OPINION : Four 2024 predictions for the heavy construction industry

The artificial intelligence (AI) surge combined with the growing demand for digital solutions that help manage construction projects has ignited a renewed interest and a growing appetite for adopting innovative technology according to Matt Desmond.

Continuous integration of digital technologies — if done purposefully — positions construction firms at a competitive advantage and ensures long-term success.

More than 1,000 technology leaders from contractor firms in Australia, the UK and North America replied to the survey for the Autonomous Construction Tech Outlook. Further key insights from this survey help predict the trends for 2024:

1. AI advancement is key for autonomy

AI’s impact on construction transcends recent headlines; it’s been silently advancing the industry for years. Now, AI applications are at the forefront and pivotal in steering the industry towards autonomy.

Significant improvements in the power of automation and the scope of smart digital realities will shift the industry towards efficiency, precision, safety and profitability. Companies that deliberately leverage autonomy in areas of strategic importance will benefit from safer and more efficient, sustainable, accurate and profitable operations.

Companies must future-proof their workforce by providing training and empowering their employees to leverage digital solutions. Closing the digital skills gap will become an urgent priority, and we should see considerable investments in training and skills development.

2. Technology is “skilling” jobs, not killing them

The heavy construction sector grapples with a persistent lack of skilled workers, impacting schedules, project budgets, and bid submissions. To counter this challenge, the industry must attract younger talent and strategically integrate technology. According to the Autonomous Tech Outlook, 84% of construction firms already incorporate autonomy in some operations.

Contrary to concerns about job loss, these technological advancements are not killing but “skilling” jobs. Digital solutions enhance efficiency and eliminate repetitive tasks. Given the sector’s talent deficit, achieving more with fewer people is imperative. Automating tasks not only liberates time for work requiring unique skills but also significantly reduces exposure to risks.

3. Productivity and profitability go hand in hand with sustainability

As revealed by Hexagon’s Construction Tech Outlook, sustainability is the top priority for firms over the next 3-5 years. To achieve sustainability benefits in that time frame and address industry expectations and customer demands, companies will need to implement more sustainable practices now.

According to the UN’s Global Status Report for Buildings and Construction, the industry accounts for around 37% of energy and process-related carbon dioxide emissions globally. As a result, holistic efforts are being made to make processes more autonomous, accurate, and therefore less wasteful and emission-heavy.

Automation and digitisation are two pillars of sustainable construction practices. Accurate initial measurements and value engineering result in less material waste, lower equipment hours and less fuel consumption.

Accurate measurements and regular progress updates allow for replanning over shorter time horizons which helps minimise rework and overprocessing. Productivity, profitability and sustainability are therefore all interdependent. More and more companies will invest in and adopt technological solutions that improve these areas.

4. Machine control, cloud connectivity and AI top the investment forecast

According to the survey, 79% of firms plan to invest an average of US$7.1 million in autonomous solutions within the next three years. Considering the importance of machine control and AI-based automation technology in improving productivity and sustainability - two major benchmarks for construction firms - industry investments in 2024 will likely prioritise solutions that feed into these areas.

The specific focus will address general software automation, machine control, cloud connectivity and solutions that enable real-time feedback loops and analytics, and AI-based software solutions for faster processing which remove mundane tasks which add little value.

In summary, as the Heavy Construction industry navigates the path to 2024, embracing artificial intelligence and autonomous solutions becomes not just a strategic choice but a necessity for those seeking enduring success, says Hexagon.

The convergence of technological advancements presents opportunities for enhanced efficiency, safety and profitability. With a resolute commitment to upskilling the workforce and integrating digital solutions, companies can thrive in an era where technology “skills” jobs rather than eliminating them.

Moreover, the industry’s dedication to sustainability aligns with the imperative to make construction practices safer, more efficient and more accurate. Looking ahead, the anticipated investments in software, machine control, cloud connectivity and AI underscore the industry’s commitment to progress, setting the stage for a transformative and sustainable future in Heavy Construction.

This hardhatOPINION was writtten for Construction Europe by Matthew Desmond the President of AGTEK development company and who has worked in many roles simplifying construction by making construction technology available to all users.

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