0% found this document useful (0 votes)
147 views70 pages

DeltaHedron Innovation Insight - Impact of Emerging Technologies On Construction - No 4 17 - Aug 2017

Uploaded by

Walter F. Adad
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
147 views70 pages

DeltaHedron Innovation Insight - Impact of Emerging Technologies On Construction - No 4 17 - Aug 2017

Uploaded by

Walter F. Adad
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 70

Innovation Insight

No 4/17 August 2017

The impact of emerging technologies


on the construction industry

Calie Pistorius
The focus of this report is on the impact of emerging technologies on the construction industry. The
objective is to provide a wider overview, which can inform an encompassing discussion on the strategic
business opportunities, risks and threats presented by emerging technologies and technological
change on the industry. These insights can support decision making and underpin the development
and implementation of corporate innovation strategies, informed by an assessment of companies’ own
technological capabilities and dependencies.
This report is not intended to be a historic review or an exhaustive discussion on the impact of
technology and specifically emerging technologies, on the construction industry. Instead it discusses a
selected number of relevant and recent developments. It is not intended to cover every individual
reported use of an emerging technology in construction or all emerging technologies. A number of
illustrative examples and cases highlight the implementation of specific major emerging technologies
and their impact on construction. These are often signals of what is on the horizon, which will hopefully
stimulate action and discussion.
An analysis of the technology-related impact, strategic opportunities, threats and risks also needs to
account for a range of other factors, including the evolving economic climate and markets, industry
structures, political developments and regulatory environments as well as social trends. Mindful of
importance of these contexts, this report focuses on the technological aspects.
Reference to any company or product in this report does not in any way imply an endorsement or
recommendation. None of the companies mentioned in this report contributed to funding of this
study.
URL references for external sources were accessed at the time of writing.

This document is best viewed electronically when


downloaded into a pdf reader which enables the
hyperlinks to different sections in the document as well
as to the external references and video clips

Previous editions of DeltaHedron Innovation Insight


• Developments in emerging digital health technologies, No 1.2/17, April 2017
• The impact of emerging technologies on the insurance industry, No 2/17, April 2017
• People tracking technologies, No 3/17, May 2017

DeltaHedron Ltd is a UK-based business consulting firm with a global reach, specialising in the management of
technological innovation. We support our clients with the development and implementation of innovation
strategies, underpinned by an assessment of the impact, strategic business opportunities, risks and threats
presented by emerging technologies and the dynamics of technological change.

We shall be delighted to discuss strategic business opportunities and risks, as well as the tracking and identification
of emerging technologies, and innovation strategies to translate technological opportunities into business success.
Please contact us through our website: www.deltahedron.co.uk

DeltaHedron Innovation Insight © DeltaHedron 2017


Innovation Insight
No 4/17 August 2017

DeltaHedron Innovation Insight is a series of white papers, reports and newsletters exploring aspects of the
technological future and technological innovation, with a specific focus on the strategic impact, business
opportunities, risks and threats presented by emerging technologies and the dynamics of technological change 1

‘Anticipating what can happen in the future is one thing,


knowing what to do about it is quite another’

The impact of emerging technologies


on the construction industry
Calie Pistorius
[email protected]

Executive summary
Context many other industries and sectors, and hence is
This report focuses on the impact of emerging also a political priority.
technologies on the construction industry, with an Globally, the construction industry is one of the
emphasis on recent trends. largest industrial sectors, accounting for 13% of
The vantage point of DeltaHedron’s approach is global GDP. Recent estimates indicate that it is
one of exploring the strategic impact and the worth circa $10 trillion annually and that this will
business opportunities, risks and threats rise to $14 trillion by 2025, with an expected
presented by emerging technologies and growth of 3.6% per annum. Due to its size and the
technological change. These insights support nature of its operations, the construction industry
decision making and underpin the development is a major employer, with circa 7% of workers
and implementation of corporate innovation globally working in construction.
strategies, informed by an assessment of An industry dogged by concerns
companies’ own technological capabilities and The construction industry is, however, also a
dependencies. troubled one and has been dogged by many
A strategically important industry concerns for some decades. The industry is
The construction industry is one of great strategic characterised as being risk averse, resistant to
importance on the regional, national and global change and not very innovative. Compared to
levels. Economic growth, quality of life, other industries, construction exhibited alarmingly
competitiveness and security all depend on new low productivity growth of only 1% over the last
infrastructure and the maintenance of older two decades. It is one of the least digitalised
structures. Construction is key to the success of industries, with very low investment in R&D.

© DeltaHedron 2017 [Return to Table of Contents] DeltaHedron Innovation Insight


The impact of emerging technologies on the construction industry

Waste, environmental friendliness and energy Following a disruption, it is also not uncommon for
efficiency remain problematic. the industry hierarchy to change, with new
The industry is experiencing labour shortages in a companies emerging as industry leaders.
number of countries. This is not helped by the fact As is often the case when industries are disrupted,
that safety is a concern, with relatively high there will also be successful new entrants. The new
mortality and injury rates. In the UK, the recent entrants will leverage new technologies and
Farmer Review (October 2016) highlighted the typically also bring new organisational cultures and
construction industry’s challenges, particularly industry dynamics, new business models and new
with regard to the labour market. best-practices, some of which were developed in
The industry is also burdened by a number of other industries. In fact, some of the new entrants
structural problems, including the misalignment of will no doubt come from other sectors – such as
2 interests and incentives of stakeholders, which is manufacturing.
reflected in non-ideal approaches to contracting ‘Constructech’ start-ups, analogous to the fintechs
and risk-sharing. The industry is fragmented and and insurtechs which are disrupting the financial
not always transparent. Construction projects are and insurance industries, will also contribute to the
increasing in complexity and size, yet inefficiencies disruption of construction and fill industry niches
in project management, logistics and procurement where they have competitive advantages.
as well as execution persist. Embracing innovation
There are some encouraging signs that this is The construction industry’s general risk averseness
changing, with innovative companies in the resistance to change and ‘lack of innovativeness’,
industry leading the charge. In general, however, is fundamental to many of its other woes.
there is cause for concern. The key is for the construction industry, as well as
An industry ripe for disruption individual companies, to embrace innovation in its
A number of forces are pressuring for change and broadest sense. An innovation mindset and culture
there are calls for a ‘reinvention of construction’. must be developed and the quest for innovation
The construction industry is indeed ripe not just for and the ‘innovation premium’ should be
change, but for a much more serious disruption. fundamental objectives.
A range of emerging technologies, including those Technological innovation is important, but it
which will enhance digitalisation and automation should be blended with other types of innovation
of the industry as well as new materials, will be such as business model and organisational
catalysts for disruption. The emerging innovation to achieve ultimate business success.
technologies will have a transformative impact on Equally important is the recognition of the
the industry and contribute towards addressing importance of different innovation modes. Relying
the challenges it faces. The disruption will, only on incremental innovations is a flawed
however, change the nature of the industry. strategy. They are important elements to achieve
The disruption of an industry brings huge continuous improvement, but this should not
opportunities for those who seize them. This is true become a comfort zone or a cover for resistance to
for the construction industry as well. A number of fundamental change when that becomes
progressive companies in the industry are already necessary. The impact of incremental innovations
riding the next wave. They have digitalised and are have a tendency to run their course, and their
adopting innovative business practices and further pursuit then becomes one of diminishing
emerging technologies. returns. Very often this is the time when radical
At the same time, the impact of the emerging and disruptions are required to bring renewal and
technologies also pose risks and threats for stimulate growth. The construction industry seems
industry laggards who fumble the future. This is to have reached that point.
not a time for companies in the construction Technology-related trends
industry, governments for that matter or those A number of trends in the construction industry
who are considering entering the industry, to be are technology-related, either driven to a large
complacent. extent by digitalisation and other emerging
technologies, or impacted by technology. These
include the trend towards a sensitivity for the

DeltaHedron Innovation Insight [Return to Table of Contents] © DeltaHedron 2017


The impact of emerging technologies on the construction industry

environment and eco-friendliness, energy industries, such as software-as-a-service (SaaS),


efficiency and renewable energy sources. Enterprise Resource Planning (ERP) and bring-
Conservation of natural resources and reducing your-own-device (BYOD). Emerging data
carbon emissions will stimulate the ‘greening of technologies such as big data, analytics, machine
construction’. This will have an impact on the learning and artificial intelligence (AI) all have
design of buildings and the way in which they are application in the construction industry, and will
used, as well as on the construction process. multiply the impact of digital transformation as
Smart buildings and infrastructure of the future they have done in other industries; as will virtual
will be ‘intelligent’ and engage actively and reality (VR) and augmented reality (AR), Building
proactively in and with their environment, and Information Modelling (BIM), the Internet of
with the humans and animals in the environment. Things (IoT), geolocation and blockchain.
They will have the ability to sense the status of and Collectively, digital emerging technologies will 3
changes in their environment, make decisions, enhance logistics, supply chains and procurement.
intervene and respond, and communicate with An interesting development is the emergence of
people, other buildings and devices; and digital markets in building materials, in which
increasingly anticipate, learn and adapt their constructechs have taken the lead; similarly, for
behaviour. the market for peer-to-peer rental of equipment,
The design of smart buildings need to be future- which is enabled by data sharing platforms.
proofed. The electronics and sensors which Increased digitalisation brings with it greater cyber
provide the intelligence for smart buildings evolve security risks, posed not only by viruses, malware
very fast, and a building will probably and ransomware which can disable and disrupt
accommodate several generations of electronic systems, but also criminal cyber activity which
devices. include the theft of commercially sensitive and
The impact of emerging technologies personal data. These breaches carry significant
A number of emerging technologies are legal, financial, reputation and operational risks.
collectively driving change in the construction Automation technologies
industry. They will have a transformative impact on A number of emerging technologies are
the industry and contribute towards addressing contributing to the automation of construction,
the challenges it faces. lending weight to the notion of ‘construction as a
Digital transformation and digitalisation production process’. They will contribute
Digital transformation is one of the most significantly to productivity enhancement.
significant global trends. It impacts every sector of 3D printing is finding increasing applications in
society, driving progress, economic growth and construction, including the printing of parts and
quality of life. No industry is left untouched. models but also modular panels and even entire
The construction sector has exhibited very little buildings. There a many reports of buildings being
productivity growth during the last two decades. 3D printed in a matter of days. This is often
Mindful that there is a direct correlation between combined with modularisation and off-site
the extent to which an industry is digitalised and manufacturing, which are important trends in own
productivity growth, it is not surprising to note that right. Large 3D printers specifically designed for
construction is one of the least digitalised construction use a technique known as ‘contour
industries. crafting’, with cement as the ‘ink’.

Digitalisation of the construction industry is one of Robotics is also set to impact on construction,
the forces which will accelerate disruption. Digital- ranging from robots involved in site preparation
related technologies such as mobile and cloud- and waste clearance to brick laying and welding.
based applications will underpin a number of other Drones and autonomous vehicles have many
emerging digital and data technologies. These will construction applications. They can be fitted with
in turn enhance the quality of data driven decision a range of image, video and related sensors. This
making and productivity. enables them to conduct aerial mappings and
As part of the digitalisation process, the surveys, safety inspections as well as recordings of
construction industry will increasingly adopt project progress. In addition, they also find
practices which are common cause in other application in data relay, site security and safety.

© DeltaHedron 2017 [Return to Table of Contents] DeltaHedron Innovation Insight


The impact of emerging technologies on the construction industry

Wearables refer to textiles and other devices worn similar to which there is a requirement for
by a person, which can send (and receive) consumer products to be ethically sourced. These
information gained from IoT sensors. The may be tied to existing green credentials such as
information can reflect the person’s physical and BREEAM and LEED.
emotional state, movement or position as well as Workforce, skills, training and education
other environmental variables. A number of countries are experiencing labour
New materials shortages in construction, including the UK, US and
By their very nature, new builds and retrofitting Australia. It is also not easy to attract new talent.
consume vast amounts of construction materials. The global financial crash of a decade ago is still
Trends in materials of the future will redefine how reverberating, but the industry’s image, safety
projects are conceptualised, designed and record and other challenges are not helpful either.
4 executed as well as the life cycle trajectories of the Disruption of the construction industry will
projects. Given the large volumes concerned, even necessarily have an impact on the labour market,
small improvements in performance can have driven in part by the emerging technologies and
significant impact productivity, durability and the dynamics of technological change.
safety; and similarly for reductions in cost.
As new technologies emerge, the nature of work
Concrete and steel remain widely used, with work and jobs change. It is typical for disrupted
continuing to improve the performance of both. industries to experience technology-related labour
Recent advances have seen the emergence of upheavals, particularly during transitional periods.
lighter, more flexible and versatile forms of New types of jobs requiring new types of skills
concrete, including self-consolidating, self-healing emerge. As mature technologies become obsolete,
and self-compacting concrete. the jobs and skills they require, phase out.
A number of innovative alternative materials with The construction industry desperately needs to
promising construction applications are emerging. improve its productivity. This will provide further
These include, for example, ETFE which is 99% impetus for the increasing prominence of
lighter and also stronger, eco-friendlier, better at productivity enhancing technologies and practices,
light transmission and more flexible than glass; such as offsite modular construction, 3D printing,
permeable concrete replacements which can robotics and drones. The adoption of these
absorb significant amounts of water as well as technologies will lessen the demand for some skills
insulating materials and adhesives. Kinetic currently required in construction, but will also
materials have the ability to convert movement to precipitate the creation of new jobs, requiring new
energy, and can be used in flooring and roads. skills.
There are signs of a resurgence in the use of wood The use of data driven technologies such as big
an timber, fuelled by the emergence of cross data, analytics and artificial intelligence will
laminated timber (CLT) panels and related similarly also change the nature of work in
products. CLT panels are strong, light and durable, construction-related professions such as
and their use has been approved for use in high rise architecture, quantity surveying, building
buildings. management and to an extent also structural
Following the Grenfell Tower fire tragedy in engineering.
London in June 2017, there will be a renewed focus The next generation of construction workforce will
on the use (or not) of cladding and fire retardant work in a industry which differs in many respects
materials as well as building codes, planning and from the industry we know today. Many of the
inspection to prevent and contain fires. young people entering the industry will be ‘digital
Green construction materials will no doubt natives’, who will naturally accept, if not demand,
become increasingly prevalent, driven in part by digitalisation. They need to be prepared for the
regulations, demand from customers who are new types of jobs which will be required in the new
more environmentally sensitive as well as digitalised and automated construction world –
economic benefits. We will probably also see the many of which do not even exist today.
need for suppliers of green construction materials Universities and other training institutions need to
to prove that the materials have been procured embrace the emerging new technological regime
from green and eco-friendly sources, in a manner in construction. They need to focus research and

DeltaHedron Innovation Insight [Return to Table of Contents] © DeltaHedron 2017


The impact of emerging technologies on the construction industry

enterprise on the development and enhancement The dynamics of technological change will always
of the new technologies and related business impact on the fortunes of companies and
practices and ensure that their curricula are countries. Emerging technologies will continue to
designed to train constructors who can create the substitute and replace mature technologies, and
future. Perhaps we should also consider the notion disrupt industries.
of disruption when thinking about construction Companies should consider the importance of
education. formally assessing their ‘technology dependencies’
It is also necessary to ensure that the current as part of the risk management process. They
workforce understands the new technologies and should gain an understanding of which
the benefits and opportunities they bring; as well technologies they critically depend on and rely,
as the risks and threats of ignoring them. Senior whether it be technologies which constitute their
decision makers in particular need to take note – it (current) competitive advantages, underlie the 5
is very much in their gift to embrace innovation products they make, services they render, are used
and benefit from the innovation premium, and to in their operations or on which their logistics and
adopt emerging technologies and lead the supply chain and customers rely.
disruption charge. Assessing the impact and the strategic business
The question is not so much, “what will it cost?” , opportunities, risks and threats presented by
but rather “what will it cost if we don’t do it ?”. emerging technologies and the dynamics of
Recommendations technological change should be integral elements
From a strategy viewpoint, decision makers in of the innovation strategy in the construction
construction companies as well a governments industry.
need to consider the broader evolving landscape
and the drivers which will contribute to the
disruption of the construction industry.
The impact of emerging technologies is only one Does your company have an innovation
those drivers, albeit a very important one. They will strategy – and if so, can you describe it and
be catalysts and accelerators for change. determine whether it is working? If not, do
It is important for companies to recognise the you sometimes find yourself wondering
strategic importance of a structured approach to what happened…. not even to speak of
the management of innovation, particularly what can happen and which interventions
technological innovation. An innovation strategy should be made to shape the future?
should be an integral part of the corporate
strategic plan.

© DeltaHedron 2017 [Return to Table of Contents] DeltaHedron Innovation Insight


The impact of emerging technologies on the construction industry

Table of Contents

Executive summary ...........................................................................................................................................1


Table of Contents ..............................................................................................................................................6
1. Introduction ...............................................................................................................................................8
Roadmap of the report ..................................................................................................................................9
2. Profile of a challenged industry .................................................................................................................9
6 2.1 The strategic importance of the global construction industry ..........................................................9
2.2 Challenges in the construction industry ......................................................................................... 10
2.2.1 Risk aversion and lack of innovation ...................................................................................... 10
2.2.2 Persistent low productivity..................................................................................................... 12
2.2.3 Low profit margins.................................................................................................................. 13
2.2.4 A poor safety record ............................................................................................................... 13
2.2.5 Waste...................................................................................................................................... 14
2.2.6 Energy conservation and efficiency........................................................................................ 14
2.2.7 Detrimental environmental impact ........................................................................................ 16
2.2.8 Labour shortages and skills availability .................................................................................. 17
2.2.9 Other contributing factors...................................................................................................... 17
2.2.10 The Farmer Review (October 2016) ....................................................................................... 18
2.2.11 Root causes of challenges in the construction industry ......................................................... 20
2.3 Rising demands and increasing expectations in construction - an industry ripe for disruption .... 20
2.3.1 Great expectations ................................................................................................................. 20
2.3.2 An industry ripe for disruption ............................................................................................... 21
2.3.3 The rise of constructechs – poised to disrupt the construction industry .............................. 22
3. Reinventing construction ....................................................................................................................... 23
3.1 Smart buildings of the future ......................................................................................................... 23
3.2 The importance of design ............................................................................................................... 24
3.3 Best practices aimed at enhancing productivity ............................................................................ 25
3.3.1 On-site execution and off-site manufacturing ....................................................................... 26
3.3.2 Retrofitting ............................................................................................................................. 28
3.3.3 Peer-to-peer rentals ............................................................................................................... 28
4. Emerging technologies in construction .................................................................................................. 29
4.1 Digitalisation and digital transformation........................................................................................ 29
4.1.2 Data, software, mobile and the cloud .................................................................................... 31
4.1.3 Big data, advanced analytics and artificial intelligence .......................................................... 34
4.1.4 Digital collaborating, workflow and project management .................................................... 34
4.1.5 Building Information Modelling (BIM).................................................................................... 35

DeltaHedron Innovation Insight [Return to Table of Contents] © DeltaHedron 2017


The impact of emerging technologies on the construction industry

4.1.6 Internet of Things (IoT) and sensors ....................................................................................... 37


4.1.7 Geolocation, tracking and spatial measurement ................................................................... 40
4.1.8 Logistics, supply chains and procurement.............................................................................. 41
4.1.9 Virtual reality (VR) and augmented reality (AR) ..................................................................... 42
4.1.10 Cyber security and blockchain ................................................................................................ 43
4.2 Automation technologies ............................................................................................................... 44
4.2.1 3D printing and scanning ........................................................................................................ 44
4.2.2 Robotics .................................................................................................................................. 48
4.2.3 Drones..................................................................................................................................... 49
7
4.2.4 Autonomous vehicles ............................................................................................................. 51
4.2.5 Wearables in construction...................................................................................................... 51
4.3 Construction materials ................................................................................................................... 52
4.3.1 Improvements in concrete and steel...................................................................................... 53
4.3.2 Alternative materials .............................................................................................................. 53
4.3.3 Green materials ...................................................................................................................... 54
4.3.4 Wood and timber ................................................................................................................... 55
4.3.5 Fireproofing and cladding ....................................................................................................... 56
4.4 Interesting innovations and innovators -lifting the limits .............................................................. 58
4.4.1 If you had to design the Golden gate bridge today….. ........................................................... 58
4.4.2 A cable-free, horizontal-vertical lift ........................................................................................ 59
5. `Construction workforce, skills, training and education......................................................................... 60
6. Discussion ............................................................................................................................................... 63
6.1 A strategically important industry, ripe for disruption .................................................................. 63
6.2 Embracing innovation..................................................................................................................... 63
6.3 Opportunities, risks and threats ..................................................................................................... 63
6.4 Technology-related trends ............................................................................................................. 64
6.5 The impact of emerging technologies ............................................................................................ 64
6.5.1 Digital transformation and digitalisation................................................................................ 64
6.5.2 Automation technologies ....................................................................................................... 64
6.5.3 New materials ......................................................................................................................... 65
6.6 Workforce, skills, training and education ....................................................................................... 65
6.7 Recommendations.......................................................................................................................... 66
Appendix: ‘Instead of trying to see the future, start making it’ ..................................................................... 67

© DeltaHedron 2017 [Return to Table of Contents] DeltaHedron Innovation Insight


The impact of emerging technologies on the construction industry

1. Introduction The disruption of an industry brings huge


opportunities for those who seize them. This is true
Context for the construction industry as well.
This report focuses on the impact of emerging As is often the case when industries are disrupted,
technologies on the construction industry, with an there will also be successful new entrants. They
emphasis on recent trends. will leverage new technologies and typically also
The vantage point of DeltaHedron’s approach is bring new organisational cultures and industry
one of exploring the strategic impact and the dynamics, new business models and new best-
business opportunities, risks and threats practices, some
presented by emerging technologies and of which were “The evidence reviewed
technological change. These insights support developed in indicates that the
decision making and underpin the development other
construction industry 8
and implementation of corporate innovation industries. In
and its labour model is
strategies, informed by an assessment of fact, some of
companies’ own technological capabilities and the new at a critical crossroads in
dependencies. entrants will no terms of its long-term
doubt come health. Whilst the
The construction industry
The construction industry is one of great strategic from other diagnosis points to a
importance on the regional, national and global sectors – such deep-seated market
levels. It is a large industry in terms of its size, as failure, there are certain
economic scope and the number of people manufacturing. industry trends and
employed in the sector. Yet it is a troubled ‘Constructech’ wider societal changes
industry, with serious challenges including start-ups, happening now that
productivity, safety, waste, energy efficiency, analogous to represent both
environmental friendliness and labour shortages in the fintechs and unprecedented risk and
some countries. The industry is characterised as insurtechs opportunity for the
being risk averse, not very innovative and with low which are industry and its clients.
investment in R&D and digitalisation. disrupting the
If the opportunities are
The industry is also burdened by a number of financial and
insurance
not harnessed, the risks
structural problems, including the misalignment of may become
interests and incentives of stakeholders, which is industries, will
also contribute overwhelming”
reflected in non-ideal approaches to contracting
and risk-sharing. The industry is fragmented and to the Mark Farmer, Farmer Review of
not always transparent. Construction projects are disruption of the UK Construction Labour
construction Model, October 2016
increasing in complexity and size, yet inefficiencies
in project management, logistics and procurement and fill industry
as well as execution persist. niches where they have competitive advantages.
There are encouraging signs that some of this is At the same time, the impact of the emerging
changing, with a number of innovative companies technologies also pose risks and threats for
in the industry leading the charge. In general, industry laggards who fumble the future. This is
however, there is cause for concern. not a time for companies in the construction
industry, governments for that matter, or those
The industry is ripe for disruption, driven by a who are considering entering the industry, to be
number of factors. A range of emerging complacent.
technologies, including those which will enhance
digitalisation and automation of the industry as Following a disruption, it is also not uncommon for
well as new materials, will be catalysts for the the industry hierarchy to change, with new
change. The emerging technologies will have a companies emerging as industry leaders.
transformative impact on the industry and can Products and their underlying technologies
contribute significantly towards addressing the Ultimately users deploy products, which are based
challenges it faces. on one or more technologies. In addition to a
discussion of emerging technologies, the report
also refers to a number products, as examples of

© DeltaHedron 2017 [Return to Table of Contents] DeltaHedron Innovation Insight


The impact of emerging technologies on the construction industry

how the technologies are implemented and to new technologies and their impact – including
illustrate a number of features. The report is not those who make big decisions and do the designs.
intended to be a comprehensive or exhaustive The report is concluded with a summary discussion
survey of all available products or technologies in and recommendations. A paper by DeltaHedron
the construction industry, but instead focuses on entitled ‘Instead of seeing the future, start making
main thrusts with the emphasis on a number of it’, which was published in the New Statesman
recent developments and trends in emerging Spotlight on Emerging Technologies (July 2017), is
technologies. attached as an appendix.
Roadmap of the report In this report, the term ‘construction industry’ is
In order to place the discussion in context, it is used in a broad sense, and also relates to other
useful to commence with a consideration of the industry nomenclatures such as ‘built
‘state-of-the industry’ in a broader sense. We note environment’, ‘Engineering and Construction’ and 9
a number of challenges facing the industry, related ‘Infrastructure’, where appropriate. Related
economic and social trends as well as increasing industries, which are not covered in any great
expectations and demands - the notion of an detail in this report include transport, facilities
‘industry ripe for disruption’ and the rise of the management and real estate management.
constructechs.
The following section explores a number of issues
relating to theme ‘reinventing construction’, 2. Profile of a challenged industry
specifically the notions of ‘smart buildings of the
future’, the importance of design and a number of 2.1 The strategic importance of the global
best practices aimed at enhancing productivity – construction industry
specifically on-site execution, modularisation and
off-site manufacturing, retrofitting, collaborative The construction industry is one of global strategic
working and workflow as well as peer-to-peer importance. Economic growth, quality of life,
rentals. competitiveness and security all depend on new
infrastructure and the maintenance of older
The main body of the report then discusses recent structures. Construction is also key to the success
trends in emerging technologies which will impact of many other industries and sectors.
on the construction industry. They are grouped in
the categories ‘digitalisation and digital Globally, the construction industry is one of the
transformation’, ‘automation technologies’ and largest industrial sectors, accounting for 13% of
‘construction materials’. The distinction between global GDP. Recent estimates indicate that it is
the first and second categories become blurry in worth circa $10 trillion annually and that this will
some cases, given the extent to which rise to $14 trillion by 2025, with an expected
digitalisation is embedded in many other growth of 3.6% per annum. Due to its size and the
technologies. nature of its operations, the construction industry
is a major employer, with circa 7% of workers
The impact of emerging technologies on the globally working in construction. A recent report
construction industry will certainly also affect the from the McKinsey Global Institute (MGI,
labour market, the future nature of work in the February 2017) estimates that the world will need
industry and skills requirements for the future. This to spend $57 trillion on infrastructure by 2030 to
in turn will require universities and other keep up with global GDP growth 1.
educational institutions to consider how they will Construction is a high cost and high risk economic
ensure that the next generation is equipped to activity, with a long-term focus. Hence it's
take full advantage of new technologies in a future performance is a useful indicator of the health of
construction world that will in many respects be the wider economy.
very different from the one we know today. At the
same time, it is also necessary to ensure that the In the UK, construction output is worth more than
people currently in the industry understand the £110 billion per annum and contributes 7% of GDP.
The construction industry accounts for

