard work researching, assessing and certifying compliance, then providing the evidence in the form needed to pass the rating tool Credits and Features requirements. Eco-labelling s a win-win-win for specifiers, manufacturers and end users. Less work, more sales, more trust in brands and healthier, safer more planet friendly products.

Most important product information sources

Of the following product information sources, which are the most important to you?

0

20

40

60

80

100

Referral / Word of Mouth

From Suppliers - sales reps

Trade shows / Exhibitions

Other websites

Industry Websites

Industry Association(s)

Journals and Books

Lunch and Learn sessions

Architectural Publications

Industry Magazines

Online videos (e.g. YouTube, etc)

DirectoriesSocial media(e.g. Facebook, LinkedIn, etc)

3.46 3.56 3.56 3.60 3.64 3.68 3.75 3.79 3.94 3.95 3.97 4.16 4.19

Changes in sourcing product information

Do you anticipate the methods in which you source product information will change in the next 3-5 years? If you do, please describe how

Verbatim responses from survey

“More direct contact with manufacturers/ suppliers; this

is the most valuable and is coming back into vogue!”

“Yes. Independent content creators will be more influencial”

“Yes, I suppose so as social media is

very effective”

“Yes, more online material as global markets become

easier to access”

“Websites will remain extremely important. Social could change

things, but hasnt been done great for B2B yet”

“I am reading less physical publications so internet sources

are becoming my go to”

Not at all important Not very important Very importantFairly ImportantSomewhat important

“More up-to-date market information”

“Mainly market trends”

“Generally visit and provide information on new products coming to market or areas that are growing”

MARKET INFORMATION

“More detail on product info and applications than is found on websites”

“ Assess the product ability to perform in its chosen field and how it compares with rival products I know. Seek further information from the Sales Rep: why their product is better, requires maintenance and what is its expected lifespan”

“I don’t receive much from the reps but if I ask them to chase up a product then they will research them for me and then give me feedback”

“Product information”

PRODUCT INFORMATION

“Samples of tangible items to show clients”

“ Cladding solutions literature and samples”

SAMPLES

“Catalogue and samples”

“Product samples & info folders”

“Innovative and new products entering our local market to compete and challenge the ‘status quo’! ”

“New products are always being sought. Trying to avoid the ‘same old favourites’ included in architectural mags!”

NEW PRODUCTS AND LAUNCHES

“New products launches, technical advise”

“New products/ designs for product sales”

YES NO

“ No, you still need to see and feel the product and discuss one-on-one the technical details needed for installation (for example)”

“ Not really. Internet fills the gaps”

“ Not really, but will continue to frequently attend trade shows”

“For me certainly not! You can not go past experience and exhibiting the product”

“ Not really not unsless a superstore for renovaters comes available”

“ Unless a new and innovative platform comes along no change is forseen”


PRODUCT SPECIFICATIONSETTING THE PARAMETERSIt goes without saying that selecting the right products is a critical part of any construction project. In this section, we explore key product specification issues, including specifying responsibility, the selection process, quoting and tendering, and working with suppliers.

94% of respondents

are involved in the product specification

process.

0

10

20

30

40

50

60

70

80

I research / source products AND select which products

are speci�ed

I select which products are speci�ed but do

not research/ source products

I research / source products but do not select which products

are speci�ed

26%

67%

7%

0

5

10

15

20

25

30

35

No input into specifying selection

Advisory in�uence over specifying selection

Joint responsibility for specifying products

Sole responsibility for specifying products

28%

34%32%

6%

Purchasing authority

Which of the following best describes your role in specifying products?

Changes in specifying products

Do you expect the way in which you specify products to change over the next 3 – 5 years?

Influences on specifying products

What influence do the following have on specifying products?

Specifying involvement

Which of the following best describes your involvement in the specifying process?

INFLUENCESWhen the survey group was asked about influences over product specification, many said customer need has the greatest influence on decision making. Product quality and product availability was also mentioned by a large number of respondents.

59% of respondents see product reviews as an important source of information, however despite this, only 41% said they trust product reviews “fairly well”. Product reviews from established publications and websites are seen to be more reputable than other sources such as social media.

SPECIFYING PRODUCTSIn a resounding result, the survey showed that 94% of respondents have at least some involvement in specifying products as part of their job. In fact, more than two-thirds of respondents said they research, select and source products for their projects.

Delving deeper into the results, 45% of respondents expect there to be a change in the way products are specified over the next 3-5 years.

