Construction is one of the largest industries in the world, with no shortage of demand; however, productivity issues stand in the way of success.
The need for new housing, hospitals, and public infrastructure has never been greater. According to McKinsey, if keeping pace with current demand levels, the building and construction sector could grow by as much as 70% by 2040, but it’s unlikely to come close to this. Forecasts suggest that global construction output could lag behind demand by a staggering USD 40 trillion cumulatively by 2040.
Several factors contribute to the sector’s reduced productivity, including labour shortages and an overreliance on outdated processes. The latter only serves to exacerbate labour issues, emphasising the need for the industry to move away from traditional manual processes and adopt more innovative, efficient ways of working.
Technology could play a central role in bringing order to the complexity, but solutions must be scalable. This blog will discuss how 2D codes powered by GS1 could provide a relatively simple, standards-based, and universally accepted solution to the industry’s challenges.
Productivity in building and construction
Poor productivity in the building and construction sector can have significant and far-reaching repercussions, affecting housing provision, public infrastructure development, and overall economic growth.
Indeed, the global rate of housing production is already well below current economic needs, with the UK alone facing an estimated shortfall of 4.3 million homes – a number that is growing every year.
The current outlook is anything but positive – between 2000 and 2022, global construction productivity improved by just 10%, significantly lagging behind the manufacturing sector (90%) and the global economy (50%).
According to McKinsey, an average increase in global construction productivity by just 1% annually could be enough to meet future demands, but work needs to start quickly. With impending global and EU legislation focused on enhancing building safety and promoting sustainability and waste reduction, maintaining current practices is not an option.
The building and construction sector is one of the least digitised globally, with construction companies spending an average of less than 1% of revenues on IT infrastructure development. More widespread digitisation could present a viable path towards overcoming some of the issues currently troubling the industry.
The heavy reliance on manual processes – including paper-based tracking and manual data entry – can result in inefficiencies that lead to errors, delays, and excess waste. By comparison, adopting digital tools and technologies can reduce errors and inefficiencies, ultimately driving productivity, which is essential to meeting demand.
Improving efficiency and reducing waste
We have spoken a lot about the introduction of 2D codes, such as QR codes powered by GS1, on products and packaging and the benefits this can bring to stakeholders across industries. The building and construction sector is no different.
The introduction of 2D codes powered by GS1 on pallets, packs, and individual building products could help construction workers, including builders, engineers, architects, and site managers, manage resources more effectively, reduce errors and waste, and prevent rework.
A huge cause of errors on construction sites is inefficient resource management. When relying on manual processes and paper-based documentation, building companies often face incomplete or inconsistent data covering the materials on site and how they are being used – or, indeed, wasted.
The UK-based Get It Right Initiative estimates that the direct cost of construction errors in the UK could be between 5% and 25% of the total cost of construction projects, or between GBP 5 billion and 25 billion per year. With profit margins on even large-scale projects very tight, even minor errors or inefficiencies can erase what little margin remains.
Digital product identification and a consistent, reliable flow of data are key to overcoming this issue, and the simple addition of 2D codes powered by GS1 on building products could pave the way for a solution.
GS1 2D codes in building and construction
2D codes powered by GS1 allow products to be identified using GS1 identifiers, such as the Global Trade Item Number (GTIN), as well as providing access to other key product information. Crucially, for building and construction materials, 2D codes powered by GS1 allow all stakeholders involved in a production project to access the same accurate product information, supplied directly from the manufacturer.
At the most basic level, scanning a 2D code powered by GS1 on pallets, packs, or individual items can help ensure that the right product is delivered and accepted on-site, reducing the chance of errors, and facilitating the return of incorrect items to the original supplier. The addition of 2D codes can also help workers access critical details, including product specifications and storage requirements, without relying on paper-based documentation.
Project managers can also integrate data from 2D codes powered by GS1 into a project’s building information model (BIM) – a digital representation of a project typically utilised in the industry. Workers equipped with mobile devices can scan codes attached to building materials and ensure that product specifications match those included in the BIM rather than relying on manual identification alone.
Instant verification of products using the BIM can be particularly useful when dealing with products that have similar uses but different gradings – e.g. different thicknesses of fireproof plasterboard. A worker can quickly verify that the right product is being used, minimising the risk of mistakes and subsequent rework.
2D codes powered by GS1 will also prove crucial in helping businesses to navigate existing, new, and upcoming regulations and compliance obligations related to building safety and project sustainability, including:
- UK ‘Golden Thread’ of data for higher-risk buildings
- EU Harmonised Acts for building products, and subsequent EU Construction Products Regulation
- ISO 19650 relating to ‘data quality’ of construction projects.
A path forward to increased productivity in building and construction
The addition of 2D codes powered by GS1 on building materials isn’t an automatic route to success; however, as GS1 codes and identifiers are universally used and understood, over time, their presence on building and construction materials will help the sector achieve far greater levels of interoperability and data sharing – between businesses, along supply chains, and across borders.
By embedding product information within scannable 2D codes, building and construction materials manufacturers can help to support this journey. As Dan O’Gorman, Engagement Consultant – Construction, GS1 Ireland, highlighted in his recent presentation at the GS1 Global Forum 2025, businesses should start with the end in mind – embedding the information now to support additional usage in the future.
Over the years, Domino has worked closely with GS1 and other industry organisations to help support and drive the adoption of 2D codes across industries. Our designated sector team are ready to support building and construction manufacturers looking to adopt 2D codes on products and packaging, provide the necessary sector and technology expertise, and help them prepare for regulatory changes.
Explore our sector pages to find out how our sector-specific expertise and solutions tackle these challenges head-on.