1
http://www.mckinsey.com/industries/capital-
projects-and-infrastructure/our-insights/imagining-
constructions-digital-future

© DeltaHedron 2017 [Return to Table of Contents] DeltaHedron Innovation Insight


The impact of emerging technologies on the construction industry

approximately 3 million jobs, circa 10% of technologies. Other industries have been much
total UK employment. About 25% of construction more innovative and swifter in adopting new
output is in the public sector and 75% in the private technologies, and have reaped benefits which have
sector 2. eluded the construction industry.
In Australia, the construction industry is worth Innovation, and technological innovation in
A$300 billion per annum, contributes 8-10% to the particular, drives progress. There is overwhelming
Australian GDP and employs a similar proportion of evidence to show that innovative companies and
the population 3. industries perform better – they benefit from the
No surprise ‘innovation premium’. Innovations come in many
then, that shapes and forms. Technologies are continuously
“We also continue to
construction, in being improved, leading to ‘better, faster and
observe enormous cost cheaper’. At the same time ‘last year’s model’
10 and time overruns of one way or
another, is also becomes obsolete. Some technologies evolve at a
construction projects, gentle pace driven by incremental innovations,
a political
with our recent analysis priority in many whereas others change rapidly. From time to time
finding average cost and countries. Yet, the technological, business and societal landscapes
time overruns relative to construction is are disrupted by
original budget and a challenged radical “Compared to other
schedule at 70% and industry which innovations, industries, the built
61%, respectively…” has been often coming
environment has been
dogged by from
McKinsey unexpected and
slower to react to this
many concerns change. In some ways,
for some decades. Given the importance and size completely
different we have been in catch-
of the industry, it is imperative that these be
industries than up mode, clutching
resolved – ‘something’s gotta give’, as the saying
goes. the one in which tightly to the status
they impact. quo…”
The industry is ripe for disruption and a number of Innovation is Aurecon
forces are increasing pressure for change. The much more than
adoption of emerging technologies in construction merely developing and adopting emerging
will be a significant catalyst for the disruption of technologies or implementing a digitalisation
and change in the industry. That is the focus of this strategy. It requires an ‘innovation mindset’ to be
report. embedded into a company, its culture, values and
2.2 Challenges in the construction industry value-chain, and decision-making priorities. The
A number of performance metrics and article “Instead of trying to see the future, start
characteristics of the industry indicate that the making it”, expands more on this.
construction industry is underperforming and The construction industry is not widely
emphasises the cause for concern. This section characterised as one that is known for rapid
examines a number of those areas, related trends innovation – although there are encouraging signs
which are impacting on the sector as well as rising that this is
demands and increasing expectations. changing, at “…the architecture
least in some industry is not known
2.2.1 Risk aversion and lack of innovation
quarters. The
The construction industry is known as a risk averse for its fast adoption of
lack of
and conservative industry with significant inertia. technology”
innovation and
The industry has, on the whole, continued to rely
R&D in the Design Boom
on traditional approaches, methods and
construction
technologies for a long time, despite the growing
industry are manifestations of the industry’s
complexity of projects and emergence of new
traditional resistance to change. This has led to

2 3
http://www2.progressclaim.com/thank-you-
https://www.designingbuildings.co.uk/wiki/UK_constr InnProdReport2016ACIF3
uction_industry

DeltaHedron Innovation Insight [Return to Table of Contents] © DeltaHedron 2017


The impact of emerging technologies on the construction industry

underinvestment in technology, particularly The Farmer Review also discusses a number of the
digitalisation. reasons being put forward for the lack of R&D in
McKinsey Global Institute’s productivity survey construction in the UK. This includes “numerous
indicated that the biggest barriers to innovation by financial failures of businesses who have invested
construction companies are underinvestment in IT heavily in different approaches that would have
and technology more broadly, and a lack of R&D benefited both
processes 4. construction
“….there is no
productivity and
Digitalisation is discussed extensively in following predictability
mainstream shift
sections, but it is worth noting here that the but were never towards embracing such
construction industry is one of the least digitised of adopted by thinking as a catalyst for
all industries – in Europe it is in last position and in clients at scale”. process and productivity
the US it is only ahead of agriculture. Given the Successful improvement” 11
direct relation between the level of digitalisation innovations
and productivity growth, this a flashing red light. Farmer Review of the UK
need two Construction Labour Model,
The construction sector also ranks in the lower range components to October 2016
of sophistication in the Global Purchasing be successfully
Excellence Survey published by McKinsey’s implemented, viz, the ‘design component’ and
Procurement Practice 5. The low levels of ‘diffusion in the market’. It is the latter component
digitalisation and procurement of the construction of innovation that the Farmer Review refers to as
industry do, however, provide huge opportunities having failed.
– there is much room for improvement.
The image of a slow moving, risk averse and
Research and Development (R&D) spending in dangerous industry with low productivity which is
construction is well behind that of other industries, resistant to change may also contribute to the
with less than 1% of revenues being invested in labour shortages currently experienced in a
R&D – compared to 3.5-4.5% for the automobile number of countries and the inability to attract
and aerospace industries, for example. The notion new talent.
that construction is a ‘low tech’ industry is
sometimes offered as a reason. It can be argued The Australian Construction Industry Innovation
that this assumption in itself, is one of the and Productivity Report (2016) 6 investigated the
fundamental problems. attitude of construction companies towards
innovation, technology and the adoption of new
The Farmer Review (2016) emphasises the lack of technologies. The report notes the ‘disconnect’
R&D and innovation in the construction industry in between perceptions and reality. Respondents
the UK. It notes, for example, the generally acknowledged (90%) that it is valuable to
disproportionately low take up of R&D tax credits stay up to date and that increased productivity was
by SMEs in the construction industry; and that the primary benefit of implementing new
construction is the lowest performing industry technology. However, only 37% believed that the
when comparing R&D spend across different UK construction industry (in Australia) is an early
industry sectors. adopter of new technology.
It is important to note – specifically in a
“… this is symptomatic of a lack of interest in or technology-focused report such as this one – that
incentive to consider modernisation…. technology, technological innovation and the
Terminology such as ‘modern methods of associated impact, opportunities, risks and threats
construction’ or ‘prefabrication’ are often should not be considered in isolation. ‘Technology’
viewed with suspicion…” is one element, albeit an important one, of a larger
Farmer Review of the UK Construction Labour Model, ecosystem where economic, social, political,
October 2016 environmental, technological and other factors all

4
http://www.mckinsey.com/industries/capital- 5
http://www.mckinsey.com/industries/capital-
projects-and-infrastructure/our-insights/reinventing- projects-and-infrastructure/our-insights/reinventing-
construction-through-a-productivity-revolution construction-through-a-productivity-revolution
6
http://www2.progressclaim.com/thank-you-
InnProdReport2016ACIF3

© DeltaHedron 2017 [Return to Table of Contents] DeltaHedron Innovation Insight


The impact of emerging technologies on the construction industry

interact to shape the ‘real-world’. Similarly, productivity has remained static at a only 1%
‘innovation’ is certainly not constrained to growth since 1995, the worst of any industry when
technological innovation. Innovation can and does compared with growth of 2.8% in the world
drive all industries, be it ‘finance, fitness or economy and 3.6% in manufacturing, for example.
fashion’. Very often it is a combination of In a sample of countries analysed, less than 25% of
innovations and trends in a number of industries construction firms matched the productivity
which cause disruptions. Whereas technological growth achieved in the overall economies where
innovation can contribute significantly towards they were active over the past decade.
addressing the construction industry’s challenges, In the UK,
it should be considered and implemented within productivity in “Given the size and
the context of and in conjunction with broader construction has value of our industry,
changes and innovations (a number of which are also been
12 referred to in following sections).
the potential for growth
essentially flat is enormous if we
In this report we argue that technological since 1994. This
harness suitable and
innovation can contribute significantly towards is in contrast to
sustainable
solving or at least bringing relief, to the other industries,
such as technologies. But in
construction industry’s dilemmas. In order to
enable this, it is necessary for the construction manufacturing order to achieve it, we
industry to invest in innovation – technological and for example, must dismantle our
otherwise. where output perceptions of how
per hour worked technology fits into our
2.2.2 Persistent low productivity in 2015 was workplace and decipher
The construction industry globally has a dismal more than 50%
productivity compared to other industries, with
the barriers we are
greater than coming up against in
very little growth. The productivity dilemma in the 1994 levels 7. The
construction their implementation…”
low labour
“Yet despite the industry is not a productivity is [Australian] Construction
substantial benefits that recent creating
Industry Innovation and
phenomenon, Productivity Report, 2016
would come from raising substantial cost
the sector’s productivity, though. It has burden to the industry, its customers, other
and despite the fact that lagged other sectors as well as national economies and indeed
sectors for
the challenges are well the global economy. Significant value is being lost.
many decades.
known and have long It is worth noting that fragmentation in the
been discussed in the The MGI industry skews the productivity picture somewhat.
explored The MGI study also found that the construction
industry, progress has
construction sector is split into two main categories, viz. large
been limited. The labour scale operators, typically engaged in heavy
industry operates in a productivity in construction; and a large number of smaller
way that seems to 39 of the companies which tend to be engaged in a
evolve only very slowly world’s largest fragmentation of more specialised and niche areas
at best, and it is beset construction (such as electrical, mechanical and plumbing). The
with misaligned economies, latter group often acts as subcontractors. The
incentives among representing productivity of the larger players is typically 20-
owners and contractors every continent 40% higher than that of the smaller companies.
and with market failures and in every
Even though the productivity dilemma is a very
such as fragmentation stage of
serious concern, it also presents an opportunity, if
development. it can be fixed. MGI estimates that productivity in
and opacity”
They found that construction can be increased by 48-60% by
McKinsey construction addressing seven major areas (discussed in

https://www.gov.uk/government/publications/constru
ction-labour-market-in-the-uk-farmer-review

DeltaHedron Innovation Insight [Return to Table of Contents] © DeltaHedron 2017


The impact of emerging technologies on the construction industry

“Other industries have shown that first movers priorities. However, as in the case of productivity,
can build a sustainable competitive advantage. the health and safety record in construction is an
In the construction sector, this is also likely to area of major concern. From a fatality and injury
be the case. Over the next decade, these viewpoint, construction is one of the most
winners of tomorrow will take the lead in dangerous sectors globally.
technology innovation and digitization. Technology, particularly emerging technologies
Resisting change is no longer an option…” and new materials, can contribute significantly
McKinsey towards improving health and safety in
construction. New technologies can also
sections below), a number of which are contribute to enhanced decision-making and
technology-related. They note that there is a $1.6 automation, both of which can lead to reduced
trillion opportunity to close the gap, which would human error.
meet about 50% of annual global infrastructure 13
requirements. This is equivalent to boosting the Better training can also contribute to better safety
global GDP by 2%. The World Economic Forum in construction, using new technologies such as
estimates that a 1% increase in productivity virtual reality, online courses and mobile
globally could save $100 billion per annum 8. applications.
Safety in UK and Australian construction
2.2.3 Low profit margins
Construction remains one of the most hazardous
The construction industry is exhibiting very volatile
industries in the UK, accounting for about a quarter
and endemic low profit margins, typically in the
of all fatal injuries to workers 10. The majority of
bottom-quartile compared with other industries 9.
fatal accidents in the UK involve small businesses
MGI estimates
and nearly half of reported injuries occur in
the average
“In July 2017 it was refurbishment activities.
profit margin to
reported that more than Health and Safety Executive (HSE) data in the UK
be circa 4.4%.
40,000 construction Their study also indicates that 6 fatal injuries occurred in the waste
companies in the UK are indicates that and recycling sector in 2015/16, with 30 fatalities
on the brink of collapse. there is a occurring over the last 5 years. It is estimated that
There was an increase of correlation 5% of workers in the sector sustain a non-fatal
22% in the number of between workplace injury per annum, with an estimated
construction companies productivity and 5,000 reported injuries per year since 2009/10 11.
with ‘significant financial profitability, and HSE believes that there is a lack of awareness on
distress’ compared to concludes that obligations 12. It conducted 1,840 visits to small
the previous year” productivity refurbishment sites during June and July and again
matters for the in October in November of 2016. They found that
Construction Index
individual 49% of sites did not meet safety standards. In
company. They 2015, similar investigations on small refurbishment
estimate that construction companies can achieve sites found problems on 46% of the sites visited13.
circa 1% higher margins on average by increasing The London Grenfell Tower tragedy in June 2017
their productivity by 25%. highlighted again the importance of safety in
2.2.4 A poor safety record construction, particularly regarding fire-retardant
Health and safety issues in construction, across the materials.
entire construction value chain and including A similar health picture is reported in Australia.
materials as well as in the buildings and Building and construction workers there are at
infrastructure delivered, will always be high higher risk of death or injury than those in many

8 11

http://www3.weforum.org/docs/WEF_Shaping_the_Fu http://www.theconstructionindex.co.uk/news/view/lie
ture_of_Construction_full_report__.pdf bherr-launches-new-safety-programme
9
http://www.mckinsey.com/industries/capital- 12
https://hbxl.co.uk/5-construction-trends-2017/
projects-and-infrastructure/our-insights/reinventing- 13

construction-through-a-productivity-revolution http://www.theconstructionindex.co.uk/news/view/ha
10
https://hbxl.co.uk/5-construction-trends-2017/ lf-of-sites-fail-refurb-blitz

© DeltaHedron 2017 [Return to Table of Contents] DeltaHedron Innovation Insight


The impact of emerging technologies on the construction industry

other sectors, accounting for 12% cent work- Construction has traditionally faced many issues
related fatalities in 2013-14 14 . when it comes to the handling, creation, and
Safety in US construction recycling of wasted materials. A study from the
In the US, construction reported the highest National Association of Home Builders (NAHB) in
number of worker deaths in 2015 of all industries, the US found that an estimated 3,000 kg of waste
with 21.4% of work-related deaths coming from are created from the construction of a 186m2
the construction industry 15. Both the number of building 19. These squandered materials are all
total worker deaths (937) and the fatal injury rate standard materials used to construct a building,
(10.1 per 100,000 full-time equivalent workers) including wood,
increased in that year 16. brick, insulation “Construction as we
and drywalling. know it today is
In the construction industry in the US, the four However, only
leading causes of worker deaths, known as the wasteful, costly, and
14 an estimated
‘Fatal Four’, were falls, being struck by objects, often over budget”
20% of these
electrocutions and getting caught in or between leftover
The Balance
objects. The Fatal Four were responsible for 64.2% construction materials are actually re-purposed or
of all construction worker deaths in 2015 in the recycled, according to the American Institute of
US 17, with an increase in total construction worker Architects (AIA). It estimates that “anywhere from
deaths for each of the four categories. The 25-40% of the national solid waste stream is
Occupational Health and Safety Administration building-related waste.” In 2009, the Construction
(OSHA) in the US recently increased penalties by Materials Recycling Association (CMRA), which
78% for violations of non-compliance. was rebranded as Recycling Today in 2013,
estimated that construction and demolition waste
“During the past decade, more than 10,000 from building construction was around 325 million
claims have been made for vibration white finger tons annually 20. A recent report from the British
and carpal tunnel syndrome, according to the Council for Offices (BCO) notes that emerging
Health and Safety Executive (HSE) in the UK. technologies such as virtual reality and 3D printing
Workers at risk are those who regularly use can contribute significantly towards reducing
power tools such as concrete breakers, sanders, waste in office construction 21.
grinders, hammer drills, chainsaws, hedge
trimmers, powered mowers and more”
Phys.org Video clips showing waste in
construction can be seen
2.2.5 Waste here and here
Construction waste remains a serious problem.
Conventional wisdom has it that the “greenest 2.2.6 Energy conservation and efficiency
building is the one that has already been built”, but As the global demand for energy rises, there is also
the thinking is now that it may rather be the an imperative towards energy efficiency and
“building that is least likely to be torn down” 18. conservation. This is coupled to greater use of
Durability, with less frequent replacement and renewable and environmentally friendly energies
lower maintenance costs can contribute towards such as wind, solar and hydro as well as a reduction
environmental sustainability, if buildings
incorporate environmentally friendly features.

14
https://phys.org/news/2016-03-smart-vests-workers- https://www.treehugger.com/green-
18

safety-heart.html#nRlv architecture/what-greenest-home.html
15 19

http://www.webwire.com/ViewPressRel.asp?aId=2093 http://www.webwire.com/ViewPressRel.asp?aId=2093
07 07
16
https://phys.org/news/2017-06-wearable- 20

technology-dollars-industry.html http://www.webwire.com/ViewPressRel.asp?aId=2093
17
http://www.constructconnect.com/blog/operating- 07
insights/five-commercial-construction-trends-watch- 21
http://www.fm-world.co.uk/news/fm-industry-
2017/ news/3d-printing-and-vr-tech-could-cut-office-
construction-waste/

DeltaHedron Innovation Insight [Return to Table of Contents] © DeltaHedron 2017


The impact of emerging technologies on the construction industry

on the dependence on fossil fuels and of carbon Energy storage


emissions. In the built environment, the incorporation of
Buildings consume almost 40% of the total energy underground facilities to utilise ground source
consumed worldwide 22. Yet, it is estimated that heating and cooling, and the ability to generate,
30% of energy in buildings is wasted 23. Commercial store and share energy through integrated systems
spaces account for 20% of energy consumption in are being considered. The use of large battery
advanced economies and circa 16%+ in developing storage facilities are being discussed, linked to the
economies. About 50% of the energy is consumed ability of infrastructure to ‘exist off the grid’. Tesla,
in office space and much of it is wasted. A recent for example, is working with an Australian
McKinsey report on the Internet of Things 24 company which announced that the Tesla
estimates that intelligent energy management Powerwall (a [rechargeable] solar charged lithium-
systems can reduce energy in offices by 20%, for ion battery) will be a standard inclusion in their 15
example. homes 27. The idea is to have a battery that can
The energy performance gap store energy generated by sources such as solar
The PROBE study (Post Occupancy Review of panels or even by Tesla’s electric vehicles. The
Buildings and their Engineering ), which assessed stored power can then be used as required,
23 buildings previously featured as ‘exemplar including in the event of a power outage. It is also
designs’ in the claimed that the Powerwall can reduce residential
Building power costs by 92%.
“Green construction will
Services Journal Smart
continue to influence
between 1995 communities “The amount of energy
the global construction
and 2002, The focus on the
industry for the used by data centres is
revealed that environment and
foreseeable future. This already circa 3% of the
actual energy energy is of
includes design, course not limited world’s electricity -
consumption in
construction, buildings is often to single 416.2 terawatt hours,
maintenance, twice as much as buildings, but is creating 2% of the global
renovation, operation, predicted. also considered in greenhouse gas
recycling and More recent terms of smart emissions. This
demolition…” studies have buildings in smart represents the same
suggested that precincts in smart carbon footprint as the
in-use energy consumption can be 5-10 times cities. Smart aviation industry. It is
higher than compliance calculations carried out buildings must be predicted to triple in the
during the design stage 25. integrated into
next decade…”
their
The use of emerging technologies can contribute Balfour Beatty
communities.
significantly towards addressing the energy
performance gap. A recent report indicated that a Legacy structures
prefabricated ‘passive house’ can reduce energy Whilst there is no doubt that the use of emerging
consumption by up to 90% with a consistent technologies can contribute significantly to a
internal temperature, compared to a typical home, better future in construction, dealing with aging
irrespective of the weather 26. and legacy structures remains a huge problem.

22
http://www.sbwire.com/press-releases/research- 25

offers-10-year-forecast-on-building-automation- https://www.designingbuildings.co.uk/wiki/Performan
systems-market-by-future-market-insights-802622.htm ce_gap_between_building_design_and_operation
23
https://www.greentechmedia.com/articles/read/ho 26
http://trendintech.com/2017/04/26/new-prefab-
w-the-internet-of-things-will-differ-across- houses-reduce-energy-consumption-by-up-to-90-
industries?utm_source=feedburner&utm_medium=fee percent/
d&utm_campaign=Feed:+GreentechMedia+(Greentech 27
https://futurism.com/a-company-just-announced-
+Media) that-tesla-will-be-included-in-all-of-their-homes/
24
http://www.mckinsey.com/business-
functions/digital-mckinsey/our-insights/the-internet-
of-things-the-value-of-digitizing-the-physical-world

© DeltaHedron 2017 [Return to Table of Contents] DeltaHedron Innovation Insight


The impact of emerging technologies on the construction industry

Energy waste in older buildings is mainly due to a construction industry for the foreseeable future.
few major factors. Ineffective and damaged This includes design, construction, maintenance,
insulation and windows create energy leakage. renovation, operation, recycling and demolition.
Heating, ventilation and air conditioning (HVAC) Technology and technological innovations will
are energy hungry. Whereas inefficient old bulbs contribute significantly in this regard. Construction
can be replaced by energy efficient ones, old companies and
developers are “The UK aims to build
Video clips showing energy realising the four million solar-
efficiency in construction importance of powered homes by
can be seen sustainable 2020. In San Francisco, it
here and here and here construction
is a requirement that all
practices, with
16 new buildings of 10-
buildings are often fitted with old lighting systems more businesses
which are not only inefficient, but also needs to be showing greater storeys or more must
switched on/off manually rather than by light- corporate social include solar panels…”
sensitive or motion sensors. Advances in lighting responsibility.
technology can deliver energy savings of circa 20%. Governments worldwide are implementing
HVAC and lighting account for 70% of the utility bill legislation to ensure that newly built structures are
for most commercial and industrial facilities 28. adhering to green building practices.
New technology can capture a significant amount
of the heat and moisture released by chimneys and Not surprisingly, the advantages of green building
recycle it into other uses within the building. compared to conventional buildings include easier
maintenance, improved air quality, water and
2.2.7 Detrimental environmental impact energy efficiency as well as a high return on
The World Economic Forum estimates that investment. Green buildings can provide
constructed objects account for 25-40% of the significant long-term savings, including a decrease
world’s total carbon emissions, and that 30% of of 8-9% in operating costs, value increases of 7.5%,
global greenhouse gas emissions are attributable return on investment improvements of 6.6% and
to buildings 29. reducing of maintenance costs by 13% 30.
Green construction McGraw Hill
There is an increasing drive towards the ‘greening’ Construction “More developments
of the construction industry, driven by a need for estimated green across the world will
more environmental sustainability, including the non-residential strive to obtain green
reduction of carbon emissions and waste as well as construction to certifications … The
enhanced efficiency of energy and usage of other be worth circa world is expected to see
natural resources such as water. The aim is to $140 billion in its number of green
minimises negative effects on the environment 2015 and certified buildings
(air, water and earth), climate change as well as continually rising double by 2018…”
human health. each year 31. It is
‘Green construction’ is an approach to build using reported that the top driver for green building is
environmentally friendly processes. The need is client demand – increasing from 35% in 2012 to
not only with regard to the construction process 40% in 2014 – while the biggest obstacle to
and materials, but rather the total life cycle use of creating green buildings is higher perceived first
the buildings, roads and other infrastructure. costs. In addition to greater demand for greener
Sustainable construction will be more the norm commercial buildings, there is also an increasing
than the exception going forward. Green quest for greener residential buildings and the
construction will continue to influence the global ‘healthy home’. More owners and tenants will

http://blog.schneider-electric.com/building-
28 30
http://blog.schneider-electric.com/building-
management/2017/06/21/keeping-evolution- management/2017/06/21/keeping-evolution-
buildings-part-2-buildings-today/ buildings-part-2-buildings-today/
29 31
http://www.constructionworld.org/forecasting-
http://www3.weforum.org/docs/WEF_Shaping_the_Fu construction-trends/
ture_of_Construction_full_report__.pdf

DeltaHedron Innovation Insight [Return to Table of Contents] © DeltaHedron 2017


The impact of emerging technologies on the construction industry

demand energy-efficient features in new buildings “extensively regulated, very dependent on


(and retro-fitted to old ones). public-sector demand, and highly cyclical.
The home and work environment of an individual Informality and sometimes corruption
has a major impact on the person’s wellbeing and distort the market…. Contracts have
thus, consumers are increasingly inclined towards mismatches in risk allocations and rewards,
aesthetically pleasing green buildings, which help and often inexperienced owners and
alleviate both physical and mental problems. buyers find it hard to navigate an opaque
marketplace. The result is poor project
Green certification management and execution, insufficient
As the imperative for green construction gathers skills, inadequate design processes, and
momentum, there will be an increasing emphasis underinvestment in skills development,
on ‘green certification’. More developments across R&D, and innovation… It is indicative of the
the world will strive to obtain green certifications broken dynamics of the construction 17
such as BREEAM and LEED. The world is expected industry that owners, contractors, and
to see its number of green certified buildings suppliers do not agree on the perceived
double by 2018 32. We can also expect to see a importance of particular root causes.” 34
requirement for the suppliers of building materials
to be able to demonstrate that the materials were
obtained from environmentally-friendly sources Rethinking home insurance and mortgages
and with ethical practices. This will require The rules for home mortgages may need to
technologies to provide a traceable and auditable be rethought regularly, as attitudes and
record of the supply chain of the materials. cultural norms shift, no doubt causing some
upheaval in capital markets. Some predict
Video clips showing green that houses which are printed with non-
buildings can be seen flammable materials may no longer have a
here and here need for fire insurance; and that once houses
can be reprinted for less than the cost of re-
roofing them, it may in fact be possible to do
away with a significant amount of the need
2.2.8 Labour shortages and skills availability for house insurance altogether.
There is a global shortage of workers with
appropriate construction skills 33, with the shortage
being more pronounced in some countries than in Smart buildings
others. Noting that up to 50% of the costs in Buildings of the future will be smart buildings,
construction discussed in more detail below.
“There is a global can be labour-
shortage of workers Economic environment
related, the The reverberations of the global economic
with appropriate labour shortage recession, although triggered almost a decade ago,
construction skills…” escalates the are still being felt. The economic troubles also
costs of projects. contributed to shifts in the labour market, and to
This in turn, provides impetus for automation and an extend to the current labour shortages in many
mechanisation in the construction industry, which economies.
can also result in higher productivity.
Regulation
2.2.9 Other contributing factors As noted above, the construction industry is highly
A number of other factors are also contributing to regulated, although more so in some countries
the challenges in the construction industry. The than others. Construction-related regulation is
industry has recently been described as being: often complex and relate to what can be built

32 33
http://www.turnerandtownsend.com/en/insights/int
https://www.worldbuild365.com/news/2avltewfc/indu ernational-construction-market-survey-2017/global-
stry-news/exciting-trends-shaping-worldwide- construction-industry-economic-overview/
construction-in-2017 34
http://www.mckinsey.com/industries/capital-
projects-and-infrastructure/our-insights/reinventing-
construction-through-a-productivity-revolution

