Leadership and Innovation in the Construction Industry
The construction industry is one of the largest industries in the world. Since the stone age, when early humans lived in caves, to the present day when we inhabit gigantic skyscrapers, humanity has accomplished extraordinary feats in the field of construction.
However, in the past few decades, innovation in the construction industry has reached a whole new level. The recent construction of a two-story, 366,000-square-foot emergency hospital in Wuhan, China, in just ten days is a radical example of how far we have come in the field of construction, design, and engineering. This 1,000-bed hospital called Huoshenshan was constructed practically overnight to tackle the Wuhan Coronavirus.
According to a Deloitte report, many engineering and construction (E&C) firms will continue to experience low profitability and margins in 2020. On a global level, the average earnings before interest and tax (EBIT) from construction activities total just 5.5 percent of sales. The report also predicts that in 2020, the profitability of US E&C companies will undergo extra pressure due to supply chain constraints, fierce competition from Asian companies, increasing project complexity, and the traditionally low margins the industry operates with.
“To remain competitive, industry leaders will likely continue to define a new vision and map a comprehensive digital blueprint to realign their business and operational processes to reflect the opportunities that innovation and technology provide,” says the report.
That means to stay profitable and competitive in this challenging industry, construction companies need to incorporate innovative strategies and invest in innovative technology.
Here are five innovative strategies that you need to incorporate to become a leader in the construction industry:
Cost Estimating Software
Globally, every industry is undergoing a digital transformation, and the construction industry is no different. With so many different aspects and processes to deal with, it was only logical for construction companies to digitalize and streamline their operations.
One such key aspect of construction is the cost estimation of the entire project. Gone are the days of dated spreadsheets and cost books. Cost estimating software is the way forward. With this software, you can plan your next budget with accurate construction costs, maintain existing buildings with schedules and detailed costs, validate unfamiliar costs or scopes of work, and create line-by-line estimates, assemblies, or square foot models.
Some of these estimation platforms have cloud functionality, thereby allowing you to access the software anytime you want from your smartphone, tablet, or PC. Investing in a cost estimating software for your construction company is a logical step as it can help you streamline your entire operation, save a lot of time and generate trustworthy and accurate estimates.
Augmented Reality
Virtual reality is something you must be familiar with. It’s when the real world is replaced by a simulated version. Augmented reality is like one step before that; it combines real physical surroundings with computer-generated 3D simulations—using advanced camera systems and sensors—and showcases them in real-time. The gaming industry has been one of the early adopters of the AR technology, but the construction industry has also realized the potential of AR technology and is therefore not shying away from implementing it.
Construction companies are using AR technology to create 3D models of their projects, even on a 2D plane, by coupling it with 3D modeling software and building information modeling (BIM). These models can be shown to clients before the start of the project to offer them a realistic vision of the project and incorporate their feedback before the construction starts. Having the clients on the same page early on helps prevent changes later, which can prove expensive.
Augmented reality gear also helps with automated measurements, conduct virtual safety drills and training, meticulously plan the project from start to finish, access on-site project details, and also boosts collaboration among team members.
Green Technology and Sustainable Materials
The world is reeling under the drastic impact of climate change, and every industry is pledging to do its part to reduce its respective carbon footprint and come up with eco-friendly innovations to do so. Green technology is the usage of technology that is environmentally friendly, uses sustainable materials, and reduces carbon emission and negates the harmful impact caused by humans.
The construction industry utilizes an immense amount of energy, and most of this energy comes from fossil fuel. Therefore, there is an immediate requirement for the industry to up its sustainability quotient by using sustainable materials and green technology.
Some examples of green technology that can be used by construction firms include implementing green roofs (growing plants on roofs for cooling effect), green insulation (cotton or cellulose instead of fiberglass), installing energy-efficient windows and doors, installing rainwater harvesting and purification system, and using solar panels. Construction firms can also use sustainable materials such as transparent wood, concrete reinforced with bamboo, hydrogel, super-hydrophobic cement, and LED lights, among others.
Incorporating green technology and sustainable materials helps improve the energy-efficiency, increased market value, and demand among eco-conscious customers, and reduced carbon emission.
Artificial Intelligence and Robotics
Artificial intelligence is the type of intelligence displayed by machines, as opposed to the natural intelligence of humans. In today’s day and age, AI has impacted almost all facets of our lives. According to the Deloitte report, the advent of AI is also making its mark on construction. So are automation and robotics.
“Robots are beginning to enter construction in several areas. From autonomous rovers that can increase the efficiency and quality of site inspections to mechanical arms that can automate highly repetitive tasks like brick-laying, the robotic revolution looks set to gather significant pace in the coming year. Automation of construction sites, particularly concerning highly repetitive tasks, could significantly improve productivity while creating a safer work environment and helping to address the industry’s shortfall in labor,” the report said.
Another report predicts that the global construction robotics market revenue will increase from $22.7 million in 2018 to $226.0 million annually by 2025.
Prefab and Modular Buildings
The Deloitte report also indicated the move toward modularization and prefabrication of components as another key trend in the engineering and construction industry to watch out for in 2020. Prefabrication (aka Prefab) is a construction process that involves fabricating certain building elements offsite and, upon completion, moving them to the construction site for assembly and installation. Whereas modularization is a construction process wherein an entire unit of a building is constructed at a different site. Once these modular units are constructed, they are assembled at the main site to complete the building.
According to the report, “Modularization and prefabrication not only can save on labor costs but might also ensure better quality and shorten the project schedule with less labor required on-site. This can avoid rework and help improve safety as well.”
Keep Calm & Construct
According to a report, the global construction industry is expected to record a CAGR of 6.5 percent to reach $10.84 billion by 2023. It is one of the most crowded and competitive industries in the world. To stand out and be a leader in this sector, you need to adapt, evolve, and come up with innovative strategies like the ones mentioned above.
