Disrupting an industry can happen in many forms, and in the case of construction, it's time. Every angle of construction is analyzed in this in depth report, including work flow, technology, and productivity. And, the report shows immense benefits coming from innovative changes - suggesting five of the most important areas:
- Higher definition surveying and geolocation
- Next generation 5D building information modeling
- Digital collaboration and mobility
- The internet of Things and advanced analytics
- Future-proof design and construction
The construction industry is ripe for disruption. Large projects across asset classes typically take 20 percent longer to finish than scheduled and are up to 80 percent over budget. Construction productivity has actually declined in some markets since the 1990s; financial returns for contractors are often relatively low—and volatile.
While the construction sector has been slow to adopt process and technology innovations, there is also a continuing challenge when it comes to fixing the basics. Project planning, for example, remains uncoordinated between the office and the field and is often done on paper. Contracts do not include incentives for risk sharing and innovation; performance management is inadequate, and supply-chain practices are still unsophisticated. The industry has not yet embraced new digital technologies that need up-front investment, even if the long-term benefits are significant. R&D spending in construction runs well behind that of other industries: less than 1 percent of revenues, versus 3.5 to 4.5 percent for the auto and aerospace sectors. This is also true for spending on information technology, which accounts for less than 1 percent of revenues for construction, even though a number of new software solutions have been developed for the industry.Read More