© DeltaHedron 2017 [Return to Table of Contents] DeltaHedron Innovation Insight


The impact of emerging technologies on the construction industry

where, building standards and codes, health and provide will remain) and homes will have
safety, environmental issues, waste and disposal, more structured ‘pick up/drop-off zones’ for
water and energy, traffic and labour. In the UK, Uber and taxis. Those who continue to own
Singapore and Finland, for example, BIM is their vehicles will have electric vehicles, which
mandated for public construction projects. will require home charging facilities, including
Costs facilities for visiting guests. Autonomous and
Because construction is a labour-intensive industry, electric vehicles will also require a new
direct and indirect labour costs make up 30-50% of generation of smart roads and public
a company’s cost structure 35. Global inflation in transport infrastructure as well as a charging
2016 was 1.6%, but the global construction cost ecosystem.
inflation was 3.7%, compared with 2.9% in 2015 36. • Safety and security issues, including
Social and related trends protection against natural disasters such as
18 hurricanes, tornados and floods, earth quakes
Although not necessarily a challenge, construction
of new buildings and infrastructure as well as the and fires; terrorism and social unrest, cyber
retrofitting and maintenance of existing structures attacks and criminal activities; and disasters
must also adapt to evolving social trends, norms caused by human error, including nuclear and
and legislation. Trends which can have an effect on chemical accidents. A research project was
the construction industry as well as the nature and recently launched to investigate measures to
use of buildings, cities and infrastructure include: seek terrorism prevention ideas for
buildings 40.
• Sharing economy
The sharp increase in sharing services such as 2.2.10 The Farmer Review (October 2016)
AirBnB and Uber are indicative of a larger The UK Government requested the Construction
trend of sharing and renting, rather than Leadership Council (CLC) In February 2016 to look
owning. There have been recent reports at ‘the labour model in the construction industry,
indicating how homes of the future may be together with the skills pressures and other
designed as being ‘AirBnb-ready’ 37, i.e. constraints that limit housebuilding and
purpose-designed for sharing. Features of infrastructure development in the UK’. The CLC
such homes may include more flexible spaces, commissioned Mark Farmer to undertake the
additional bathroom and kitchen facilities and review.
storage as well as separate entrances. The findings and recommendations of the Farmer
• Globalisation and changing demographics. Review were published in October 2016 41. They
• Urbanisation and affordable housing 38. The sketch a gloomy picture for the UK construction
world’s urban population is increasing by industry and reaffirm the broader picture reflected
200,000 people per day, all of whom need to in this report. Tellingly, the subtitle of the Farmer
be affordably housed and provided with Review’s report is “Modernise of die, time to
supporting infrastructure 39. decide the industry’s future”.
• A more mobile workforce, an increase in the
gig economy and working from home.
• Autonomous, driverless and electric vehicles
will impact on the design of residential homes.
Garages may no longer be required (although
the requirement for the storage space they

35
http://www.mckinsey.com/industries/capital- 39

projects-and-infrastructure/our-insights/reinventing- http://www3.weforum.org/docs/WEF_Shaping_the_Fu
construction-through-a-productivity-revolution ture_of_Construction_full_report__.pdf
36
http://www.turnerandtownsend.com/en/insights/int 40

ernational-construction-market-survey-2017/global- http://www.washingtontimes.com/news/2017/apr/9/s
construction-industry-economic-overview/ urvey-seeks-terrorism-prevention-ideas-for-buildi/
37
https://www.fastcompany.com/3058520/your- 41

future-home-will-be-designed-for-sharing-by-airbnb https://www.gov.uk/government/publications/constru
38
http://www.rics.org/uk/news/news- ction-labour-market-in-the-uk-farmer-review
insight/news/how-to-solve-the-construction-and-
engineering-talent-gap/

DeltaHedron Innovation Insight [Return to Table of Contents] © DeltaHedron 2017


The impact of emerging technologies on the construction industry

The Farmer • No strategic incentive or implementation


Review notes framework to overcome the issues or to
that “The initiate large scale transformational change.
construction The Review notes that although there is a ‘deep-
industry and the seated market failure’, there is also ‘both
clients that rely unprecedented risk and opportunity for the
on it are at a industry and its clients”, and hence that “….if
critical juncture action is not taken quickly, …it will become
and it is time to seriously debilitated. It is facing challenges that
review the have not been seen before, which create an
seriousness of absolute imperative for change”.
the future
outlook. Deep- The Farmer Review made number of 19
seated problems recommendations. From an innovation and
have existed for many years and are well known technology viewpoint, it is interesting to note:
and rehearsed, yet despite that, there appears to Recommendation 4: Industry, government
be a collective reluctance or inability to address and clients, supported by academic
these issues and set a course for modernisation…. expertise and leveraging CLC’s current
Many of the features of the industry are Innovation workstream activity, should
synonymous with a sick, or even dying patient”. organise to deliver a comprehensive
innovation programme.
The Farmer Review highlights the following Recommendation 8: Government should act
symptoms of the UK construction industry: to provide an ‘initiation’ stimulus to
• Low productivity. innovation in the housing sector by
• Low predictability. promoting the use of pre-manufactured
• Structural fragmentation. solutions through policy measures.
• Leadership fragmentation.
• Low margins, adversarial pricing and financial
fragility. The UK Government responded to the Farmer
• Dysfunctional training funding and delivery Review in July 2017 42.
model.
• Workforce size and demographics.
• Lack of collaboration and improvement Video clips on the Farmer Review
culture. on construction can be seen
• Lack of R&D and investment in innovation. here and here
• Poor industry image.
The Farmer Review identifies three root causes for
the problems in the UK’s construction industry, viz.
• The evolvement of a ‘survivalist shape’,
structure and commercial behaviours,
characterised by low capital reserves and high
demand cyclicality.
• Non-aligned interests of the industry and its
clients, which are reinforced by traditional
procurement protocols and a deep-seated
cultural resistance to change pervading across
both parties.

42

https://www.gov.uk/government/publications/constru
ction-labour-market-in-the-uk-farmer-review

© DeltaHedron 2017 [Return to Table of Contents] DeltaHedron Innovation Insight


The impact of emerging technologies on the construction industry

2.2.11 Root causes of challenges in the Note the emphasis on the industry’s
construction industry underinvestment in digitalisation, innovation and
Table 1 below shows an analysis of root causes for capital. A number of the other root causes are also
the industry woes, presented by the McKinsey technology-related, either directly or indirectly,
Global Institute (February 2017) 43. including suboptimal design processes, poor
project management and execution as well as
Table 1: Root causes of challenges in the insufficient skilled labour.
construction industry
External forces 2.3 Rising demands and increasing
• Increasing project and site complexities. expectations in construction - an
• Extensive regulation, land fragmentation, industry ripe for disruption
and the cyclical nature of public
20 investment. 2.3.1 Great expectations
• Informality and potential for corruption to Innovation in the construction industry continues to
distort the market. be constrained by traditional hurdles. The
McKinsey Global Institute’s (MGI) Productivity
Industry dynamics Survey indicated that the biggest barriers to
• Construction is opaque and highly innovation by construction companies are
fragmented. underinvestment in IT and technology more
• Contractual structures and incentives are broadly, and a lack of R&D 44.
misaligned.
• Bespoke or suboptimal owner Despite the proven advantages of innovation – the
requirements. ‘innovation premium’ – it is interesting to note that
respondents to the MGI Construction Productivity
Firm-operational factors Survey ranked underinvestment in innovation only
• Design processes and investment are seventh out of ten root causes of low productivity.
inadequate. It also interesting to note that the MGI study 45
• Poor project management and execution points out that is “indicative of the broken
basics. dynamics of the construction industry that owners,
• Insufficiently skilled labour at frontline and contractors, and suppliers do not agree on the
supervisory levels. perceived importance of particular root causes”.
• Industry underinvested in digitalisation,
innovation, and capital. The MGI study suggests that productivity in the
construction industry can be enhanced by 48-60%
McKinsey Global Institute
February 2017 with cost-savings of 27-38%, by addressing seven
areas simultaneously, shown in Table 2 46.

Table 2: Seven ways to improve productivity in the construction industry


• Reshape regulation and raise transparency
• Rewire the contractual framework (8-9%; 6-7%)
• Rethink design and engineering processes (8-10%; 7-10%)
• Improve procurement and supply-chain management (7-8%; 3-5%)
• Improve on-site execution (6-10%, 4-5%)
• Infuse digital technology, new materials, and advanced automation (14-15%; 4-6%)
• Reskill the workforce (5-7%; 3-5%)
(The numbers in brackets show the potential increase in productivity and cost saving that can be attained by adopting best
practices for those two measures, respectively)
McKinsey Global Institute (February 2017)

43
http://www.mckinsey.com/industries/capital- 45
http://www.mckinsey.com/industries/capital-
projects-and-infrastructure/our-insights/reinventing- projects-and-infrastructure/our-insights/reinventing-
construction-through-a-productivity-revolution construction-through-a-productivity-revolution
44
http://www.mckinsey.com/industries/capital- 46
http://www.mckinsey.com/industries/capital-
projects-and-infrastructure/our-insights/reinventing- projects-and-infrastructure/our-insights/reinventing-
construction-through-a-productivity-revolution construction-through-a-productivity-revolution

DeltaHedron Innovation Insight [Return to Table of Contents] © DeltaHedron 2017


The impact of emerging technologies on the construction industry

However, risk averseness and resistance to change important, and a key pillar of ‘continuous
in the industry should not be excluded as improvement’. However, this is not enough.
contributing to its challenges. This includes the Focusing on incremental innovation alone is a
industry’s internal views of itself, the challenges it flawed and unsustainable strategy.
faces and the mechanisms and interventions An innovative company will also recognise the
required to address those. There are certainly importance of radical and disruptive innovations
progressive companies 47 and thinkers in the and the rewards and benefits which can be gained
construction industry who are leading the from them. Emerging technologies present great
innovation charge, digitising their companies, are opportunities but also strategic business risks and
at the forefront of adopting emerging technologies threats to companies’ and industries’ products,
and are “more focused on horizon-scanning and operations,
innovation in the future” 48. By and large, however, supply chains, “Companies themselves
this seems not to be the case for the industry as a 21
logistics, should spearhead the
whole. business and industry transformation.
It is not obvious that there is a universal manufacturing Tremendous
recognition in the industry of the need for processes. Very opportunities are
innovation. However. it is important for the often it is not a
available through the
industry to recognise the link between innovation, question of
application of new
productivity and competitiveness, and to take ‘what will it
urgent action to address this. It is interesting to cost’, but rather technologies, materials
note the amount of venture-capital investment ‘what will it cost and tools…”
which has recently been pouring into modern if we don’t do World Economic Forum
construction methods and digital technologies for this’.
use in the construction sector 49. In order to succeed, companies – including
There is a widely held view that the construction construction companies – need to develop and
sector has traditionally been conservative and adopt innovation strategies, which form integral
resistant to new ideas 50; and that it has tended to elements of their corporate strategies. Although
focus on incremental improvements rather than many innovations are technological innovations,
radical and disruptive innovations, “in part many are not, as pointed out above. Innovation
because many believe that each project is unique, can happen in any sector, industry or function.
that it is not possible to scale up new ideas and that Very often technological innovations are blended
embracing new technologies is impractical” 51. with innovations in business models, marketing
The and finance, for example.
“An innovative company overwhelming It is important to see the bigger picture and to
will also recognise the number of manage the corporate innovation strategy
importance of radical innovations in holistically, rather than to focus only on the
and disruptive the world are technological aspects. Technological innovation
innovations and the incremental and emerging technologies are very important, but
rewards and benefits innovations. should not be considered or implemented in
that can gained from Products, isolation.
them…” processes and
2.3.2 An industry ripe for disruption
services are
In order for the construction industry to deliver on
improved steadily and little-by-little on a day-to-
national and industrial needs and expectations,
day basis by people all across the world. Infusing a
step changes need to be achieved in productivity,
culture of pursuing incremental innovation is
quality and efficiency, reductions in waste and

47
http://www.aurecongroup.com/en/about/latest- 50
http://www.mckinsey.com/industries/capital-
news/2017/june/buildings-future-science-fiction- projects-and-infrastructure/our-insights/reinventing-
science-fact.aspx construction-through-a-productivity-revolution
48
https://www.balfourbeatty.com/2050 51
http://www.mckinsey.com/industries/capital-
49
http://www.mckinsey.com/industries/capital- projects-and-infrastructure/our-insights/imagining-
projects-and-infrastructure/our-insights/reinventing- constructions-digital-future
construction-through-a-productivity-revolution

© DeltaHedron 2017 [Return to Table of Contents] DeltaHedron Innovation Insight


The impact of emerging technologies on the construction industry

increases in environmental friendliness and It is important to note that radical and disruptive
sustainability as well as safety. innovations very often not only lead to better
Given the strategic importance of the construction industry performance, but also disrupts the
industry and the continuing demand for new industry structure and hierarchy, as well as the
infrastructure, there is considerable pressure on basis of
the industry to perform at a higher level, driven by competition55. “… the disturbing
requirements in terms of volume and cost; more Very often new regularity with which
transparent markets and disruptive new entrants; companies industrial leaders follow
more readily available new technologies, become the their core technologies
materials, and processes; and the increasing cost industry leaders into obsolescence and
of labour with partial restrictions on migrant in the new
obscurity….We should
workers. technological
22 not be surprised then,
regimes, and
The World Economic Forum notes that the very often they that very often radical
construction industry “has undergone no major come from innovations come from
disruptive changes; it has not widely applied completely ‘outsiders’…. and
advances in processes…” 52. different sectors industry leadership
These are classical signals of an industry ripe for or emerge as changes hands”
disruption, particularly when it is characterised by new types of Jim Utterback, MIT
low levels of technological innovation, adoption of entities who are
new technology and R&D, and not enough early adopters of the new technologies. This
digitalisation. The image of an ‘old fashioned’ becomes the new basis of competition as the older
industry does not help. and mature technologies which were the bedrock
Not only is the construction industry ripe for of the incumbent companies, become obsolete.
disruption 53, it is also “hungry for digital Established companies which have built their
disruption… but the reality is, it is still a long way success on the base of a given technology, often
from reaping the full benefits of innovation” 54. have great difficulty in adopting a new technology
and letting go of the old one. ‘Instead of trying to
Pressure for change
see the future, start making it’ in the appendix
There is significant pressure on the construction
expands on this issue.
industry to change. A range of emerging
technologies will collectively act as catalysts and 2.3.3 The rise of constructechs – poised to
contribute to a transformation of the industry. disrupt the construction industry
They include materials and technology-related One of the ‘signals of an industry being disrupted’
business processes and best practices – is the emergence of flourishing new start-ups
particularly digitalisation – which will be major which use new business models and emerging
drivers for disruption in construction, as they have technologies as their competitive advantage. In a
been in many other industries. New market manner similar to the disruption of the financial
entrants, some from other industries (such as and insurance industries by fintechs and
manufacturing) as well as completely new types of insurtechs, ‘constructechs’ are now starting to
players (such as constructechs), will use the new disrupt the construction industry.
technologies to create new competitive The constructechs are (for the moment) focusing
advantages. mainly on digital opportunities, with mobile and
Labour shortages, rising wage rates and limits on cloud-based technologies leveraging AI, analytics,
migrant labour (in the US and perhaps the UK in a robotics and AR/VR, as well as software products
post-Brexit era) will encourage automation. focused on BIM, project management and related
construction applications.

52 54

http://www3.weforum.org/docs/WEF_Shaping_the_Fu http://www.insideconstruction.com.au/site/news/105
ture_of_Construction_full_report__.pdf 0782/construction-sector-ready-digital-disruption
53
http://www.mckinsey.com/industries/capital- 55
DeltaHedron, “Instead of trying to see the future,
projects-and-infrastructure/our-insights/imagining- start making it”, New Statesman, Spotlight on
constructions-digital-future Emerging Technologies, 14 July 2017

DeltaHedron Innovation Insight [Return to Table of Contents] © DeltaHedron 2017


The impact of emerging technologies on the construction industry

CB Insights 56 identified 13 key emerging categories 3.1 Smart buildings of the future
and subcategories where constructechs are active, Smart buildings and infrastructure of the future 58
including design, monitoring and safety as well as will be ‘intelligent’ and engage actively and
digital marketplaces. (CB Insights consider proactively in and with their environment, and
constructechs to be start-ups offering ‘software with the humans and animals in the environment.
tools and platforms used by different participants They will have the ability to sense the status of and
in the industry, including architects, developers, changes in their environment, make decisions,
builders and contractors’). intervene and respond, and communicate with
The major areas of activities were: people, other buildings and devices 59. They be able
• Collaboration software was the largest to anticipate, learn and adapt their behaviour. This
category, and includes project and task is in contrast to ‘dumb’ structures which at the one
management, digital scheduling, time extreme are merely ‘containers’ (however 23
tracking, bid management and take-off. aesthetically pleasing they may be) and completely
• Other collaboration tools, including BIM static, without even the ability to act reactively.
applications Benefits from
• Project and task management intelligent “the smart home will be
• Drones buildings will able to optimise energy
• Virtual and artificial reality (VR/AR) include lower use rather than just
• Robotics, used to automate traditionally operating costs, measure how much has
manual jobs higher energy been used…”
• Design technologies, such as CAD and BIM efficiencies, the
• Inventory and supply chain improved productivity and health of occupants,
• Risk management and more effective physical and cyber security 60.
• Monitoring and safety, compliance and Many buildings already have a number of smart
safety characteristics, i.e. their thermostats can regulate
• Data and analytics temperature, automatic switches can switch lights
• Financial management on and off if they detect motion (or not) 61, and
• Digital market places. security alarms can alert us and summon help if
In July 2017 it was reported that 25 funding deals there is an intrusion. Smart meters can measure
for constructechs worth $169m had already been energy use, and transmit that to the utility
done in the US during 2017 . company for automatic billing.
Smart buildings of the future will be able and
enabled to do much more. For example, the smart
3. Reinventing construction home will be able to optimise energy use rather
than just measure how much has been used 62.
There are many industry voices calling for the Buildings will utilise local renewable sources, such
‘reinvention of construction’ 57, anticipating an as wind or solar, with local storage devices which
innovation-fuelled disruption. This section will allow them to operate ‘off the grid’.
highlights a number of major contextual thrusts Smart buildings will be more multi-functional and
and trends in best practices. It sets the scene for a configurable, as a response to evolving societal
more comprehensive discussion on emerging trends. The buildings as well as the devices and
technologies in construction in following sections. appliances inside and attached to the buildings will

56
https://www.cbinsights.com/research/construction- 59
http://newatlas.com/swidget-smart-home-enabling-
tech-startup-market-map/ platform/50590/
57
See for example 60
http://deloitte.wsj.com/cio/2016/10/26/iot-poised-
http://www.mckinsey.com/industries/capital-projects- to-transform-building-management/?mod=WSJBlog
and-infrastructure/our-insights/reinventing- 61
http://www.makeuseof.com/tag/smart-switches-vs-
construction-through-a-productivity-revolution smart-bulbs-best-solution/
58
http://www.aurecongroup.com/en/about/latest- 62
https://www.thetimes.co.uk/article/3e6a3582-70b4-
news/2017/june/buildings-future-science-fiction- 11e7-8eac-856e9b33761e
science-fact.aspx

© DeltaHedron 2017 [Return to Table of Contents] DeltaHedron Innovation Insight


The impact of emerging technologies on the construction industry

be enabled with a multitude of sensing devices personal health


connected to the internet of things. As such, they parameters and “Increasingly, smart
will be generators and consumers of fast amounts connect homes will be designed
of data. interactively to so as to be telehealth-
We will see more automation and a greater the telehealth enabled…”
proliferation of robots in buildings, including infrastructure.
homes. Self cleaning 63 and automatic maintenance Smart buildings will be enabled by a range of
will become the norm rather the exception. Local emerging technologies, including those discussed
3D printers will be able to print parts required for in this report and other who are yet to reveal
maintenance, which will be installed by robots. themselves. Their use also comes with a cost of
Smart buildings will have ‘smart locks’ 64, which can course, including increasing use of data and the
24 operated remotely or via near field devices (such risks of cyber crime; as well as increased use of
as smart phones). They will integrate face and energy, hopefully offset by more energy efficient
voice recognition as well as other biometrics such devices and materials.
as finger print and retina scanning.
Smart homes will communicate not only with other Video clips showing
devices but also with humans, and they will do so smart buildings
in ways which humans can literally understand. can be seen here and here
Smart bots such as Amazon’s Echo, Google’s Alexa
and Apple’s Siri and their associated host systems
already interact with humans in natural spoken
language 65. Smart homes will be able to respond to
3.2 The importance of design
commands, answer questions and make Successful innovations have two components – an
suggestions and recommendations for actions and ‘invention component’ and a ‘adoption and
decisions. diffusion into the market’ component. It is often
said that “new inventions create new knowledge,
Unified Inbox is a small Singaporean company, but successful innovations create new wealth’. In a
offering a product which turns regular text previous section the importance of innovation in
messages into instructions for appliances. any industry was emphasised. It was also noted
With your home added to the contacts list on that the construction industry in particular has
WhatsApp, for example, a quick text message been lacking in many aspects of innovation. In
will instruct the home to "make a coffee"; order to boost the industry’s productivity and
"mow the law” or "preheat the oven to 120 address its other challenges, it is critically
degrees at 20h00”... important this is rectified.
This section
Increasingly, smart homes will be designed so as to focuses on “Design trumps
be telehealth-enabled66,67. Building construction design as a key technology – technology
can be as big a factor as sleep, diet or exercise element of the is the supporting act to
impacting on the health of people. Sustainable innovation design…”
buildings have been shown to improve occupants’ process. It is Aurecon
cognitive function and sleep quality 68. This will integral to the
include built-in sensors which can monitor construction industry. Design does not only
determine “what the building will look like”, but
places the structure on a life cycle trajectory.

63
https://www.domain.com.au/news/roomba-vacuum- 67
DeltaHedron Innovation Insight, No 1.2/17,
maker-irobot-is-betting-big-on-the-smart-home- “Developments in emerging digital health
20170724-gxhydf/ technologies”
64
http://time.com/4024386/august-smart-lock/ 68
65
http://fortune.com/2017/03/13/smart-condo- http://idahobusinessreview.com/2017/06/09/better-
conundrum/ health-through-healthier-buildings/
66
https://www.digitaltrends.com/home/smart-home-
future-will-telehealth/

DeltaHedron Innovation Insight [Return to Table of Contents] © DeltaHedron 2017


The impact of emerging technologies on the construction industry

Choices made during the design phase with regard on construction productivity. 71 The MGI is
to principles and materials, for example, have a promoting the concept of ‘production system’ in
huge impact on the building throughout its life construction and suggests that its adoption could
cycle. It will determine the manner in which it can lead to a tenfold increase in productivity.
be constructed and at what cost, energy efficiency, Construction products, whether residential,
eco-friendliness, safety, ease of maintainability commercial, industrial or infrastructure can
and feasibility of alterations and retrofitting, benefit significantly from manufacturing-related
lifecycle costs and total cost of ownership, as well best practices.
as a range of issues pertaining to the short, Inadequate attention to design and engineering
medium and longer term uses of the building (or can lead to unnecessary and costly project delays
road or bridge, for example). Great design is core and overruns. Design flaws and inefficiencies have
to the ‘Building of the Future’. a cascading effect which impact detrimentally on 25
Whereas technology choices – and cognisance of productivity and cost. MGI notes that they
emerging technologies – are very important, it is continue to observe enormous cost and time
only one element of great design. One recent overruns of construction projects, with their recent
report puts it that “Design trumps technology – analysis finding average cost and time overruns
technology is the supporting act to design” 69. relative to original budget and schedule at 70% and
The McKinsey 61%, respectively 72.
“…construction as a study 70 Future proofing designs
production system identifies Designs should make sense today and tomorrow.
would have a major design as one of The design of the building should hence be such
the seven that it can accommodate current and future
impact on construction
important ways generations of technology. Buildings, roads and
productivity”
in which bridges also need to be maintained during their
McKinsey construction lifetime, and
productivity can many will be “Design should make
be improved. They estimate that the adoption of retrofitted and sense today and
best practices in design and engineering processes altered. tomorrow…”
and an increase in standardisation in construction In addition to
can enhance productivity by 8-10% and bring adopting ‘design for manufacture and assembly’
about cost savings of 7-10%. They recommend (DFMA) approaches, designers should also ensure
improvement of the design process and outcomes, that designs are ‘maintainable’ and ‘alterable’.
ensuring early collaboration from all parties Emerging technologies, particularly digital-related
involved and encourage repeatability of design technologies which are installed in the buildings,
across projects. Once the basics are in place, evolve very swiftly. Even though the lifecycle of a
institutionalising value engineering into the design building will typically be much longer than a
process with a greater focus on constructability consumer device, designers should also think
should be a high priority; and similarly for ‘Design about the recycling issues when the structures are
for manufacture’. They note that there is still a way demolished.
to go on this – as only 50% of respondents to the 3.3 Best practices aimed at enhancing
MGI Construction Productivity Survey indicated
productivity
that they have a standard design library. This
concept should be integrated into the design In addition to the benefits which emerging
process from its conception. technologies and new materials can bring, several
best practices which can improve productivity in
McKinsey is of the view that treating construction
construction have also been identified. This report
as a production system would have a major impact

69 71
http://www.mckinsey.com/industries/capital-
http://www.aurecongroup.com/en/markets/property/ projects-and-infrastructure/our-insights/reinventing-
buildings-of-the-future/designs-that-make-sense.aspx construction-through-a-productivity-revolution
70
http://www.mckinsey.com/industries/capital- 72
http://www.mckinsey.com/industries/capital-
projects-and-infrastructure/our-insights/reinventing- projects-and-infrastructure/our-insights/reinventing-
construction-through-a-productivity-revolution construction-through-a-productivity-revolution

© DeltaHedron 2017 [Return to Table of Contents] DeltaHedron Innovation Insight


The impact of emerging technologies on the construction industry

considers a number of these which are technology- data by all stakeholders on a project will ensure
related or enabled. It is important to stress again that everybody has access to all the data, the same
that there are also many other best practices data and at the same time.
which are not technology-related or to a much A number of technology-related practices and
lesser degree 73, which are equally important with emerging technologies which can contribute
regard to their contribution to productivity towards better on-site execution and process
enhancement, but which are not discussed here. enhancement are discussed in the sections below.
3.3.1 On-site execution and off-site They include various manifestations of
manufacturing digitalisation and automation, prefabrication and
On-site execution modularisation, the use of robotics and drones as
The building process lends itself to the possibility well as construction techniques (such as lean
26 of massive enhancements through innovation. construction). There is an increasing need for
Whereas much of the ‘what’ and a lot of the ‘how’ software-based applications, aimed specifically at
are determined in the design phase, productivity in the construction industry 75, and an increasing
the execution phase can be improved significantly. number of industry-specific products are
appearing on the market. The use of digital
“Building sites are increasingly turning to technologies in conjunction with approaches such
mobile-operated, cloud-powered software as lean construction in the execution phase will
systems and apps to make operations more enhance productivity considerably.
manageable. Vital data, such as timesheets, Computer-Aided Design (CAD) has been around for
performance reports, task allocation records a long-time, and can hardly be referred to as an
and all other field coordination aspects, are emerging technology anymore. However, it
sorted in one central program. This allows remains an important element of digitised
managers and site supervisors to get on with construction projects and hence warrants
critical build requirements, rather than get mentioning here. Used in isolation, CAD is
bogged down in time-consuming admin…“ restrictive. Its needs to complemented by BIM 76,
Worldbuild365 building simulation software and related
applications.
McKinsey 74 identified on-site execution as anther Modular and off-site construction
one of the seven important ways in which Modularisation and off-site manufacturing are
construction productivity can be improved. They important innovations, and are elements of a
estimate that global construction productivity can production approach to construction.
improve by 6-10% if best-practices in on-site
execution are adopted, with potential cost savings The use of modular units and off-site
of 4-5%. They recommend the introduction of manufacturing of construction products
rigorous integrated planning and collaborative (sometimes also referred to as permanent modular
performance management, more collaboration to or prefabricated construction) can bring significant
reduce waste and variability, and better benefits, and are gaining ground in the
mobilisation of projects. Once the basics are in construction industry 77,78,79. The Farmer Review is
place, the focus should shift to better workforce very supportive of the concept of modular off-site
and central planning. The use of a single source of manufactured construction in the UK 80.

