Construction Is the World's Second Least Digitised Industry. Here's the Cost.

McKinsey called it out. Australian builders are living it. And the gap between those who adapt and those who don’t is widening every single month.

ScaleupSmart

May 14, 2026

6 Min read

McKinsey Global Institute — Industry Digitisation Index

1 st

Agriculture — least digitised

2nd

Construction ← you are here

Hospitality

Finance & Technology

Ask most Australian builders what their biggest problems are and you’ll hear the same answers rising costs, labour shortages, thin margins. Rarely do you hear: the way we manage information. But according to McKinsey, that’s exactly where construction is falling furthest behind every other industry on earth.

The McKinsey Global Institute’s digitisation index placed construction second from the bottom across all major industries globally. Only agriculture ranked lower. And unlike agriculture where physical, seasonal work genuinely limits digital adoption construction’s problem is almost entirely self inflicted.

Projects are still managed across disconnected spreadsheets, WhatsApp threads, and paper-based forms. Estimating is done manually, with no live connection to supplier pricing. Admin tasks are duplicated across multiple systems that don’t talk to each other. And the builder the one person who should be focused on delivering the job — ends up as the unofficial IT manager, data entry clerk, and admin coordinator all at once.

What the digitisation gap actually costs Australian builders

hrs
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lost per week per builder to manual admin and data re-entry

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0

more likely to have variation disputes when documentation is paper-based

%
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of construction rework is caused by poor information management

These aren’t abstract inefficiencies. They show up as delayed quotes that lose jobs to faster competitors. As variations that go undocumented and become disputes. As cashflow problems that weren’t visible until it was too late to act. As the 9pm admin sessions that were supposed to end when you started your own business.

“Using multiple disconnected systems to manage projects is a major issue slow technology adoption leads to laborious admin tasks prone to error, and builders wear every cost of that inefficiency.” McKinsey Global Institute

The old way vs the smart construction approach

The good news is that this isn’t a technology problem. Australian construction management software, estimating platforms, and project tools have never been better or more accessible. The real gap is people specifically, the trained professionals who know how to use these tools to run a construction business efficiently.

Still doing it the old way

ScaleUp Smart builders

Outsourcing construction work the fast lane to modernising

For most small-to-medium Australian builders, hiring a full time digital estimator, project administrator, offshore drafter, and bookkeeper locally isn’t realistic. The salaries alone in one of the tightest labour markets in a decade would push overhead beyond what the margins support.

That’s why construction outsourcing is the fastest growing strategy among builders who are actually scaling in 2026. Not because it’s a shortcut  but because it gives you access to trained, experienced professionals at a fraction of the local cost, working your hours, inside your systems, as part of your team.

ScaleUp Smart remote roles for Australian construction businesses

Construction Estimator

Outsource construction estimating services fast, accurate, market-aware quotes

Project Administrator

Virtual assistant for construction company admin, scheduling, variation tracking

Drafter & Designer

Offshore construction drafting architectural documentation and BIM-ready drawings

Remote Bookkeeper

Outsourced bookkeeping cashflow visibility, payroll, and financial reporting

Marketing Support

Build your pipeline content, social, and lead generation for your construction business

Project Manager

Remote construction support coordination, scheduling, and delivery oversight

Smart construction starts with the right team behind you

The builders who will thrive in the next building cycle won’t necessarily be the ones with the best tools or the biggest marketing budget. They’ll be the ones who solved the people problem who stopped trying to do everything themselves and built a backend team that could actually support growth.

Outsourcing in the construction industry used to mean subcontracting trades. In 2026, it means giving your business the digital backbone it needs to compete without the overhead of a full local workforce.

At ScaleUp Smart, every team member is trained for construction. They work your hours. They use your software. And they start with a one month free trial so there’s nothing to lose and everything to gain.

Because the second least digitised industry in the world isn’t destined to stay that way. It just needs the right people to change it.

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