The COVID-19 pandemic is transforming the way engineering and construction companies operate. The crisis highlights the importance of worker health and safety, and construction companies are responding by implementing new jobsite policies and incorporating digital technologies.
Under mandatory federal government safety guidelines, construction companies are required to manage, monitor and report social distancing practices to keep jobsites open, while keeping workers safe and healthy. Moreover, industry players are taking a hard look at the types of projects they take up in the aftermath of the crisis to keep their businesses and cash flows healthy.
Digital Technologies Are Driving Efficiencies at Jobsites
Many construction companies are focusing on leveraging digital technologies as one of the key strategies for responding and recovering from the pandemic. For instance, a leading national construction company has deployed a custom-designed, wearable “Internet of Things” tag to remind workers to maintain social distancing and provide contact-tracing information for jobsites.
Some contractors are using social distancing automation, which includes automatic detection and notification to crowding workers with patterned vibration and a visual message if a cluster of people becomes too close to one another. In addition, some construction companies are virtually and remotely monitoring onsite workers in order to comply with safety standards, such as maintaining social distancing and personal hygiene protocols, frequently disinfecting and wearing personal protective equipment. Indeed, the crisis is acting as a catalyst for construction companies to accelerate their adoption of digital technologies in some critical areas to ensure smooth and efficient jobsite operations.
- Increasing use of robots: Construction companies are leveraging robots and autonomous rovers to reduce the need for humans to conduct site inspections and to automate repetitive tasks like bricklaying. This addresses the challenge of reduced labor at construction sites due to the pandemic.
- Leveraging drones: The pandemic is pushing construction companies to increasingly use drones for remote surveillance and inspection of construction projects. This is likely to reduce the disruption in construction activity caused by the pandemic.
- Using digital building twins, 5D BIM and AR/VR: These technologies support seamless planning and design of construction projects without requiring a physical presence at jobsites. These technologies will likely reduce costs incurred during project planning and speed up the development timeline.
- Enabling remote management: Construction companies are gradually increasing the use of cloud technology, as well as digital collaboration tools to ensure construction sites are connected, which makes remote management and collaboration easier. Internet of Things is enabling intelligent asset management, including inventory management and equipment monitoring and repair.
Sector Players Can Focus on a Few Bright Spots in Certain End Markets
As the pandemic’s impact continues to play out, spending growth in the near-to-medium term will likely be led by public infrastructure investments. The pandemic has reshaped the types of projects that will be built for many years to come—hospitality, retail and entertainment projects are likely to slow down, while public utility, transportation infrastructure and health care-related projects could see more activity.
Specifically, infrastructure and public utility-related starts are expected to experience a sharp, V-shaped pullback in 2021, driven by increased activity on highways and bridges, according to Dodge Analytics.
While infrastructure and public utility work construction starts are estimated to decline 16% in 2020, the industry could experience strong recovery in 2021, growing 13% year-over-year. Construction activity on highways and bridges is likely to see strong recovery as soon as late 2020 due to government support and funding.
Prefabrication and Modularization Are Assuming Greater Importance
An enhanced focus on worker safety is likely to bring substantial change to current jobsites and help accelerate the industry’s move to offsite construction methods. The pandemic is already nudging some firms toward modularization and prefabrication of components in order to overcome schedule overruns.
Assembly line efficiency and the controlled environment of a construction factory floor can bring cost savings with higher efficiencies in labor productivity and shortened project schedules. Contractors are focusing on adding modular assembly yards— strategically located sites for prefabrication and the assembly of building elements that can then be transferred to a construction site for rapid assembly. This is expected to improve both a contractor’s productivity and margins, especially during a time when onsite labor needs to be reduced to the bare minimum.
In addition to reducing labor costs, these approaches are driving improvements in quality and mitigating risks, primarily claims and litigation.
Thriving in the Post-COVID-19 World
With expected construction delays due to the pandemic, the efficient use of resources, both human and material, is essential. Digital technologies and new construction approaches have the potential to transform jobsites and bring greater efficiencies. To remain competitive in the post-COVID-19 world, construction firms need to accelerate their digital transformation to accommodate the changing jobsite landscape.
Industry players can also take advantage of bright spots that are emerging—infrastructure and public utility projects which have maintained momentum and could facilitate industry recovery to some extent. Furthermore, increasing the use of modular construction and prefabrication could be a way forward for firms to realize cost and project schedule efficiencies.
