Industry News
Embracing Digital Tools: The Key to a Competitive Edge in the Evolving Construction Industry
Construction is experiencing tremendous demand, yet far too many construction firms are at a disadvantage by holding out on technology adoption.
By Steve Smith, Bluebeam
construction firms still rely on outdated processes and workflows, namely the use of paper. Given the current industry landscape, this is a huge risk. While digital construction tools have indeed proliferated for some time, the COVID-19 pandemic supercharged the industry’s growth. An estimated $50 billion was invested in Architecture, Engineering, and Construction (AEC) technology between 2020 and 2022, according to a report by management consulting firm McKinsey & Co. That’s a staggering 85 percent higher than the three years prior to the pandemic. Digital tools built specifically for the construction industry aren’t just nice to have. They’ve become essential, providing contractors with a competitive advantage over those that remain on the sidelines. Moreover, thanks to accelerating advances in technology overall, it’s never been easier for firms of all sizes and means to invest in these digital tools, which are proven to streamline and automate several critical construction workflows, resulting in greater efficiencies and, ultimately, profits. Boosting Profitability The three main barriers to productive profitability in the construction industry are time management, supply chain management and error reduction. Today’s digital tools help firms tremendously in each of these areas.
The construction sector is rife with activity. Spending for commercial, institutional and industrial buildings surged nearly 20 percent in 2023, despite initial industry uncertainty and recession fears for much of the year amid rising interest rates and still-high inflation. And while leading economists expect construction spending to come back down to earth in 2024, the industry appears poised for another busy year, as public spending from the Inflation Reduction Act and the Infrastructure Investment and Jobs Act continue to break ground on fresh projects. What’s more, pent-up demand for private investment in manufacturing, medical, hospitality, single- and multi-family housing, and even commercial offices promises to deliver builders plenty of opportunity in the years to come. Despite the positive outlook, challenges remain. A skilled labor shortage persists, as do rising supply chain costs. And as any contractor knows, failures in construction don’t always come from lack of work but rather the ability to effectively complete projects on time and within budget. All of these challenges come as the industry also grapples with ways to become more environmentally sustainable—an effort that requires considerable time, money, and uncomfortable change. Taken together, today’s builders are being held to an extremely high standard. Each challenge the industry faces requires dramatic improvements in efficiency at all levels of a project. Yet far too many
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csengineermag.com
December 2023
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