Radisson Blu, London Stansted 30 JANUARY 2019 Radisson Blu, London Stansted

Challenge Director – Transforming Construction DIGITAL CONSTRUCTION SUMMIT 13:15 – 14:00 Transforming Construction Sam Stacey Challenge Director – Transforming Construction UKRI 30 JANUARY 2019 | RADISSON BLU, LONDON STANSTED @UK_CW #DIGICONSUMMIT

Transforming Construction Why? Cost of delayed and cancelled infrastructure Buildings use far more energy than designed Contribution to UK’s greenhouse gas emissions Costs the UK economy of traffic congestion Cost of treating illnesses caused by poor living conditions Disruption and economic costs of flooding 30 JANUARY 2019 | DIGITAL CONSTRUCTION SUMMIT @UK_CW #DIGICONSUMMIT

43% 57% Construction Industry 9% of UK employment Skills shortage Transforming Construction Construction Industry Productive time: 43% 9% of UK employment Skills shortage Training deficit 50% Poor building performance Waste: 57% 30 JANUARY 2019 | DIGITAL CONSTRUCTION SUMMIT @UK_CW #DIGICONSUMMIT

Industry 4.0 Transforming Construction Information transparency Interoperability Information transparency Technical assistance Decentralised decisions Industry 4.0 Internet of things BIM Construction robots Autonomous machines 30 JANUARY 2019 | DIGITAL CONSTRUCTION SUMMIT @UK_CW #DIGICONSUMMIT

Transforming Construction Internet of things Condition-based Asset Mngt Offsite manufacturing Robotics and Automation Data Analytics & Visualisation 30 JANUARY 2019 | DIGITAL CONSTRUCTION SUMMIT @UK_CW #DIGICONSUMMIT

Manufacturing buildings Transforming Construction Manufacturing buildings 30 JANUARY 2019 | DIGITAL CONSTRUCTION SUMMIT @UK_CW #DIGICONSUMMIT

44% less cost 65% less time 73% fewer defects Transforming Construction Modern Flying Factories Battersea 44% less cost 65% less time 73% fewer defects 30 JANUARY 2019 | DIGITAL CONSTRUCTION SUMMIT @UK_CW #DIGICONSUMMIT

53% less labour £4m cost saving Two months faster Transforming Construction Modern Flying Factories A14 53% less labour £4m cost saving Two months faster 30 JANUARY 2019 | DIGITAL CONSTRUCTION SUMMIT @UK_CW #DIGICONSUMMIT

33% 50% 50% 50% Long term targets Lower costs Faster delivery Lower Transforming Construction Long term targets Lower costs 33% reduction in the initial costs of construction and the whole life cost of built asset Faster delivery 50% reduction in the overall time from inception to completion, for newbuild and refurbished assets Lower emissions 50% reduction in greenhouse gas emissions in the built environment Improvements in exports 50% reduction in the trade gap between total exports and total imports for construction products and materials 30 JANUARY 2019 | DIGITAL CONSTRUCTION SUMMIT @UK_CW #DIGICONSUMMIT

Three strategic outcomes Transforming Construction Three strategic outcomes • More houses • More rail capacity • Improved car journeys • Cheaper energy • Better public services Digital Manufacturing Performance Delivering better, more certain outcomes using digital technologies Improving productivity, quality and safety by increasing the use of manufacturing Optimising through-life performance though the development of smart assets 30 JANUARY 2019 | DIGITAL CONSTRUCTION SUMMIT @UK_CW #DIGICONSUMMIT

…delivered through three key enablers Transforming Construction …delivered through three key enablers • More houses • More rail capacity • Improved car journeys • Cheaper energy • Better public services Digital Manufacturing Performance Procure for better value 1 Industry-led innovation 2 Skills for the future 3 30 JANUARY 2019 | DIGITAL CONSTRUCTION SUMMIT @UK_CW #DIGICONSUMMIT

Transforming Construction Successes Successes Standard products and processes Active buildings Long term targets  z Actionable information Wide system adoption Artificial intelligence Construction transformed New market entrants Long term planning New skills Compelling stories Industry investment Robust supply and demand Challenges 30 JANUARY 2019 | DIGITAL CONSTRUCTION SUMMIT @UK_CW #DIGICONSUMMIT

