31st January, 2025
The construction industry is a powerhouse for Australia and New Zealand, creating jobs, driving economic growth, and building the infrastructure we all rely on. But running a construction business today isn’t without its challenges. Rising material costs, labour shortages, and the pressure to adopt sustainable practices are just some of the hurdles many construction business owners face daily.
In today’s challenging business landscape, finding ways to stay competitive and efficient is crucial. This is where technology comes in. New technologies around digital transformation, artificial intelligence, and sustainability will come into play. Meanwhile, tools like Enterprise Resource Planning (ERP) systems are transforming how construction companies operate, helping to simplify processes, reduce costs, and improve decision-making.
Let’s take a closer look at the tech trends reshaping the construction industry for 2025 — and discover how businesses can solve common challenges by embracing these innovations.
Miscommunication and outdated paper plans often lead to expensive mistakes and rework, which can account for up to 30% of work in the industry. Building Information Modelling (BIM) solves this problem by providing detailed 3D models that allow everyone involved in a project to work from the same page. This not only reduces errors but also saves valuable time and money.
When paired with an ERP system, BIM becomes even more effective. ERP and BIM functionalities complement each other to create a centralised end-to-end workflow. The integration of the two systems allows for real-time synchronisation and the removal of data siloing. It also improves efficiencies in processes such as procurement and budgeting to ensure projects remain on track.
Gathering accurate site data can be time-consuming and risky. Drones are changing the game by offering a faster, safer, and more precise way to survey sites, monitor progress, and track materials. For example, drones can quickly identify material shortages or delays, helping teams to act before small issues become big problems.
When integrated with ERP systems, drone data becomes a valuable resource for project tracking and cost management. Real-time insights from drones allow construction businesses to maintain tighter control over their budgets and schedules, ensuring smooth operations from start to finish.
Traditional construction methods often result in delays, material waste, and safety risks. Prefabrication and modular construction solve these issues by manufacturing components off-site and assembling them on-site. This approach is gaining popularity in Australia and New Zealand for projects ranging from remote housing to high-rise developments.
ERP systems play a key role in making prefabrication more efficient. They help businesses manage supply chains, track costs, and ensure that materials arrive exactly when needed. This just-in-time delivery reduces storage costs and keeps projects running smoothly, allowing businesses to complete jobs faster and with fewer hiccups.
The push towards sustainability is reshaping the construction industry. Builders are adopting energy-efficient materials, reducing waste, and working towards net-zero goals. The recent 2024 Kennards Hire Construction Confidence Check found that 9 out of 10 construction leaders in Australia have already implemented, or are planning to implement, an ESG strategy — not just because it’s the right thing to do, but because it makes financial sense.
ERP systems make it easier to track environmental compliance and measure progress towards sustainability targets. By providing clear data and reports, these tools help businesses align their practices with market demands while gaining an edge in attracting environmentally conscious clients and partners.
For many construction businesses, adopting new technology can feel overwhelming. High upfront costs, limited digital skills, and employees’ resistance to change are common concerns. However, sticking with outdated systems is often more costly in the long run.
For example, some construction businesses are drawing insights from real-time data to reduce their operational costs, identify new projects, and improve performance tracking. However, many leaders simply don’t have access to accurate, clean business data. In 2020, poor data management cost the global construction industry $1.85 trillion — a stark reminder of the risks of falling behind.
ERP systems offer a practical solution to these challenges. By automating repetitive tasks and providing real-time insights, systems like MYOB Acumatica Construction free up teams to focus on bigger-picture issues such as improving efficiency and staying competitive. Designed with the users in mind, they’re accessible to businesses of all sizes, making it easier to start small and scale up over time.
The future of construction is being built on a foundation of technology. From BIM and drones to visual documentation and ERP systems, these innovations are enabling businesses to solve long-standing problems, reduce costs, and improve sustainability.
For construction leaders in Australia and New Zealand, the time to invest in technology is now. By embracing these tools, businesses can not only navigate today’s challenges but also position themselves for long-term success in a rapidly changing industry.
Information provided in this article is of a general nature and does not consider your personal situation. It does not constitute legal, financial, or other professional advice and should not be relied upon as a statement of law, policy or advice. You should consider whether this information is appropriate to your needs and, if necessary, seek independent advice. This information is only accurate at the time of publication. Although every effort has been made to verify the accuracy of the information contained on this webpage, MYOB disclaims, to the extent permitted by law, all liability for the information contained on this webpage or any loss or damage suffered by any person directly or indirectly through relying on this information.