How does construction impact the environment?
How does labour shortage in the construction stand in the way of industry growth?
Why does construction technology adoptions take such a long time?
Are you interested in knowing the data-driven answers to these questions, we recommend you to listen to The Site Visit Podcast episode with Shawn Gray.
Shawn Gray is a top-40-under-40 in Canadian Construction, with a portfolio of over $5 billion in completed construction. Throughout his career, Shawn has helped over 200 engineering and construction professionals adopt new solutions and accelerate data-driven AI innovations, impacting over $25 billion in construction across North America. He is a founder of ConstructIQ Advisory and one of the leading project management consultants at The Net Effect, a digital business consulting firm for construction companies, that SiteMax is proud to be partner with.
Listen to the full episode with Shawn Gray here.
Uncovering the Environmental Impact of Construction
The construction industry has a significant impact on the environment, contributing to a substantial portion of global greenhouse gas (GHG) emissions. Construction generates 8% of global GHG emissions, representing a substantial portion of the overall emissions. Additionally, the sector is highlighted as a major contributor to global energy demand. The report from UNEP emphasizes that the gap between the climate performance of the sector and the 2050 decarbonization pathway is widening, indicating the urgency for action to mitigate these environmental effects.
The construction industry has been unchanged for hundreds of years, but now it is time to take urgent action to address the environmental impact. There are many available solutions to reduce emissions nowadays, construction businesses just need to acknowledge them and facilitate effective change.
The Data-Driven Reality of Construction Technology Transformation
In the realm of construction technology, circa 2012 serves as a crucial milestone, signifying the beginning of a fundamental shift in the way construction processes are approached and executed. It is the recognized benchmark for when the transformation of construction technology began to take place.
The construction industry has seen a considerable influx of investment in technology over the past decade, with over $30 billion being poured into various technological advancements. However, despite this substantial financial commitment, the industry has experienced less than a 2% improvement in productivity. Less than 30% of companies have actually considered or adopted any type of workforce efficiency solution. Shockingly, over 50% of the adopted technologies primarily serve the executive leadership and back-office stakeholders rather than for generating tangible business results. Moreover, less than 4% of the construction businesses have been successful in utilizing the data from the technology they have adopted, for differentiating business benefits. Today, with over 80% of construction companies struggling with workforce resources challenges and 40% of the workforce anticipated to retire by the end of the decade, the top emerging “why” behind industries digital transformation has never been more clear.
The Impact of Labour Shortage in the Construction Industry
The construction industry in Canada is facing a significant shortage of workers, which is impeding the country’s ability to meet the growing demand for housing. This shortage is attributed to factors such as larger project sizes, increasing costs, and a faster rate of worker retirements compared to replacements. The pandemic has exacerbated this challenge, leading to some construction workers changing careers or retiring prematurely. To address this issue, experts emphasize the importance of prioritizing immigrants with skilled trade backgrounds and investing in training for workers. Without a resolution to the construction worker shortage, Canada may struggle to meet its housing supply needs, potentially impacting housing affordability for Canadians.
The construction industry also faces significant challenges due to the impact of rework on project timelines and costs. On average, 25% of project time is spent on rework, leading to substantial financial implications and hindering the progress of construction projects.
A similar amount of time, ranging from 25 to 40%, is also dedicated to administrative tasks and information retrieval by supervisors, rather than actively overseeing and preventing mistakes. This indicates a substantial opportunity for improvement in time management and resource allocation within project supervision.
By adopting contech, the construction business can gain significant results. The construction software can empower superintendents to be more hands-on in their roles and help businesses to unleash the potential of their existing workforce and boost profitability. Embracing technology in the construction industry creates ripple effects that shape the capabilities and success of any construction company.
The Main Reasons that Hinder Technology Adoption
2019 McKinsey’s research identified the top 10 barriers that stand on the way of smooth technology adoption, with budget being the main barrier. Even for large companies, budget constraints persist, as these organizations are composed of smaller entities or geographical units with their own operating needs. Furthermore, management and workforce hesitancy, often referred to as culture, emerged as significant obstacles. It’s noteworthy that management hesitancy is closely linked to budget constraints. However as organizations begin to address the budget issue and introduce technological solutions, management alignment improves. At the same time, the largest hurdle lies in the workforce, which is historically unwilling to adopt technology, often without achieving the anticipated results. This is largely attributed to a failure to communicate how technology can enhance their work and crafting their technology adoption plan around the office leadership group rather than the actual project execution operations.
If you are looking for help with your technology adoption planning and execution, we recommend checking The Net Effect.
If your construction company wants to streamline job site management and make field-to-office communication more efficient, book a demo with a SiteMax representative to see how our software can benefit your business.
