For years, the construction industry has faced frustration over poor project management outcomes. Costs continue to rise faster than inflation, project timelines keep extending, and the profession has lost respect. Globally, project delivery is plagued by low productivity, significant delays, cost overruns, and unhappy clients. While other industries have more than doubled their productivity, construction productivity has been steadily declining.

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Studies in the construction industry reveal that over 50% of the effort involved in delivering a built environment is considered non-value-added or waste from the customer's perspective. Unlike other industries that have made significant progress, labor hour efficiency in construction hasn't improved over the past 50 years. Additionally, demographic changes and labor shifts have drastically reduced the workforce availability, while rising costs in the built environment fail to meet many customers' business needs.

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The construction industry is losing time, money, and resources at an alarming rate. A 2020 McKinsey study revealed that annual productivity growth over the past two decades was just one-third of the total economy average, and that digitization in the industry lags behind nearly every other sector.

 

In 2021, research co-sponsored by the Lean Construction Institute and AGC, in collaboration with Dodge Data & Analytics, found that projects using Lean methods are more likely to finish ahead of schedule and under budget. Lean focuses on streamlining logistics, fostering collaboration, cutting waste and overages, and ultimately delivering greater value to stakeholders.

 

Lean Construction is a comprehensive approach built on collaboration and knowledge-sharing. It promotes better employee retention, improved quality of life, safer worksites, reduced project waste, and increased project value.

 

Lean thinking focuses on improving the construction industry by understanding value from the customer's perspective. It emphasizes actions that deliver value while minimizing waste, which drains resources, creates unnecessary work, and adds costs, time, and frustration for clients. By fostering a culture of continuous reflection and improvement, Lean thinking develops learning organizations, respects and empowers people, and drives greater engagement and performance.