Construction is one of the least digitalised sectors across the globe – the only sector worse when it comes to technology is agriculture and hunting.
4D BIM, The Internet of Things, and Big Data – yes these were all major topics at Australia’s first ever conference on technology and digital innovation in the construction sector, which was hosted by the Victorian Government recently. For an industry that constantly ranks as one of the least innovative industries across the nation, according to ABS figures, the conference aimed at expanding those in construction’s knowledge of what’s possible in the new digital world was a positive step in the right direction.
For those who were unable to attend, here’s a snapshot of my top five take outs:
1. The construction sector globally is a laggard when it comes to technology
Construction is one of the least digitalised sectors across the globe – the only sector worse when it comes to technology is agriculture and hunting. McKinsey & Co partner, Mukund Sridhar, drew a nice parallel between construction and manufacturing, an industry which since the 70s has constantly adopted innovations in technology and process, such as lean adoption (80s), outsourcing (90s) or IT automation (2000s).
However, construction has remained fairly stagnant with many in the industry still relying on manual pen and paper processes. However, there was some relief amongst the architects, engineers and construction companies in the room, with Australia recognised globally as one of the most open to innovation and technology, with only the UK, Scandanavia and South Korea ahead of us. And the case for change is only growing stronger, with labour costs increasing and margins shrinking, construction businesses have strong imperatives to streamline efficiencies and cut down costs using technology.
2. BIM isn’t dead
While it’s taken the best part of a decade to gain traction, 3D Building Information Modelling (BIM) technology is far from the grave. In fact, the industry is expecting to see a real spike in efficiency with the next evolutions of 4D and 5D BIM that integrate payments and project timelines. These new iterations will become a lifecycle management tool for architects, project managers, developers and subcontractors alike, incorporating scheduling and even financial information to its basic map and design functionalities. This way, we’ll be able to monitor design updates alongside timetables and payment schedules, so BIM will become the digital thread for the entire lifetime of the project.
3. Data is king
Regardless of what industry you are in, big data, the Internet of Things and advanced analytics is having its day is in the spotlight. In terms of construction, we’ll increasingly start to see data being taken from construction sites, whether it be via RFID tags and sensors on equipment managing productivity, or vehicle trackers analysing safety and workflow. With over a million data points per day for a $15million project (according to McKinsey & Co research), project managers will have more tools and evidence at their disposal to develop more accurate schedules, increase productivity and minimise risk, so everyone on the job can maximise their time on site.
4. The transition to digital is a major change management exercise for businesses
A number of industry leaders in the digital space made clear that new technology can only provide the maximum benefit if it’s used correctly by people. This means that businesses not only need to ensure their staff up upskilled with training and demonstrations, but entire processes need to be adapted to make sure employees aren’t doing more work than previously, and getting the most out of technology.
5. There’s no silver bullet
It was reiterated time and time again, but unfortunately there’s no magic tech solution which will deliver all your needs and solve all your problems. While we may see BIM technologies integrate with project management software, it’s still wise to have separate tools for project information software, or accounting software which will manage payments appropriately. What’s important is that these pieces of software can integrate, and the people using the software can manage the range of digital tools with ease.