What is holding ConTech back? - Episode 2

Construction Disrupted

In this episode, we’ll run through the 10 main challenges facing the construction technology industry, or more specifically the hurdles that are in the way of a more technologically advanced industry appearing from its manually made rubble. We need to better understand these problems in order to overcome them and unlock the significant potential for increased productivity, cost savings, and sustainable growth.

Lack of Digital Adoption: The construction industry has been relatively slow in adopting digital technologies, leading to inefficiencies, delays, and increased costs. We see this within a lot of organisations where legacy systems are still being used and make it difficult to integrate with more advanced technologies.

There is not only a need for better awareness and understanding of the potential benefits of digital solutions but the mentality of viewing sunk costs as a barrier to improving or replacing older systems must change.

Fragmentation and Lack of Collaboration: The industry is highly fragmented, with multiple stakeholders often working in silos. This lack of collaboration hampers the adoption and integration of new technologies, hindering progress and innovation.

Fragmentation means we are developing systems that cater, very well, to sectors of the industry, but sometimes forget the bigger picture and the need to integrate systems across the supply chain.

Skilled Workforce Shortage: There is a shortage of skilled workers who possess the necessary knowledge and expertise to implement and operate construction technology effectively. We often hear about the skills gap facing the trades, the workers at the coalface, onsite, getting the work done, but the shortage isn’t so isolated and is affecting almost every corner of the industry. Within Construction Technology this is a double whammy as we have a lack of skilled workers that can utilise and implement new technologies making sure they work well and limited skills when it comes to analysing the data, interpreting information from which accurate and reliable decisions can be made.

The industry needs to invest in training programs and attract young talent to address this gap as well as transfer skills for those where technology will impact their profession the most.

Cost and ROI Concerns: Construction technology can require a significant upfront investment, and many are concerned about the return on investment (ROI). In most cases this is unfound and the investment eventually brings a return. The key word there is EVENTUALLY.

The construction industry is made up of predominantly small enterprises, with many being sole traders making investments difficult or impossible as a return takes too long and may not be necessary for such a small company. This leads to the question of whether it should be up to the larger organisations to carry the flag here and make technology more accessible for the smaller companies they rely on to contract or even sub-contract.

Clear evidence of cost savings and productivity gains is crucial to encourage wider adoption.

Data Management and Integration: Construction projects generate vast amounts of data, but effectively managing and integrating this data across various systems and stakeholders remains a challenge. Another challenge within this same category is the sheer amount of data that is collected. As not all data is made equally this poses a problem with the need to interpret what data is of substance and what is fodder. This is compounded by how we receive any information and analysis, is it raw data that can be scrutinised (if we do have the ability to do so), or has it already been interpreted, changed, analysed and perceptions made about what it is telling us? Either way, errors can be made leading to poor decisions being made compounding the thought that technology is not playing a useful role.

Ironically, technology could be the saviour here, giving people the ability to analyse information more accurately and efficiently. But more is needed to be done and improved data standards that will only come from a collective effort and interoperability (as we’ve mentioned) are needed to realise the full potential of construction technology.

Cybersecurity Risks: With the increased reliance on digital systems and interconnected devices, the industry faces cybersecurity threats. Protecting sensitive data, intellectual property, and critical infrastructure from cyberattacks is a significant concern and some may say the horse has already bolted in many respects with so much technology already implemented (some poorly, some not so). The level of security you need will depend on the sensitivity of the information you hold and what your organisation's main purpose is. For example, if you run limited processes online the security you’ll need will probably be basic, but if you’re running a multinational organisation then more robust security is required that compliments a globalised system.

Either way, this must be taken seriously even a simple attack from Malware, Phishing or identity theft can halt an entire company.

Regulatory Hurdles: The construction industry operates within a complex regulatory environment. Adapting regulations and standards to accommodate emerging technologies can be a slow and challenging process, impeding the adoption of innovative solutions.

The so-called red tape of regulation put in place to protect and encourage best practices can indeed put many off implementing new and innovative technologies due to the time it will take and the payoff is too long.

Associations, regulatory bodies and governments need to do more to speed up processes and assist both large and small firms to overcome these barriers to technologies.

Resistance to Change: The construction industry has traditionally been conservative and resistant to change. There is a need for cultural shifts and a proactive approach to embracing new technologies, including overcoming resistance from stakeholders.

This comes in tandem with the previous point about cyber security. If we can fix the reservations many have about introducing new technologies the resistance barriers will start to fall.

Scalability: Many construction technology solutions work well on a small scale but face challenges when it comes to scalability and integration with existing systems. Seamless integration and interoperability across different technologies are necessary for widespread adoption.

We need to be thinking long-term and creating software that has the ability to interact with other software right across the supply chain. Stop developing entrenched silos within organisations and within certain sectors of the industry.

Sustainability and Environmental Impact: The industry faces increasing pressure to reduce its environmental footprint and embrace sustainable practices. Construction technology can play a vital role in improving energy efficiency, waste reduction, and sustainable material usage.

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