Is the construction industry behind the curve in digital transformation? For most companies the answer is yes. Don’t deny it! Technology is a fast-paced industry and construction is, well, complicated. As the construction industry evolves, staying ahead requires adaptability, strategic planning, and an understanding of key trends. Unfortunately, there are so many “key trends” that it can be hard to make heads or tails of what is valuable and what is not.
During a recent ConTech Exec Podcast meeting, Christian Burger from Burger Consulting Group (BCG) shared insights from his 30-year career in construction technology. Here’s a comprehensive look at the discussion, actionable takeaways, and resources to help workers and companies navigate this evolving landscape
Key Trends Shaping Construction and Construction Technology
Labor Shortages and Efficiency Demands
- With ongoing labor shortages, contractors are under pressure to adopt technologies that enhance productivity and safety. Automation, robotics, and AI offer potential solutions, but foundational tools like ERP systems and job costing software remain crucial. If you are on a legacy system, a new ERP will be your first and best option for getting in step with new tech.
AI and Robotics in Construction
- AI’s Impact: From predictive analytics to optimizing workflows, AI is poised to revolutionize both office and field operations, but the current market shows a real need to move past outdated processes like spreadsheets. Spreadsheets don’t have the right data to train your AI models, and the work surrounding data validation might be a wild goose chase.
- Robotics Adoption: Tasks like welding, demolition, and prefabrication are increasingly automated, enhancing precision and efficiency. These processes will still require expert level human supervision and maintenance. Your teams will need training, which may become the largest niche industry in the age of AI.
- Shift from Legacy to Cloud-Based Solutions
- Many companies are moving away from outdated legacy ERP systems to embrace cloud-based platforms, enabling real-time data access and integration across teams. Applications like ALMobile can help to facilitate multi-platform integration and foundational field data.
Field vs. Office Dynamics
- Trust and collaboration between field teams and office staff are critical for successful technology adoption. Balancing administrative tasks and operational roles is key to fostering cooperation. The real news behind this, good or bad, the administrative portion of construction will be shifting to a more analytical approach. Rather than basic manual data manipulation, administrators will need skills in prompting and data driven research while AI and LLM’s handle the collection and correction of field data.
- Again, training new skills for both the field and the office will be paramount to success in the next 3 to 5 years.
Action Items for Success
- Lay a Strong Foundation with Core Technologies.
- Before diving into advanced tools, ensure robust implementation of ERP systems, job costing software, and productivity tracking solutions.
Resources: to name just a few – there are many to choose from.
Address Data Integrity
- Ensure clean and reliable data by integrating systems through APIs and web services. This step builds trust between field and office teams while enabling effective decision-making.
Resources:
Explore AI and Robotics
- Adopt AI tools for analytics and process optimization and invest in robotics for repetitive or hazardous tasks.
Resources:
Boston Dynamics for robotics innovations.
Construction Robotics for bricklaying and other specialized robots.
Bridge the Field-Office Gap
- Foster communication and collaboration through tools like BIM and mobile apps that enable field personnel to provide real-time updates.
Resources:
Document Crunch for document and contract search
ALMobile for foundational field data and productivity
PlanGrid for mobile construction tools.
Overcoming Challenges in Technology Adoption
Balancing Adoption with Operations
- The success of any new technology hinges on user buy-in. Companies must align tech adoption with their workforce’s needs and ensure adequate training. Be sure there is a robust level of collaboration and feedback between all parties involved. The top-down methodologies of old construction will not survive in future years. Employee and Employer relationships will need to be collaborative and trustworthy. This is where I say that AI will challenge us to become more human.
Attracting and Retaining Talent
- Providing cutting-edge tools and systems is essential for attracting top talent. Companies that lag in innovation risk losing skilled workers and market share. The AI age is already upon us, and knowledge of good and bad workplaces will be pervasive. Your company’s reputation will be front and center in every AI search.
Geographic Expansion and Market Sophistication
- Firms unable to meet sophisticated owner demands may need to expand geographically to stay competitive in the short term. The speed at which this technological expansion is happening will leave many small firms in untenable positions for growth. The cost of entering the construction market on a B2B level will be commiserate with the company’s tech investment.
Looking Ahead: The Future of Construction IT
Christian predicts significant AI adoption over the next decade, particularly among large firms. Companies that fail to evolve their IT capabilities risk acquisition or market irrelevance. Staying competitive requires mature BIM and VDC capabilities, robust data management, and an ongoing commitment to technology.
I agree with Christian but hold firm that, no matter the level of technology a company invests in, a company’s commitment to training and upskilling its current personnel will be their best step towards success.
Resources for Workers and Companies
Education and Training:
- AGC of America for workforce development.
- BuildForce Canada for Canadian training resources.
Funding and Support:
- U.S. Department of Labor for skills training grants.
- Government of Canada for job and skills programs.
Networking and Collaboration:
- Construction Progress Coalition for aligning field-office workflows.
- ConTech Exec for leadership strategies in construction technology
- ConTech Crew Podcast for industry insights.
Embrace the Change
As I mentioned earlier, the age of AI will oddly be an opportunity to engage in becoming more HUMAN. More collaboration and cooperation towards problem solving. Training and educating our teams on best practices and holding each other to high standards. Real focus on quality and customer service, without the distractions of inefficient processes and time-wasting bureaucratic snafus. Technology can help us cut through the current red tape and build.
By focusing on foundational tools, leveraging new technologies, and championing collaboration, the construction industry can meet the challenges of the future. Whether you’re an experienced worker or a company executive, the time to act was yesterday, but now will do as well.
Share your thoughts or experiences with us—how are you preparing for the future of construction technology?
Join the conversation and stay ahead with The ConTech Exec.