73
See for example 77
http://www.constructconnect.com/blog/operating-
http://www.mckinsey.com/industries/capital-projects- insights/five-commercial-construction-trends-watch-
and-infrastructure/our-insights/reinventing- 2017/
construction-through-a-productivity-revolution 78
http://www.constructiondive.com/news/5-trends-
74
http://www.mckinsey.com/industries/capital- shaping-the-future-of-offsite-construction/447248/
projects-and-infrastructure/our-insights/reinventing- 79
http://www.constructiondive.com/news/offsite-
construction-through-a-productivity-revolution modular-construction/447747/
75
https://www.skysite.com/tag/construction-industry- 80

trends/ https://www.gov.uk/government/publications/co
76
https://thebimhub.com/2017/06/30/aec-industry- nstruction-labour-market-in-the-uk-farmer-review
trends-driving-toward-connection/#.WWXdjYjyvcs

DeltaHedron Innovation Insight [Return to Table of Contents] © DeltaHedron 2017


The impact of emerging technologies on the construction industry

It is useful to think in terms of ‘construction of new construction and expects it to grow to 5%


modules’, such as entire bathrooms fitted into by 2020 83. The modular industry is expected to rise
dormitory rooms, rather than just accepting that 6% globally by 2022. Sweden is a world leader, with
everything in a building needs to built ‘from circa 84% of detached homes built with pre-
scratch’ and on-site. ‘One-off designs’ 81 are fabricated timber elements, compared with 15% of
expensive and often unnecessary if prefabricated pre-fabricated Japanese semi-detached/detached
modules utilising ‘reusable designs’ are available. homes, and with just 5% in the UK, US and
The reusable design can likewise use a product Australia 84. In Australia, it is estimated that 3% of
platform approach, as is used in automobiles 82. construction industry revenue is generated from
This allows for flexibility and configuration of the off-site construction. However it is estimated to
modules. grow to at least 10% within 20 years 85.
One of the major advantages of modular thinking “A large skyscraper in Tokyo is ‘continuously’ 27
is that the modules can be manufactured off-site in producing modular living units. Residents can
a factory and then transported for fitting and order a ready-to-use modular unit which is 3D
installation on the construction site. The entire printed on the top floor of the building, and
module need not of course be shipped fully then lowered into place by cranes. Disused or
assembled. Instead it can done in a ‘flat pack’ style faulty pods are dismantled and can be
containing sub-assemblies, which can be reprinted…”
assembled (rather than built) on-site.
Inhabitat

Owners are recognising that modular construction


can look just as good as on-site construction and
be completed cheaper and faster. The world’s
tallest modular construction project (461 Dean, a
32-story residential tower in New York City 86) was
completed in 2016,. The building is not without
controversy though 87.
Projects such as this and the 142-room AC Hotel in
Oklahoma City are proving that modular can be
done cheaper and faster. Offsite prefabricating of
materials 88 can achieve LEED certification and
benefit construction productivity. Using modular
approaches, construction times can be reduced by
Modular housing units being installed up to 30%-50%.
Modular buildings are built to meet existing
Although modular construction has been used for building codes in controlled environments where
decades, it is attracting increasing interest for quality and consistency can be carefully
commercial construction applications. The monitored. This also avoids delays caused by
Modular Building Institute estimates that modular unpredictable environmental conditions which
construction holds about 3% of the market share

81
http://www.aurecongroup.com/en/about/latest- 85
http://builtoffsite.com.au/issue-01/disruption-
news/2017/june/buildings-future-science-fiction- collaboration-and-reassembling-the-jigsaw/
science-fact.aspx 86
http://www.constructconnect.com/blog/operating-
82
Think for example of the ‘3 Series BMW’, for which insights/five-commercial-construction-trends-watch-
there are many models, but all use the same basic 2017/
platform. 87
https://www.treehugger.com/modular-
83
http://www.constructconnect.com/blog/operating- design/norman-oder-worlds-tallest-modular-building-
insights/five-commercial-construction-trends-watch- and-phantom-20-percent-savings.html
2017/ 88
http://www.kaleida.co.uk/what-construction-trends-
84
https://www.worldbuild365.com/news/2avltewfc/in should-we-expect-in-2017/
dustry-news/exciting-trends-shaping-worldwide-
construction-in-2017

© DeltaHedron 2017 [Return to Table of Contents] DeltaHedron Innovation Insight


The impact of emerging technologies on the construction industry

might put a project behind schedule and increase


costs. “The HouseZero project is an extreme
Offsite construction is suited for a number of retrofit of an existing building, the home of
structure types, including schools, dormitories, The Harvard Center for Green Buildings and
hospitals, office buildings, hotels, retail shops as Cities at the Harvard University Graduate
well as residential homes 89. Modular homes offer School of Design (GSD). The objective is to
home owners and developers a number of “demonstrate how to transform this
benefits. Prefabricated, prefinished volumetric challenging building stock into a prototype of
construction (PPVC) is an approach which ultra-efficiency that will use no HVAC system,
integrates off-site capabilities and in effect no electric light use during the day, 100%
transforms the construction site into a ventilation, almost zero energy, and produce
manufacturing site, with the advantages of zero carbon emissions, including embodied
28
improved safety, less waste and greater energy of materials….”
efficiency 90. Other advantages of prefabricated Treehugger
construction91 include eco-friendliness, enhanced
safety, flexibility, speed and reduced site
disruption. 3.3.3 Peer-to-peer rentals
3.3.2 Retrofitting Construction equipment represents significant
Images of new buildings, bridges and roads capital investment. Some estimates indicate,
typically come to mind when we think of the however, that contractors’ equipment is unused
construction industry. However, a significant part for 70% of the time 94, a very inefficient use of
of the industry is engaged with refurbishment, capital. Peer-to-peer rental can effectively improve
retrofitting and maintenance. In the UK, asset use, and is enabled by telematics-related
approximately 60% of construction output is new information. Sharing of usage data will enable
build, whilst 40% is refurbishment and contractors to connect with one another more
maintenance 92. easily, which can in turn enable less expensive
renting for those needing machines and more
When considering the impact of emerging profitable for those renting them out. It is
technologies, it is therefore important to also estimated that machines could pay back about
include in the thinking the use of these 25% of their purchase price annually in this
technologies in refurbishment, retrofitting and environment.
maintenance.

Retroactive use of Building Information Modelling


(BIM) 93 for buildings which were not originally built
with BIM is indeed possible. This has been utilised
in major retrofitting projects, such as the
renovation of an emergency room at an old
hospital. In this case, BIM was used to maintain the
integrity of the original medical centre while also
introducing an entire new wing to the hospital.
Thus, BIM was effectively used to renovate a
building and attain LEED Silver—an impossible feat
without BIM technology.
Construction of a timber home

89
https://www.worldbuild365.com/news/2avltewfc/in 92

dustry-news/exciting-trends-shaping-worldwide- https://www.designingbuildings.co.uk/wiki/UK_constr
construction-in-2017 uction_industry
90
http://www.mckinsey.com/industries/capital- 93
https://www.thebalance.com/how-can-bim-mitigate-
projects-and-infrastructure/our-insights/imagining- construction-risks-845317
constructions-digital-future 94
http://www.huffingtonpost.com/john-
91
http://www.constructionworld.org/7-benefits- rampton/major-tech-trends-are-sha_b_12771280.html
prefabricated-construction/

DeltaHedron Innovation Insight [Return to Table of Contents] © DeltaHedron 2017


The impact of emerging technologies on the construction industry

4. Emerging technologies in construction For example, the same technology can underpin a
number of different products, offered by the same
It is evident that emerging technologies can and or different vendors. Similarly, a given product or
are contributing significantly to the disruption in innovation is often based upon more than
and transformation of the construction industry 95. technology. This distinction is important when the
The recent discussion turns to potential new applications of
“It is evident that McKinsey emerging or mature technologies. Also, if a given
emerging technologies study 96 product has succeeded or failed in the market, it is
can and are contributing suggests seven important to distinguish the product from its
significantly to the major areas underlying technologies. The product may have
disruption in and which can failed for reasons other than the technology it
transformation of the contribute to uses, and the same technology may be used in
other successful products – but then on the other 29
construction industry…” productivity
enhancements hand, it may not.
in construction (see also Table 2).
The McKinsey study estimates that one of the It is important to also recognise the impact
areas, viz. the adoption of best practices with which technological disruption can have on
regard to the infusion of digital technology, new the industry structure and hierarchy.
materials and advanced automation, can See also “Instead of trying to see the future,
contribute 6-10% to productivity increases and 4- start making it”.
5% to cost savings in the industry.
From the viewpoint of the impact emerging
technologies can make on the construction
industry, it is important to keep in mind that 4.1 Digitalisation and digital
technological advances can also contribute transformation
significantly to some of the other factors described Digital transformation
in the McKinsey study, including rethinking design Digital transformation and digitalisation are very
and engineering processes, improving significant global trends which are affecting all
procurement and supply-chain management, segments of society globally, whether industry and
improving on-site execution and reskilling the commerce, the public sector, government and its
workforce. The technology-related aspects of agencies, education or individuals. No industry
these are discussed in the relevant sections of this sector is left untouched. In many cases there are
report. common elements of digitalisation which are
This section discusses a range of emerging driving change, transformation and disruption, but
technologies with an indication of their use in there are also industry-specific aspects.
construction, and an emphasis on recent trends.
The term ‘technology’ is interpreted fairly broadly “Once it’s digital, it’s data”
here, and the discussion is presented with regard
to digitalisation and digital transformation, Digital transformation is an industry disruptor par
automation and new materials. The automation excellence, as been has been demonstrated in
related technologies are in large digitally enabled, many sectors as well as by a number of innovative
and also includes process technologies. companies in the construction sector which have
In the assessment of the impact, strategic business digitised, and they have created substantial
opportunities, risks and threats of emerging productivity benefits. Not only do digitalisation
technologies, it is important to distinguish and digital transformation in themselves lead to
between the underlying technology and trends, higher productivity, they are also the catalysts for
potential applications and products on the market broader business transformation, which can in
or in development.

95
https://www.business.com/articles/construction- http://www.mckinsey.com/industries/capital-
96

technology-software-guide/ projects-and-infrastructure/our-insights/reinventing-
construction-through-a-productivity-revolution

© DeltaHedron 2017 [Return to Table of Contents] DeltaHedron Innovation Insight


The impact of emerging technologies on the construction industry

turn lead to a reshaping of business strategies and Of those


“New technologies in
models. industries
analysed by the digital space, for
McKinsey, the example, will not only
A recent McKinsey study shows that there is
a direct correlation between the degree to construction improve productivity
which an industry is digitalisation and the industry not and reduce project
productivity growth in that industry (2005- only exhibits delays, but can also
2014) . the least enhance the quality of
McKinsey Global Institute productivity buildings and improve
February 2017 growth, but is safety, working
also the least conditions and
McKinsey recommends the appointment of an digitised. In
30 environmental
chief digital/technology/innovation office and Europe the
compatibility”
team 97 to champion the importance of construction
digitalisation, develop a ‘digital culture’ and drive industry is in World Economic Forum

its implementation in the industry. the last


position, and in the US, construction is second to
Digitalisation of the construction industry last (ahead only with regard to agriculture).
It has been reported that more than half of all
commercial construction firms have at least made IT spend in the construction industry is less than
some partial transition to the cloud, digitised their 1% of revenues 100, compared to 3.5% for the
plans and are using tablets on the job site. 98 This is automobile industry and 4.5% for the aerospace
an encouraging trend. However, modern digital industry (2015).
technology and tools should become the norm In Germany, for example, the construction sector
rather than exception. Digitalisation is an essential invested only 0.7% of its gross value between 1991
element of the digital transformation of the and 2007 in digital assets annually 101. In
construction industry 99. It is much more than just comparison, financial intermediation invested
‘replacing paper with pdf’. 4.3% and manufacturing 1.8%. The average
The construction investment in Germany of all industries (2.3%) was
sector is three times that of the investment in construction.
“A recent survey
generally very In the US, only 1.5% of gross value added was
indicated that 90% of
under-digitalised. invested in the construction industry, compared
professionals in the with 5.7% in financial intermediation, 3.3% in
As mentioned
construction industry manufacturing, and the all-sector average of 3.6%.
elsewhere, there
are active on social
are a number of The underinvestment in digitalisation is one of the
media, whereas 43% use companies in the root causes of problems in the construction
social media networks to industry which industry, according to the McKinsey studies. They
obtain construction- are highly suggest that there are particular deficiencies in the
related ideas and digitised and are sector’s ability to use digital tools to facilitate
product information…” leveraging digital stakeholder interactions and in the rate of growth
Construction Index transformation in digital tools available to the frontline labour
for competitive force. A recent report indicated that less the 50%
advantage – but in general the industry suffers of respondents considered mobile technologies ‘to
from a lack of digitalisation. be important when choosing software solutions

97
http://www.mckinsey.com/industries/capital- 100
http://www.mckinsey.com/industries/capital-
projects-and-infrastructure/our-insights/reinventing- projects-and-infrastructure/our-insights/imagining-
construction-through-a-productivity-revolution constructions-digital-future
98
http://www.conexpoconagg.com/news/february- 101
http://www.mckinsey.com/industries/capital-
2017/2017-construction-trends-in-technology/ projects-and-infrastructure/our-insights/reinventing-
99
http://archinect.com/HCADDS/release/construction- construction-through-a-productivity-revolution
industry-needs-digitized-project-management-work-
flows

DeltaHedron Innovation Insight [Return to Table of Contents] © DeltaHedron 2017


The impact of emerging technologies on the construction industry

for their construction business’ 102. This may be these are also digitally enabled, and it often
telling of the mindset. difficult to decide whether a given technology
Whilst the low level of digitalisation in the should be considered part of the ‘digitalisation
construction industry is problematic, it also offers group’ or the ‘automation group’. The distinction is
great opportunities – digitising the industry will not really important – what is important is that the
bring huge benefits (…..put another way, if it was technologies are adopted and integrated with
already highly digitalised and still had major others.
productivity issues, there would have a been a 4.1.2 Data, software, mobile and the cloud
really serious problem indeed). Data is the driver of digitalisation. The gathering,
Future proofing designs processing, interpretation, reporting,
Buildings and other infrastructural structures are communication as well as storing and archiving of
required to last for decades. 50-year design life data are central towards creating and embedding 31
clauses will not be uncommon 103. With the advent a digital transformation mindset and strategy.
of smart buildings, buildings are increasingly In business, this should lead to enhanced decision-
populated with electronics of all types, including making – for the managers and employees of a
wifi and communications, security and the internet company, but also for its customers, suppliers,
of things. The lifetime of electronics, however, is shareholders and broader stakeholder community.
relatively short, given the rapid pace of digital
A number of
development. From a design viewpoint, it is hence
emerging “… the construction
important to ‘future-proof’ smart buildings. The industry has yet to
technologies are
assumption should be that the structure of the adopt an integrated
focused directly
building will platform that spans
“eCommerce is having on data
outlive the
an effect as well - was processing and project planning, design,
electronics, and
recently reported that interpretation, construction,
will in fact see
including operations, and
the increasing impact multiple
analytics, big maintenance. Instead,
from online traders have generations of
data, artificial
driven one of the large electronics. In the industry still relies
intelligence,
construction material addition for the on bespoke software
machine learning
vendors in the UK to need for tools, and more often
and digital
reorganise…” continuous
imaging. These that not on paper-based
upgrading of procedures. And
Construction Index technologies find
what we have everybody on the same
application in
now, many entirely new applications which are not project uses different
most industries,
even envisioned today will be common cause fifty
including systems”
years from now. Lifecycle management of
construction, and McKinsey
infrastructure requires designs to be future-
are discussed in
proofed.
sections below.
Systems integration, the integration of data
“Construction design should incorporate originating from various sources and
strategies to upgrade, integrate and use interoperability remain big challenges in data-
different generations of technology driven environments.
throughout the lifecycle of structures….”
Data inputs originating from different software
A range of emerging technologies directly relate to programmes, IoT sensors, drones, 3D scanning,
digitalisation, and are discussed below. Following the weather, GPS and a host of other sources
this, a number of emerging technologies which can invariably have widely differing formats. They
contribute towards the automation of the typically do not have the same or compatible data
construction industry are then discussed. Many of protocols or interfaces.

http://www.constructionworld.org/adoption-
102 103

mobile-solutions-construction-industry/ http://www.aurecongroup.com/en/markets/property/
buildings-of-the-future/designs-that-make-sense.aspx

© DeltaHedron 2017 [Return to Table of Contents] DeltaHedron Innovation Insight


The impact of emerging technologies on the construction industry

There will be a rapid increase in the number and transformation of the construction industry and its
types of devices performing data collection, and quest to improve productivity 107. Construction-
subsequently also more companies offering specific applications such as project management,
services to transform and translate data into ERP and BIM can all be accessed via mobile, cloud-
analytics and dashboards to support decision- powered devices.
making 104. Programmes and platforms which The nature of the construction industry is not
perform integration and create ‘uniform’ always conducive to fixed IT infrastructure
interfaces can help to resolve this dilemma. (including desktop computers and servers). There
Mobile technologies and cloud-based is usually limited space in a physical site office and
applications perhaps not
Mobile and wireless technologies have become adequate “Very soon 5G mobile
32 ubiquitous. In February 2017 it was reported that cooling and will be introduced, and
there was an estimated 5 billion+ (and growing) dust-free will offer significant
mobile telephones in the world 105. In addition, environments advantages over 4G, LTE
billions of devices are being connected as part of required by IT
and previous
the internet of things, many of them using wireless hardware. The
generations of mobile
(wifi) technologies. use of mobile,
Mobile web and cloud- technologies. The
“…mobile technology communication based IT solve coming of 5G will boost
will be a multiplier in the technology this problem. the benefits of mobile
digital transformation of empowers the Application tremendously and will
the construction individual, programmes bring a step-change in
industry and its quest to allowing voice and data hosted its utility…”
improve productivity” communication, on servers ‘in
information the cloud’ (rather than physically on-site), can be
availability, reporting, data transfer and accessed via wireless connection to the internet.
collaborating ‘everywhere, anytime and in real- This brings added advantages in that all staff can
time’. Mobile data includes email, text messages as access the same data in real-time while ‘on the go’,
well as access to the internet. Its use is facilitated and the data can securely stored. The application
by the availability of mobile apps for phones and programmes (and data) on offsite servers (in the
tablets, which provide user friendly interfaces to cloud) are centrally updated, so that all users
services and information. Not surprisingly, there is simultaneously use the same, latest version.
a global trend towards ‘mobile first’. Cloud-based computing is gaining more traction in
McKinsey recommends the use digital construction.108, and offers the advantages of
collaborating and mobility tools on portable scalability, mobility, collaborating and lower cost
devices as a mechanism for enhancing productivity of ownership 109. File sharing and synchronisation
and cutting costs in construction106. across the web using cloud-data storage services
Data storage is moving ‘into the cloud’ – remove the need for project schedules, plans and
transferred to storage devices ‘somewhere’, but other documents to be carried around in rolls of
not on the device or local storage; but accessible paper. The same information can also be shared
(everywhere, anytime and in real-time) to any with others in real-time.
device connected to the internet, including mobile Advances in mobile technology are enabling an
devices. As is the case with other industries, mobile entirely new generation of capabilities to become
technology will be a multiplier in the digital ‘portable’, many of them incorporation related

104
http://www.conexpoconagg.com/news/february- 107
http://www.constructionworld.org/why-
2017/2017-construction-trends-in-technology/ construction-businesses-should-adopt-mobile-
105
http://www.hindustantimes.com/tech/five-billion- construction-software/
mobile-phone-users-in-2017-study/story- 108
https://hbxl.co.uk/5-construction-trends-2017/
zXhZeRKHv9u1C5WQ8fkK1K.html http://www.constructionworld.org/top-10-
109
106
http://www.mckinsey.com/industries/capital- construction-technology-trends-look/
projects-and-infrastructure/our-insights/reinventing-
construction-through-a-productivity-revolution

DeltaHedron Innovation Insight [Return to Table of Contents] © DeltaHedron 2017


The impact of emerging technologies on the construction industry

emerging technologies such as augmented reality A number of trends are reported to have an impact
(AR) and virtual reality (VR). Mobile technologies on construction through the ERP space, viz.
also enable the use of advanced and real-time • Predictive capability.
geolocation – the automatic identification and • Mobile migration, which brings ERP
tracking of the location and movement of people, functionality to staff on the site and can
tools and equipment, vehicles as well as materials integrate data from wearables and IoT.
on a building site 110. This ability can enhance on- • Integration across platforms.
site safety, logistics-related productivity increases • Greater (BIM) functionality.
and help to prevent theft and wastage. • Future-proofing to ensure that current
The ‘lack of internet availability’ (and wireless systems are upgradeable and forward
signals) in remote sites has been mooted as one of compatible.
the reasons why some in the construction industry • Channels for collaborating. 33
are reluctant to adopt mobile solutions. To address
this, one vendor is offering a self-contained high- “Enterprise resource planning solutions are
speed internet trailer which can resolve this among the most significant progress
problem by creating a local wifi hotspot on a benchmarks in terms of developments within
site 111. the realm of software; they play a vital role in
Bring-your-own-device (BYOD) tech strategy of virtually every construction
A Gartner survey in 2014 suggested that circa 40% firm …ERP systems serve to also reveal an
of workers at large enterprises use their personally organizations' technological savvy, since
owned mobile device for work purposes. This smaller trends in IT are quite often reflected in
number is increasing, with more workplaces the deployment of the software…”
encouraging smartphone use or allowing a BYOD The Balance
(Bring Your Own Device) policy 112. The 40% of
respondents who use smartphones for work
Software-as-a-Service
typically do so for email, phone calls and GPS
The trend of ‘software-as-a-service’ (SaaS) is also
tracking. Many of these functions are not specific
impacting on construction, with a range of cloud-
to any company and have become convenient
based products, aimed specifically at this industry.
alternatives. In the future, we will see greater
These include programmes which address
commitments by companies, including
construction bids, tracking environmental scoring
construction companies, to use smartphones
(LEED), project management as well as document
beyond basic communication. This will lead to
and plan handlers 114.
more integration of work-related functions
through mobile. “The trend of ‘software-as-a-service’ (SaaS) is
Enterprise Resource Planning (ERP) also impacting on construction, with a range
There is a growing market in Enterprise Resource of cloud-based products, aimed specifically at
Planning (ERP) solutions in construction 113. ERP this industry…”
provides decision support for projects, particularly
A number of apps for mobile phones and tablets
with regard to financial decisions, and forecasting
specifically aimed at the construction industry are
inventory and materials requirements.
also available 115. Many of the apps utilise the
touch screen, camera, GPS and accelerometer
capabilities of mobile devices. They include apps
for CAD applications, virtual laser levels to
determine slope and the recording of problems

110
“People tracking technologies”, DeltaHedron 113
https://www.thebalance.com/construction-erp-
Innovation Insight, No 3/2017 (May 2017). software-trends-845314
111
http://www.windpowerengineering.com/constructi 114
https://www.thebalance.com/top-saas-
on/skycasters-brings-broadband-communications- construction-products-844902
remote-wind-farm-construction-sites/ 115
https://www.thebalance.com/top-construction-
http://www.constructionworld.org/top-10-
112 software-apps-for-ipad-845330
construction-technology-trends-look/

© DeltaHedron 2017 [Return to Table of Contents] DeltaHedron Innovation Insight


The impact of emerging technologies on the construction industry

with images; as well as apps for multipurpose this powerful tool are obvious. In a maintenance
construction-related computing and BIM. setting for example, proactive action can be taken,
rather than a reactive ‘find and fix’ approach.
4.1.3 Big data, advanced analytics and artificial
intelligence McKinsey recommends the use of advanced
Big data analytics on project and firmwide data as a
The digitalisation of the construction industry will mechanism for enhancing productivity and cutting
lead to huge amounts of data being created from a costs 117. They estimate that on-site productivity
variety of sources as indicated above. Some of the can be increased up to 50% by using a cloud-based
data will relate directly to the construction project, control tower which gathers data in near real-time,
other data may be generated by the operation of a and uses the analytics modes referred to above 118.
smart building, and other from external sources Artificial intelligence
34 such as weather, markets and exchange rates. ‘Big Artificial intelligence (AI) in construction will power
data’ refers not only the large volume of data itself, many of the emerging technologies, particularly
but more specifically to actively analysing very robotics and automation. To an increasing extent,
large datasets to gain insights and support decision AI will also find application in BIM and related
making 116. Big data can also be generated from programmes to support strategic and real-time
aggregated time series of data accumulated over a decision making..
period, which is useful to analyse patterns and
4.1.4 Digital collaborating, workflow and
trends.
project management
Contractors as well as owners already possess vast Many recent reports and commentators have
amounts of data; analytics techniques can emphasised that greater collaborative working in
disaggregate budgets and schedules down to the construction industry can enhance productivity
hours; and productivity and wage rates per trade significantly. This includes collaboration among
provide practical predictive insights for use in bids, employees of the same company, but particularly
estimates, and plans. One US company is reported also the enhancement of collaboration amongst
to have successfully implemented this approach on the multitude of subcontractors working on a
more than 40 project sites. project, as well as designers, owners and funders.
Analytics
Advanced analytics is the tool used to analyse the “The construction industry’s ‘collaboration
(big) data sets, often combined with artificial problem’ is at the root of its change
intelligence (AI). ‘Descriptive analytics’ produces inertia…”
an analysis of historic data – what happened in the Farmer Review of the UK Construction Labour Model,
past and why. Although useful, in a sense this is a October 2016
reactive mechanism. ‘Predictive analytics’ can
assist by predicting which conditions can develop Continued reliance on paper-based processes
in the future, given the current status. This feature (including design, communication, procurement,
can very useful for simulations or alerting users to equipment logs, progress reports) is contributing
possible adverse events which may occur in the to the poor productivity in the construction sector
future. However, actionability is important in and hampering collaboration and coordination. A
construction settings. Knowing what may happen lack of digitalisation also causes delays in
in the future is not the same as knowing what to information sharing and can lead to ‘confusion’ if
do about it. ‘Prescriptive analytics’ supports everybody is not working from the same data set
decision makers by identifying and recommending at any given time (“….everybody has a different
options for action. When combined with mobile version of the truth”). Paper-based processes also
applications, these information and makes it more difficult to capture and analyse data.
recommendations can be provided in real-time to
users on the site and in the field. The benefits of

