The construction industry is one of the largest in the world, with no shortage of demand; however, productivity challenges continue to hinder progress.
The need for new housing, healthcare facilities, and public infrastructure is more urgent than ever. According to McKinsey, if the sector were to keep pace with current demand levels, it could expand by as much as 70% by 2040. However, this growth is unlikely to be realised. Projections indicate that global construction output could fall short of demand by a staggering cumulative total of $40 trillion by 2040.
A number of factors contribute to the sector’s limited productivity, including labour shortages and a heavy reliance on outdated methods. This reliance only worsens workforce issues, underlining the urgent need for the industry to move away from traditional manual processes and embrace more innovative, efficient ways of working.
Technology has the potential to help bring structure to this complexity, but solutions must be scalable. This blog explores how QR Codes Powered by GS1 could offer a relatively straightforward, standards-based, and globally recognised solution to the challenges facing the industry.
The Productivity Problem in Construction
Low productivity in the building and construction sector can have significant and far-reaching consequences, impacting the delivery of housing, the development of public infrastructure, and broader economic growth.
The global rate of housing construction is already falling short of economic requirements. In the UK alone, there is an estimated shortfall of 4.3 million homes—a figure that continues to rise each year.
The current outlook is far from encouraging. Between 2000 and 2022, global construction productivity increased by only 10%, substantially trailing the manufacturing sector (90%) and the global economy as a whole (50%).
According to McKinsey, even a modest 1% annual improvement in global construction productivity could be sufficient to meet future demand—but action must be taken urgently. With global and EU legislation on the horizon aiming to improve building safety and encourage sustainability and waste reduction, continuing with current practices is simply not a viable option.
Embracing Digitisation in Construction
The building and construction sector remains one of the least digitised industries worldwide, with construction companies typically investing less than 1% of their revenue in IT infrastructure. However, broader adoption of digital technologies presents a real opportunity to tackle many of the industry’s long-standing challenges.
A heavy dependence on manual processes—such as paper-based tracking and manual data entry—often results in inefficiencies, errors, delays, and unnecessary waste. In contrast, adopting digital tools can significantly reduce these issues, helping to boost productivity and better meet growing demand.
Enhancing Efficiency and Minimising Waste
We’ve often highlighted the benefits of using 2D codes, such as GS1-powered QR codes, across a wide range of sectors—and the construction industry is no exception.
Applying 2D codes powered by GS1 to pallets, packs, and individual building products can help construction professionals—builders, engineers, architects, and site managers alike—manage resources more efficiently, minimise errors and waste, and reduce the need for costly rework.
One of the leading causes of errors on construction sites is poor resource management. When relying on manual processes and paper documentation, companies frequently encounter gaps or inconsistencies in data about which materials are on site, how they’re being used, or whether they’re being wasted.
According to the UK-based Get It Right Initiative, the direct cost of construction errors in the UK could be between 5% and 25% of a project’s total cost—amounting to between £5 billion and £25 billion annually. With tight profit margins common even on large-scale projects, minor inefficiencies can quickly wipe out what little margin remains.
The key to overcoming these challenges lies in digital product identification and a consistent, reliable flow of data. Introducing GS1-powered 2D codes on building products offers a straightforward yet powerful step towards achieving this.
The Role of GS1-Powered 2D Codes in Construction
2D codes powered by GS1 enable products to be identified using globally recognised identifiers such as the Global Trade Item Number (GTIN), while also providing access to a wealth of essential product information. In the context of building and construction, these codes ensure that all stakeholders involved in a project can access consistent, accurate data—supplied directly by the manufacturer.
At a fundamental level, scanning a GS1-powered 2D code on pallets, packs, or individual items helps guarantee that the correct product is delivered and accepted on-site. This reduces the likelihood of errors and streamlines the process of returning incorrect items to the supplier. These codes also allow workers to access key information such as product specifications and storage requirements—eliminating the need to rely on paper-based documents.
Project managers can go one step further by integrating the data from 2D codes into a project’s Building Information Model (BIM)—a digital representation commonly used in construction. Workers using mobile devices can scan materials on-site to ensure product specifications align with those outlined in the BIM, instead of depending solely on manual identification.
This ability to instantly verify products against BIM data is particularly beneficial when working with materials that appear similar but differ in critical ways—such as varying thicknesses of fire-resistant plasterboard. A quick scan ensures the right product is in use, significantly reducing the risk of errors and the need for costly rework.
Moreover, GS1-powered 2D codes will be instrumental in helping companies meet existing and forthcoming regulatory and compliance demands around building safety and sustainability. This includes:
-
The UK’s ‘Golden Thread’ of data for higher-risk buildings
-
EU Harmonised Acts for building products and the revised EU Construction Products Regulation
-
ISO 19650 standards governing the ‘data quality’ of construction projects
By enabling seamless product verification and consistent access to accurate data, 2D codes powered by GS1 offer a practical and scalable solution to many of the industry’s most pressing challenges.
A Path Towards Greater Productivity in Construction
Introducing 2D codes powered by GS1 onto building materials is not an instant solution to the sector’s productivity challenges. However, given that GS1 identifiers are globally recognised and widely adopted, their implementation will, over time, enable much greater interoperability and data sharing—between businesses, throughout supply chains, and across international borders.
By embedding essential product information into scannable 2D codes, manufacturers of building and construction materials can play a crucial role in advancing this transformation. As Dan O’Gorman, Engagement Consultant – Construction at GS1 Ireland, noted in his presentation at the GS1 Global Forum 2025, companies should “start with the end in mind”—embedding the right data now to support expanded uses in the future.
Codico has long collaborated with GS1 and other industry partners to promote the adoption of 2D codes across various sectors. Our dedicated team is ready to assist building and construction manufacturers in implementing 2D codes on their products and packaging—offering technical guidance, sector-specific expertise, and support in preparing for future regulatory requirements.
