Press Release

A new report from Newground Alliance and Brickanta shows that productivity in the Swedish construction industry has stood still for 25 years. The gap to the rest of the economy amounts to SEK 164 billion in lost value every year.

Since 1980, productivity in Swedish construction has grown by just 18 percent, and since the early 2000s the curve has even started to point downward. Over the same period, the rest of the market economy has more than doubled its productivity.

Measured per hour worked, the sector today stands at SEK 427 in added value, compared to SEK 653 had the industry kept pace with the market economy. The cumulative loss since 1980 exceeds SEK 2,200 billion — more than seven years of the industry's output.

The report also shows that construction professionals spend 35 percent of their time on non-value-adding work: 5.5 hours a week searching for project information, 4.7 hours resolving conflicts, and 3.9 hours dealing with mistakes and rework.

"The public debate tends to focus on construction defects, deficiencies and damage, but those are symptoms. The real question is how we plan more effectively and make better decisions early in the process. That's where the most value is lost today," says Lucas Otterling, CEO and co-founder of Brickanta.

The report argues that AI's clearest role in construction is not to replace labor, but to strengthen decision support for the workforce already on site. In an industry that needs to build 52,000 homes a year but is currently building 36,000, that kind of reinforcement can help close the productivity gap.

Key facts from the report

• Construction productivity has grown by 18 percent since 1980. Manufacturing has grown by 280 percent in the same period.

• Construction professionals spend 14 hours a week on non-productive tasks.

• 85 percent of construction projects exceed their budget. 75 percent are delivered late.

• The cumulative productivity gap since 1980 exceeds SEK 2,200 billion.

• AI's clearest business value in construction lies in decision support. Only around six percent of construction tasks can be fully automated.

• Europe is expected to face a shortfall of more than four million construction workers by 2035.

About the report

"The Cost of Standing Still" was produced by Newground Alliance in collaboration with Brickanta. It draws on data from Statistics Sweden and reviews Swedish, Nordic and international research from sources including Boverket, McKinsey, OECD, RICS and the Swedish Productivity Commission. The full report is available for download at brickanta.com/report.

For more information

Media contact: press@brickanta.com