116
https://www.thebalance.com/how-the- http://www.mckinsey.com/industries/capital-
118

construction-industry-is-using-big-data-845322 projects-and-infrastructure/our-insights/reinventing-
117
http://www.mckinsey.com/industries/capital- construction-through-a-productivity-revolution
projects-and-infrastructure/our-insights/reinventing-
construction-through-a-productivity-revolution

DeltaHedron Innovation Insight [Return to Table of Contents] © DeltaHedron 2017


The impact of emerging technologies on the construction industry

Digitalisation enables more real-time collaborating aimed at the construction industry assist
and data-sharing, particularly through mobile contractors with administration, ensuring that
technology. When integrated as an element of they are complying with relevant safety and other
enhancing workflow, ranging from project concept regulations 120 and document handling 121.
to commissioning, this can contribute significantly
4.1.5 Building Information Modelling (BIM)
towards enhancing productivity.
Computer-aided design and particularly 3D
Digital collaborating improves the transparency of modelling were pioneered by aerospace
processes and facilitates large-scale data mining. companies in the 1970s. This transformed the
Mobile apps can be synced with sensors, wearable design and manufacturing processes for aircraft,
devices and fixed IT infrastructure (such as desktop led to the development of more advanced and
machines). Typical uses include productivity cost-effective aircraft and increased productivity
tracking, report generation, document significantly. 35
management, material logistics, and inventory
A similar “A recent survey
management. Digital mobile collaborating tools
approach was indicated that between
will increasingly be used to create collaborative
adopted in the 70-80% of contractors
project development. These tools include mobile
construction perceive there to be a
technology, integrated project management tools,
industry, when positive return on
BIM as well as virtual and augmented reality 119.
Building
investment in BIM…”
Information
“Digital collaborating and mobility solutions
Modelling
have attracted close to 60% of all venture
(BIM) was introduced around the turn of the
funding in the construction industry. This is the
century 122 as a process of developing a building’s
fastest-growing and most penetrated area for
features digitally. A number of governments,
digital technology in construction, and it is
including the UK, Singapore and Finland now
attracting the majority of venture and growth
mandate the use of BIM for public infrastructure
capital funding…”
projects. American construction companies are
McKinsey
likely to increase their use of BIM following the
success of the BIM mandate in the UK.
A number of technologies are being used to
McKinsey recommends making BIM universal as a
develop tools which will enhance various aspects
contributor towards enhancing productivity and
of collaboration. Building Information Modelling
cutting costs, and then to mobilise advanced BIM
(BIM) is very prominent, but others include project
across the project life cycle with augmented and
management, logistics and inventory as well as
mixed reality interfaces 123 as ways of increasing
geolocation systems. These systems typically rely
productivity and cutting costs.
on a number of the emerging technologies
discussed below, including mobile, cloud, According to a 2014 Building Design Construction
analytics, big data, internet of things and artificial BIM survey 124, more than 80% of all construction
intelligence. companies used one or other type of BIM system.
The streamlining of workflow is a related problem. A recent survey indicated that between 70-80% of
A number of emerging technologies are being contractors perceive there to be a positive return
applied to implement workflow programmes on investment in BIM, and that on average they
which can enhance efficiency, planning and expect the percentage of their work involving BIM
coordination as well as data driven decision- to increase by 50% 125. Contractors in all
making. Other specialised software programmes construction sectors were planning significant

119
https://esub.com/construction-industry-trends- 123
http://www.mckinsey.com/industries/capital-
watch-2017/ projects-and-infrastructure/our-insights/reinventing-
120
https://hbxl.co.uk/5-construction-trends-2017/ construction-through-a-productivity-revolution
121
https://www.skysite.com/tag/construction- 124
https://www.thebalance.com/construction-erp-
industry-trends/ software-trends-845314
122
https://thebimhub.com/2017/06/30/aec-industry- 125
http://www.mckinsey.com/industries/capital-
trends-driving-toward-connection/#.WWXdjYjyvcs projects-and-infrastructure/our-insights/reinventing-
construction-through-a-productivity-revolution

© DeltaHedron 2017 [Return to Table of Contents] DeltaHedron Innovation Insight


The impact of emerging technologies on the construction industry

investments to enhance their BIM capabilities over 3D BIM offers extensive 3D modelling combined
the next two years, with more emphasis on with the use of intelligent data. Data is embedded
internal and external collaborating, mobile into the BIM model and managed, which allows
hardware and BIM-related software. Among the workers to run multiple scenarios, change
top five benefits of BIM cited were fewer errors processes and input functions to view the
and omissions, less rework and lower costs. The implications of these on the project, simulations.
survey also found that the companies with the The spatial data and information on materials,
greatest BIM engagement reported the highest fixtures and fittings allow for calculation of space
return on their BIM investments. and volume. It also enables BIM to compile bills of
The digital BIM model can and should be used quantity, to which cost estimates can be added.
throughout the building’s lifecycle 126. To obtain the Next-generation 4D, 5D and 6D BIM platforms of
36 full benefit of BIM, owners, designers and the future 128 will be capable of delivering insights
contractors need to incorporate BIM from the that include both cost and scheduling functions. 4D
design stage through construction and while the BIM embeds time-related information into the
building is in use. BIM models can also be model, while 5D BIM also incorporates schedule
developed retroactively for older buildings where and costs. The addition of cost and schedule
it was not used in the design and construction overlays enables 5D BIM to become a powerful
phases. BIM models can also be updated visualisation and project-management platform
dynamically with real-time information obtained through the life cycle of a project.
from various sensors, including those used for
scanning and mapping, to track progress and 6D BIM refers to the system delivered to the owner
monitor resources. when a construction project is completed. It is
intended to aid facilities managers in the operation
and maintenance of the facility, and also when
Video clips showing BIM in alterations to buildings are required. The "As-Built"
construction can be seen BIM model is typically populated with relevant
here and here building component information 129.
Future generations of BIM will be integrated with
augmented and virtual reality technology to create
3D, 4D, 5D and 6D BIM seamless interaction between offices and the work
Before BIM, architects and construction site. The Microsoft Trimble HoloLens platform, for
companies relied on detailed paper-based example, enables the interacting of a 3D hologram
processes, with hand-drawn plans and 2D with a design, using a wearable holographic
drawings 127. That has now changed, and BIM has computer.
become an industry best-practice for large and
Virtual design tools such as BIM enable the ‘virtual
complex projects. It is equally useful for smaller
twinning’ of buildings and structures. This involves
projects. BIM implementations can range from
the creation of a digital representation of the
fairly basic to highly sophisticated
physical and spatial dimensions of a project, which
implementations. The original 3D BIM models
in turn promotes the quality and speed of
were simply software models of buildings,
decision-making. This creates new ways to
enabling 3-dimensions projections of buildings to
visualise the project and also enhances the ability
be viewed on computer screens. The 3D image of
to share ideas and manage change.
the building could be rotated, different cuts taken
through various planes and certain features
highlighted or isolated. Current and future
generations of BIM can, and will be able to, do
much more.

126
http://archinect.com/firms/release/67343028/is- 128
http://www.mckinsey.com/industries/capital-
bim-more-beneficial-to-overall-construction- projects-and-infrastructure/our-insights/reinventing-
industry/150000521 construction-through-a-productivity-revolution
127
https://www.morson.com/2016/08/technology- 129
https://en.wikipedia.org/wiki/6D_BIM
trends-that-are-transforming-the-construction-
industry/

DeltaHedron Innovation Insight [Return to Table of Contents] © DeltaHedron 2017


The impact of emerging technologies on the construction industry

Specialised software, BIM can assist with the


“Virtual design tools software is identification and obtaining of bonus LEED
such as BIM enable the available to credits for regional environmental priorities.
‘virtual twinning’ of simulate the Some BIM products can calculate a new
buildings and effects of the building’s effect on the environment. They
structures…” internet-of- can assist with choosing which materials are
things (IoT) on a best for the environment, including cost
building. These programmes can be used to comparisons of those with non-sustainable
simulate various operational effects, such as materials.
methods to enhance energy efficiency, before they • Archiving a “BIM also creates a
are physically implemented. This can very useful to building’s digital ‘memory’ of the
optimise energy consumption in the design phase history. BIM
building….” 37
and to forecast savings, for example 130. The also creates
modelling allows pre-implementation a digital
optimisation, either in the design phase or once ‘memory’ of the building. It can record all
the building is in use. This approach can enhance aspects of his history and operation, including
productivity and contribute to cost savings – some problems which have occurred in the past and
claim savings of circa 30%. how they were resolved. When changes and
Mitigating risk with BIM alterations need to made later in the lifecycle,
BIM can contribute in a number of ways towards the BIM model can guide the designers and
mitigating construction risks and reducing project contractors, who may not have been involved
liability, including safety, planning and execution in the initial design and construction. This can
risks 131, viz. facilitate and speed up the design and
• Planning for and operating safer buildings. alterations, and help to prevent future design
BIM can facilitate planning processes to and safety problems.
develop sequenced task schedules, where 4.1.6 Internet of Things (IoT) and sensors
potential hazards can be spotted before they The Internet of Things (IoT) refers to the
occur or eliminated in the design phase. It can connection of intelligent devices which allow them
also provide a safety risk analysis. A set of to communicate with one another as well as with
rules, based on compliance regulations and humans, typically over the internet and often using
safety-related best practices can be wireless technology. IoT devices can be sensors as
formulated and coded into the BIM software. well as machines and computers.
These rules can then operate on the digital
IoT allows construction machinery, equipment,
model of the building to ‘investigate and
materials and structures to communicate with one
identify’ possible safety problems. Similar
techniques can be used to detect and another and also connect to humans. The data is
eliminate design errors. typically routed through a central data platform
where it is also analysed, but it can be accessible
• Helping to limit the risks of negative project
via mobile devices.
events. BIM systems, integrated with
construction management software, can The construction and downstream industries such
streamline cost and time estimation of jobs as facilities management and real estate operators
and reduce or eliminate delays. It can also of buildings will be some of the most significant
help to reduce cost and time variability markets for IoT.
between projects.
• Contribute towards making construction
projects more environmentally friendly. BIM Video clips showing the
can help construction planners forecast which IoT (internet of things) in smart
LEED credits are attainable with a new buildings can be seen
project. Linked with green construction here and here

130
https://www.forbes.com/sites/bisnow/2017/03/09/ https://www.thebalance.com/how-can-bim-
131

how-bractlets-building-model-tech-beats-everyone- mitigate-construction-risks-845317
elses/#6ce268af5357

© DeltaHedron 2017 [Return to Table of Contents] DeltaHedron Innovation Insight


The impact of emerging technologies on the construction industry

Internet of Building Things (IoBT) value of $16.3m by 2025, up from $5.4m in 2016.
McKinsey recommends leveraging IoT-enabled However the market is fragmented because of the
fully connected sites as a way of enhancing large number of vendors. The main market
productivity and cutting costs 132. Some refer to this segmentations are energy and climate
niche of IoT as the “Internet of Building Things” management (dominant segment, >25%) , access
(IoBT). IoT and specifically IoBT will be at the heart and security control, home entertainment, lighting
of smart buildings, smart roads and smart cities. digital and telehealth devices 136.
Commercial real Asset tracking
“IoT devices can estate owners IoBT can be used VergeSense developed
generate data at a will be among to track asset an intelligent artificial
tremendous rate. the earliest utilisation and
intelligence-driven IoT
38 adopters of performance of
Compare Facebook’s sensor to assess room
widescale IoBT, construction
daily data production of utilisation. The system
to the extent assets and
600 terabytes, with the that it will equipment. By requires no tags for
844 terabytes of data become a capturing real- individuals, and
generated by a single competitive time data from passively tracks how
twin-engine aircraft In requirement 133. construction office space is used. The
just 12 hours…” IoBT will crews, equipment ‘sensor as a platform’
Huffington Post improve and stores it uses machine learning in
building enables pre-trained AI modules
efficiency and also greater create customer value. contractors to to perform all the
It will increase market differentiation and uncover optimise logistics
processing in the device
new revenue opportunities. and supply
itself, rather than
The adoption of IoBT is in an infancy stage, with chains, and
reconcile material transmitting masses of
just 9% of respondents to a Deloitte webcast poll
plans with ‘raw recordings’ for
in 2016 indicating that their organisations were
physical processing elsewhere…”
planning portfolio-wide adoption of IoT, of which
22% were doing so in a piecemeal fashion; and 21% availability. IoT- TechCrunch
said they had no IoT plans yet 134. However, is enabled systems
estimated that smart commercial buildings will be can work with robots to increase the accuracy and
the biggest users of Internet of Things (IoT) speed of warehouse processes. In addition, IoT
technology through 2017 135, with the installed data can be fed into analytics processors and
bases of IoT sensors in commercial buildings combined with business intelligence and BIM
growing from 377.3 million in 2015 to more than a programmes. The information can then analyse
billion in 2018. The market for IoBT is forecasted to productivity and generate predictive trends,
grow from $46 billion in 2014 to $155 billion in estimates and recommendations to support
2020. decision-making and mitigate risks.
Project sites are getting denser and generating vast IoT applications in construction
amounts of data. A significant amount of this data Construction applications of IoBT include:
is not captured and subsequently lost, let alone • Geolocation, including the tracking and
measured, processed or acted upon. identification of personnel. Monitoring of the
health and wellbeing as well as accountability
Smart homes
and performance of personnel.
The global smart home market is expected to grow
13.3% CAGR between 2017 and 2025 to reach a

132
http://www.mckinsey.com/industries/capital- http://www.gartner.com/newsroom/id/3175418
135

projects-and-infrastructure/our-insights/reinventing- http://www.sbwire.com/press-releases/smart-
136

construction-through-a-productivity-revolution home-m2m-market-presence-of-many-rominent-
133
http://deloitte.wsj.com/cio/2016/10/26/iot-poised- players-makes-competition-stiff-843730.htm
to-transform-building-management/?mod=WSJBlog
134
http://deloitte.wsj.com/cio/2016/10/26/iot-poised-
to-transform-building-management/?mod=WSJBlog

DeltaHedron Innovation Insight [Return to Table of Contents] © DeltaHedron 2017


The impact of emerging technologies on the construction industry

• Geolocation and tracking of equipment and Sensors


tools, vehicles and materials with geofencing IoT devices are typically equipped with one of
• Monitoring of equipment, maintenance and more sensors, which measure operational
repairs. Breakage and maintenance variables. This data is then communicated to and
interventions; and prevention of collisions. shared with other devices, in addition to being
• Inventory management and procurement. used locally by the device itself.
Supply replenishment forecasting and just-in- A wide range of sensors is being connected to IoT
time (JIT) ordering. RFID tags can count items, devices in many industries. The sensors
trigger automatic replenishment and also themselves rely on many different technologies,
pinpoint the location and movement of but their common IoT characteristic mandates that
materials. they all have the ability to communicate the
• Quality assessments. information they are measuring. 39
• Energy efficiency. In the construction industry, useful sensors include
• Sensors for measuring ambient conditions devices which can measure:
and fuel consumption, for example. • Motion, position and identification
• Control of devices, including HVAC and other o Presence of people and identification of
internal environmental parameters, entrance individuals.
and security. o Presence and identification of equipment
• Remote operation. Wearable computing such and tools, vehicles and materials.
as Google Glass can provide on site access of o Geolocation, distance, direction, speed
instruction manuals in a hands-free mode, or and acceleration.
benefit from remote support by ‘seeing what o Rotation speed.
they see’. • Bioinformation.
Adoption of new technologies typically bring new o Physical health and emotional state of
challenges. In the case of IoT, these include, people, including pulse rate, body
technology integration and interoperability, temperature, blood pressure and weight.
analysing data generated by IoBT and smart The smart home of the future will be
buildings as well as cybersecurity and data privacy configured for telehealth, including the
issues. ability to measure and communicate the
health status of occupants.
“EquipmentShare developed its own telematic o Fatigue. Remote usage monitoring, and
platform for construction machinery and automatic logging of hours. Limits can be
vehicles . It provides access to information like monitored, to prevent fatigue and stress
fluid levels, pressures and other data and accidents. Alertness and wellness.
pertaining to machines’ status. By enabling o Substance use (and abuse) by
proactive maintenance, significant cost savings personnel 137.
and lower down-time can be achieved. • Environmental conditions.
Telematics information can also determine o Heat, temperature, light, moisture, fire, UV
whether a machine is underused, and indicate and the presence of toxins and gases.
areas where the cost of ownership can be • Images and sound, including infra-red for use
decreased by putting the machine to greater in the dark.
use…” • Telecommunications connectivity and usage.
Huffington Post
• Resource efficiency.
o Energy, water and waste.
• Stresses and strain of structures, pressure and
fluid levels.

137
http://www.veritas-
consulting.co.uk/blog/substance-misuse-and-drug-
testing-in-the-construction-industry/

© DeltaHedron 2017 [Return to Table of Contents] DeltaHedron Innovation Insight


The impact of emerging technologies on the construction industry

Wearables applications. LiDAR uses optical lasers to detect


‘Wearables’ are items worn by people, which thousands of points per second, from which a 3D
incorporate IoT type sensors. These can include image can be obtained.
clothing, safety equipment, watches, fitness LiDAR technology is much faster than conventional
sensors and geotags. technologies and provides high-quality 3D imaging
Building automation systems that can be integrated into project planning tools,
Building automation systems 138 are being such as BIM. It can be used in conjunction with
introduced to new and existing buildings 139 in drones or handheld scanners. These technologies
order to automate various processes such as enhance the accuracy and quality of surveys and
heating, ventilation and air conditioning (HVAC), reduce the labour and time needed to conduct
lighting and similar functions. them.
The fact that
40 LiDAR can generate above-ground and
“…building automation building
underground 3D images of project sites, when
can be retrofitted to automation can
used in conjunction with ground penetrating radar
existing buildings…” be retrofitted to
and magnetometers. Contractors are also able to
existing
update BIM models dynamically based on these
buildings is another factor fuelling their increasing
surveys, allowing them to track progress and
adoption. The automation is enabled by the
monitor resources in real-time. This can be
Internet of Things.
complemented by GIS (Geographic Information
4.1.7 Geolocation, tracking and spatial Systems) which allow maps, images, distance
measurement measurements and GPS positions to be overlaid.
Spatial information is an important data element in
Geolocation
construction, and hence also the ability to measure
Geolocation technologies can be used to identify
distance, speed and location accurately.
and track the position and movement of people,
Modern remote surveying technologies can be tools and equipment, vehicles and materials on
used to avoid geological surprises. Geological site 140. Technologies which are used in these
information can provide site overviews rather than applications include GPS, bluetooth as well as
just information (external and internal) of various nearfield devices, such as RFID sensors.
individual buildings. Information from individual people, tools,
Distance measurement equipment, vehicles and materials are transmitted
The industry has been using electronic distance wirelessly to a central server, where it is analysed,
measurement for surveying for some time. reported and displayed.
Photogrammetry and satellite positioning systems
which produce high-resolution images are also “Geofencing is a technique which allows the
used. However, these are costly and the post- user to set virtual boundaries in a geolocation
processing time needed to convert the information device. If the objects being tracked cross the
into usable data makes it most useful for large geofences, the user is alerted This can also
sites. It remains highly labour-intensive. help to minimise theft from construction
Light detection sites…”
“….LiDAR laser scanning and ranging
is a new technology (LiDAR) laser Geolocation technology can improve safety of
which is proving to be scanning is a personnel on site, particularly in the case of
very useful in new technology emergencies. Tracking technologies can also be
construction which is proving linked to biosensors which can indicate the
to be very useful physical and emotional state of personnel,
applications”
in construction including whether equipment operators are

138
http://www.businessinsider.com/sc/autonomous- 140
“People tracking technologies”, DeltaHedron
buildings-use-smart-technology-2017-7?IR=T Innovation Insight, No 3/17 (May 2017)
139
http://www.sbwire.com/press-releases/research-
offers-10-year-forecast-on-building-automation-
systems-market-by-future-market-insights-802622.htm

DeltaHedron Innovation Insight [Return to Table of Contents] © DeltaHedron 2017


The impact of emerging technologies on the construction industry

experiencing stress or fatigue. The technology can efficient tracking of inventory levels and automatic
help with project management and scheduling, as well as anticipatory and predictive
and can improve site security and prevent theft. replenishment from suppliers. This allows products
Waste due to labour mistakes and fraud in the to be shipped before a construction firm even
construction industry is considerable 141. places an order. The ‘order signal’ is triggered
The ability to track the availability and movement automatically when the sensors detect that stock
of materials on site can help with logistics, project levels are dropping below a threshold level.
management and scheduling. Replacement Shipments already en route can be rerouted in
materials can be ordered in a just-in-time manner real-time to a new destination if necessary. Timing
when stock is depleted. Tracking of vehicles can of deliveries can respond to external factors such
alert site personnel when a delivery truck is close as weather conditions and market
to arrival, so that its content can be received. trends in order 41
to optimise the “Katerra recently
4.1.8 Logistics, supply chains and procurement
price and the launched a data-
The construction sector ranks in the lower range of
time of delivery. enhanced global
sophistication in the Global Purchasing Excellence
By using sourcing model to help
Survey published by McKinsey’s Procurement
advanced
Practice 142. McKinsey has also named develop a supply chain
BIM with a
improvements in procurement and supply-chain which reacts to potential
supply-chain
management as one seven areas which can disruptions and market
dimension,
drastically improve productivity and cut costs in dynamics with predictive
suppliers can
construction. It estimates that global productivity replenishment of
continuously
improvement from implementation of best
update the supplies informed by
practices in this area can 7-8%, with cost savings of
3-5% 143. Best practice in areas such as digitising
delivery inventories connected to
schedule in real- the IoT…”
procurement and supply-chain workflows will
time. This
enable more sophisticated logistics management McKinsey
enables the
and just-in-time delivery.
contractor to
In order to achieve this, McKinsey recommends know where things are and if any delays are
the use of standard procurement tools and expected to optimise the just-in-time deliveries.
mechanisms, the creation of a central
Relevant data on cost structures, supply
procurement organisation and ‘clean sheeting’ to
availability, lead times, financial and operational
improve supplier and subcontractor management.
risks as well as service and quality metrics can all
Once these basics are in place, there should be
be integrated into procurement systems. Two
investment in supply-chain and inventory
categories of digital applications are important in
capabilities to address the recommended shift
this regard, viz.
towards a production system approach; as well as
implementation of digitised procurement- • Applications which identify and create value,
management systems, which incorporate analytics including applications which create visibility
as well as simulations and real-time predictive and transparency regarding spending, by
supply-chain practices. using historical data on invoices, material-cost
indexes and other benchmarks to identify
Digital technologies, including the Internet of
opportunities in sourcing and procurement 144.
Things (IoT) and advanced automation, will
increasingly contribute towards automating • Applications which prevent the leakage of
logistics and the management of supply chains, value, including applications which create
and create more real-time flexibility. IoT enables predictive order configurations automatically,
and identify potential suppliers for categories

141 143
http://www.mckinsey.com/industries/capital-
http://www.constructiondive.com/news/construction- projects-and-infrastructure/our-insights/reinventing-
industry-trends-2017/433151/ construction-through-a-productivity-revolution
142
http://www.mckinsey.com/industries/capital- 144
http://www.mckinsey.com/industries/capital-
projects-and-infrastructure/our-insights/reinventing- projects-and-infrastructure/our-insights/reinventing-
construction-through-a-productivity-revolution construction-through-a-productivity-revolution

© DeltaHedron 2017 [Return to Table of Contents] DeltaHedron Innovation Insight


The impact of emerging technologies on the construction industry

not covered by contracts or catalogues. This structure. VR is particularly powerful in allowing


enables companies to track receipts and clients to interact with and better understand the
goods automatically, and eliminates the need unbuilt design. Changes can be made to the digital
to match invoices 145. virtual building, and by ‘walking around’ virtually,
Advanced data-driven analytics can identify non- the user can see the effect of the changes. VR
compliance in transaction-intensive purchases as environments are also very useful for training
well as large, high-value outsourced contracts. purposes, as they embed the trainee into a 3D
Contract conditions can be extracted with machine environment where many scenarios, including
reading and compared with continuous streams of hazardous situations, can be simulated. VR training
invoices, supplier activity and other performance is very effective for the training of operators of
data. vehicles and equipment.

42 Digital market places Designers are


It is foreseen that there will be a growth in digital increasing using “The 3DEXPERIENCity
marketplaces — online platforms which match virtual reality as ‘Experience Room is an
owners and contractors buying materials and part of their example of how AR/VR
services with contractors and suppliers who regular design tools work in construction.
provide them. They can include, for example, processes. Stakeholders are projected
markets for equipment sharing (largest application Mecanoo 147, for into a collaborative
for markets) as well as for building materials, home example, workspace through which
improvement and jobs. provides its experts from government,
clients with a business, urban planning,
Digital marketplaces can enhance transparency, infrastructure design, and
range of VR
one of the root causes of low productivity growth. so on, can work together
experiences,
There will an increase in the use of e-auctions (a in harmony to define a
ranging from
one-time negotiation in which all suppliers can see viewing spaces city’s future…”
the prices their rivals are offering, heightening via a The BimHub
competition) using web-based online platforms, smartphone to
producing savings in the range of 10- 20% 146. fully immersive engagements through 3D
4.1.9 Virtual reality (VR) and augmented reality headsets.
(AR) Augmented reality (AR) is a technology which
Virtual reality (VR) is a technology which enables superimposes or overlays additional information
the user to view a virtual 3D environment through onto the user’s view of the real world. A heads-up
a special VR headset. Contemporary VR display in the windshield of a car can, for example,
environments are expanding this capability to overlay conditions on the road or the presence of
include sound, motion, tactile and other sensory animals of pedestrians at night on the windshield.
experiences. The virtual environment simulates a
By wearing AR glasses, information about a tumour
real or digitally created environment, and the user
can be overlaid in real-time onto the area of a
experiences the VR environment as if he/she ‘is
patient where a surgeon is operating. By pointing a
there’. In the virtual environment, the user can
smart phone at a building, the AR app will
perform acts as if he/she was in the real situation,
recognise the building and provide additional
and the environment engages in an interactive
information, including images, audio and video
manner.
information about the building.
In the construction industry, VR can be used to
An application was recently reported where AR
create 3D representations of buildings before they
allows constructions workers to ‘see through
are built, allowing the user to move around the
walls’ 148. Other potential applications can include
building to see and ‘get the feeling’ of the

145
http://www.mckinsey.com/industries/capital- 147

projects-and-infrastructure/our-insights/reinventing- http://www.designboom.com/architecture/mecanoo-
construction-through-a-productivity-revolution virtual-reality-johan-hanegraaf-interview-05-28-2017/
146
http://www.mckinsey.com/industries/capital- 148
https://redshift.autodesk.com/augmented-reality-
projects-and-infrastructure/our-insights/reinventing- in-construction/
construction-through-a-productivity-revolution

DeltaHedron Innovation Insight [Return to Table of Contents] © DeltaHedron 2017


The impact of emerging technologies on the construction industry

the modelling of buildings and the 3D mapping of • Possible dangerous situations can be explored
archaeological excavations 149. without subjecting people to dangerous
The construction industry has so far only dabbled environments.
in the use of VR/AR to aid in construction practices, • Aid in safety training for new employees.
but as cheaper and higher quality options come to Dangerous and hazardous situations can be
market, it is expected to take off rapidly. simulated, and employees trained to deal
with them, without having to do the training
in a real environment.
“Buying furniture is often challenging because
of the uncertainty of what an item will actually 4.1.10 Cyber security and blockchain
look like in the home. A new 3D tool allows the Cyber risks
user to ‘try furniture before buying it’. Houzz A high degree of digitalisation is desirable, but
has developed an online platform, brings its own risks. Cyber security and data 43
incorporating an augmented app, dedicated to protection are certainly amongst the highest of
interior design and home décor. The app allows these. All companies need to ensure that they have
the user to ‘try out’ furniture in the home in the taken adequate steps to protect their IT
same way one would clothing in a store. The infrastructure – whether it be computers and
user can preview up to 300,000 different pieces digital devices, networks and servers, cloud and
of furniture and other decor products in their mobile applications or IoT-enabled devices – are
home before they make a purchase. 3D models secure from unauthorised access, data theft and
are ‘placed’ into the user’s home, accurately manipulation. Business continuity and disaster
representing materials and textures, and recovery are high priorities.
offering a realistic visualisation of how the Once hackers have gained access to a company’s IT
physical item will look in the home….” assets, they have the ability to steal, manipulate or
Thisisinsider erase data, steal money and identities, and disrupt
and disable systems and machines. Cyber security
poses huge risks, which include financial, liability
and reputational damage. External denial-of-
service attacks, for example, can cause
Video clips showing
tremendous strategic and operational
augmented reality in
disruption , as can viruses and ransomware.
150
construction can be seen
here and here As digitalisation
becomes more
embedded, the “The increased risk of a
volumes of data sensitive information
Video clips showing breach through cyber-
transmitted,
virtual reality in construction intrusion was the
processed and
can be seen here and here biggest concern for
stored increase.
Data leaks, those polled during
whether Deloitte webcast on IoT
Safety enhancement applications of VR/AR maliciously or
• Virtual and augmented reality allows costly in buildings …”
unintentionally
mistakes to identified and rectified before and by accident,
they occur by being able to visualise how can be hugely damaging. Not only could there be a
something will work, without the costs and transgression of data privacy laws (with resultant
hazards of physical trial and error. fines), but sensitive commercial information could
• Field conditions can be communicated in real- be compromised. Companies need to balance the
time to people who are not physically present
on site.