There were varied reasons behind this prediction (e.g. supply chain legislation requirements), however technology was cited as the main driver. This includes 3D printing and BIM, as well as AR, VR and AI technologies.

0 10 20 30 40 50 60 70 80 90 100

Corporate Social Responsibility

Flexibility in changing the speci�cation

Australian Made

Sustainable

Product availability

Customers' preference

Product source and quality

Customers' needs

No influence Minor influence Very strong influenceFairly strong influenceSome influence

21%

Don’t know

34%

No

14%

Yes, significantly

31%

Yes, slightly


0

5

10

15

20

25

30

35

Not applicable

Very important

Fairly important

Somewhat important

Not very important

Not at all important

3%

15%

21%

31%

28%

2%

Importance of product reviews

How important are product reviews to you when specifying products?

“Educate the clients on the product and why we have specified it. If we can, attend site regularly to ensure the builders are adhering to the specification”

“Include a caveat in the schedules that all products, materials, finishes, fixtures, fittings and equipment must be presented to the superintendent for review and approval prior to final ordering and installation”

“By understanding as much as possible clients needs and materials being used in building processes and finishes”

“Communicate well before required and work with architect, builder and subcontractor to ensure seemless supply and detail”

“Work on selected design directions, then based on what can be found in terms of value for money, those are the items selected. I don’t list exact items on the design as otherwise mostly full prices would have to be paid. My approach is similar to a chef who organises specials of the day based on fresh ingredients found that season and that day at the market, rather than set menu, keeping customers’ tastes in mind and restaurant’s general direction”

“As the building process is undertaken through an industry approved contract, the procedures are clear on the product to be used and how they can be changed which requires consent from the superintendent”

“I provide as much information as possible about the specified products and the sales representative contact details in a schedule for the builders to follow”

SELECTION PROCESS52% of respondents indicated the product selection process typically starts during design, with 37% also saying it’s typically finalised in the design stage. Interestingly, 17% of respondents believed product selection is often only finalised during construction.

This is backed up by the fact that many respondents felt originally specified products often change after the design stage. The main reasons for these changes seem to be product availability, fluctuating costs and client preference.

Timing of starting product selection

At what point do you typically start the product selection process?

Timing of finalising product selection

At what point do you typically finalise the product selection process?

Reasons for product changes

Please explain the circumstances under which the products selected changed after the design stage. Verbatim responses from survey

Processes to ensure products remain specified

What processes do you undertake to ensure the products selected from the designs are adhered to? Verbatim responses from survey

9%

Pre-designstage

37%

During design

36%

Pre-designstage

9%

Post-design stage

33%

Post-design stage

52%

During design

3%

Other

4%

Other

17%

During construction

“After design if the client is not satisfied with the look of a certain product”

“Clients change their minds”

“Change in client preference”

CLIENT

“Client’s decisions”“Cost implications; a lot of our work involves bespoke designs and details and selection may need to change in the construction stage”

“Cost imperatives resulting in a need for savings”

“Cost has big influence”

COST

“Builders often leave ordering to last. Sometimes suppliers falsify costings to get their product specified”

“Availability / in stock”

“Product availability”

“Availability, or new product releases”

AVAILABILITY

“When a project doesn’t get underway for some time creating lack of availability of stock, discontinued products”


The survey then focused on each group of respondents, asking about the role they play in specifying products for larger projects.

Feedback from the Architecture group suggested that architects play a significant role in product specification. Many stated they’re responsible for researching suitable products for the project, which includes confirming compliance, performance, cost and availability.

Respondents from the Commercial Construction group said they’re responsible for assessing how products will perform under a variety of conditions, plus quality and life expectancy. Many also

indicated they often research products and then present them to architects to make the final decision.

Responses from the Residential Construction group included: “I ensure products meet regulatory requirements and don’t present a risk to performance over the defect liability period” and “I make the initial decision on products, which is then confirmed in collaboration with the client and architect”.

From the Designers group, many were responsible for researching products and contacting suppliers. One respondent noted: “I specify products in accordance to the brief and budget I’m given.”

Product specification

Thinking about the process for specifying products for larger projects, what part does your job role play in specifying products? Verbatim responses from survey

AUSTRALIAN STANDARDS

“They need to be compliant to our standards. if they dont comply we cannot use them here”

“I do not specify overseas manufactured items unless they are already Aust standard certified and suitable to the installation and functional needs of a project”

“Depends on where they are manufactured, They need to be suitable for Australian climate conditions as well as compliant with Building regulations and Standards.”

“Yes. All products should adhere to Australian standards and I believe it would impact specifying products”

“Not so much lifestyle but certain quirky Australian Standards, such as the wiring rules.”

