Last updated on January 30th, 2023

Optimism is high about construction industry prospects thanks to the Infrastructure Investment and Jobs Act.

There are going to be more jobs, opportunities, and investments. Before partaking in the coming construction boom, businesses must prepare to navigate some storms; digitalization of the construction industry can help.

On one front, supply chain issues and the resulting impact on prices – and profit margins – are continuing (although price increases feel more like riding a rollercoaster than a rocket, as was the case in 2021).

On a second front, there’s talent – or the lack of it. With the great resignation and silver tsunami underway, there are more jobs than people to fill them. One source says there are currently over 345,000 open construction jobs nationwide. No doubt, that’s driving competition and the pay and benefit packages employers need to win and retain talent.

On a third front, there’s the geo-political climate which is filled with uncertainties and unrest, and will no doubt exacerbate supply chain issues and operating costs (due to things like rising oil and gas prices, for example).

Combined, these forces impact everything from profitability and productivity to competitiveness.

Although construction is one of the biggest industries in the U.S., it is also the least digitalized.

Digitalization – which is the process of integrating digital technology into all facets of a business and its operations – may act as a compass to help construction firms navigate choppy waters and get into position to maximize productivity, profitability, and future growth.

Digital construction solutions are commonly used for project planning, management, and documentation. To maximize impact and potential, digital solutions can modernize construction with:

• Artificial Intelligence (AI) to automate tasks and enhance building designs (extending longevity).
• Building information modeling (BIM) tools to review projects in real-time; improve collaboration between engineers, architects, and construction staff; and streamline planning.
• Cloud technology to manage and store data; integrate suppliers and contractors; and address data gaps.
• Internet of Things (IoT) so smart equipment can self-maintain and operate, while sensors and monitoring systems reduce waste and carbon footprints.
• Machine learning for monitoring progress and identifying issues.
• Software to promote project management and data analytics.
• Virtual reality (VR) and augmented reality (AR) for simulations, planning, and risk reduction.

Construction digitalization can deliver a myriad of benefits to construction firms, engineering partners, employees, vendors, and clients.

Firms can use digital construction solutions to optimize operations; identify and mitigate safety risks; manage projects, procurement, and supply chain; provide real-time updates; collaborate, get approvals, and make decisions or problem-solve in real-time; reduce waste; minimize errors; increase productivity, agility, and profitability; align with clients’ systems and processes; identify and rectify issues before they escalate; improve workflow and document tracking; reduce costs to increase bid competitiveness; and promote growth readiness.

Consulting firm McKinsey found firms with digital procurement, supply chain, and on-site operation solutions increased productivity by 50% as compared to firms with analog solutions. It also found digital transformation reduced costs by 4 to 6 percent and increased productivity by 14 to 15 percent.

What are the current issues facing the construction industry in 2022?

According to Dodge Data and Analytics, 95% of employees are willing to use digital tools and 84% of field employees indicate these solutions already impact the way they work. As reported by ConstructionDive.com, 92% of construction business owners and 96% of contractors have digital transformation strategies. So the issue isn’t getting employees on board.

When it comes to technology infrastructure, a JBKnowledge survey shows, 22% of companies surveyed use six or more apps for daily operations; 92% of construction workers use smartphones, 83% use laptops, and 65% use tablets at work; and nearly 50% of firms have dedicated IT departments or resources. So, the issue isn’t a fear of technology or building a technology infrastructure.

Issues appear to rest in the piecemeal nature of using multiple solutions that don’t integrate or share data; are not accessible by all who may need information; and aren’t being maximized. A new thought process is emerging that indicates the answer may lay in simplifying by adopting connected construction strategies and technologies.

Engineering firms, contractors, construction firms, and others involved in the value chain can use connected emerging platforms to bring people, processes, job sites, and assets together to work efficiently and effectively. By connecting, automating, and integrating everything into one platform, people work smarter, operations are more efficient, and businesses are poised to maximize success.