149
https://3dprint.com/179081/palmyra-arch-in-italy/ https://www.forbes.com/sites/patrickmoorhead/20
150

17/05/31/denial-of-service-is-a-growing-threat-how-
can-you-better-protect-your-business/#1ebacaf94f41

© DeltaHedron 2017 [Return to Table of Contents] DeltaHedron Innovation Insight


The impact of emerging technologies on the construction industry

benefits of increasing the amount of data they 4.2 Automation technologies


gather and use with privacy concerns 151. Emerging technologies will contribute significantly
A proliferation of mobile devices and access towards automation in the construction industry,
complicates the cyber security problem, and enhance productivity. McKinsey recommends
specifically with growing concerns regarding the the implementation of automation on
cyber safety of IoT devices 152,153 and bring-your- construction sites as a mechanism to enhance
own-device (BYOD) policies. productivity and cut costs 157. Estimates suggest
Blockchain that the construction industry could automate
Blockchain is well known as the technology driver 68% of on-site tasks, one of the highest of any
of the bitcoin cryptocurrency. It is a technology sector. Areas where it will impact include design
which is used to ensure and verify the integrity of and contracting, workflow as well as on-site
44 records of transactions in a secure manner. It is a execution. Automation will necessarily also have
very powerful technology in own right, and has a an impact on employment and the nature of work
vast range of applications in many industries in the industry.
beyond cryptocurrencies 154. 4.2.1 3D printing and scanning
Blockchain is a 3D printing, also referred to as ‘additive
"… BimSense is working distributed manufacturing’, is a manufacturing process 158
on a blockchain backed ledger system, which creates a three-dimensional object by laying
BIM data idea at the meaning that a down layers of thin horizontal cross-sections until
moment. This will mean copy of all the the entire project is completed. 3D Printing is used
an immutable record of records of all in many industries, and its use is steadily growing
who added what to the transactions are in construction. 4D printing is a process whereby
digital asset” continuously objects are 3D printed, but then alter their shape
updated on a after having been printed. These changes can, for
vast number of computers across the world. This example, allow objects to self-transform as they
makes it impossible for a single user to tamper with respond to heat, sound or moisture levels.
any given record, because all the other computers Models of buildings, prototypes and smaller parts
where the records are kept will cry foul. Blockchain can be 3D printed. They can also be easily changed
allows the direct transacting of business between and reprinted. Large construction structures
parties and eliminates the middleman. require super-size printers and specialised
Blockchain will increasingly find applications in the materials. 3D printing allows the production of all
construction industry, including digital payments, sorts of twisted construction forms, which were
self-executing contracts, verifiable digital previously difficult or impossible to create through
identification, workflow applications and records other methods 159.
of procurement and inventories 155. 3D printers for construction applications typically
It has been suggested that blockchain can be at the use cement as the ‘ink’ 160. Cement used in 3D
core of the next generation of collaboration tools printing is composed of additives from
in construction, when combined with BIM, by construction waste, sand, fibre and other
providing enhanced transparency and materials. Manufacturers claim that this new
incentives 156. technology can save 90% on labour-related costs.

151
http://www.bbc.co.uk/news/business-40441434 156
https://www.linkedin.com/pulse/future-
152
collaboration-construction-trust-backed-david-hughes
https://www.recode.net/2017/8/1/16070996/congres 157
http://www.mckinsey.com/industries/capital-
s-internet-of-things-cybersecurity-laws projects-and-infrastructure/our-insights/reinventing-
153
http://www.mobihealthnews.com/content/tactics- construction-through-a-productivity-revolution
defending-iot-devices-hackers-often-overlooked- 158
http://www.constructionworld.org/impact-3d-
experts-say printing-construction-industry/
154
http://www.itproportal.com/features/what-is- 159

blockchain-everything-you-need-to-know/ http://www.aurecongroup.com/en/markets/property/
155
https://futureofconstruction.org/blog/will- buildings-of-the-future/designs-that-make-sense.aspx
blockchain-transform-the-construction-industry/ 160
http://www.industrytap.com/3d-printed-
construction-saves-80-overall-building-costs/43156

DeltaHedron Innovation Insight [Return to Table of Contents] © DeltaHedron 2017


The impact of emerging technologies on the construction industry

“The London Crossrail, 3D printing is • Greener construction.


proving to result • Speedier project planning and mock ups,
to be named the
in shorter identification of flaws and pain points before
‘Elizabeth Line’, is project times construction starts, and clearer client
claiming to be the and less waste. expectation.
world’s first commercial Some of the • Global development, creating homes for
3D printed construction buildings now people in developing countries and destitute
project (‘not a purely being built with areas.
conceptual demo’). 3D printers are
Precise wax moulds completed “Printed buildings will be the future within 10
rather than concrete within 24 hours, years.… this is a potential disruptor to the
and fast drying construction industry and designers…”
itself is printed. It is Aurecon 45
claimed that this materials allow
structures to be
method has several Although 3D printing is still in the early stages of
finished in a
advantages, including adoption in construction, it is possible to print
matter of days.
structural integrity and submodules as well as complete concrete
A two-story
strength, less waste and structures. Illustrative examples of ongoing
1,200 m² house
research are often useful signals and precursors of
cost…” can be printed in
3ders what has already been achieved, what we can
one day with a
expect and the emergence of trends:
few days of assembly requiring just three human
workers. • The European Space Agency (ESA) is using 3D
printing to address the challenges of
3D printers are also creating construction modules
transporting materials to the moon in order to
in off-site factories which are shipped to the
construct lunar habitations. Their study is
construction site for assembly. This relatively fast
investigating the use of lunar soil, known as
and inexpensive alternative has many implications
regolith, as a building material to be used by a
on the way construction is done now, and more
robot-operated 3D printer 165.
importantly, how it will alter the industry in the
future. As in the case of other automation-related NASA also supports 3D printing technology,
technologies, its adoption will also impact of the inter alia to build houses in space where
labour force and nature or work in the construction astronauts can live. It is claimed that 90% of
industry 161. materials needed for construction are already
on the moon, so that it would be feasible to
Advantages of 3D printing in the construction
transport the remaining 10% from earth in a
industry include 162,163:
spaceship 166. It is anticipated that the 3D
• Increased speed, accuracy and efficiency 164.
printed technologies which are being
3D printing ensures that each subsequent
developed for space exploration could also be
piece is uniform and consistent.
used on earth, for example for building
• Significantly lowering labour costs and cost shelters in regions where construction
savings on supplies. supplies are low.
• Greatly reduce the amount of waste.
• Creating safer work environments and NASA has awarded $100,000 to two winning
reducing health and safety risks. teams in the first segment of the agency’s 3D
• ‘Contour crafting’ enables large projects to be Printed Habitat Challenge in May 2017 167. The
3D printed. aim of the challenge was to “foster the

161
http://www.industrytap.com/3d-printed- 165

construction-saves-80-overall-building-costs/43156 http://www.aurecongroup.com/en/markets/property/
162
http://www.constructionworld.org/impact-3d- buildings-of-the-future/designs-that-make-sense.aspx
printing-construction-industry/ 166
https://viterbi.usc.edu/news/news/2014/3d-
163
https://www.thebalance.com/a-guide-to-the-future- printing-a.htm
3d-printing-and-construction-3960242 167
http://trendintech.com/2017/05/19/success-so-far-
164
http://www.industrytap.com/3d-printed- nasas-100k-awarded-3d-printed-habitat-challenge/
construction-saves-80-overall-building-costs/43156

© DeltaHedron 2017 [Return to Table of Contents] DeltaHedron Innovation Insight


The impact of emerging technologies on the construction industry

development of technologies to manufacture power of 3D printing to add value to the


a habitat using local indigenous materials national economy and to humanity as a
with, or without, recyclable materials”. whole. The strategy will cover three key
• In March 2014, the Chinese company WinSun economic sectors, viz. 3D printed
claimed to have printed 10 houses in 24 hours, construction, 3D printed medical products
using a proprietary 3D printer which uses a and 3D printed consumer products.
mixture of ground construction and industrial The goal is to ensure that 25% of buildings in
waste, such as glass and tailings, around a Dubai are constructed with 3D printing
base of quick-drying cement mixed with a technology by 2030, with the percentage to
special hardening agent. The 3D printer was be raised progressively with the development
reported to be 6.6 metres high, 10 metres of global technology and growth of market
46 wide and 40 metres long. Large sections were demand. The value of Dubai’s 3D printing
prefabricated with the printer and then construction sector is expected to reach Dhs3
assembled on-site, complete with steel billion (circa US$800 million) by 2025.
reinforcements and insulation. It is claimed
the this process saved 30-60% of construction “The Dubai Clean Energy Strategy 2050 was
waste and decreased production times by 50- announced in 2015, in which 3D printing
70% and labour costs by 50-80%. Using will play an important role in helping Dubai
recycled materials, the buildings reduced the become the most sustainable city in the
need for quarried stone and other materials, world….”
resulting in a construction process that is
environmentally forward and cost effective. In July 2015, Dubai announced plans to build
The ‘ink’ used was made of recycled
an office that would be “the most advanced
construction materials, industrial waste and
3D printed structure ever built at this scale”
tailings. Each of these homes were reported and the first to be put into actual use 170. The
to cost circa $4,800. This project represented project was to be the first major initiative of
the first of an entirely new wave of housing, the ‘Museum of the Future’ and part of a
which is inexpensive, durable and can be larger partnership between Dubai and the
produced in only a few hours. Chinese company WinSun Global. The one-
WinSun printed its own headquarters story prototype was to have circa 186m2 of
building, a 10,000 m2 facility, in a period of 30 space. The building and furniture were to be
days. In January 2015 it was reported that the printed using a mixture of reinforced
company had successfully 3D printed a five- concrete, gypsum and plastic, using a 6m tall
storey apartment building and a 1,100 m2 villa 3D printer. It was estimated that labour costs
in Suzhou Industrial Park, using a special print would be reduced by 50-80% and
material. In July 2017 it was reported that construction waste by 30-60%.
Winsun had signed a $1.5 billion contract with In January 2017 is was reported that an office
Saudi Arabia to print 2.8 million m² of 3D building of 251m2 had been 3D printed in
printed projects 168. Dubai. It required 17 days of off-site
• Dubai, the largest city in the United Arab construction, with only two days of on-site
Emirates, recently launched the Dubai 3D assembly 171. The cost was estimated to be
Printing Strategy 169. The objective is to make $140,000 172. In July 2017 it was reported that
Dubai a global leader in additive WinSun had constructed 17 office buildings in
manufacturing technology. It is a unique and Dubai 173.
wide-reaching initiative aiming to exploit the

168
http://www.industrytap.com/3d-printed- 171
http://jbknowledge.com/top-10-construction-tech-
construction-saves-80-overall-building-costs/43156 trends-2017
169
http://www.impactlab.net/2016/12/20/25-of- 172
http://www.mckinsey.com/industries/capital-
dubais-buildings-to-be-3d-printed-by-2030/ projects-and-infrastructure/our-insights/reinventing-
170
https://wtvox.com/3d-printing-in-wearable- construction-through-a-productivity-revolution
tech/the-worlds-first-3d-printed-building-to-be-built- 173
http://www.industrytap.com/3d-printed-
in-dubai/ construction-saves-80-overall-building-costs/43156

DeltaHedron Innovation Insight [Return to Table of Contents] © DeltaHedron 2017


The impact of emerging technologies on the construction industry

The Institute for Digital Archaeology (IDA), a emissions will be reduced by 40% and waste
collaborating between the University of by 70%, compared to conventional
Oxford, Harvard University and Dubai’s techniques.
• In March 2017 it was reported that Apis
“The future will depend on 3D printing Corporation had built its first ever 3D-printed
technologies in all aspects of our life, home in Stupino, near Moscow 175.
starting from houses we live in, the Construction took only 24 hours during
streets we use, the cars we drive, the December 2016, through temperatures of
clothes we wear and the food we eat…” minus 35°C. The home is equipped with a
Vice President and Prime Minister of the UAE and living room, kitchen, bathroom and a hallway.
Ruler of Dubai, His Highness Sheikh Mohammed It was printed on-site with mobile 3D printer
Bin Rashid Al Maktoum
and is claimed to be a world-first for a 3D- 47
printed building constructed in that amount
Museum of the Future, distribute 5,000 3D
of time. The total cost of construction for the
cameras to citizens in ISIS-stricken war zones
38m2 home was $10,134 ($275/m2), including
so that people could document ancient
the expenses of work, materials for the
buildings, like the Temple of Bel in Palmyra in
construction and furnishing. The company
Syria, and other artefacts before they are lost
claims that a square house with a simpler
forever in the conflict. The Million Image
design and averagely priced material would
Database Project is under the partnership of
cost only $223/m2; and that its method of 3D
the United Arab Emirates, the IDA, and the
printing homes cuts 70% of costs compared to
United Nations Educational, Scientific and
traditional methods.
Cultural Organization (UNESCO). The project
• A giant 3D printer that can print an entire
aims to document historic and archaeological
house of 232 m2, including electricity and
locations around the globe, using 3D
plumbing, in less than 24 hours was being
photography to capture dimensions and
tested by the University of Southern
specifications. The data will then used to
California 176.
recreate the artefacts and structures through
3D printing and other advanced technologies. • Amsterdam-based MX3D has reported that it
More than half a million images have already is developing a technique to print a bridge
been published on an electronic portal. made of steel 177.
• In June 2017, it was reported that the Dutch
3D printing company CyBe Construction had
completed its role in 3D printing a drone
Research and Development laboratory for the
Dubai Electricity and Water Authority
(DEWA). The 168 m2 building was 3D printed
on-site in just three weeks with the CyBe RC
3Dp 3D printer. It features rubber wheel
tracks, which allows it to roam freely around
the construction site. The permanency dilemma – exploring the
viability of disposable housing 178
CyBe will be involved in the 3D printing of ‘De Whereas there is a view that durability and 50-year
Vergaderfabriek’ in the Dutch town of lifecycle contracts will be gather momentum 179,
Teuge 174. The intention is to construct the there is also an alternative view that the future
building in just ten days. As a result, carbon

174
https://3dprintingindustry.com/news/cybe- http://mx3d.com/projects/bridge/
177

construction-3d-prints-concrete-drone-labouratory- https://futureofconstruction.org/blog/disposable-
178

site-dubai-114869/ houses/
175
https://futurism.com/this-home-was-3d-printed-in- 179

only-24-hours-and-for-just-10000/ http://www.aurecongroup.com/en/markets/property/
176
https://viterbi.usc.edu/news/news/2014/3d- buildings-of-the-future/designs-that-make-sense.aspx
printing-a.htm

© DeltaHedron 2017 [Return to Table of Contents] DeltaHedron Innovation Insight


The impact of emerging technologies on the construction industry

may be in the device gathers thousands of measurements


“With an ability to disposable 3D per second at a range of up to 15 metres . A similar
reprint houses in less printed homes. mobile device which can be used for the 3D
With an ability mapping of buildings in real-time has been
than a day, the question
to reprint developed at the Institute for Visual Computing at
can be posed whether houses in less ETH 181. The system has the advantage that it can
an expected lifespan of than a day, the be used outdoors in sunlight.
10-20 years is sufficient question can be Drones are also increasingly also being used for 3D
or even preferable for posed whether scanning and mapping.
residential homes…” an expected Innovative 3D
lifespan of 10-20 laser “Innovative 3D laser
years is sufficient or even preferable for scanning 182 can scanning can be used to
48 residential homes. Arguments in favour of be used to digitally capture the
disposable home approach include: digitally exact measurements of
• When moving to another location, it may be capture the
preferable to reprint one’s home rather than a building….”
exact
settling for what is available in the new measurements
neighbourhood. of a building. This data can then be embedded into
• Housing needs change as people move BIM software to establish the exact size and shape
through different stages in life. When the of a structure. Determining the exact dimensions
children leave the home, a smaller one may be of a project using this form of construction
desirable. On the other hand, it can also be technology means there is no reliance on human
easy to add extensions to a house if it needs measurements, hence reducing human error.
to be larger.
• When weather, fire or termites cause
Video clips showing 3D printing in
significant damage to a home, it may be easier
construction can be seen
and cheaper to reprint a house than to repair
here and here
it, with reworked design features if necessary.
• When autonomous cars make owning of cars
obsolete, garages can be eliminated and
4.2.2 Robotics
reformed into other kinds of usable spaces.
Robotics has had a dramatic impact on productivity
3D Scanning and mapping
in manufacturing, and will do the same in
3D scanning is a process whereby digital 3-
construction. In fact, there has been a suggestion
dimensional data of an object is obtained. The 3D
that construction sites will be run by robots by
digital models are used for inputs to 3D printing,
2050 183. The use of robotics in construction will no
but also to visualise structures in BIM and CAD. The
doubt also have an effect on the labour market 184.
ability to create digital 3D images of buildings and
structures is an essential component of the Robotic technology provides the construction
digitalisation of the construction industry. There industry with numerous advantages.185 Robots do
have been significant recent advances in this area, their work with precision and accuracy throughout
many of them using mobile technologies. all construction processes, which can lead to
significant time and financial savings. With many
A tablet-sized mobile device uses a laser range
robotic systems completely automated, the
finder to make digital models of building sites or
manufacturing of parts and materials will be much
interiors undergoing renovation, in real-time 180. As
more consistent. By removing human error and
an architect or contractor walks through a space,
inconsistency, robots take advantage of speed,

180
https://www.bloomberg.com/news/articles/2017- 183
https://www.balfourbeatty.com/2050
03-09/this-mobile-device-can-map-your-future-home 184
http://www.cornwalllive.com/this-bricklaying-robot-
181
https://phys.org/news/2016-01-d-entire-mobile- could-put-thousands-of-workers-in-cornwall-out-of-
devices.html jobs/story-30282827-detail/story.html
182
https://www.morson.com/2016/08/technology- 185
http://www.constructionworld.org/6-ways-robotics-
trends-that-are-transforming-the-construction- transforming-construction-industry/
industry/

DeltaHedron Innovation Insight [Return to Table of Contents] © DeltaHedron 2017


The impact of emerging technologies on the construction industry

efficiency and repeatability to ensure better Speeding up the demolition process can provide
overall quality. The ability to ensure accuracy and large savings of time and cost.
precision also contributes towards reducing the
amount of waste. “ETH in Switzerland are building the ‘next
Traditional construction, particularly repetitive generation of construction robots’. The DFAB
and predictable activities such as bricklaying, tiling, House integrates the use of a range of
spool fabrication, welding, material handling, emerging construction technologies, and
packing, dispensing, concrete recycling, cutting exploits the strengths and synergies of all. The
and packing can be either fully automated or technologies include robots and 3D printers,
automated to a significant extent by using robots. and can accommodate real-time changes to
designs…”
“The PipeGuard team at MIT has developed a Digital Trends
49
robot which can find the smallest leaks in pipes,
4.2.3 Drones
irrespective of the material from which the
A drone is a vehicle controlled remotely by a
pipe is made. The robot is inserted into the
human operator or a computer. The term generally
water supply, and then either floats passively in
refers to remotely controlled aircraft, also known
the pipe or is controlled. A small robotic
as unmanned aerial vehicles (UAV) 188, but it is also
shuttlecock device gathers data on divergent
sometimes used to refer to remotely controlled
pressures using sensitive detectors on its
ships. Remotely controlled and autonomous
rubber skirt. At the same time it monitors its
vehicles and robots operating on land are being
position. This enables the robot to discover the
used extensively as well, but are not typically
position of ‘anomalies’, i.e. leaks…” MIT
referred to as drones. In this document, the term
‘drone’ is used to refer to UAVs.
“SAM (Semi-Automated Mason) is a bricklaying
robot, produced by Construction Robotics. It Drones can provide value at every step in the
can lay 3,000 bricks per day, compared with building process, and have a multitude of
the average construction worker who can lay applications in the construction industry. McKinsey
400-500 per day…” recommends the use of drones and UAVs for
New York Post
scanning, monitoring and mapping as a way of
increasing productivity and cutting costs 189.
Companies in Australia and the United States have
achieved a masonry productivity gain of more than
100% through the use of bricklaying robots. A
proof-of-concept paving robot called RoadPrinter
is claimed to be 20% more productive than
comparable human paving teams 186. Construction
robots can also include robotic cranes and diggers,
for example 187. As the machinery dig holes and
level land, they can use on-board sensors to collect A drone on a construction site
data to indicate how the site’s layout is changing. It is estimated that the construction industry will
One of the earliest uses of robotics in construction acquire more than 6 million drones by 2025 190,
has been in demolition, including breaking down worth $45 billion (as opposed to drones for
walls, crushing concrete and gathering debris. delivery, which is estimated to be worth $13
billion) 191. Drones is one of the technologies which

186
http://www.mckinsey.com/industries/capital- 189
http://www.mckinsey.com/industries/capital-
projects-and-infrastructure/our-insights/reinventing- projects-and-infrastructure/our-insights/reinventing-
construction-through-a-productivity-revolution construction-through-a-productivity-revolution
187
http://www.cornwalllive.com/this-bricklaying-robot- 190
https://www.inc.com/kate-l-harrison/b4-cool-
could-put-thousands-of-workers-in-cornwall-out-of- technologies-driving-the-construction-si.html
jobs/story-30282827-detail/story.html 191
188
http://www.constructionworld.org/5-reasons- https://www.recode.net/2017/6/6/15701186/robots-
drones-will-save-business-money/

© DeltaHedron 2017 [Return to Table of Contents] DeltaHedron Innovation Insight


The impact of emerging technologies on the construction industry

will contribute significantly to the disruption of the • Transporting items from one site to another
industry 192,193,194,195, including: or across sites.
• Pre-project assessments and project survey • Enhanced safety. Drones can provide real-
data. Before breaking ground, drones can be time data of safety violations or situations
used to survey the topography. Drones can which might have a negative safety impact
offer unprecedented aerial images of a during the construction process.
project site much more accurately and • Physical and cybersecurity. Real-time
realistically than aerial photographs 196. visibility, including at night with the use of
• Conducting aerial surveys. They can also infrared cameras and adverse weather
provide real-time aerial views of key project conditions.
areas, allowing management and • Reduced energy costs.
construction staff to monitor operations and • Data can be acquired instantly and integrated
50 performance, which in turn supports decision- with mapping and BIM programmes.
making.
• Site mapping 197, documenting project It was mentioned above that emerging
evaluation and progress for costing, remote technologies often bring new risks. This is also the
project management and related case with drones. A number of countries are
applications, where surveyors where introducing various types of regulations, which will
previously required. Recoding the actual also affect the construction industry 198. In addition,
progress on a site can also be used as a there a number of other legal risks to consider as
marketing tool, as conditions of a project well 199.
developments are recorded in real-time. This
information, including images and video, can
be presented to clients, investors and funding
institutions. “Komatsu have been developing a drone-
• Building surveillance and inspections, based program to overcome shortage of
including of roofs, high tension electric wires, construction workers. The drones scan job
remote sites and other areas which are sites from the air and send images to
difficult to access. computers to build 3D models of the terrain.
• Asset tracking, including movement of Komatsu’s unmanned bulldozers and
machines and equipment, tools, vehicles and excavators could then use the models to
people. They can also be used to keep execute out designs, dig holes and move
attendance records and monitor workers on earth...”
site and is a convenient tool to keep track of The Balance
how many employees are working in sensitive
or hazardous areas.
• Monitoring the movement of materials, “The Swiss Federal Institute of Technology is
stockpile reporting and inventory exploring the use of drones to rapidly string
management. Drones can be used to keep cable bridges remotely and autonomously…”
ScienceDirect
record of linear metres of material being
installed, for example.

construction-homes-technology-drones-building-
automation-productivity https://www.thebalance.com/how-drones-could-
196
192
https://www.suasnews.com/2017/01/challenges- change-the-construction-industry-845041
avoid-launching-drone-ops-construction-company/ 197
193
http://www.constructionworld.org/drones- https://www.insight.com/en_US/learn/content/2017/
benefiting-construction-industry/ 05162017-top-manufacturing-and-construction-tech-
194
http://www.constructionworld.org/5-reasons- trends.html
drones-will-save-business-money/ 198
195
http://www.digitaljournal.com/tech-and- http://www.theconstructionindex.co.uk/news/view/go
science/technology/drones-are-helping-the- vernment-to-clamp-down-on-drones
construction-industry-to-reach-new- 199
http://www.enr.com/articles/41910-legal-risks-of-
heights/article/497382 using-automated-drones-in-construction