“Australia has a unique climate, it depends on your location to your climate zone. European products are strong and well built designed to withstand a very cold climate, where as Asian product do just enough”

“From perspective of regulation, they need comply with Australian standards; From perspective from daily life, Australian focuses on its impacts on environment”

Extent imported products modified

To what extent do you think that products imported from overseas need to be modified to suit the Australian market?

How products adapted

How are international products adapted to suit the Australian lifestyle? Do you think it would impact specifying products? Verbatim responses from survey

10%

No modification

15%

Small modification

19%

Large modification

14%

Don’t know

42%

Some modification

“I write the specification document and direct the documentation team”

“Selection, scheduling and specification”

“Research product suitability for the project. Compliance, performance, environmental credentials, valid code mark certification, cost, availability”

“Consultant so no specifying product on actual construction side but specifying product on my individual projects”

“A key role as I write specifications for tendering and construction”

“Architectural products as well as some building services product that affect the look of the building”

ARCHITECTURE

“Finding suitable candiates to fill specification positions”

“How these products will perform under population and other applications effect life cycle. Maintenance and aesthetic”

“Seeking information, considering recommendations from design professionals”

“I research and present products to architects. It is then up to them which products they want to specify”

“I only assist our dedicated Specification Manager. She deals with the Architects, I deal with builders, subbies and some end users”

“The Value Management exercise builder’s use to win work involves challenging everything to find best value. Always subject to approval”

COMMERCIAL CONSTRUCTION

“Very little on a larger project as the architects provide this specification”

“High, training and support leads residential trends and expectations”

“The initial decision in products to be used influence with clients and architects”

“Consultation with customers and stakeholders”

“I select and recommend”

“Ensuring products meet regulatory requirements and don’t present a risk to performance over the defect liability period”

RESIDENTIAL CONSTRUCTION DESIGN

“An influential role in balancing budget with quality”

“I specify products in accordance to the brief and budget I am given”

“It specifies styles, searches options and purchases keeping investment return in mind”

“We specifiy electrical equipment to delivery functionality in the built environment”

“It specifies styles, searches options and purchases keeping investment return in mind”

“Researching and contacting suppliers for details and specs of products. Input in aesthetics”

OVERSEAS PRODUCTSThe majority of respondents felt that products imported from overseas need to be modified in some way to suit the Australasian market, with only 10% saying that no modification is required.

The main reason cited for these modifications is to ensure the products adhere to Australian standards and are compliant with local building regulations. Other factors included adapting to Australian climatic conditions (e.g. increased humidity protection), different power needs and OH&S requirements.

OTHER

“Australia lacks the skill level to apply quality international products or the finance to buy majority of Australians can only look at this as a benchmark towards Improving”

“I do not specify overseas manufactured items unless they are already Aust standard certified and suitable to the installation and functional needs of a project”

“Many fasteners that come with overseas products are not suitable for our cavity walls for example. We usually use local fastening systems”

“Climatic considerations and sustainability targets”

“Preference would be for Australia lifestyles to use Australian products. Made in Australia for Australia. Usually the biggest adapations required are for compliance/standard differences or climate differences”

“Increased humidity protection, different power requirements, different building code and standards to adhere to”


Most important factors when choosing a supplier

When sourcing products, which, if any of the following are the most important factors when choosing a supplier?

Supplier issues entering Australian market

What issues, if any, do you think a new supplier would have entering the Australian market? Verbatim responses from survey

SUPPLIERSWhen asked about the process of choosing a supplier, respondents identified cost, existing relationships, delivery times and the availability of new products as the most important factors.

According to the survey group, the main issue facing new suppliers

entering the Australian market is compliance with Australian standards and regulations. As one respondent noted: “I believe that all imported products will be subjected to harder and more thorough testing for compliance with regulations and standards in the near future.”

0

10

20

30

40

50

60

70

80

OtherProduct ReviewsCountry of OriginLocation of Supplier

Eco Credentials / Corporate Social

Responsibility

RecommendationsProduct Guarantees

Availability of New Products / Technology

Availability / Delivery Timings

Usual / Preferred Supplier

Price / Cost of Products

6%

26%27%

33%37%38%

50%51%54%55%

77%


Imported products from some countries have been subject to variable production quality and standards compliance and have created an environment where now most imported product from those countries is considered suspect. To avoid leading edge products being tarnished with an unfair perception of poor quality just because of the country of source, verification and certification is an essential part of building trust with purchasers and end users.

