Is the construction industry up to the challenge of repairing the world’s crumbling infrastructure? A new report from McKinsey & Co. answers with a definitive “No,” unless the industry can place itself firmly into the digital future in its organization, documentation, management, and information sharing.
The think tank estimates that the world will need to spend $57 trillion on infrastructure by 2030 just to keep pace with global economic growth. A recent report by three of its researchers also sees a construction industry that takes 20% longer than scheduled to finish most projects that come in up to 80% over budget.
“Construction productivity has actually declined in some markets since the 1990s,” writes the report’s authors, Rajat Agarwal, Shankar Chandrasekaran, and Mukund Srishar, in an article they posted last month. “The construction industry is ripe for disruption.”
Such observations are hardly new; there have been myriad other reports that lament the same problems in the construction sector, and fret about how massive reconstruction can possibly be accomplished.
What makes this paper a little different is that the “five big ideas” proposed by its authors aren’t at all futuristic.
Five trends that are making the construction process run smoother and quicker. Image: McKinsey & Co.
The authors basically believe that the construction industry needs to be reorganized around digital technology, including:
•Higher-definition surveying and geolocation
•Next-generation 5D BIM
•Digital collaboration and mobility
•The Internet of Things (IoT), coupled with advanced analytics
•Future-proof design and construction with sustainable materials and methods.
Within these trends, McKinsey sees LIDAR as “an evolution in surveying,” primarily because of breakthroughs in drone technology and handheld platforms.
Five-D BIM goes beyond 3D BIM by taking into account a project’s cost and schedule. “The visual and intuitive nature of 5D BIM gives contractors a better chance to identify risk earlier, and thus to make better decisions.” Augmented reality technology will further enhance the effectiveness of 5D BIM, which project owners and contractors “need to incorporate right from the design stage.”
McKinsey revisits the need for the construction sector to move aggressively toward online communication as a way of improving productivity. Paper, the report argues, makes data analysis among team members tougher, and is subject to being mismanaged among different stakeholders.
By comparison, the authors point to an American tunnel project that involved 600 vendors, for which the contractor developed a single platform for bidding, tendering, and contract management. “This saved the team more than 20 hours of staff time per week, and cut down the time to generate reports by 75%,” they write.
Perhaps more to the point, the digital-collaboration and mobility solutions segments have attracted close to 60% of all venture capital funding in the construction-technology sector.
The report also suggests several advantageous potential uses for IoT working in combination with sensors and near-field-communication devices. These uses include equipment monitoring and repair, inventory management and ordering, quality assessment, energy efficiency (such as sensors monitoring ambient conditions and fuel consumption of equipment), and safety.
As for future proofing projects, the report lists a host of new building materials—self-healing concrete, aerogels, nanomaterials—and construction approaches—like 3D printing and preassembled modules—that could lower cost and speed up the construction process.
“Some of these ‘materials of the future’ could redefine how projects are conceptualized, designed, and executed,” states the report. It notes, however, that adoption of these materials has been slowed by a lack of awareness and availability, limited supply chain, and the industry’s risk aversion.
While 80% of all construction work is still done on-site, more project developers and contractors are deploying off-site approaches “that help them improve predictability, consistency, and repeatability.” These approaches include preassembly of components and simply structures, 3D printing, and robot-assembled construction.
None of these recommendations will surprise any nonresidential contractor. The question, though, is why aren’t these ideas being implemented more widely? The McKinsey authors say the industry needs “to adopt a new mindset” whose foundation is shared responsibility, and has four principles:
•Transparency and risk sharing in contracts
•Return-on-investment orientation
•Simplicity and intuitiveness in the design of new solutions
•Change management (as in top management communicating clearly why changes are important)
Project owners and developers need to mandate the adoption of digital technologies and measure results. This should include appointing a Chief Technology Officer or Chief Innovation Officer who can think boldly about the company’s digital agenda.
Engineers and contractors need to develop “digital road maps” for project management. “And it’s important to ensure that project teams have the budgets and authority they need to pilot new technologies. It’s essential to build the capabilities of project managers so they can become digitally adept.”
Related Stories
| Nov 27, 2012
SFIA releases technical guide for cold-formed steel framing products
The 114-page book covers both structural and non-structural applications, including section properties of SFIA member product profiles, and complete load and span tables for most applications.
| Nov 21, 2012
Architecture Billings Index positive for third straight month
All regions reporting positive business conditions
| Nov 20, 2012
PC Construction completes Juniper Hall at Champlain College
Juniper Hall is on track for LEED Gold certification from the U.S. Green Building Council.
| Nov 20, 2012
SchenkelShultz-designed Valencia at Lake Nona certified 3 Green Globes
Featuring the latest technologies, the three-story, academic facility includes academic spaces and teaching laboratories, student services, a book store, library, café, a Dean’s suite and administrative offices.
| Nov 14, 2012
U.S. Green Building Council partners with Pearson
Partnership will help further USGBC’s mission by advancing green building education
| Nov 14, 2012
U.S. Green Building Council announces grant from Google to catalyze transformation of building materials industry and indoor health
Focus is on healthy building materials to promote indoor environmental quality and human health
| Nov 14, 2012
USGBC's Greenbuild International Conference and Expo kicks off in San Francisco
7,000 members of the green building industry convene for opening plenary headlined by "Morning Joe" co-hosts Mika Brzezinksi and Joe Scarborough
| Nov 13, 2012
Have colleges + universities gone too far with "Quality of Life" buildings?
We'd like your input - recent projects, photo/s, renderings, and expert insight - on an important article we're working on for our Jan 2013 issue
| Nov 13, 2012
Turner Construction’s green building Market Barometer reveals new findings on green building and certification
Respondents indicated a widespread commitment to sustainable practices
| Nov 13, 2012
Soladigm announces new glass product, changes company name to View, Inc.
Glass is installed and operating at W San Francisco adjacent to the 2012 Greenbuild show