Dan Horner
Construction is about building to meet the needs of the time. However, despite us living in one of the most transformative times in human history, the construction industry is a laggard in its evolution. It is struggling to keep up with the pace of change happening around it.
Over the past half century most sectors — the likes of agriculture, manufacturing, wholesale, retail, automotive to name a few — have significantly increased productivity. They have utilized rapid technological advancement to produce more today, at a better quality, in a shorter time and at a lower cost than they were before.
The construction industry is bucking this trend; in many respects it is heading in the opposite direction. We are delivering projects today within a longer time, at higher cost and arguably at a lower quality than what we achieved even a century ago.
Be Prepared to Lose What You Have… For What You Might Get
This does not apply to all areas of the built environment — there have been unquestionable advancements in energy efficiency for instance — but in the main, the sector has not experienced anywhere near the increase in productivity as other sectors over the past few decades.
The Empire State Building, the home of ENR’s main office, was built well ahead of schedule in only 13 months, and was considerably under budget at a cost of $660 million in today’s money. While, the iconic Seattle Space Needle, was dubbed the 400-day wonder, being fully completed within just 13 months.
As we look at these landmark construction projects the question arises: could we deliver such projects today within these metrics? The prevailing view in the industry is that we probably could not.
These impressive structures were built in an era where ambition, craftsmanship, and collaboration were prioritized over simplification, risk aversion, and bottom-line thinking.
One explanation for the relative stagnation within the sector is that we have layered on regulations — often for good reason such as health, safety and security — but without any corresponding innovation. A counter challenge to this would, however, highlight that other industries have also had to comply with increasing bureaucracy and regulations and have still managed to improve efficiency through innovation.
Delays, rising costs and diminishing productivity have the industry losing sight of the innovation that once defined it. Mounting pressures, from urbanization and labor shortages to a changing climate and affordability, place us at a crossroads.
To move forward as an industry, we must embrace new technologies to solve problems, shape cities and rediscover the kind of progress that built our most iconic structures.
The Thin Line Between Progression and Regression
Our historic buildings are inspiring stories of human innovation and challenge. Yet, new building requirements have shifted priorities and focus to other factors such as legislation, regulations and oversight that are shaping the industry. A major contributor to this stagnation is regulatory changes without corresponding innovation.
These regulations have made health and safety a forefront priority. However, they have also added new challenges that the construction industry has not adequately adapted to meet. There is no denying that these regulations are extremely valuable, but with them comes an increase in paperwork and documentation; additional administrative and compliance procedures; added costs; and bottlenecks due to delays within regulatory agencies.
While other industries have adapted and innovated to comply with new regulations, construction has not. This is evident in the performance of major projects worldwide, which routinely exceed budgets and schedules. The fated HS2 project in the U.K. is a poignant example, with its cost and schedule doubling and its ambition and impact diminishing rapidly.
If we look back 150 years, our ancestors were delivering enormous projects like viaducts, canals and railways at a pace and scale that we could barely comprehend today.
However, that is not to say this is a uniform picture worldwide. While this stagnation might exist in the likes of the U.S. and Europe, if we look to parts of the world like the Middle East, projects such as Neom exhibit breathtaking levels of innovation. Here, Sidara companies are helping clients to deliver some of the most ambitious plans ever witnessed in the built environment. By this token, it is fair to say that more can be done to think differently in other parts of the world.
The Future We Should Be Building
The time for transformative change is now. Technological advancements such as artificial intelligence, digital twins and automation present an opportunity for innovation within the construction industry.
The combination of advanced computing, AI and affordable robotics can catalyze change in the construction industry by improving efficiency, reducing costs and enhancing safety. AI and advanced computing can streamline paperwork, documentation, and compliance checks that increased regulations introduced.
Advanced tools enable real-time monitoring on job sites, streamlining processes and reducing delays. Robotics can assist with safety checks and inspections, reducing the bottlenecks caused by overworked and stretched thin compliance agencies.
Other sectors, such as manufacturing and retail, have already successfully integrated these technologies to enhance efficiency in similar ways, such as how warehouses utilize multiple different types of robotics to streamline delivery systems. The construction industry has an opportunity to adopt similar processes to improve productivity.
Beyond technological advancements, the future of construction also lies in the operations and maintenance of structures. Technology like digital twins, robotic building inspections and AI monitoring of structural systems will play a crucial role. Reports and drawings will evolve into digital models and code, directly feeding into the construction process. In the long term, technology frees construction workers and supervisors to prioritize quality control, innovation, and enhance safety and in turn improve budgets and timelines of projects.
Regulations are a necessary part of protecting construction workers, but it is time for the industry to adapt in a way that allows them to be fully and effectively integrated instead of in a way that adds the additional stress of being over budget and delayed. It is technological advancements such as AI and advanced computing that will be how the industry finally evolves.
Time Can No Longer Stand Still
The future of construction lies in its ability to adapt and innovate, ensuring it remains a vital and productive sector. It is easy to say that the flatlining of the construction industry is simply due to regulations, legislation, oversight or paperwork. However, right now, it is the lack of evolution and adaptation that is contributing to delays and costs and taking the industry away from the stories of human innovation and creativity that once defined the sector.
As a field, we stand at a crossroads and the reality is the only way forward is by embracing technological advancements. Construction is more than just buildings; it is how we shape cities, support economies, and plan for the future, but without embracing technology it will continue to regress into a sector defined by slow processes, outdated systems and limited productivity.
Dan Horner is managing director of Sidara in the U.K., a global collaborative of specialist firms that design for people and the planet.
