Digital transformation has the power to set construction firms up for long-term success despite today’s challenging business conditions. The economic impacts of the COVID-19 pandemic have not been easy for construction and engineering firms. Deloitte found that in April 2020, U.S. construction industry employment dropped to its lowest level since January 2016. Many construction sites around the world have experienced dramatic supply chain disruptions or shut down altogether following a period of volatility triggered by the COVID-19 pandemic, according to a recent report from McKinsey. But as the pandemic continues, construction firms are realizing that virtual construction tools can keep projects on track despite work from home and social distancing mandates.
Adopting automation technologies can improve productivity and profitability. In order to gain efficiencies and recover revenue, construction companies should consider embracing new technologies such as drones, robotics, IoT and artificial intelligence. By adopting these tools now, firms can successfully weather the economic impact of COVID-19 while laying the groundwork for long-term business success.
Short-Term and Long-Term Benefits of Digitization
Virtual construction tools are extremely valuable in the short-term as businesses determine how to continue operations and manage projects while working from home and staying socially distanced. With drone technology, construction professionals can monitor project progress without ever leaving their desks. They can conduct virtual site visits and provide regular updates to stakeholders. By allowing construction teams to conduct contactless inspections that keep workers safe by limiting their interactions with each other and with shared equipment, drone technology facilitates compliance with social distancing measures. For example, construction firm Wood Partners, a leader in multi-family real estate development that builds for-rent market rate and workforce housing in 20 markets around the U.S., is using drone imagery to keep its team safe and take potential investors on virtual site visits.
The long-term case for digitization, automation and drone technology is also strong. McKinsey anticipates that skilled labor shortages will become even more acute in a post-COVID world, which will increase demand for virtual construction tools that increase productivity. And increasing productivity pays off: McKinsey estimates that if construction productivity were to catch up with the global economy, the sector’s value would increase by an estimated $1.6 trillion—and add approximately 2% to the global economy.
Increased Site Visibility
Drone technology makes it possible for construction firms to conduct aerial inspections and view their job sites from all angles. The images drones collect, also known as ‘drone capture,’ enable construction professionals to make observations that would not be seen from the ground or during a standard inspection. That makes it easier to identify mistakes, note inconsistencies, keep track of on-site materials and resolve issues as they occur. End-to-end drone operations and data automation solutions, combined with the 360-degree images, orthomosaics and image series captured through drone surveys, allow construction firms to monitor progress, improve safety and increase overall efficiency while reducing the need for in-person inspections and enabling collaboration between remote teams. ANDRES Construction Services, a Dallas-based firm that manages major commercial, institutional and developer construction projects across Texas, found that adopting drone technology allowed them to gain unparalleled site visibility, provided a powerful way to track all their projects, created a comprehensive system of record, and gave their clients a quality assurance value-add.
Reducing Rework and Avoiding Disputes
Rework is an expensive part of the construction process, extending project timelines and contributing as much as 5% of a project’s overall contract value. But rework can be reduced by using virtual tools including drones to identify errors, report on productivity pitfalls and ensure that a project meets pre-defined and agreed-upon standards.
Construction disputes are another costly and time-consuming part of doing business. According to the Arcadis 2019 Global Construction Disputes Report, disputes cost global construction companies an average of $33 million in 2019 and took approximately 17 months to resolve. Drone technology can help resolve disputes and save money. Drone captures provide an objective, unambiguous record of progress, from initial site survey through to project completion. With the right software solution, construction companies can ensure that their drone-captured data is stored in the cloud and accessible to key internal and external stakeholders at all times. They can also use their data to settle disputes and avoid potentially costly legal fees.
Adopting New Solutions
In order to get maximum value from their drone operations, construction companies should seek out solutions that allow them to automate high-precision image capture and deploy smart data processing in order to generate insights. These solutions ensure airspace safety and compliance and are integrated with widely-used project management tools. Using an integrated software platform allows construction companies to complete drone inspections safely and efficiently and gain insights at scale across their entire project portfolio.
Now is not the time to slow digital transformation initiatives. According to Deloitte, the extent of digital adoption by engineering and construction firms is likely to play a pivotal role in their ability to recover and thrive in a post-COVID world. By harnessing automation, integrating drones into day-to-day operations and finding the right technology partners, construction firms can gain actionable site intelligence, increase efficiencies, improve resiliency and keep their projects on track at a time when operating remotely is critical to business success.
