GS1 2D Codes: Paving the Way for Increased Productivity in Building & Construction

The global construction industry is a complex landscape characterised by both opportunities and challenges. While growth is expected, firms must navigate evolving market dynamics to stay competitive and successful.

According to McKinsey, if the building and construction sector maintains its current demand levels it could grow by as much as 70% by 2040. It is, however, unlikely to achieve this, with forecasts also indicating that global construction output could lag behind demand by a staggering USD 40 trillion by 2040.

Several factors contribute to this productivity lag, including labour shortages and an overreliance on outdated processes, with the latter exacerbating the former. Moving away from traditional manual processes and adopting more innovative, efficient ways of working is therefore critical if the industry is to overcome both productivity and output challenges.

Technology could play a central role in increasing efficiency, but solutions must be easy to embrace and scalable. Rob Ellinor examines how 2D codes powered by GS1 could provide a relatively simple, standards-based, and universally accepted solution to addressing challenge and complexity…

Productivity & digitisation

The building and construction sector globally has shown poor productivity performance. Between 2000 and 2022, the industry’s productivity improved by just 10%, significantly lagging behind the manufacturing sector (90%) and the global economy (50%).

On the plus side, McKinsey reports that an average increase in output of just 1% per annum could be enough to meet future demands – but change needs to happen quickly. With upcoming global and EU legislation focused on enhancing building safety and promoting sustainability and waste reduction, maintaining current practices is no longer an option.

Most likely not coincidental to its poor productivity, the building and construction sector also lags behind in its digitisation efforts: the industry globally spends an average of less than 1% of revenues on IT infrastructure development.

The heavy reliance on manual processes – including paper-based tracking and manual data entry – inevitably results in errors, delays, and unnecessary waste. In contrast, adopting digital tools and technologies can help reduce these operational inefficiencies, ultimately driving productivity and enabling the meeting of demand.

Introducing 2D codes

Inefficient resource management, primarily due to the reliance on the aforementioned manual processes and paper-based documentation, is a significant contributor to errors on construction sites. Facing incomplete, inconsistent, or non-existent data on materials on site or throughout the wider supply chain, construction firms have no insight into how materials are being used, what surplus or deficit they might face, and the amount of waste being generated.

Indeed, 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.

This is where the introduction of 2D codes – such as QR 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 increase productivity.

GS1 2D codes in building and construction

2D codes powered by GS1 enable products to be identified using universal identifiers, such as the Global Trade Item Number (GTIN). This provides all stakeholders involved in a project with access to consistent and 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 improving operational efficiency. In parallel, it facilitates the immediate return of incorrect items to the original supplier, reducing waste and addressing supply issues before they adversely affect a project’s timelines. The addition of 2D codes can also help workers access critical details, including product specifications and storage requirements, without relying on paper-based documentation, thereby further reducing waste.

Finally, project managers can integrate data from 2D codes powered by GS1 into a project’s Building Information Model (BIM) – a project’s digital representation. Workers equipped with mobile devices can scan codes attached to building materials, ensuring that product specifications match those included in the BIM rather than relying solely on manual identification.

Instant verification of products using the BIM can be beneficial when dealing with materials 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.

Looking ahead, 2D codes powered by GS1 will 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

Paving the way forward

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 easy to use once deployed, as well as universally understood, their initial impact on a project’s productivity, waste reduction, and output will lay the foundation for broader application and digitisation efforts in the future.

Over time, the technology’s presence on building and construction materials will help the sector achieve far greater levels of interoperability and data sharing – between businesses, along supply chains, between regulators, and across borders.

By embedding product information within scannable 2D codes, building and construction materials manufacturers can support this journey, addressing challenges and complexity and helping the industry successfully navigate global market dynamics.