A new report from Barbour ABI and GS1 UK has found that poor management of construction product information is costing the UK construction sector up to £3.8 billion each year. The research highlights how fragmented, inconsistent and difficult-to-share product data is affecting productivity, housing delivery and compliance with building safety regulations.
The findings show that digitalisation remains a major challenge for the industry. More than half (52%) of construction professionals believe a lack of digitalisation is resulting in lost revenue, with this figure rising to 69% among larger organisations. Meanwhile, 60% say inefficient management of product information is slowing progress, while 48% describe current systems and processes as disorganised.
The report also raises concerns about the sector’s ability to meet government housing targets. Only 7% of construction professionals believe the Government will achieve its goal of delivering 1.5 million new homes by 2030. At the same time, 47% of respondents feel the sector lags behind other industries in transparency and traceability.
Despite widespread awareness of new building safety requirements introduced following the Grenfell tragedy, the research identifies a significant gap between understanding regulations and being prepared to implement them. While 98% of industry professionals are aware of the Building Safety Act, only 21% say they are fully prepared to meet its requirements. Similarly, although nine in ten respondents have heard of the ‘golden thread’ of information, just 14% say they fully understand the concept.
Iain Walker, Director of Industry Engagement at GS1 UK, said:
“For years, construction’s digital debate has focused on systems, platforms and documents. The harder question is whether everyone involved in designing, specifying, purchasing, installing and maintaining products is working from the same trusted information.
“The industry’s challenge is not a lack of awareness. The Building Safety Act and golden thread are now widely understood concepts. The challenge is creating reliable, consistent product information that can be shared and trusted across the lifecycle of a building.”
The report highlights the industry’s continued reliance on static documents such as PDFs and brochures, which can make it difficult to maintain accurate and up-to-date product information across supply chains. This becomes especially problematic when products are substituted on site, an issue reported by 84% of respondents. Fewer than one in five providers (18%) currently use a Product Information Management (PIM) system.
Digital transformation is further hindered by barriers including a lack of clear direction (36%), competing priorities (34%), cost pressures (33%) and shortages in digital skills (30%). These challenges are particularly significant for SMEs, which make up the vast majority of construction businesses.
However, the report also points to growing support for change. Nearly three-quarters (72%) believe digitalisation is essential for the future of the built environment, while 70% say urgent reforms are needed to improve the management of construction product information. In addition, 93% see benefits in using barcodes with Global Trade Item Numbers (GTINs) to improve product traceability, data sharing and supply chain efficiency.
Walker added:
“Without addressing the fundamental problem of product data management, the golden thread risks becoming a repository of documents rather than a trusted record of what was actually specified, installed, substituted and maintained throughout a building’s life.
“The task now is to make product information easier to identify, share and trust. If the sector can achieve that, it can improve productivity, strengthen compliance and create a safer built environment.”
GS1 UK is urging both industry and government to accelerate the adoption of common data standards, provide clearer guidance on digital product information, and offer greater financial and technical support to SMEs. The report warns that without faster progress, the construction sector risks falling short of both safety expectations and delivery targets, with significant economic consequences.