DeltaHedron Innovation Insight [Return to Table of Contents] © DeltaHedron 2017


The impact of emerging technologies on the construction industry

for manual labour and the time it takes to


“Companies in India have used drones to string complete projects . Caterpillar and John Deere are
transmission lines spanning towers…” developing dozers with automatic blades, with the
McKinsey aim of producing fully autonomous and driverless
versions.
“Drones as a service. Drone SmartX™ offers a 4.2.5 Wearables in construction
hub which can be used with almost any Wearables refer to textiles and other devices worn
commercial drone and convert it into ‘smart by a person, which can send (and receive)
drones’ configured for use in the construction information gained from IoT sensors. The
industry. The drone-based hub can connect to information can reflect the person’s physical and
smart sensors such as RFID and bluetooth emotional state, movement or position 200,201 as
devices on the field, which are capable of well as other environmental variables. Typical 51
capturing data and storing it in the cloud wearables include items of clothing and textiles,
platform. Existing drones can be used without footwear, hard hats and helmets, safety
having to acquire new equipment or other equipment such as high visibility vests and safety
drones…” harnesses, glasses and headsets, gloves, watches
The Balance and related wrist-worn devices as well as geotags.
Wearables find many applications in the
construction industry and can contribute towards
Video clips showing autonomous enhanced safety, security and productivity 202.
vehicles in construction They can, for
“Wearable computing
can be seen here and here example, be used
such as Google Glass
for the
can provide on site
identification,
access of instruction
Video clips showing the use of tracking and
manuals in a hands-
drones in construction can be geolocation of
free mode, or benefit
seen here and here people as well as
from remote support
the monitoring of
in order to ‘see what
their health status.
4.2.4 Autonomous vehicles they see’….”
Monitoring of heat
The trend in driverless cars will spill over into stress, emotional
industrial sectors. Buses, trains, lorries and even stress and fatigue as well as substance use (and
entire fleets will become autonomous. abuse) are relevant for the construction
Autonomous vehicles are already being used in industry 203, particularly also for operators of
mining and will also gain traction in construction. equipment and vehicles.
Autonomous heavy machinery has many benefits, Applications of wearables in construction
including higher utilisation ratios and reduction in include: 204
operator costs. The autonomous construction
vehicles rely on a range of technologies, including • Smart helmets, which incorporate a clear
GPS and LiDAR. visor that displays augmented reality (AR) and
3D visual overlays in the wearer’s field of
Manufacturers such as Komatsu and Volvo CE vision. A 360° view allows workers to see all of
continue to release new models of heavy their surroundings. Advanced features include
construction equipment. Komatsu offers augmented work instructions, direct
autonomous and automated dozers, backhoes, communication to remote workers and
excavators, dump trucks which removes the need

200
“People tracking technologies”, DeltaHedron onsumers-may-be-ignoring-wearables-but-the-
Innovation Insight, No 3/17 (May 2017) construction-industry-isnt
201
“Developments in emerging health technologies”, 203
See also http://www.veritas-
DeltaHedron Innovation Insight, No 1.2/17 (April 2017) consulting.co.uk/blog/substance-misuse-and-drug-
202
testing-in-the-construction-industry/
https://motherboard.vice.com/en_us/article/gvkaa4/c 204
http://www.constructionworld.org/4-wearable-
technology-innovations-construction/

© DeltaHedron 2017 [Return to Table of Contents] DeltaHedron Innovation Insight


The impact of emerging technologies on the construction industry

thermal vision. The AR capability can also help “An innovative smart vest has been
to increase safety. developed by RMIT in Melbourne to monitor
• Bionic suits and exoskeletons. Many of the the health of construction workers in real
health and safety issues which arise on a time . The vest uses sensors to measure a
construction site involve arduous physical worker's body temperature and heart rate
labour, which can cause long-term problems. and sends the data wirelessly to a
Bionic suits (also referred to exoskeletons) smartphone app, which instantly alerts
provide the ability to pick up and operate users to any anomalies. The innovation
heavy machinery with ease. It also increases comes amid concern at the growing number
the speed at which a worker can do manual of heat-related accidents on construction
tasks and contribute to greater efficiencies. sites…”
• Location-enabling and tracking capabilities Phys.org
52 can be embedded in smart safety vests,
harnesses, boots and other clothing.
Monitoring can include a worker’s activities, A video clip showing wearables in
distance walked, temperature and hours construction can be seen here
worked, as well as the health parameters
referred to above. Linked with GPS, the
worker can be warned if predefined 4.3 Construction materials
hazardous zones are entered or when vehicles
The materials used in construction have a big
are approaching or are dangerously close.
impact on the productivity of the industry as well
Panic buttons can be included to alert co-
as the cost, durability and safety of buildings and
workers in in emergency situations. The
infrastructure. Trends in materials of the future
wearable can transmit the location of the
will redefine how projects are conceptualised,
injured worker as well as health related
designed and executed as well as the life cycle
information.
trajectories of the projects.

“Prolonged use of power tools can lead to McKinsey recommends the development of
alternative and innovative materials as a
various musculoskeletal, neurological and
mechanism for enhancing productivity and cutting
vascular disorders. Gloves embedded with costs 205.
tiny sensors are being developed by
Whereas there are continuous improvements in
Nottingham Trent University to help
traditional construction materials such as concrete
protect construction workers from and steel, many new materials and new types of
exposure to vibration . It will alert wearers materials are being developed. They are light,
when they experience vibrations likely to strong, cheap, durable, environmentally friendly
cause conditions such as vibration white and can include characteristics such as self-healing.
finger and carpal tunnel syndrome” There is also an increasing trend in and demand for
Phys.org
green materials. Following the Grenfell Tower
tragedy in London in June 2017, an increased focus
“SolePower is a manufacturer of industrial on safe materials, design codes and building
boots, which contain a variety of sensors, regulations pertaining to fire safety is expected. In
including temperature detection, GPS, wifi, addition, factors such as supply-chain agility and
electronics as well as inertial measurement ease of off-site construction are also playing a role
units for tracking location and motion. Each in advancing the use of new materials.
sensor is powered by a kinetic charger that The cost of materials in the construction industry
harnesses the untapped energy produced by is rising 206. Costs of iron and steel increased 5% -
walking” 6% in recent years, with the cost of materials such
Phys.org
as plumbing fixtures, asphalt, roofing and siding

http://www.mckinsey.com/industries/capital-
205
http://www.constructionworld.org/forecasting-
206

projects-and-infrastructure/our-insights/reinventing- construction-trends/
construction-through-a-productivity-revolution

DeltaHedron Innovation Insight [Return to Table of Contents] © DeltaHedron 2017


The impact of emerging technologies on the construction industry

products as well as copper, aluminium and diesel directed at developing self-healing concrete and
fuel also rising. extending concrete’s lifespan.
The rising costs may well push construction Continuous improvements are also being made in
companies to seek cheaper, eco-friendly, reusable steel, another material pervasively used in
or recycled materials as alternative construction construction. New technologies could slash the
materials. The adoption of new types of materials cost of steel production 212. Con-X-Tech 213, for
has been slow due to lack of awareness and example, is creating modular structural steel
familiarity within the design and engineering systems which eliminates the need for riveting or
community, limited supply chain and lack of welding. The product relies on gravity connectors
availability at scale as well as risk awareness to create a rigid frame. Innovations like these can
among project owners and contractors 207. also save considerable on-site time.
4.3.1 Improvements in concrete and steel 53
“Research at the University of Wisconsin in
Concrete is the most widely produced and Milwaukee is focused on the development of
consumed material in the construction industry. It ‘100-year concrete’ . The product contains a
was used as the primary material for 46 of the new water repellent concrete mix and is
world’s 100 tallest buildings in 2013, with an claimed to hold up with little or no
additional 36 using concrete in combination with maintenance for well over a century. This is
steel construction 208. It is estimated that by 2030, achieved by adding super-hydrophobic
urban growth in China and India will place global elements which prevent the normally porous
cement output at 5 billion metric tons per year 209. concrete from absorbing water and
Given the wide use of concrete, even marginal developing cracks. Unwoven polyvinyl alcohol
improvements in its performance can have a major fibres are also added, which allows the
impact on the industry. Recent advances have seen concrete to bend without breaking and
the emergence of lighter, more flexible and more withstand four times the compression of
versatile forms of concrete, including self- traditional concrete…”
consolidating, self-healing and self-compacting
concrete 210.
4.3.2 Alternative materials
“Work at Delft University is focused on Work is continuing to develop a range of
developing a process to embed self-activating alternative construction materials for use in
limestone-producing bacteria within concrete. structural and non-structural applications in high-
This is aimed at decreasing the amount of new end as well as affordable projects. Interesting new
concrete produced and also to lower the costs trends include:
for maintenance and repairs…” • Ethylene tetrafluoroethylene (ETFE) is 99%
Construction World lighter and also stronger, eco-friendlier,
better at light transmission and more flexible
Concrete is of course not without its own than glass. This material was first employed
problems. It is estimated that current concrete on a large scale at the ‘Water Cube’ swimming
output is responsible for circa 8% of the total global venue at the 2008 Beijing Olympics. It is
emissions 211, and hence there is a need to reduce reported to have cut energy costs by 30%. The
its environmental impact. Much of this effort is use of ETFE has since increased five fold 214.

207
http://www.mckinsey.com/industries/capital- 211
http://www.constructionworld.org/top-10-
projects-and-infrastructure/our-insights/imagining- construction-technology-trends-look/
constructions-digital-future 212
http://www.economist.com/news/business/217185
208
http://www.mckinsey.com/industries/capital- 45-150-year-old-idea-finally-looks-working-new-
projects-and-infrastructure/our-insights/reinventing- technologies-could-slash-cost-steel
construction-through-a-productivity-revolution 213
http://www.mckinsey.com/industries/capital-
209
http://www.constructionworld.org/top-10- projects-and-infrastructure/our-insights/reinventing-
construction-technology-trends-look/ construction-through-a-productivity-revolution
210
http://www.mckinsey.com/industries/capital- 214
http://www.mckinsey.com/industries/capital-
projects-and-infrastructure/our-insights/reinventing- projects-and-infrastructure/our-insights/reinventing-
construction-through-a-productivity-revolution construction-through-a-productivity-revolution

© DeltaHedron 2017 [Return to Table of Contents] DeltaHedron Innovation Insight


The impact of emerging technologies on the construction industry

• A pilot project in Rotterdam uses recycled • Kinetic technologies are particularly


plastics to replace traditional asphalt interesting and useful. Pavegen and Lybra,
construction for modular road sections. The enable flooring to harness the energy of
objective is for this solution to last more than vehicles or people moving on the surface 217.
50 years.
4.3.3 Green materials
• A number of brick substitutes made of natural Green construction, also called sustainable
materials are being developed, including: building, refers to buildings which are
o Fly-ash bricks made from volcanic ash,
environment-friendly and energy efficient
sand, lime and gypsum. throughout their lifecycle, including the designing,
o Compressed earth blocks made of soil with
construction, maintenance, renovation, operation,
a small amount of cement. and demolition phases 218,219.
o Ferro-cement wall panels made of cement,
54 sand, aggregates, fibre and welded mesh. Demand
momentum is “The drive to enhance
• Roofs are being constructed from micro- eco-friendliness, reduce
concrete tiles formed from cement, stimulated by an
increasing public carbon emissions and
aggregates and sand. Ferro-cement roofing
channels have 60-75% lower deadweight and awareness and create a greener
can reduce costs by 30% compared with concern environment will
traditional concrete roofing. regarding increase the demand for
• Nanomaterials can be super-strong and ultra environmental green buildings and
lightweight. Research is continuing to develop sustainability construction materials
carbon nanotubes as a strong, very and as well as the greening
governmental
lightweight alternative to steel of construction
reinforcement. This could boost on-site regulations.
processes…”
productivity significantly, by eliminating the Business is also
need for reinforcement fixing times 215. recognising the value of ‘going green’, which is
• Photovoltaic glazing and solar polymers, reflected in their corporate responsibility
which can turn a multitude of surfaces into activities. Health benefits of greening buildings are
energy generating areas. become ever more apparent 220.
• It is claimed that photocatalytic technology in The global green construction materials market is
building materials can cut nitrogen dioxide expected to reach circa US$ 255 billion in 2020 221.
levels. The technologies can be installed in The global green construction materials market
roof tiles and on roads, for example. It is being was estimated to be worth $127.5 million in 2014
used in the US, Netherlands and Japan 216. In and is expected to grow to $225 million in 2020
the Netherlands it was found that (CAGR of circa 12.5% from 2015-2020) 222.
photocatalytic concrete reduced NOx levels
Green construction materials is one of the fastest
by 25% (and up to 45% in ideal weather
growing industries worldwide. North America was
conditions) on a busy road.
the largest regional market for green building
• Topmix is permeable cement alternative, materials market in 2014, and accounted for more
which can absorb 4,000 litres of water per than 40% share in total green building materials
minute. volume consumed in that year. In addition to
• Aerogel is a super-transparent, super- requirements for new buildings, retrofitting,
insulating material, consisting of 99.98% air.

http://www.mckinsey.com/industries/capital-
215
http://www.constructionworld.org/benefits-of-
219

projects-and-infrastructure/our-insights/reinventing- green-technology-in-construction-today/
construction-through-a-productivity-revolution 220
216
https://www.theguardian.com/news/2017/jun/15/gre
http://www.theconstructionindex.co.uk/news/view/air en-streets-way-to-go-weatherwatch-pollution
-quality-plan-ignores-photocatalytic-technology 221
http://www.sbwire.com/press-releases/green-
217
https://www.balfourbeatty.com/2050 building-materials-market-will-reach-255-bn-in-2020-
218
http://www.mynewsdesk.com/us/pressreleases/gre 776113.htm
en-building-materials-market-industry-trends-outlook- 222
http://www.sbwire.com/press-releases/green-
and-opportunity-analysis-2016-2024-2005633 building-materials/release-840568.htm

DeltaHedron Innovation Insight [Return to Table of Contents] © DeltaHedron 2017


The impact of emerging technologies on the construction industry

renovation and maintenance will increasingly also materials were ‘green sourced’. The latter will also
require green materials. Product innovation is one be tied to the requirement to show that the
of the key strategies adopted by the leading material was ethically sourced. LCA-based
players in the green building materials market. 223 Environmental Product Declarations are now
Green roofs and walls 224 can insulate buildings, recognised by USGBC LEED 231.
leading to energy savings, reduced temperatures 4.3.4 Wood and timber
outside by absorbing sunlight and mitigation of the There is a resurgence in the use of wood and
urban heat island effect. They also contribute to timber as construction materials. Until the late 19th
storm water management by soaking up the rain, century, wood was widely used in building
reducing noise and increasing urban biodiversity. construction. Following a number of major fires, it
They contribute towards removing air pollution, in was replaced by other materials such as concrete,
that they can reduce nitrogen dioxide by up to 35% brick and steel 232. However, a number of new 55
and 50% in the small particulates which damage innovations have now made wood a viable
lungs. Popular green building materials include construction material again, including for use in
straw bales, grasscrete, rammed earth, high-rise buildings. The renewed interest in wood
hempcrete, bamboo, recycled plastic and wood as as a construction material is driven in part by
well as mycelium, ferrock, ashcrete, and advances in wood-binding technologies 233, which
timbercrete 225. are enabling new types of timber products and
Green credentials processing technologies.
‘Green credentials’ for construction materials
include requirements for energy and resource- Life cycle assessment (LCA) anticipates the
efficiency as well as sustainability. Green environmental and human health impacts
certification, such as Building Research at each stage of the product life cycle. It is
Establishment Environmental Assessment Method increasingly being used in green building
(BREEAM) 226, Leadership in Energy and for evaluating the environmental
Environmental Design (LEED) 227 , the ICC 700 performance of building materials and
National Green Building Standard 228, Green products.
Building Evaluation Labeling (GBEL) 229 and the
Green Rating for Integrated Habitat Assessment Wood has a number of benefits over traditional
(GRIHA) 230, an environmental safety regulatory construction materials. Carbon dioxide is a major
tool used by the United Nations to encourage the by-product in the creation of iron, steel and also
use of renewable materials in the construction the non-metallic minerals which are the raw
sector. They will contribute to stimulate the components in concrete, contributing significantly
demand for green construction and green to climate change. This is not the case with wood.
materials.
We are likely to see similar requirements for
recycling and the need to show that construction

http://www.mynewsdesk.com/us/pressreleases/gre
223
http://www.sbwire.com/press-releases/green-
229

en-building-materials-market-industry-trends-outlook- building-materials/release-840568.htm
and-opportunity-analysis-2016-2024-2005633 230
224
http://www.mynewsdesk.com/us/pressreleases/green
https://www.theguardian.com/news/2017/jun/15/gre -building-materials-market-industry-trends-outlook-
en-streets-way-to-go-weatherwatch-pollution and-opportunity-analysis-2016-2024-2005633
225
http://www.mynewsdesk.com/us/pressreleases/gre 231
http://3blmedia.com/News/Surprise-What-LCA-
en-building-materials-market-industry-trends-outlook- Reveals-about-Built-Environment-and-Circular-
and-opportunity-analysis-2016-2024-2005633 Economy
226
http://www.breeam.com/ 232
https://www.wired.com/2017/05/wood-
227
skyscrapers/?mbid=nl_53017_p4&CNDID=49148020
https://en.wikipedia.org/wiki/Leadership_in_Energy_a 233
https://www.digitaltrends.com/cool-tech/wood-
nd_Environmental_Design skyscraper-approved-in-portland/
228
http://www.sbwire.com/press-releases/green-
building-materials-market-will-reach-255-bn-in-2020-
776113.htm

© DeltaHedron 2017 [Return to Table of Contents] DeltaHedron Innovation Insight


The impact of emerging technologies on the construction industry

It was reported in May 2015 that: and steel. It can be processed using precision
• A new kind of high-rise structure of 80 storeys digital manufacturing techniques, such as CNC
(‘River Beech Tower) built entirely from milling. CLT has a number of benefits, including its
timber was being explored in Chicago. environmental properties. CLT panels are claimed
• An 80 storey wooden skyscraper in London to be lighter and less energy-intensive than
(‘Oakwood Tower’) has been proposed. concrete and steel and much faster to assemble
• In Stockholm, plans for a 133 metre high on-site than
“CLT panels are claimed
residential building, the tallest in the city, regular timber.
The grain in
to be lighter and less
were being prepared.
each layer is at a energy-intensive than
• An undulating, all-timber football stadium in
England had been commissioned. right angle to concrete and steel and
• A 133 metre high tower in the Netherlands the one below much faster to assemble
56 and above it, on-site than regular
(‘The Lodge’), a glass hyperboloid wrapped in
a series of wooden beams was being creating a timber…”
constructed. counter-tension
At the time (May 2015) it was mentioned that built into the panels which makes CLT strong
projects such as River Beech Tower, Oakwood enough to build tall skyscrapers 237.
Towers and The Lodge were technically feasible, Mass Plywood Panels
although perhaps not entirely practical, to build. Another new type of panel, known as ‘Mass
Further research regarding safety and cost was Plywood Panel’ (MPP) is set to rival plywood. MPP
required. The tallest timber building in the world can be as much 12’ wide, 48’ long and 2’ thick 238,
(in May 2015) was an 18-storey dormitory in compared with standard plywood sheets which
Vancouver (‘Brock Commons’). measure 4’ wide, 8’ long and between ¼” - 1” thick.
In June 2017, MPP panels are claimed to be very versatile and
“….a number of new officials in can be customised for different applications. As a
innovations have now Oregon approved result of their good compression qualities, MPPs
a construction can also be used for columns. It is claimed that
made wood a viable
permit for the MPPs can achieve performance characteristics
construction material
United States’ similar to CLT panels, but with 20-30% percent less
again, including for use wood.
first all-wood
in high-rise buildings”
high-rise 4.3.5 Fireproofing and cladding
building . Construction of the 11-storey building
234
The Grenfell Tower fire tragedy in London in June
(called the ‘Framework’) is set to commence in the 2017 239, in which at least 80 people were killed, will
autumn of 2017. The building will utilise a place renewed emphasis on safety, particularly
technology known as cross-laminated timber regarding fire hazards and fire retardant materials.
(CLT). It has been extensively tested by Portland At the time of writing (August 2017), investigations
State University and Oregon State University. The are ongoing. However, a number of reports
material passed tests for fire safety 235, and tests suggest that cladding on the building contributed
have also shown that CLT designs can withstand significantly to disaster. Questions will no doubt
large-scale earthquakes 236. also be raised with regard to design, building
CLT is a light yet very strong type of plywood, regulations, approval and inspection processes as
rivalling steel. CLT panels are constructed from well as fire-related equipment. Calls will also
small wooden planks bound to one another by a intensify for the universal retrofitting of more fire
polyurethane adhesive, giving them the strength of protection in tall buildings.
traditional construction materials such as concrete

234
https://www.digitaltrends.com/cool-tech/wood- 237
https://phys.org/news/2016-12-wood-technology-
skyscraper-approved-in-portland/ struggling-timber.html#nRlv
235
https://phys.org/news/2017-06-oregon-city-all- 238
https://phys.org/news/2016-11-prototype-plywood-
wood-high-rise.html panels-world-largest.html#nRlv
236
https://www.treehugger.com/modular- 239

design/katerra-shaking-construction-industry-literally- http://www.theconstructionindex.co.uk/news/view/gr
and-figuratively.html enfell-tower-blaze-puts-cladding-system-in-the-dock

DeltaHedron Innovation Insight [Return to Table of Contents] © DeltaHedron 2017


The impact of emerging technologies on the construction industry

Cladding is used in part to insulate buildings as well world and issues that have arisen in the wake of
as to improve their appearance. However, it has the Grenfell Tower tragedy regarding code
been suggested that cladding can also act like a compliance of cladding systems in the context of
‘chimney’ for flames by allowing the fire to spread buildings’ overall designs”. The company
upwards through the gaps between the cladding confirmed that Reynobond PE (polyethylene), an
and the building walls 240. aluminium composite material, was "used as one
component in the overall cladding system" of the
Grenfell Tower was designed in 1967. block. 242
Construction commenced in 1972 and was
completed in 1974 by Kensington and Chelsea On 26 June 2017 it was reported that Arconic’s
London Borough Council. The building share price had fallen 243 after the Grenfell tragedy,
underwent an £8.6m refurbishment, which and on 14 July 2017 it was reported that Arconic
was completed in May 2016. It had 24 storeys was being sued by one of its shareholders for 57
and 127 flats, and was used as social housing in losses he claimed he suffered because of the drop
June 2017, when it was destroyed by a fire. in share price 244.

In 1968 a gas explosion caused the collapse of Towards the end of July 2017 it was reported that
the 22-story Ronan Point building in the UK. tests of the types of materials used in the Grenfell
Building regulations were reviewed following Tower suggest “that designs like that used in the
the Ronan Point incident. A number of people tower's cladding are fundamentally flawed” and
were killed when a fire occurred in the 14- that “the cladding was the critical component that
storey Lakanal House in Camberwell in the UK spread the fire”. 245
in 2009. At the time, there were renewed calls On 3 July 2017 it was reported that of 181 tower
for another review of building regulations. blocks tested for flammability, all had failed 246. On
Two other large tower blocks were also ablaze 27 July 2017 it was reported that the largest
recently. At least three people died when a fire provider of student accommodation in the UK may
erupted in 39-storey condominium in need to close 600 rooms as a fire precaution, and
Honolulu, Hawaii in July 2017. It was reported spend up to £2 million to replace cladding 247. An
that the building did not have a sprinkler initiative to install more sprinklers in council blocks
system. The Dubai Torch, one of the tallest was also announced 248. On 28 July 2017 it was
residential skyscrapers in the world (86 reported that 82 buildings had failed a fire safety
storeys, 335m) caught fire early in August test, set up after the Grenfell Tower tragedy. Of
2017, the second in two years. No injuries or these, 47 were local authority or housing
fatalities were reported. association-owned or managed. On 2 August 2017
it was reported that 111 buildings in the UK had
Metro, The Times, BBC
failed the latest fire test 249.
The cladding used on London's Grenfell Tower was It was reported on 27 July 2017 that the UK
supplied by the US firm Arconic. It ceased global government had begun work on a review of
sales of the product for use in high-rise blocks soon building standards 250. At the time, it was estimated
after the disaster 241, and was quoted as saying, that there are circa 30,000 buildings in the UK
"We believe this is the right decision because of fitted with cladding similar to that on Grenfell
the inconsistency of building codes across the Tower 251.

240
http://www.telegraph.co.uk/news/0/cladding-fire- 246
http://www.mirror.co.uk/news/politics/181-tower-
risk-grenfell-tower/ blocks-tested-flammability-10731319
241
http://www.bbc.co.uk/news/uk-40409981 247
https://www.thetimes.co.uk/article/00bcc32e-723c-
242
http://abcnews.go.com/International/manufacturer- 11e7-83f1-667fddf1d78f
arconic-end-sales-paneling-grenfell- 248

tower/story?id=48286188 http://www.theconstructionindex.co.uk/news/view/cr
243
http://abcnews.go.com/International/manufacturer- oydon-plans-sprinkler-programme-in-response-to-
arconic-end-sales-paneling-grenfell- grenfell
tower/story?id=48286188 249
http://www.bbc.co.uk/news/uk-40809206
244
https://www.thetimes.co.uk/article/8edd9e14- 250
http://www.bbc.co.uk/news/uk-40735851
680d-11e7-9755-334d14a02d15 251
245
http://www.bbc.co.uk/news/uk-40735851 http://www.theconstructionindex.co.uk/news/view/cr

© DeltaHedron 2017 [Return to Table of Contents] DeltaHedron Innovation Insight


The impact of emerging technologies on the construction industry

Investigating other building failures Perhaps more


The Chartered Institute of Building (CIOB) significantly, it “…an important lesson -
announced in June 2017 that a commission to also has the new technologies enable
investigate build quality was to be set up. The CIOB potential to inherent design
investigation was prompted by the Cole Report lift 253 design
constraints posed by
which was published in the wake of a wall failure constraints
older technologies to be
at Oxgangs Primary School in Edinburgh in January inherently
2016. The report had taken on a new significance imposed by lifted. Rather than
following the Grenfell Tower tragedy. current lift merely trying to
technology, incrementally improve
The Royal Incorporation of Architects in Scotland
(RIAS) noted in its evidence to the Cole inquiry that particularly the performance of the
the core issue behind the wall collapse was lack of limitations to old design, new
58 the height of technologies enable an
independent supervision. It has been suggested
that at both Oxgangs and Grenfell Tower, any build buildings – at entirely new design
quality issues were not readily apparent after least with solution, with
project completion; and that they would have only regard to limits significantly enhanced
come to light through independent inspection imposed by
benefits”
during construction when wall tie fixings (in lifts. This
Oxgangs' case) and materials (during Grenfell's development now allows new ‘blue sky thinking’
recent refurbishment) were evident 252. about how high buildings can be built.

