With tight deadlines and budgets, the construction industry is continually looking for ways to manage costs and increase productivity. One of the most effective methods for accomplishing this is using IoT technology.

According to a Deloitte study, “connected technologies and an increase in associated investments may help firms realize new operational efficiencies.” Many construction firms are turning to IoT and other connected technologies to achieve operational excellence and benefit from improved efficiency, costs savings and competitive advantage, as a critical step in their digital transformation journeys.

Gaining Efficiency Through IoT

A key benefit of IoT technology is that it automatically collects previously unobtainable data that can provide visibility into bottlenecks, inefficient processes and issues on the jobsite that need to be addressed. With this site-wide visibility, contractors can often make fairly simple operational adjustments that can go a long way in keeping the jobsite moving quickly and efficiently. One example is the the bottleneck that can occur when workers are waiting for a hoist. By capturing the interactions between IoT sensors worn by workers and a static IoT beacon at the hoist, the contractor was able to measure the amount of time workers spent just waiting for the hoist. When it became apparent there was an excessive amount of unproductive idle time, the contractor added another hoist and significantly reduced unproductive time by dedicating one hoist for use by workers and the other for transporting equipment.

Workers also spend a lot of time searching for equipment or materials. By outfitting equipment, such as forklifts, with IoT sensors, site superintendents can quickly identify their location. Additionally, by using workers’ wearable devices to identify how far crews need to go to gather materials, superintendents can decide to move materials to a closer location or designate a second area as a laydown yard to reduce downtime. Both examples demonstrate dramatic improvements in efficiency, with more time spent on productive activities by supervisors and workers alike.

Real-Time Productivity Measurements Through Telemetry

One leading national construction firm is turning to IoT to enable real-time telemetry and visibility across the jobsite to improve productivity. It identified zones as productive and unproductive based on whether they are work areas or spaces such as laydown yards. It gave subcontractors daily, weekly and monthly productivity measurements based on the data collected. Then site project managers were able to evaluate how to improve productivity by addressing issues such as bottlenecks or inefficient workflows that led to unproductive time.

Best Practices for Digital Transformation

For many contractors, IoT can be the starting point of their digital transformation journey. This technology is proven, straightforward and cost-effective to implement – and provides benefits right away. To maximize its value, it’s important to view it through a strategic business lens and as part of an overall digital transformation process, which could provide a real competitive advantage by increasing effectiveness and profitability.

Following are four best practices to get the most out of IoT technology investment and further digital transformation initiatives:

1. Understand the problem. Technology should never be implemented for technology’s sake, but rather as a means of solving a business problem. Before beginning a digital transformation, it’s important to understand the business problems, such as the need to improve efficiency to lower costs, or boost productivity to increase profits, and to do it in a way that increases overall worksite safety. Understand the problem, then determine the right solution and approach.
2. Leverage KPIs. Digital transformation depends on data that is collected in an efficient and timely manner in order to be actionable. Determine which data is needed to gain insights into in order to improve a process or solve an identified business problem. It’s also important to qualify the data insights and measure their effect on long-term outcomes, and then use these insights to change processes or make other improvements.
3. Understand the impact on change management. Realize that it may take some time and effort to adjust processes and workers to the changes required to maximize the investment. For this reason, careful pre-planning and working with an experienced technology partner is key to the successful deployment of new technologies and processes. Additionally, to help workers embrace change, build in training and communication well before the change is enacted, and on an ongoing basis as needed. Buy-in and support from the top is also key.
4. Establish data governance. As contractors embrace digital tools that collect employee and jobsite data, it’s important to consider governance protocols that are secure and ethical in order to protect personal privacy. For example, if using COVID-19 contact tracing technology, consider solutions where workers can be anonymized by device, so they would only be identified when they have exposure to someone who has tested positive. To alleviate privacy concerns, IoT devices can run on networks that only capture location data on the jobsite and do not work offsite or by disconnecting from the network when workers leave the worksite.

IoT technology is a valuable tool to help contractors identify roadblocks and other issues to improve productivity. At the same time, it’s often an important first step in an ongoing digital transformation journey, enabling contractors to leverage measurable data-driven insights to further their goal of operational excellence.