Industrial strategy Clean growth Healthy ageing Future of mobility Transforming Construction Industrial strategy Clean growth Healthy ageing Future of mobility Energy revolution Transforming construction Transforming food production Medicines manufacturing Data to early diagnosis and precision medicine Healthy ageing Faraday battery challenge Extreme robotics National space test facility Artificial intelligence and data economy Audience of the future • Next generation services • Quantum technology 30 JANUARY 2019 | DIGITAL CONSTRUCTION SUMMIT @UK_CW #DIGICONSUMMIT

Transforming Construction Challenge Sector Deal Transforming Infrastructure Transforming Construction Challenge Policy Environment 30 JANUARY 2019 | DIGITAL CONSTRUCTION SUMMIT @UK_CW #DIGICONSUMMIT

Programme £36m £72m £59m Transforming Construction Active R&D Projects £59m Construction Innovation Hub £72m Active Building Centre £36m Programme 30 JANUARY 2019 | DIGITAL CONSTRUCTION SUMMIT @UK_CW #DIGICONSUMMIT

Construction Innovation Hub Transforming Construction Construction Innovation Hub Manufacturing & product family architecture Standards & compliance Information management framework Security Key inputs Industry Government 30 JANUARY 2019 | DIGITAL CONSTRUCTION SUMMIT @UK_CW #DIGICONSUMMIT

Improved through life performance Transforming Construction Improved through life performance Key outputs Owner – high quality, high performing asset User – better experience, quality, safety Operator – better data, more effective O&M strategies Industry – safer, predictable, profitable twin outputs Physical Digital 30 JANUARY 2019 | DIGITAL CONSTRUCTION SUMMIT @UK_CW #DIGICONSUMMIT

Outcomes Transforming Construction Productivity – output per worker Economic Productivity – output per worker Additional GVA Support business to innovate, invest and grow Outcomes Skills – jobs and apprenticeships Support rebalancing Support local businesses and community Social Waste – reduction in volume to landfill Carbon – reduced whole life energy use Emissions – reduced vehicle miles Environmental 30 JANUARY 2019 | DIGITAL CONSTRUCTION SUMMIT @UK_CW #DIGICONSUMMIT

Transforming Construction 30 JANUARY 2019 | DIGITAL CONSTRUCTION SUMMIT @UK_CW #DIGICONSUMMIT

Construction Innovation Hub Transforming Construction Construction Innovation Hub Product family architectures Process engineering Performance testing and validation Demonstration and engagement Digital transformation across asset lifecycle Information Management Landscape 30 JANUARY 2019 | DIGITAL CONSTRUCTION SUMMIT @UK_CW #DIGICONSUMMIT

Buildings as power stations Transforming Construction Buildings as power stations 30 JANUARY 2019 | DIGITAL CONSTRUCTION SUMMIT @UK_CW #DIGICONSUMMIT

Active Building Centre Transforming Construction Active Building Centre Active: classroom/house/office System build Energy generation Energy storage Energy distribution 30 JANUARY 2019 | DIGITAL CONSTRUCTION SUMMIT @UK_CW #DIGICONSUMMIT

Transforming Construction Centres Assess Contract Delivery 1st Competitions Competition Network Plus Delivery £2m Competition Research Projects Delivery £6m Competition CR&D Projects Delivery £12.5m 2nd Competitions Competitions CR&D Projects Delivery £39m 2018 2019 2020 2021 30 JANUARY 2019 | DIGITAL CONSTRUCTION SUMMIT @UK_CW #DIGICONSUMMIT

Next steps Transforming Construction Develop research needs Find partners Work with UKRI and KTN Submit bids 30 JANUARY 2019 | DIGITAL CONSTRUCTION SUMMIT @UK_CW #DIGICONSUMMIT

Challenge Director – Transforming Construction FOR FURTHER INFORMATION EMAIL: sam.stacey@innovateuk.ukri.org TELEPHONE: 0300 321 4357 WEBSITE: https://www.ukri.org/innovation/industrial-strategy-challenge-fund/transforming-construction/ Sam Stacey Challenge Director – Transforming Construction UKRI 30 JANUARY 2019 | DIGITAL CONSTRUCTION SUMMIT @UK_CW #DIGICONSUMMIT

Radisson Blu, London Stansted 30 JANUARY 2019 Radisson Blu, London Stansted