“Compliance to Australian standards”

“Full compliancy with Australian standards is necessary with all new products. I believe that all imported products will be subjected to harder and more thorough testing for compliance with regulations and standards in the near future”

“Make sure the items are to building standards before any marketing requirements”

“Diligently meeting the Australian Standards, if they were monitored correctly”

“Trust that it can stand behind consumer guarantees and standards, In line with other standards in local market, long term suitability of product”

“Compliance with Australian Standards and Building Code of Australia. Setting up quality sales and technical staff”

“Quality standards, after sales care, demonstrating long term market commitment and investment, assimilating to local business norms and attitudes”

“Proving that they can withstand the environment and not fade, warp etc. The existing suppliers of claddings for example can show clients plenty of examples of built projects that have been around for X number of years with minimal maintenance”

AUSTRALIAN STANDARD / COMPLIANCE

“Demonstrating long term performance of product”

“Establishing credentials, reliability and dependability; after sales service”

“Labelling, full disclosure of how raw materials of product is sourced, manufactured, continued quality control assurance for consumer”

“Competition from existing suppliers unless something new and different were introduced to the Australian market”

“Outdoor suitability for Australian conditions product support and availability of all accessories”

“Gaining the confidence of builders. This is very difficult seeing they like to use tried and tested products”

“The new supplier would take some time for his brand to be accepted”

“In our case it is, to secure the I. T. by having total control of our entire operation using a simple Licensing business model. Secrecy and speed are essential additions. Early government change in updating its fire legislation would also be helpful!”

OTHER


QUOTING AND TENDERINGResults showed that a large proportion of respondents (81%) have some level of responsibility in the quoting and tendering process. Significantly, product specification plays an important role in quoting and tendering – inferior or wrong products end up costing most stakeholders in the long run.

The average quoting/tendering process typically takes a little under two months.

OFFSITE PRE-FABRICATION AND MODULARISATIONThe majority of respondents felt that offsite pre-fabrication and modularisation is having a growing impact on the Australian construction market.

When pressed further on this impact, respondents highlighted things such as time and cost savings, an increased number of products being made this way, and improving product quality.

Responsibility for quoting / tendering

Which of the following best describes your role in the quoting / tendering process?

Impact of offsite-prefab and modularisation

How much is offsite-prefab and modularisation of construction impacting on your market?

Impact of offsite-prefab and modularisation

Please describe the impact of offsite-prefab / modularisation in your marketVerbatim responses from survey

0

5

10

15

20

25

30

No input in the quoting /

tendering process

Advisory in�uence in the quoting /

tendering process

Joint responsibility in the quoting /

tendering process

Sole responsibility in the quoting

/ tendering process

29%28%

25%

19%

0

20

40

60

80

100

ArchitectureCommercial ConstructionDesignResidential Construction

Commentary from Adj Prof Paul Heather, National President of the Australian Institute of Building and Managing Director of Ku-Ring-Gai Consulting

The trend to introduce modular offsite building elements is gaining popularity with medium and high rise residential building practitioners to save time on site which then translates into increased margin at the bottom line.

Of course at the other end of the spectrum, bespoke residential builders by nature, would not readily use modular offsite building elements in order to accommodate the wishes of this very particular market sector.

“ I don’t specify items manufactured overseas unless they’re Australian Standard certified and suitable to the installation and functional needs of the project. ”

R E S P O N D E N T, 2 0 1 8

No impact

Very strong influence

Fairly strong influence

“Cost & time savings”

“Longer design period, shorter construction period”

“Prefab bathrooms, prefab materials impact on construction times and reduce costs”

“Speed to value”“Less time on site”

“Facades, panels, etc are increasingly prefabricated resulting in faster construction processes and less cost”

“The more off site prefab the less time it takes to erect and the less onsite trades are required”

TIME EFFICIENCY AND COST SAVINGS

“Reduce the construction time & hopefully delays”

“Offsite construction will only increase because of the quality, cost and time savings it provides”

INCREASED NUMBER OF PRODUCTS BEING MADE THIS WAY

“Not so much as yet however more general products are now manufactured offsite and introduced”

“Lots of people are seeking prefab or modular studios for their backyards”

“Bathroom pods are becoming more common”

“More components will come prefab and be more consistent”

IMPROVED PRODUCTS AND QUALITY

“Prefab in kitchens, bathrooms, wet areas, huge impact on reducing mistakes, improving quality particularly in repetitious design”

“Faster and stronger products”

“Assists in cost control, quality control and lessens the effect of inclement weather on program”

“The quality control is much better and not impacted by weather”

LITTLE / NO IMPACT

“Offsite construction is not impacting my market which is custom built, architect designed, residential and commercial building”

“Minimal to no difference”

“Still a traditional construction /conservative client base, however I hope to learn from what is happening in other sectors”

“None as tend to be bespoke designed structures”


On the topic of technology, the survey split respondents into Architecture/Design and Commercial/Residential Construction due to the specific technologies applicable to each group.

