AECCafe Industry Predictions for 2023 – Nemetschek

By Yves Padrines, CEO, Nemetschek Group

Yves Padrines

Nemetschek Group expects significant increase in demand for digitalization in 2023

Software provider predicts that digitalization will be the key enabler for a sustainable growth across the AEC/O industry

The Nemetschek Group, one of the leading software providers for the construction and media industries, has urged the construction sector to further its drive to digitalization in order to navigate the many challenges currently facing the sector.

Although 2022 was again a strong year for the Munich-based company, which has been a forerunner of digital transformation for the AEC/O industry, challenges in this industry still remain. According to Yves Padrines, CEO of the Nemetschek Group, the industry as a whole must quickly accelerate its embracing of digital tools to drive vital improvements in efficiency and sustainability within the sector.

“The construction sector is currently facing many issues,” said Padrines. “90% of all projects overrun in either budget or deadlines or both, while almost 40% of all carbon emissions are caused by the construction industry. 30% of all work is rework due to errors, and 20% of all materials are wasted. This is clearly unsustainable. COVID and the subsequent recovery has helped to accelerate progress in harnessing new digital tools, but there is still much work to be done,” continued Padrines. “The construction industry faces existential threats, with a perfect storm of labour shortages, material shortages, supply chain issues, and wider economic challenges, including the energy crisis.”

Despite these challenges, Padrines is upbeat. “Through increased digitalization, buildings and infrastructure projects can be planned, built and managed more efficiently, while building resilience against tough market conditions.”

Especially regarding sustainability, digitalization can drive change in four areas: a different approach to construction in general, building more efficiently, construct longer lasting, and operate more resource-saving. Looking at a building’s or asset’s lifespan as a cycle in which data is continuously collected, processed, and reused provides a holistic view of the structure and its raw materials.

One of the biggest levers in 2023 for more sustainability will be digital twins, the virtual representation of a real object, such as a building. With a digital twin, the planning, construction, and operation of a building can be simulated. Especially in its operational phase, digital twins help to achieve insights regarding sustainability, but also help identify possible sources of error before they occur – for a more predictable and analyzable future of the building.” Also, Artificial Intelligence and OPEN BIM are powerful levers for more sustainability and powerful tools to tackle the industry’s challenges”, Yves states.

According to Yves Padrines, while the construction industry is making some encouraging progress in digitalization, he would still like to see greater urgency: “The Nemetschek Group is an enabler for more digitalization, and with our tools, our clients can shape the built world.

Digital is the future, and those who fail to move fast enough to embrace it could very quickly find themselves struggling to survive. Our solutions, and the intelligent application of them in projects across the world, are showing that a different future is possible for the AEC/O industry. I am highly confident that we have the skills, expertise, and innovations to be able to deliver such a future for our customers in 2023.”

About Yves Padrines

Yves Padrines has been appointed as Chief Executive Officer of the Nemetschek Group as of March 1, 2022. Prior to joining Nemetschek Group as CEO, Yves Padrines was Chief Executive Officer of Synamedia, where he successfully established and transformed the world’s largest independent video software provider for Pay-TV, telco, media and OTT players. Before that, Padrines was Cisco’s Vice President of Global Service Provider for EMEA and within that function responsible for the full suite of Cisco products and services. Padrines joined Cisco as part of the sale of NDS where he had served in a range of senior executive and general management roles. His early career was formed at PriceWaterhouseCoopers, Vivendi as well as with the launch of a music online platform in the US backed by Creative Labs.

About the Nemetschek Group

The Nemetschek Group is a pioneer for digital transformation in the AEC/O and the media & entertainment industries. With its intelligent software solutions, it covers the entire lifecycle of building and infrastructure projects, guides its customers into the future of digitalization and enables them to shape the world. As one of the leading corporate groups worldwide in this sector, the Nemetschek Group increases quality in the building process and improves the digital workflow for all those involved. Customers can design, build, and manage buildings more efficiently, sustainably and resource-saving. The focus is on the use of open standards (OPEN BIM). The portfolio also includes digital solutions for visualization, 3D modeling, and animation. The innovative solutions of the brands ALLPLAN, Bluebeam, Crem Solutions, dRofus, FRILO, Graphisoft, Maxon, Nevaris, RISA, SCIA, Solibri, Spacewell and Vectorworks in the four customer-oriented segments are used by approximately 6.5 million users worldwide. Founded by Prof. Georg Nemetschek in 1963, the Nemetschek Group today employs around 3,400 experts all over the world.

Publicly listed since 1999 and quoted on the MDAX and TecDAX, the company achieved revenue amounting to EUR 681.5 million and an EBITDA of EUR 222.0 million in 2021.

Category: Industry Predictions

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