Of all the industries, construction has been one of the most resistant to changes in global digitisation. However, after a period of working to maintain the status quo, the industry is now moving ahead with innovative transformation. New ways of working, designing, planning and building are set to pick up pace and may result in one of the fastest industry wide transformations yet. A McKinsey report on the industry found some leaders believe dramatic change in a number of areas will take place within the next 5 years. Other expect the construction industry will be unrecognisable to that of today in just two decades.

The changes forecast are expected to encompass nine different shits. Businesses that are quick to respond and decisive in their actions stand to gain considerably. As things change, as much as $265 billion in new and shifting profits will be up for grabs. Fortune will favour those brave enough to invest in the technologies that will improve efficiencies, strengthen supply chains and add value for customers.

Shifting sands of construction’s future

Budget and deadline over runs, opaque supply chains and a lack of investment in R&D are soon to become a thing of the past for construction. The next five to 20 years will see this industry move towards

1. A product based approach;

2. Standardisation that will enable specialization;

3. Value chain control and integration;

4. A focus on customer-centricity and branding;

5. Consolidation of disparate contractors;

6. Increased investment in technology and facilities;

7. Increased investment in human resources;

8. Internationalisation;

9. Greater sustainability.

These are the nine shifts already in play across the sector. Just as other industries - from shipbuilding to finance – have had to embrace innovation and accept digitisation to streamline processes, improve productivity and meet increasing demands from customers, so to is construction.

Encompassing real estate, infrastructure and industrial buildings, the transformation of construction will have a huge impact. In nearly every area of the expected shifts, digitisation will play an important role. From simplifying interactions to bringing transparency to supply chains and onto better management of our built environments, digital technology will be at the core of many of the changes already afoot.

Streamlining processes, facilitating new products

Digital technology has already transformed our world; construction may be the last bastion left for it to conquer. Better collaboration, data-driven decision making and smart technologies will change the way businesses approach the operation, design and construction of buildings and infrastructure.

Smart technology that integrates the Internet of Things (IoT), sensors and utilizes the vast amounts of data available today will change both the way operations are managed as well as how they are used. Companies are already able to improve their efficiencies through the integration of the design phase with the rest of the value chain from the outset with the implementation of building-information modelling (BIM) and the creation of digital twins. This is only going to increase in pace.

These same technologies can also smooth the transition from construction phase to operations and management stages. This end to end digitisation has many benefits for companies and customers – lower costs, better scheduling, lower total cost of ownership (TCO) and increased operational efficiencies to name just a few.

Digital tools can not only enhance construction processes, on-site collaboration and smoother processes across the value chain can be realised too. Mobile project management apps and cloud based project towers can integrate communication across onsite teams and give better oversight of progress and challenges. Digital marketplaces can facilitate procurement of materials and construction components that are then easily tracked to mitigate onsite delays.

Standardisation will lead to modularized building elements and parts that can be made off-site and assembled when delivered. Customisation will still be possible, but far easier to do and cost upfront, thanks to the new approach. This product based approach will give rise to the development of a new resource for construction businesses – digital design libraries. Companies will be able to specialise in areas of expertise, consolidate knowledge with other businesses and create design libraries that allow clients to select the elements of their project with confidence in price, delivery times and construction hand-over dates. The result being lower TCO and higher satisfaction across the life of a project.

Construction may be the last industry to bend to the innovation digital technologies have brought to the globe. However, the transformation that is now underway is set to be speedy and thorough, leaving the world with a sleeker and more agile sector to serve us well into the future.