ARCHITECTURE/DESIGNWhen asked about the technologies that will have an impact on the industry in the next 3-5 years, architecture and design respondents nominated digital fabrication (55%), computational design (49%), CAD/BIM (46%) and 3D printing (45%).

Big Data and Intelligent Building Management Systems were also predicted to have a major impact.

Architecture and design professionals were then questioned about the role technology will play in the building sector over the next 3-5 years, with the overwhelming response suggesting it would be significant. Along with obvious benefits such as simplified design processes and less reliance on manual labour, respondents identified BIM, virtual reality and 3D rendering as game changers. Moreover, the ability to show clients tangible plans and collaborate more effectively with project teams will continue to create efficiencies.

TECHNOLOGYBETTER DESIGN. BETTER CONSTRUCTION.As with any industry, technology drives progress and innovation across the building sector. So it’s important for construction professionals to understand both its current and future ramifications, including how to leverage new technology to stay ahead of the game.

55% of respondents believe digital fabrication will have an impact on the

industry in the next 3-5 years.

0

10

20

30

40

50

60

OtherIoTVirtual Places

Big Data - Tracking a

Smarter Building

3D AutomationAugmented Reality and

Virtual Reality

DronesInteractive & Responsive Architecture

3D Render & Architectural

Visualisation

Intelligent Building

Management Systems

Simulation and Design

3D PrintingCAD, BIMComputational Design

Digital Fabrication

6%7%

9%

18%21%

28%28%

32%

38%38%39%

45%46%49%

55%

Most impactful technologies

What level of impact will the following technologies have on the industry over the next 3-5 years?

Level of impact


0 10 20 30 40 50 60 70 80 90 100

CAD, BIM

Big Data - Tracking a Smarter Building

Intelligent Building Management Systems

3D Render and Architectural Visualisation

Augmented Reality and Virtual Reality

Simulation and Design

3D Automation

Computational Design

Digital Fabrication

Interactive & Responsive Architecture

IoT

3D Printing

Virtual Places

Drones

Significant ImpactSome impactLimited impact


Role of technology - Architecture

What role do you think technology will play in your sector over the next 3-5 years? Verbatim responses from survey

Most impactful technologies


COMMERCIAL/RESIDENTIAL CONSTRUCTIONWhen commercial and residential construction professionals were asked about the technologies that will have an impact on the industry in the next 3-5 years, 57% identified smart building materials. Offsite construction also came in at 57%, followed by sustainable materials at 48%. What’s more, over 60% of commercial and residential construction respondents believe Design for Manufacturing Assembly will have a significant impact over the next 3-5 years.

Not surprisingly, this group also sees technology bringing improvements in design, specification and project management, as well as a reduction in labour required and time to complete construction.

0

10

20

30

40

50

60

OtherUAVWearable Technology

Big Data and Analytics

DronesDesign for Manufacturing

Assembly (DfMA)

RoboticsAdvances in Materials

3D Video and Immersion

Capabilities

Digital Engineering

Panelised Construction

Construction Automation

Sustainable Materials

Smart Building Materials

Offsite Construction

57%57%

48%

40%37%

28%26%

20% 19%

12%12% 11%8%

2% 2%

“Will continue to lead to better ways of building and doing things”

“Simplify architecture, less manual labour”

“Technological advances will play a huge role in the construction industry, hopefully improving speed and accuracy of the documentation and construction phase”

“Increasing capacity to quantify inputs and fine tune our designs”

“Ease of construction and more cost efficient running of building”

SPECIFIED IMPACTS PARTICULAR TECHNOLOGIES

“Coordinated collaborative technologies are the way forward. The new way of working required by BIM will be led by technological change and collaborative team working”

“BIM is inevitable to be the trend of field. with the help of 3D Printing, the process of building design is speedy and outcome is visual and touchable. Big data can target client and their preferences”

“Virtual reality will be the big one in the design industry. Helping to show clients the finished house, as opposed to looking at 2D plans or 2D visualisations”

“Proptech will become more prominent”

“It will continue to be very important”

“Significant”

“Big as ever”