4.4 Interesting innovations and innovators 4.4.1 If you had to design the Golden gate
- lifting the limits bridge today….. 254
When the Golden Gate Bridge opened in 1937, it
In this section we describe two interesting was the longest suspended bridge span in the
innovations in construction. The first regards the world with a span of 1,280 m 255. The suspension
Golden Gate Bridge in San Francisco, the longest bridge has no intermediate supports or pillars, and
suspended bridge span in the world when it cables hold up the roadway between two towers
opened in 1937. The question is posed: If the over its entire span. The cost of the bridge at the
bridge had to be designed and built today, would time was US$37 million, about US$1 billion in
new technologies enable us to do better ? today’s money. It is interesting to pose the
The answer to this question provides an important question: If the bridge had to be designed and built
lesson - new technologies enable inherent design today, would new technologies enable us to do
constraints posed by older technologies to be better ?
lifted. Rather than merely trying to incrementally Reducing the weight of bridge would be one of the
improve the performance of the old design, new major design aims. The self-weight of a bridge is
technologies enable an entirely new design typically responsible for 70–80% of the maximum
solution, with significantly enhanced benefits. The load it can bear before it breaks. If this can be
second case illustrates a very recent reduced, the bridge’s structure would need less
demonstration of the same principle. It describes a strength, allowing for cheaper and simpler design
new type of lift, which has the potential to choices. What is very important, though, is the fact
revolutionise the way people move vertically and that if the self-weight can be reduced enough,
horizontally in buildings. entirely different types of bridges, other than a
suspension bridge, could be considered. Another

oydon-plans-sprinkler-programme-in-response-to- 253
… pardon the pun
grenfell 254
https://theconversation.com/how-would-engineers-
252
build-the-golden-gate-bridge-today-77846
http://www.theconstructionindex.co.uk/news/view/ci 255
https://en.wikipedia.org/wiki/Golden_Gate_Bridge
ob-launches-investigation-into-build-quality

DeltaHedron Innovation Insight [Return to Table of Contents] © DeltaHedron 2017


The impact of emerging technologies on the construction industry

type of bridge could, in turn, bring many benefits 4.4.2 A cable-free, horizontal-vertical lift
(including the elimination of the suspenders). The lift 256, which is used to move people and goods
vertically in buildings, was invented more than 160
years ago. There are currently circa 12 million lifts
in use in buildings across the world. It is also
interesting to note that the number of buildings
taller than 200m has tripled since 2000. More than
180 buildings currently being built will be more
than 250m high.
A new innovation, the Multi lift, was recently
announced by ThyssenKrupp 257,258. This innovation
has the ability to transform the industry at large 59
and change the way tall buildings are conceived.
Importantly, it allows for much more efficient core
Modern materials are light, strong and durable in designs, as well as better connectivity in buildings.
addition to having other desirable characteristics. The new Multi lift is currently being installed in a
This would be major focus of our approach to the building in Berlin. It may be possible to retrofit the
set problem. The use of fibre reinforced polymers Multi to existing buildings.
(FRPs), for example, rather than steel or concrete
can reduce the
weight of a large
“Modern materials are structure. The
light, strong and durable steel cables in
in addition to having use on the
other desirable bridge are
characteristics. ….” corrosive and
four times
heavier than newer materials. They can also fail in
harsh moisture and temperature environments (as
is prevalent in that part of California). Carbon
cables are now commonly used and are more inert.
Other lighter materials could also be used in other
elements of the bridge. For example, plastic
composite decking could bring the bridge’s deck
self-weight down by a factor of five. In addition, a
modern damping system could be used, which will
more effective to resist seismic, traffic and wind
The Multi allows multiple lift cabins to run in a
forces. And BIM would definitely be used in the
loop259, with no cables or ropes necessary. The
design and construction of the bridge.
cabins use a magnet-based drive system similar
that used in Maglev trains. A number of cabins
travel simultaneously. They can move vertically as
A video clip showing the building well as horizontally, since no cables are required.
of the Golden Gate bridge The cabins can also overtake one another and
can be seen here move out of the way to let another pass.

256
Also referred to as the ‘elevator’ in some parts 258
https://eandt.theiet.org/content/articles/2017/
of the world… 06/multi-cabin-german-ropeless-lift-could-
257
revolutionise-design-of-tall-buildings/
http://www.theconstructionindex.co.uk/news/vie 259
http://inhabitat.com/thyssenkrupp-unveils-
w/trailblazing-elevator-makes-world-debut worlds-first-cable-free-horizontal-vertical-
elevator/

© DeltaHedron 2017 [Return to Table of Contents] DeltaHedron Innovation Insight


The impact of emerging technologies on the construction industry

The weight of the cables is of the greatest limiting decade. This scenario has never been faced by UK
factors in traditional lifts, in addition to restricting construction before and would be a capacity
the movement of the lift to vertical movement in a shrinkage that would render the industry incapable
linear manner. In very tall buildings, this mandates of delivering the levels of GDP historically seen.
that more than one lift must be used to reach the Just as importantly, it would undermine the UK’s
upper floors. By eliminating the cables (and their ability to deliver critical social and physical
self-weight), the Multi eliminates a fundamental infrastructure, homes and build assets required by
constraint (weight) previously imposed by lifts on other industries to perform their core functions”.
the design and height of buildings. The Chartered Institute of Building in the UK
The Multi has a smaller physical footprint than reports that the number of workers over 60 is
traditional lifts. It also has a reduced carbon rising 261. A third of the UK’s construction workers
60 footprint and uses as much as 60% less peak are older than 50 and it is estimated that circa
energy than traditional lifts. The cabin is made of 620,000 will retire within the next decade 262. At
carbon composites, which reduces its weight by the same time the number of workers under 30 is
50%. decreasing faster than any other segment.
Lifts tend to become time bottlenecks. It is The National Association of Homebuilders in the
estimated that in New York City, workers wasted US reports that 82% of construction companies
circa 16.6 years waiting for lifts just in 2011. consider their main concern to be a shortage of
Because of the multiple cabins moving around the construction workers.
system, passengers will only need to wait 15-30
seconds for the next lift.
“It has been estimated that circa 40% of
construction jobs [in the US] were eliminated
Video clips showing the between April 2006 and January 2011. Those
ThyssenKrupp ‘Multi’ lift workers have moved elsewhere and have not
can be seen here and here returned to construction. The safety hazards of
working in construction may also be one of the
factors contributing to the labour shortages in
5. `Construction workforce, skills, training construction in some countries. An increased
and education focus on safety, aided by emerging
technologies, can contribute towards relieving
The emerging technologies discussed in this report this pressure….”
will have a profound effect on the future of the Siemens
construction workforce and labour market, skills
requirements as well as training and education.
Automation and robotics in particular, will impact Emerging technologies and the adoption of new
on employment and careers in construction. technologies require new skills sets and
Several countries are reporting labour shortages in competences, creating new jobs in the process.
the construction industry, including the US, UK and However, skills become obsolete as the
Australia. technologies they match become obsolete or are
replaced by newer technologies. As the new
The Farmer Review 260 (2016) notes that the “real technologies and their skills requirements phase
ticking ‘time bomb’ in the UK is that of the in, this creates a dilemma for workers currently in
industry’s workforce size and demographics. Based the labour market.
purely on existing workforce age and current levels
of new entrant attraction, we could see a 20-25% In order for the construction sector to enhance its
decline in the available labour force in the next productivity, it will require a more agile workforce

260 261

http://www.theconstructionindex.co.uk/news/vie https://www.weforum.org/agenda/2017/05/constructi
w/farmer-review-government-response on-industry-recruit-talent/

http://nypost.com/2017/03/27/this-bricklaying-
262

robot-is-going-to-destroy-construction-jobs/

DeltaHedron Innovation Insight [Return to Table of Contents] © DeltaHedron 2017


The impact of emerging technologies on the construction industry

with new skills. McKinsey 263 identifies reskilling of Forum (WEF) predicts that over 400,000 jobs
the workforce as another one of the seven in architecture and engineering will be
important ways in which construction productivity required in the future 265.
can be improved. They estimate that global • Automation often means that less people are
construction productivity can improve by 5-7% if required for jobs that can be done with
best-practices in on-site execution are adopted, machines. At the same time, new types of jobs
with potential cost savings of 3-5%. They become available, albeit jobs which require
recommend building an apprenticeship model, new types of skills. The use of bricklaying
developing robots, for example, will have an impact on
“By 2050 construction frontline the labour requirement for bricklayers 266, but
sites will be mainly training and at the same time creates jobs for operators
populated by robots ensuring and maintenance people.
knowledge 61
working in teams using • A new training and education ecosystem
retention and needs to be developed, so that a new
‘dynamic new materials’,
management. generation of workers can trained for the new
with many components
Once the basics types of jobs. Very often, workers currently in
self-assembling. The the sector require additional training to
are in place, the
only humans working update and upskill, so that they can use new
focus should
there will be wearing shift to the technologies effectively. It is not uncommon
‘robotically enhanced introduction of for new technologies to be branded as ‘not
exoskeletons’ controlling e-enabled delivering on expectations’, when in reality
machinery…” micro-training the technologies were not deployed and used
Balfour Beatty for frontline in ways which optimise their ability and
workers, a mix contribution.
of classroom and field-based training, and the
creation of internal academies to institutionalise “Germany’s automotive sector has the
best practices. highest robot density in Europe (circa 1,150
Labour shortages may also speed up the adoption industrial robots/10,000 employees). ‘As a
of new technologies, particularly with regard to result… employment in the German car
automation 264. industry rose by about 93,000 jobs in the
period 2010 to 2015.’ Similar trends can be
The adoption of new technologies will no doubt observed in the UK and in America…”
enhance the productivity of the construction
Siemens
industry significantly. In order for these
innovations to be effective, a number of other
Generational preferences
things also need to change, such as business
Generational and social trends will also have an
models and ways of working. This often implies
effect on the labour market. We can anticipate that
significant changes in the affected sector’s labour
the influx of ‘digital natives’ will accelerate the
market.
digitalisation of the construction industry 267.
When an industry is disrupted by a new Digital natives are people who were born into the
technology, it is very typical to find that: digital age and who embrace digital and mobile
• New types of skills are required, and at the technology – in fact, they expect its prevalence and
same time current and skills associated with cannot imagine another world. They will soon
mature technologies and business models represent the largest part of the total global
become redundant. The World Economic workforce.

263
http://www.mckinsey.com/industries/capital- 266
http://www.cornwalllive.com/this-bricklaying-robot-
projects-and-infrastructure/our-insights/reinventing- could-put-thousands-of-workers-in-cornwall-out-of-
construction-through-a-productivity-revolution jobs/story-30282827-detail/story.html
264
http://www.industrytap.com/3d-printed- 267
https://www.thebalance.com/what-influx-of-digital-
construction-saves-80-overall-building-costs/43156 natives-means-for-construction-845300
265
http://www.constructionworld.org/6-ways-robotics-
transforming-construction-industry/

© DeltaHedron 2017 [Return to Table of Contents] DeltaHedron Innovation Insight


The impact of emerging technologies on the construction industry

In contrast, many of the current generation are Programmes focused on the use and
‘digital immigrants’, who are not always implementation of digitalisation and new
comfortable adopting digital technologies, technologies are required, but it is also necessary
particularly not at a rapid pace at which it is to infuse a new mindset and new ways of doing
developing. If these people are senior decision- things. Educational and training programmes
makers, their biases and digital-scepticism may should be aimed not only at new entrants, but also
prevent or slow down the adoption of new and on upskilling current workers as well as workers in
emerging technologies, and have a negative other sectors who may wish to enter the
impact on the fortunes of the companies they construction industry.
manage.
In addition to their affinity for digital and mobile “SkillsPlanner is an industry-led collaborative
technology, digital natives also seem to have other project to develop a Linked Data construction
62
characteristics by virtue of also being members of skills platform in the UK. It will allow employers,
the Millennial Generation or Generation Z. It is skills providers and other stakeholders to share
believed that these generations also value time past, present and future skills data, and support
more than money, enjoy flexibility and remote stakeholders to plan for and meet current and
working, and like collaborating, for example. They future employment requirements”
shop online, would rarely (if ever) physically go to Farmer Review of the UK Construction Labour Model,
a bank and defer to an app on their smartphone October 2016
rather than a ‘hardcopy manual’.
Reflecting on discussions at the World Economic It is important for educational institutions,
Forum on the ‘Future of Construction’, one including universities, further education colleges,
commentator noted that “Technology featured technical colleges as well as institutions for
prominently throughout the discussions, with the younger learners to prepare the next generation
war for talent focused on a millennial generation construction workforce 269. The next generation
with different work goals and expectations. must be able and eager to embrace the new
Technology was viewed as not just necessary for technologies and leverage their potential to the
bridging the skills divide and improving fullest, if the productivity improvements that are
productivity, but for defining the relevance of our so critically important are to be achieved. In order
industry and profession in a world of to so, the educational institutions themselves must
digitalisation” 268. champion the new technologies, focus their
research on the next generation of emerging
technologies and their applications, and
“It is estimated that 65% of children at proactively develop curricula and learning
school today will work in jobs that do not materials for the next generation of constructors.
yet exist…” If not, they will a priori be designing and creating
The Balance an obsolete workforce.

Education and training requirements for the


future
Indications are that there is a lack of the right sort
of education and training programmes to provide
the next generation of people in a ‘reinvented
construction industry’, particularly one where new
and emerging technologies are prevalent.

268
http://www.rics.org/uk/news/news- http://www.constructiondive.com/news/how-
269

insight/news/how-to-solve-the-construction-and- colleges-companies-can-work-together-to-develop-
engineering-talent-gap/ future-construction-le/440368/

DeltaHedron Innovation Insight [Return to Table of Contents] © DeltaHedron 2017


The impact of emerging technologies on the construction industry

Equally important is the recognition of the


6. Discussion importance of different innovation modes. Relying
only on incremental innovations is a flawed
This report focuses on the impact of emerging strategy. They are important elements to achieve
technologies on the construction industry, with an continuous improvement, but this should not
emphasis on recent trends. become a comfort zone and a cover for resistance
to fundamental change when that becomes
The vantage point of DeltaHedron’s approach is
necessary. The impact of incremental innovations
one of exploring the impact and the strategic
have a tendency to run their course, and their
business opportunities, risks and threats
further pursuit then becomes one of diminishing
presented by emerging technologies and
returns. Very often this is the time when radical
technological change. These insights support
and disruptions are required to bring renewal and
decision making and underpin the development 63
stimulate growth. The construction industry seems
and implementation of corporate innovation
to have reached that point.
strategies, informed by an assessment of
companies’ own technological capabilities and 6.3 Opportunities, risks and threats
dependencies. The disruption of an industry brings huge
6.1 A strategically important industry, ripe opportunities for those who seize them. This is true
for disruption for the construction industry as well. A number of
progressive companies in the industry are already
Construction is large industry which is of strategic riding the next wave. They have digitalised and are
importance on the regional, national and global adopting innovative business practices and
levels. It is also an industry which has been emerging technologies.
suffering from a number of problems for many
decades, including low productivity, low profit As is often the case when industries are disrupted,
margins, waste and safety concerns. there will also be successful new entrants. The new
entrants will leverage new technologies and
A number of forces are pressuring for change and typically also bring new organisational cultures and
there are calls for a ‘reinvention of construction’. industry dynamics, new business models and new
Many agree that the construction industry is best-practices, some of which were developed in
indeed ripe not just for change, but for a much other industries. In fact, some of the new entrants
more serious disruption. will no doubt come from other sectors – such as
A range of emerging technologies, including those manufacturing.
which will enhance digitalisation and automation ‘Constructech’ start-ups, analogous to the fintechs
of the industry as well as new materials, will be and insurtechs which are disrupting the financial
catalysts and accelerators for the disruption. and insurance
6.2 Embracing innovation industries, will also ‘Constructech’ start-
contribute to the ups… will also
The construction industry’s general risk averseness
disruption of contribute to the
resistance to change and ‘lack of innovativeness’,
is fundamental to many of its other woes. construction and disruption of
fill industry niches construction and fill
The key is for the construction industry, as where they have industry niches
well as individual companies, to embrace competitive where they have
advantages. competitive
innovation in its broadest sense. An
innovation mindset and culture must be At the same time,
developed and the pursuit of a quest for the impact of the emerging technologies also pose
innovation and the ‘innovation premium’ risks and threats for industry laggards who fumble
the future. This is not a time for companies in the
should be fundamental objectives.
construction industry, governments for that
Technological innovation is important, but it matter or those who are considering entering the
should be blended with other types of innovation industry, to be complacent.
such as business model and organisational
innovation to achieve ultimate business success.

© DeltaHedron 2017 [Return to Table of Contents] DeltaHedron Innovation Insight


The impact of emerging technologies on the construction industry

It is also not uncommon for the industry hierarchy other industries; as will virtual reality (VR) and
to change, with new companies emerging as augmented reality (AR), Building Information
industry leaders. Modelling (BIM), the Internet of Things (IoT),
6.4 Technology-related trends geolocation and blockchain.

A number of trends in the construction industry Collectively, digital emerging technologies will
are technology-related, either driven to a large enhance logistics, supply chains and procurement.
extent by digitalisation and other emerging An interesting development is the emergence of
technologies, or impacted by technology. These digital markets in building materials, in which
include the greening of construction, smart constructechs have taken the lead. Similarly, the
buildings, modularisation and off-site market for peer-to-peer rental of equipment,
manufacturing. which is enabled by data sharing platforms.
64 Increased digitalisation brings with it greater cyber
6.5 The impact of emerging technologies
security risks, posed not only by viruses, malware
A number of emerging technologies are and ransomware which can disable and disrupt
collectively driving change in the construction systems, but also criminal cyber activity which
industry. They will have a transformative impact on include the theft of commercially sensitive and
the industry and contribute towards addressing personal data. These incidents carry significant
the challenges it faces. legal, financial, reputation and operational risks.
6.5.1 Digital transformation and digitalisation 6.5.2 Automation technologies
Digital transformation is one of the most A number of emerging technologies are
significant global trends. It impacts every sector of contributing to the automation of construction,
society, driving progress, economic growth and lending weight to the notion of ‘construction as a
quality of life. No industry is left untouched. manufacturing process’. They will contribute
The construction sector has exhibited very little significantly to productivity enhancement.
productivity growth during the last two decades. 3D printing is finding increasing applications in
Mindful that there is a direct correlation between construction, including the printing of parts and
the extent to which an industry is digitalised and models, but also modular panels and even entire
productivity growth, it is not surprising to note that buildings. There a many reports of buildings being
construction is one of the least digitalised 3D printed in a matter of days, often combined
industries. with modular off-site manufacturing. Large 3D
printers specifically designed for construction use
“Digitalisation of the construction a technique known as ‘contour crafting’, with
industry is one of the forces which will cement as the ‘ink’.
accelerate disruption….” Robotics is also set to impact on construction,
ranging from robots involved in site preparation
Digitalisation of the construction industry is one of and waste clearance to brick laying and welding.
the forces which will accelerate disruption. Digital-
Drones and autonomous vehicles have many
related technologies such mobile and cloud-based
construction applications. Drones can be fitted
applications will underpin a number of other
with a range of image, video and related sensors.
emerging digital and data technologies. These will
This enables them to conduct aerial mappings and
in turn enhance the quality of data driven decision
surveys, safety inspections as well as recordings of
making and productivity.
project progress. In addition, they also find
As part of the digitalisation process, the application in data relay, site security and safety.
construction industry will increasingly adopt
Wearables refer to textiles and other devices worn
practices which are common cause in other
by a person, which can send (and receive)
industries, such as software-as-a-service (SaaS),
information gained from IoT sensors. The
Enterprise Resource Planning (ERP) and bring-
information can reflect the person’s physical and
your-own-device (BYOD). Emerging data
emotional state, movement or position as well as
technologies such as big data, analytics and
other environmental variables.
artificial intelligence (AI) all have application in the
construction industry, and will multiply the impact
of digital transformation as they have done in

DeltaHedron Innovation Insight [Return to Table of Contents] © DeltaHedron 2017


The impact of emerging technologies on the construction industry

6.5.3 New materials 6.6 Workforce, skills, training and


By their very nature, new builds and retrofitting education
consume vast amounts of construction materials.
A number of countries are experiencing labour
Trends in materials of the future will redefine how
shortages in construction, including the UK, US and
projects are conceptualised, designed and
Australia. It is also not easy to attract new talent.
executed as well as the life cycle trajectories of the
The global financial crash of a decade ago is still
projects. Given the volumes, even small
reverberating, but the industry’s image, safety
improvements in performance can have significant
record and other challenges are not helpful either.
impact productivity, durability and safety; and
similarly for reductions in cost. Disruption of the construction industry will
necessarily have an impact on the labour market,
Concrete and steel remain widely used, with work
driven in part by the emerging technologies and
continuing to improve the performance of both. 65
the dynamics of technological change.
Recent advances have seen the emergence of
As new technologies emerge, the nature of work
lighter, more flexible and versatile forms of
and jobs change. It is typical for disrupted
concrete, including self-consolidating, self-healing
industries to experience technology-related labour
and self-compacting concrete.
upheavals, particularly during transitional periods.
A number of innovative alternative materials with New types of jobs requiring new types of skills
promising construction applications are emerging. emerge. As mature technologies become obsolete,
These include, for example, ETFE which is 99% the jobs and skills they require, phase out.
lighter and also stronger, eco-friendlier, better at
The construction industry desperately needs to
light transmission and more flexible than glass;
improve its productivity. This will provide further
permeable concrete replacements which can
impetus for the increasing prominence of
absorb significant amounts of water and insulating
productivity enhancing technologies and practices,
materials as well as adhesives. Kinetic materials
such as offsite modular construction, 3D printing,
have the ability to convert movement to energy,
robotics and drones. The adoption of these
and can be used in flooring and roads.
technologies will lessen the demand for some skills
There are signs of a resurgence in the use of wood currently required in construction, but will also
an timber, fuelled by the emergence of cross precipitate the creation of new jobs, requiring new
laminated timber (CLT) panels and related skills.
products. CLT panels are strong, light and durable,
The use of data driven technologies such as big
and their use has been approved for use in high rise
data, analytics, machine learning and artificial
buildings.
intelligence will similarly also change the nature of
Following the Grenfell Tower fire tragedy in work in construction-related professions such as
London in June 2017, there will be a renewed focus architecture, quantity surveying, building
on the use (or not) of cladding and fire retardant management and perhaps also structural
materials as well as building codes, planning and engineering.
inspection to prevent and contain fires.
The next generation of construction workforce will
Green construction materials will no doubt work in a industry which differs in many respects
become increasingly prevalent, driven in part by from the industry we know today. Many of the
regulations, demand from customers who are young people entering the industry will be ‘digital
more environmentally sensitive as well as natives’, who will naturally accept, if not demand,
economic benefits. We will probably also see the digitalisation. They need to be prepared for the
need for suppliers of green construction materials new types of jobs which will be required in the new
to prove that the materials have procured from digitalised and automated construction world –
green and eco-friendly sources, in a manner similar many of which don’t even exist today.
to which there is a requirement for consumer
Education and training
products to be ethically sourced. These may be tied
Universities and other training institutions need to
to existing green credentials such as BREEAM and
embrace the emerging new technological regime
LEED.
in construction. They need to focus research and
enterprise on the development and enhancement
of the new technologies and related business

© DeltaHedron 2017 [Return to Table of Contents] DeltaHedron Innovation Insight


The impact of emerging technologies on the construction industry

practices and ensure that their curricula are The dynamics of technological change will always
designed to train constructors who can create the impact on the fortunes of companies and
future. Perhaps we should also consider the notion countries. Emerging technologies will continue to
of disruption when thinking about construction substitute and replace mature technologies, and
education. disrupt industries.
It is also necessary to ensure that the current Companies should consider the importance of
workforce understands the new technologies and formally assessing their ‘technology dependencies’
the benefits and opportunities they bring; as well as part of the risk management process. They
as the risks and threats of ignoring them. Senior should gain an understanding of which
decision makers in particular need to take note – it technologies they critically depend on and rely,
is very much in their gift to embrace innovation whether it be technologies which constitute their
66 and benefit from the innovation premium, and to (current) competitive advantages, underlie the
adopt emerging technologies and lead the products they make, services they render, are used
disruption charge. in their operations or on which their logistics and
The question is not so much “what will it cost ?”, supply chain and customers rely.
but rather “what will it cost if we don’t do it ?”. Assessing the impact and the strategic business
6.7 Recommendations opportunities, risks and threats presented by
emerging technologies and the dynamics of
From a strategy viewpoint, decision makers in technological change should be integral elements
construction companies as well a governments of the innovation strategy of companies in the
need to consider the broader evolving landscape construction industry.
and the drivers which will contribute to the
disruption of the construction industry.
The impact of emerging technologies is one those Does your company have an innovation
drivers, albeit a very important one. They will be strategy – and if so, can you describe it and
catalysts and accelerators for change.
determine whether it is working? If not, do
It is important for companies to recognise the you sometimes find yourself wondering
strategic importance of a structured approach to what happened…. not even to speak of
the management of innovation, and particularly
what can happen and which interventions
technological innovation. An innovation strategy
should be made to shape the future?
should be an integral part of the corporate
strategic plan.

DeltaHedron’s business offices are located in the


Centre for Digital Innovation (C4DI) - a vibrant private
technology business incubator located in the centre of Hull.

C4DI@TheDock, 31-38 Queen Street, Hull, HU1 1UU,


United Kingdom

www.c4di.technology

DeltaHedron Innovation Insight [Return to Table of Contents] © DeltaHedron 2017


The impact of emerging technologies on the construction industry

Appendix: ‘Instead of trying to see the future, start making it’


Published in New Statesman, ‘Spotlight on emerging technologies’, July 2017

67

© DeltaHedron 2017 [Return to Table of Contents] DeltaHedron Innovation Insight


DeltaHedron Innovation Insight

Dr Calie Pistorius is the Chief Executive and Principal Consultant of DeltaHedron Ltd,
and has extensive experience of consulting and research in the management of
technological innovation. He is a former Chair of the National Advisory Council on
Innovation in South Africa, former Vice-Chancellor of the University of Hull in the UK
and Emeritus Vice-Chancellor and Principal of the University of Pretoria in South
Africa, where was also the Director of the Institute of Technological Innovation. He is registered
as a Chartered Engineer in the UK and holds a PhD degree in electrical engineering from the Ohio
State University, a masters degree in the management of technology from the Massachusetts
Institute of Technology, a bachelors degree in electronics engineering from the University of
Pretoria and is an alumnus of Harvard Business School.

DeltaHedron Ltd is a UK-based business consulting firm specialising in the management


of technological innovation. We support our clients with the development and
implementation of innovation strategies, underpinned by an assessment of the strategic
business opportunities, risks and threats presented by emerging technologies and the
dynamics of technological change.

© 2017 DeltaHedron Ltd. All rights reserved.


The content of DeltaHedron Innovation Insight is for general information purposes only and should not
be used as a substitute for consultation with professional advisors. DeltaHedron has taken reasonable
professional care in collecting and reporting of the information but has not independently verified,
validated or audited data to verify accuracy or completeness. Mention of specific companies, products or
brands does not in any way indicate endorsement. None of the companies or products mentioned in this
report contributed financially to the study.

To subscribe/unsubscribe to DeltaHedron Innovation Insight, comment on or


enquire about the contents of this newsletter or to learn more about DeltaHedron
and how we can support your organisation with the management of technological
innovation, please contact us through our website:
www.deltahedron.co.uk

August 2017

You might also like