Growing evidence indicates the recent pandemic is accelerating the onset of Construction 4.0, a digital revolution in construction akin to the Fourth Industrial Revolution in manufacturing. Construction technology startups raised a record $2.1 billion last year, and InEight’s Global Capital Projects Outlook (GCPO) 2021 survey found digital transformation was the biggest source of opportunity for construction worldwide.
These trends were already underway prior to the pandemic, but the pace of digitalization and automation in construction has only been accelerated by recent events. Pandemic-led trends such as remote working and new health and safety requirements at work have driven demand for virtual collaboration and Internet of Things (IoT) technologies. An industry that was already stressed by a labor shortage and stagnant productivity is now faced with new logistical challenges that make it harder to move people and resources from site to site. Increased demand forecasted for construction post-pandemic, plus massive government funding programs such as the $1.2 trillion Infrastructure Investment and Jobs Act in the United States, only add to the stress.
Consequently, the industry is showing greater demand for integrated data, interoperable technologies and a switch from point solutions to integrated project management platforms. In the face of pandemic-driven labor and supply-chain shortages, these moves are viewed as a way to create leaner and more efficient construction processes, enabling the industry to deliver more work without a requisite increase in personnel.
Here are three examples of how the pandemic has shaken up construction and the resulting construction technologies that we anticipate will attract the greatest investment.
RISK-ADJUSTED CONSTRUCTION THROUGH AI
Artificial intelligence (AI) is primed to transform the construction industry just as it is transforming manufacturing. Soaring materials prices and shortages are increasing project costs and causing delays, driving the need for better planning with properly identified risks to control expenses and timelines. Construction organizations are recognizing that historical data from previous projects can be used as fuel for AI-driven risk identification algorithms, which can serve to complement human experience and judgment. The result is more realistic estimates, schedules and work plans, often created in less time than traditional methods.
In the 2021 GCPO survey, 45% of respondents reported they were already using data to fuel artificial intelligence, machine learning or predictive analytics applications. Contractors also reported they view data analytics and AI and machine learning (ML) technologies as indispensable for success.
The key to the AI revolution will be the dissolution of data silos, so data is captured and connected across project lifecycles, departments, divisions and sites. Comprehensive, current and cross-departmental construction data will fuel smarter AI applications. AI will increasingly enable project owners and contractors to proactively identify risks and opportunities based on intelligent data. A fundamental part of the planning process is to run “what if?” scenarios to identify the best approach, but that traditionally has meant a time-intensive manual process. New planning solutions will harness AI/ML to perform thousands of simulations and scenarios in seconds, providing the planner with insight that was previously not practical to attain.
FROM POINT SOLUTIONS TO PLATFORMS AND CONNECTED DATA
Larger (and more complex) projects, shared-risk contracting models and increasing owner requirements to support an all-digital construction lifecycle will require tighter data and workflow integration across stakeholders, along with investment in technologies and tech startups that drive that integration. In the 2021 GCPO, only 44% of project owners claimed that the data they were collecting was being shared across the organization, much less outside the organization.
The industry similarly will see more interoperable tools and technologies that enable data integration across multiple projects and places. Point solutions increasingly will be replaced by integrated project management platforms. Already, there has been a notable movement by construction tech companies toward platforms that provide holistic project visibility by aggregating construction data and process control in a single place.
The platform approach creates the opportunity to replace numerous point solutions, each with its own silos of data, and in doing so, to connect all of the key project data to control business processes across the organization. That means functions such as estimating, scheduling, procurement, work planning, quality and much more all can participate in a common platform. That consistency and real-time visibility ensures high-quality data with minimal redundant effort and greatly reduces the time it takes to produce updated project reports and dashboards.
CONNECTED CONSTRUCTION SITES
The recent GCPO survey found IoT sensors and real-time physical data collection technologies were some of the most popular construction technologies among project owners. While such technology traditionally has been focused on asset-management activities post construction—think proactive monitoring of building systems—it’s now moving with force into the construction stage. Internet-connected sensors, drones and other tech is helping to track the movement and utilization of resources (people, equipment and materials), alleviating some of the logistical challenges that show no signs of easing. IoT devices at the jobsite are playing ever wider roles to improve productivity, from assisting with the completion of quality inspections, to monitoring compliance with construction-related air and water restrictions.
Looking into the future, there are many IoT-based initiatives currently focused on automating the measurement of construction progress, a critical process that is extremely time-intensive. New approaches look to automate this process with drones or other tech, generally by quantifying captured reality from one point in time to the next, or in comparison to the 3D model. The complexities and nuances of most construction operations make certain disciplines more practical for this approach than others, but lessons learned from real-world use no doubt will serve to expand the viable use cases over time.
THE COMING CONSTRUCTION REVOLUTION
The pandemic is accelerating the digitalization, integration and automation of construction, and in turn, this trend is accelerating investment in construction tech. The post-pandemic realities of jobsite restrictions and logistical challenges, coupled with increased demand for construction services, are driving the need to boost productivity and efficiency through greater automation and digitalization. Inflation and unpredictable supply chains are making it even more difficult to create accurate estimates and schedules, driving the need for more frequent, but shorter, planning cycles to ensure consideration of the latest assumptions and risks.
With economies generally growing in most parts of the world, and as governments increasingly use infrastructure funding to fuel job growth, the construction industry is facing strong demand and new stresses. Digital innovation will be fundamental for the construction industry to meet this increasing demand with a high degree of certainty.