SIGNIFICANT ROLE

“Huge role”

“Major”

“Continue to be the main factor”

“Technology is already playing a huge role in sector. Will only increase”

“Technology is already making a huge impact on how the industry operates and will change and develop significantly in 3-5years”

“As stated before it is the core of the business”

SIGNIFICANT ROLE

“Large role, changing quickly”

Role of technology - Design


“Will allow my projects to be more visual and realistic in a very professional way”

“Improved production techniques and management”

“Hopefully cost reduction”

“Very significant in some areas such as building management and services”

“Better design - better specification - better construction - better outcomes”

SPECIFIED IMPACTS PARTICULAR TECHNOLOGIES

“3D rendering is always important. User experience is a major technological consideration”


Level of impact


Role of technology - Commercial Construction


Commentary from Adj Prof Paul Heather, National President of the Australian Institute of Building and Managing Director of Ku-Ring-Gai Consulting

Applied technologies will “continue to play a critical role” in the Building and Construction industry and to quote the summary of this section “technology will to bring improvements in design, specification and project management, as well as a reduction in labour required and time to complete construction”, this includes the the rise of modularisation and offsite manufacturing.

However, lets not overlook the most power tool in the kit. That being the grey matter between our ears that allows us to delivery the craft via our hands. Accordingly I offer the consideration that while iPads are a powerful communications device, you still need a Warrington hammer to drive a brad into fine joinery.

0 10 20 30 40 50 60 70 80 90 100

Design for Manufacturing Assembly (DfMA)

Advances in Materials

Big Data and Analytics

Smart Building Materials

Sustainable Materials

Offsite Construction

Panelised Construction

Digital Engineering

3D Video and Immersion Capabilities

Wearable Technology

Drones

Construction Automation

Robotics

UAV

Significant ImpactSome impactLimited impact

“Streamline the quoting process”

“Help to overcome the error of human factor”

“Better visualisation/coordination/accuracy, etc”

“Less human labour and faster build times”

“Technology will (& currently is) making certain tasks like estimating faster and more accurate”

SPECIFIED IMPACTS

“Minor impact within this time frame”

“Not a huge role”

“Not a huge impact to Crown due to financial ease, however sustainability and plant recycling will be”

LIMITED ROLE

Role of technology - Residential Construction


“Significant, easier to apply, longer lasting coatings”

“Significant”

“Big Impact”

“A large role”

SIGNIFICANT ROLE

“Speed, cost”

“Allow for creative design and better finishes”

“Improvemnents in design, specification, project management, reduction in costs and time and labour”

“Advanced precision in fit , size squareness ease of application for builder”

SPECIFIED IMPACTS

“Minimal as remedial is a repair not a renew”

“I think it will be limited as the products need to prove themselves before the industry will start to use them on a large scale.”

“MINIMAL”

“Depends on the market conditions - if there is a downturn - very small”

LIMITED ROLE

“Automation”

“Home automation and stored energy”

“Automated measuring”

“Automation of certain aspects of the business”

AUTOMATION

“Ever increasing”

“Huge. Integration is getting better and quantum computing and self learning technology”

“BIG”

SIGNIFICANT ROLE


SUSTAINABILITYBUILT TO LASTSustainability is a term that’s been used in the building industry for many years. But what impact does a focus on sustainability and climate change have on the design and construction process, and what are the advantages and disadvantages of this increasing focus?

A wide variety of opinions were offered in the survey when it came to the topic of sustainability, however in the main, respondents believed that sustainable design and construction was simply a given today.

That’s because clients are increasingly looking to reduce their energy consumption and costs, whilst also being seen to source ethically produced building materials.

On the flipside, one respondent said that clients often need education on the affect of sustainability and climate change on design, including the benefits that can be realised in the long term.

The increased cost of specifying and sourcing sustainable products was mentioned frequently, however the consensus seemed to be that a focus on sustainability was resulting in better overall outcomes e.g. superior builds with high quality materials.

And whilst specifying and sourcing sustainable products and materials often takes more time, it was noted that this would continue to improve as demand increases and economies of scale kick in.

Overall, the sentiment across the survey group was that sustainable design and construction was a must in today’s building industry, with client expectations driving an increasing focus on sustainability.

Impact of focus on sustainability

What impact does a focus on sustainability and climate change have on the design and construction process? Verbatim responses from survey

“Clients often need education on sustainability and climate

change and its affects on design”

R E S P O N D E N T, 2 0 1 8


Sustainability is often considered an extra cost. But in our experience comparable quality, highly rated and sustainably certified ‘fit for purpose’ products are often competing in the marketplace head to head on cost, with little cost difference. Generally only if quality is sacrificed are cost savings possible, and the flammable cladding debacle is an example of where that path leads.

