Construction industry missing out on benefits of lean practices, finds McGraw Hill Construction

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by Shane Henson — November 27, 2013—A gap exists in the construction industry’s awareness of the inefficiencies inherent in construction processes, according to a new study by McGraw Hill Construction on lean construction practices, conducted in partnership with Dassault Systèmes.

Lean practices are defined as activities that eliminate waste from construction processes, and adopting such practices has been shown to lead to higher-quality projects, cost savings, and greater customer satisfaction. However, the industry must recognize the need for lean to see wider adoption of this approach, says McGraw Hill.

As highlighted in the Lean Construction SmartMarket Report that discusses the results of the study:

  • Over half (55%) of contractors not familiar with lean practices find the construction industry efficient/highly efficient, compared to just 14% of those who have implemented lean.
  • In contrast, 62% of contractors that have implemented lean find the construction industry to be inefficient/highly inefficient, compared to just 19% of all other respondents.

The research demonstrates that once contractors recognize and address these inefficiencies, the greatest benefit they experience is competitiveness.

  • 84% of lean practitioners find that lean practices lead to higher-quality projects.
  • 80% report greater customer satisfaction due to lean practices.

In fact, in a qualitative study of lean experts included in the research, one firm reports that they “never experienced a downturn” because of high customer satisfaction with their work, says McGraw Hill Construction. The lean experts also report that greater reliability of outcome, including a reliably consistent profit margin, is among the most critical benefits they experience from lean.

“The construction industry is evolving and our study reveals that firms with strong lean practices will have an advantage in the future,” said Harvey M. Bernstein, vice president, industry insights and alliances, McGraw Hill Construction. “They will be able to deliver higher-quality projects for their clients—on schedule and on budget. As owners become more familiar with lean, they will increasingly demand this level of service.”