Looking into Construction’s Digital Future – Part 1
Challenges and Groundworks
The construction industry holds vast of opportunity for digital disruption. As the last of all global industries to embrace sector-wide technological transformation, it now lags others in terms of productivity and financial returns. Construction schedules typically overrun deadlines by 20% and budgets by as much as 80%. In some areas, productivity has declined since the ‘90s and profits are often low and volatile.
There’s good reason for the slow adoption of technological innovation by the sector. Even so, the challenges the construction industry are reaching a climax, it’s fast becoming a decision between innovation or termination for many.
CAPTION: The opportunity to transform construction with technology is here (Image by Brigitte makes custom works from your photos, thanks a lot from Pixabay)
Five key opportunities are knocking on construction’s door. In part one of our three part series we discuss the challenges facing this sector and the first of the five possibilities technology presents for answering them. There is no turning back to the past, the future has already arrived and it’s beckoning E&C companies to join in. Those who answer the call stand to become leaders of a new era in construction.
The challenges of introducing technology in construction
The traditional nature of construction projects is fragmented. An average of 22 different subcontractors will play a role in raising a single-family home from the ground. The number rises as construction projects grow in size and complexity.
Contractors traditionally compete against one another and there is often little incentive for risk sharing and cross-organisational innovation. Technical challenges such as geographically dispersed sites and teams, varying levels of digital capability of subcontractors, and increasingly complex projects further exacerbate the adoption of new technologies.
Like the hospitality, logistics and transport sectors, construction is facing an aging labour force and shortage of skilled staff. Eight out of ten contracting companies had trouble recruiting qualified staff for essential roles last year. More than half of contractors are concerned their employees don’t have the training needed to become skilled tradespeople. The most significant shortages are found in the US, but a similar story is being played out in Australia, New Zealand, the UK, Europe and other parts of the globe.
R&D spending to address the challenges faced by E&C businesses is lower than all other industries. Less then 1% of revenue is spent on R&D. It’s a miniscule investment compared to the 22.5% spent by world’s biggest R&D investor - Computing and Electronics. This lack of technological know-how is often at the core of delays, overruns and project changes – a situation that simply wouldn’t be tolerated in other sectors.
The UK’s government are seeking to address the issue with a construction sector deal that seeks to entice E&C players to ‘improve productivity with innovative technologies’. While commendable in the intent, it will take more investment across the world in order for the E&C sector to meet the expected $57 trillion worth of infrastructure needed by 2030.
The net result of these challenges has been a disjointed value chain. One that makes performance management across the life of a project inadequate and supply-chain practices outdated. These challenges are not about to abate, E&C companies must begin solving these problems if they wish to survive the disruption that is already afoot.
From the ground up: geolocation and surveying
Projects are often delayed by surprises waiting in the ground. Survey estimates don’t always match actual ground conditions and last-minute changes to project scope or design can be costly. Technologies disrupting in other sectors – automotive and archaeology for example – can be easily integrated into construction projects with excellent results.
High-definition photography, LiDAR and GPS systems are just some of the tools already on offer that can eradicate surprises and cut delays.
LiDAR produces high-quality 3D images that can be integrated with project planning tools like BIM quickly. The optical lasers detect thousands of points per second to create 3D models of an area. Because there can be issues with some terrains – steep hills for example – LiDAR is sometimes used in conjunction with photogrammetry to improve accuracy. Drone mounted LiDAR and photogrammetry systems reduce the number of staff needed for surveying construction sites while increasing accuracy.
3D underground images of project sites can be created with ground-penetrating radar (GPR) and magnetometers to complement above-ground models. These advanced survey techniques use already available technologies and can be complemented by geographic information systems to ensure situational and distance measurements are precise. Combining techniques not only improves accuracy of data but also reduces the cost and time of surveying project locations.
Cost-efficient survey packages are already available through specialised technology providers. Along with improving the early stages of a construction project, these technologies can enhance accessibility and reduce disturbance in environmentally sensitive or historical areas.
This is just one area in which already-available technologies can, and will, transform the construction industry. These technologies have already been trialled by other sectors - minimal adaption is required for them to be able to transform engineering and construction. Practical and relevant applications of these technologies is the order of the day, businesses that chose to do so stand to gain enormously.