DESIGN“It has a considerable impact although final say is always with the clients who often need education regarding sustainability and climate change and its affects on design”

“This is a MUST in design and specifications in this day and age and going forward”

“One has a duty to design buildings/interiors which use sustainable products”

“Increase time in design”

“Very big design especially in glazing”

“Mainly affects the design phase. The construction process is just building to the plans not focusing on the climate in 10-20 years time”

“Material availability”

“It has changed the type of products being designed significantly”

“Sourcing products”

“Increasing Some products are growing (drought tolerance etc) Some products are declining due to lack of sustainable availability (red gum, jarrah etc)”

“People want to reduce their energy costs and source ethically produced building materials”

SOURCING AND PRODUCTS

“Can increase build time and cost - yet this is only because of economy of scale issues and still minimal overall demand”

“It’s not yet the majority so it’s expensive”

“More time and initial costs. But superior outcomes over all”

“Important, but cost is still a bigger factor at the moment”

COSTS INCURRED

“Increase time in design, usually better quality build, but more expensive”


“I find the quality coming out of China and India to be not as good as local products. Plus, you can’t deal personally with the supplier or manufacturer ”

R E S P O N D E N T, 2 0 1 8

COMPLIANCEMEETING INDUSTRY STANDARDSProduct quality and compliance is naturally a hot topic in the Australian building industry. That’s why we were keen to hear from industry professionals on a range of compliance issues, including imported substitute products and who’s responsible for ensuring compliance.

When questioned about the impact of imported substitute products on the Australian market, 63% of respondents felt they had a slightly or very negative impact. This compared to 27% who believed they had a slightly or very positive impact, and 11% who said there was no impact at all.

Many respondents indicated they were most concerned about substitute products coming from China, with India also getting a number of mentions.

The primary reason for this concern was the perceived quality of the imported products. In addition to concern about the sourcing of raw materials and manufacturing processes, some respondents said they didn’t fully trust the labelling of products from these regions.

Furthermore, respondents highlighted the lack of regulations in many Asian countries, particularly around sustainable and eco-

friendly processes. Labour protection was also a concern raised by some.

When respondents were asked if they were aware of any imported products being non-compliant, cladding was by far the most common answer.

And finally, responsibility for ensuring compliant products seemed to fall fairly evenly across the board. 76% of respondents felt that it was the manufacturer or seller’s major or full responsibility, 76% said the builder, 73% said the architect, and 67% said the designer. From these results, it’s clear that to ensure product compliance on a successful project, all the key stakeholders from design through to build completion need to have meaningful input on specifying and sourcing the right materials.

63% of respondents believe

imported products have a negative impact

on the market.

Impact of imported substitute products

What impact do you think imported substitute products from overseas have on the Australasian market?

Particular regions of concern

Why are they a concern to you? Verbatim responses from survey

0

10

20

30

40

50

Very positive impact

Slightly positive impact

No impact

Slightly negative impact

Very negative impact

22%

41%

11%

22%

5%

“China. Don’t trust labelling, raw material sourcing & manufacturing”

“Any country that supplies cheap import and has little regulation in their own construction industry.”

“China, India etc. I find their quality is not as good as local product and there is generally no alternatives offered eg. you buy what is offered, no custom styling. You cannot deal personally with the supplier or manufacturer”

“China, Africa or India due the lack of stricter laws regarding sustainable and eco-friendly processes AND labour protection”

“China - less quality control - more mass production - inferior materials”

“China as the products are cheaply manufactured but also reflective of quality and sustainability”

“China, because very polluted country and will get worse as their standard for health poor for locals ”

QUALITY


Positions of responsibility for compliance

To what extent are each of the following positions responsible for ensuring products are compliant / meet required regulations for their intended use?

