If you have been following along here this summer, then you know we are in the middle of a blog series, focusing on people, process, and technology. Today, we are going to begin our exploration of technology in construction, but first let’s review the other pillars briefly.
People: We have already explored the people leg of the stool: the value of people, the worker of tomorrow, and why and how to put people to work.
Process: Last week, we unpacked the process leg of the stool, identifying why we need good processes and how to implement good processes. Naturally, while this is going to vary from company to company, there are some good universal questions to consider.
Today, let’s begin our exploration of technology. The hard reality is the construction industry has often been called a technology laggard for decades, but the opportunities are perhaps bigger here than any other industry.
The construction industry represents a huge portion of the U.S. economy. The U.S. BLS (Bureau of Labor Statistics) suggests the construction industry makes up roughly 4% of the U.S. GDP. The AGC (Associated General Contractors of America) suggests the construction industry employs 8 million employees and creates nearly $2.1 trillion worth of structures each year. Construction is also one of the largest customers for manufacturing, mining, and a variety of other services.
Construction touches nearly every aspect of our lives: our homes, our work, our play. Without it, our world begins to crumble. The challenge here is the construction industry is multifaceted, with multiple stakeholders and supply chain partners. All this to say, implementing technology in construction isn’t an easy feat.
But therein lies the rub. The construction industry is complex—which also means it necessitates the use of technology. We are seeing the rise of supply-chain disruptions, a shortage of skilled labor, and an overall greater administrative load on projects, all while projects are becoming more complex than the projects of yesteryear. Technology can help solve some of the greatest hurdles we face in the construction industry today.
Naturally, we can use estimating, project management, accounting, and ERP (enterprise-resource planning) technologies to enable core business processes. But this is just the tip of the iceberg. With the rise of generative AI (artificial intelligence), digital twin, BIM (building information modeling), AR (augmented reality), VR (virtual reality), and so much more, we must also consider how these technologies will play a role in projects in the future.
Simply, we are seeing the rise of new technologies that will completely disrupt the way the construction industry does business, and the construction industry must prepare for the digital transformation that will inevitably come next.
In order to best prepare, Peggy Smedley has created a new Substack channel to help those in the construction industry continue to learn how to make smart technology implementation decisions. Make sure to head over there to learn more about how to invest in scalable hardware and interoperable software solutions. The best is yet to come.
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