The pandemic has significantly accelerated the adoption of construction technology solutions, driving digital transformation at scale. Construction lifecycle management is a top priority for developers across countries, as they optimize key areas such as planning, procurement, documentation management, safety, etc.
While the global contraction of 3% in 2020 impacted construction processes critically, companies shifted their focus towards digital transformation. In fact, digital transformation in the construction industry continues to deliver positive results for several enterprises that are integrating BIM, material management, predictive analytics, and smart budgeting tools. It is a critical lifeline for several firms that want to improve profitability, reduce bottlenecks, and enhance visibility.
Additionally, construction management solutions, such as Zepth, help construction firms overcome some of the uncertainties that the pandemic has introduced within the sector. Labour shortages, materials unavailability, new compliance guidelines, and rising prices have driven firms to opt for digital transformation to overcome short-term and long-term challenges.
Greater Cost Management for Portfolio
Cost management is a vital area of concern for all construction firms, especially within infrastructure and large-scale commercial projects. Ensuring profitability during the pandemic is critical to longevity as construction work steadily expands across regions. Firms are leveraging digital transformation technologies for better cost management, such as forecasting and budgeting solutions.
Firms are also focusing on greater technology adoption as a way of reducing costs across all processes. With technology improving procurement efficiencies, budgeting accuracy, and data management, both direct and indirect costs are greatly reduced. Companies can improve profitability through the optimization of labour output as well, which is a significant cost factor outside of material costs.
Technology for Remote Collaboration
For more than 70% of businesses, remote work optimization continues to remain a top priority. In the construction sector, with different teams working on various aspects of projects, remote connectivity is a critical digital transformation initiative. Digital transformation in the construction industry optimizes remote connectivity through communication tools that streamline execution.
Key issues, such as material delays, mismatch in quality, specification errors, and labour issues, can be quickly resolved through the integration of remote collaboration tools. Teams can instantly share visual data on-site challenges with relevant teams and update managers regularly.
Improved Safety and Site Risk Monitoring
Safety is another vital domain within the construction ecosystem as it prevents liabilities, ensures compliance, and reduces the risk of accidents on-site. It also ensures that companies are managing emerging issues in a highly process-based manner. Digital transformation initiatives improve safety outlooks through the smart recording, mapping, and automation of key processes.
Across advanced markets, such as the US, close to 60% of enterprises are not ready for remote virtual inspections. This leaves a critical gap within the compliance framework, especially in large-scale projects with multiple risk factors. Digital transformation initiatives provide better safety and better risk management through in-built risk addressing and controls establishing protocols.
Enhanced Data Analytics for Projects
Construction firms that were earlier considering adopting data analytics solutions are now rapidly escalating their onboarding due to the inherent benefits gained. Data analytics solutions provide clarity in project execution, budget consumption, daily progress, and workforce productivity. The top digital transformation technologies also actively predict potential bottlenecks during construction.
With close to 60% of construction firms expecting greater digitization over the next five years, the pandemic has escalated the need for more refined data analytics. AI and machine learning capabilities embedded within construction management platforms are driving novel insights to improve productivity. This is significantly expediting site work and improving profitability across the construction lifecycle.