Thirty measures that form part of a construction industry transformation framework are detailed in a new report called ‘Shaping the Future of Construction: A Breakthrough in Mindset and Technology’, which was compiled by the World Economic Forum (WEC), in collaboration with Boston Consulting Group (BCG).
The report describes and promotes the effort required from all stakeholders for the industry to fully realise its potential for change. It finds that the global construction industry has been slower than most to adopt technological innovations and wary of modernising strategies and processes.
The construction sector currently accounts for 6% of global gross domestic product (GDP), with buildings contributing about 30% of greenhouse-gas emissions.
The report asserts that, given the industry’s size and significance, even small improvements in performance would generate huge benefits worldwide.
It also covers the use of innovative technologies, enhancements in operations and processes, adjustments to business and human relations strategies, industry cooperation and, crucially, improving public policy.
Citing numerous best practices and case studies, the report is applicable to construction companies, design companies, suppliers of technology and building materials or equip-ment, as well as others in the value chain, the con-struction industry as a whole and governments.
“For many in the industry, the approach described in the report is a new and possibly radi-cal one, but it is the path to a more innovative, productive and socially responsible future,” says Canada-based construction company Aecon executive chairperson John Beck.
The report notes that change is under way and is being headed by construction firms with the support of innovative processes and products. Emerging digital technologies, such as three-dimensional models for guidance, robots for the dangerous work, and drones and embedded sensors to check on progress, will boost productivity, enhance the quality of buildings and improve on-site safety and environmental compatibility.
“Companies have serious transformative opportunities now by exploiting new technologies and materials,” says report coauthor and BCG partner and construction expert Santiago Castagnino.
“If [construction firms] also [improve] the planning and the processes, you could easily end up cutting costs by 15% and reducing the completion time by as much as 30%,” he adds.
Leading-edge technologies affect all subsectors and stages of a building asset’s life cycle, from planning and design to operations and maintenance.
However, the report suggests that the adoption of new technologies is still sparse and uneven, and only when the various advances have been adopted pervasively will the industry be able to boast of transformation.
WEC executive committee member Pedro Rodrigues de Almeida says: “The report provides a preview of the upcoming changes in the industry and a way of accelerating [the] realisation of these changes. It offers a tool kit for success, but also serves as a necessary rallying call.”
Findings of the report suggest that the con-struction industry is extremely fragmented and, to unlock its potential, companies along the value chain will need to collaborate far more than they do now.
Also, industry organisations will need to make their presence felt more strongly to define common goals and standards, engaging local communities and prospective employees, as well as advocating with public agencies.
Further, governments are key contributors to industry’s evolution, as they are often not only the regulator but also the owner and major client of infrastructure assets. By accelerating regulatory and environmental approvals, governments can reduce project delays and improve competitiveness by inviting foreign bidders to tender.
Also, by supporting academic and corporate research and development, governments can promote technological innovation, impose environmental standards and stamp out corrup-tion in procurement practices.