0 20 40 60 80 100

Architect

Designer

Builder

Manufacturer / Seller

Compliance

What are the key responsibilities of your role regarding product compliance? Verbatim responses from survey

Non-compliant products

Are you aware of any issues with imported products being non-compliant or not meeting the required regulations?Verbatim responses from survey

No responsibility Minor responsibility Full responsibilityMajor responsibilitySome responsibility Don’t know

“Specifying that products must be compliant. If I am also project managing the build; also ensuring that the specification is followed through”

“Ensuring correct specification to begin with. Concurrence that items delivered/ installed as are as per spec”

“Checking that right thing was used as specified and builder did not substitute”

“I provide the information required by the design team in order for them to adequately assess the products compliance”

“When selecting and specifying I have a responsibility to ensure the selected product is fit for purpose”

“As an Architect we must ensure compliance in specifying materials”

ARCHITECT

“Painfully obvious! Look at the external cladding issue on many city high rise constructions. Another, is the use of various forms of ‘filler’ as a host for rendering of dwelling units”

“Combustible cladding”

“Cladding panels, paving, stolen intellectual property regarding window profiles”

“Yes, cladding panels and rainforest timber ”

“Yes, facade cladding, windows and glazing”

YESCladding, Timber, Glazing, Windows, Paving

“Advisory only and will question suitability with suppliers/manufacturers/consultants and authorities”

“Notify the original specifier and/or contract holder if compliance is not met”

“Verifying compliance with BCA”

“I am responsible to ensure that what I sell meets standards where those standards are required by the client/specification. If the client/specifications do not require a standard to be met then I only have to meet the clients requirements in a safe manner”

“It’s more of an administration point where the buck stops from a corporate stance but more should be done to ensure industries are doing the right thing”

COMMERCIAL CONSTRUCTION

“Make sure specified product is used or an approved equivalent”

“Monitor installations against manufacturers requirements and some standards”

“To ensure all products are compliant and manufacturers are reputable”

“Checking that alll products do actually comply and are serviceable and fit for purpose”

“Ensuring the organisation has access to regulations, understanding the key requirments for products and how they should be used”

RESIDENTIAL CONSTRUCTION

“Establishing achievable performance requirements”

“Ensure each product has the relevant test certificates, chain of custody certification etc”

“Selection and Specification compliance to Australian Standards and Industry requirements”

“To ensure it complies to the BCA and Australian Standards”

“To understand the product”

DESIGNER


Commentary from Jamie Butler-Underwood, DesignBUILD Event Manager

There is an evident need for defining regulations over what constitutes product conformance and compliance and where the ultimate responsibility lies across the design and build process to meet the standards. It is evident from the comments in the report that there is concern around products being be re-specified during the build process and how this can compromise the design, performance and therefore compliance of a product or project.

Trusting product quality from both domestic and overseas suppliers or manufacturers is in line with Australian standards seems to be an ongoing issue for those involved in the specification process and will be a significant challenge to address in building regulation reform.

I agree that the will be a substantial impact coming from modular offsite building solutions that will address criteria of meeting the standards,

being fit for purpose and working functionally with other products. There seems to be a consensus that pre-fabrication will pay a huge part in how the industry will address not just building performance and efficiency, but also quality and sustainability. Adding into this the way that digital and applied technologies are significantly shaping the way the industry works to together to design and deliver projects, the Australian architecture, building, design and construction community has an exciting immediate and sustainable future.

At DesignBUILD, we look forward to continue as the platform that brings the industry together to address what is pertinent; to help businesses make meaningful connections; and ultimately to support the growth of the industries we serve.

CONCLUSIONNAVIGATING THE ROAD AHEADDespite dealing with an ever-changing range of economic, social and environmental factors, the Australian building industry continually proves itself to be adaptable, robust and dynamic.

Using information provided by a cross section of industry professionals, the DesignBUILD 2018 Report has presented fascinating data and insights into the current construction market, as well as predictions for the next five years and beyond.

Whether the survey respondent was an Architect, Designer, Builder or Project Manager, there was general consensus across the board on a number of important issues. Business priorities centred around sourcing new clients and driving growth, while key business challenges included attracting and retaining top talent and staying up-to-date with the latest products, technology and regulations.

And in what can only be described as good news for exhibitors and suppliers, three-quarters of the survey respondents said trade shows were their main source of product information. This is certainly a positive statistic for all those involved in the annual DesignBUILD exhibition.

Furthermore, the majority of respondents recognised the significant role technology is playing in the industry, helping create design, product, labour and cost efficiencies for the industry.

Overall, the sentiment across the survey group was that sustainable design and construction was a must in today’s building industry, with client expectations driving an increasing focus on sustainability. What’s more, it was felt that all industry stakeholders have a role to play in ensuring products (particularly from overseas) meet Australian compliance standards and regulations.

Finally, professionals working in the construction market still place high value on the information they receive from trusted sources such as suppliers and trade show exhibitors. This is particularly true when it comes to product specification – a critical component of achieving a successful project outcome and satisfied clients.

Visit designbuildexpo.com.au to find out more about the opportunities at the annual DesignBUILD expo.


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