The signs that Construction 2.0 is finally here

In this brave new world of 2023, where new tech is up and walking before users can crawl, one could be forgiven for seeking out insights anywhere other than the construction industry. We are, historically, the last ones to adopt new technology – developers are highly risk-averse clients, which makes builders equally risk-averse. This brings narrow margins, sometimes tenuous relationships, liabilities that could sink ships and schedules that can keep you underwater from the start. All of this sets the stage for an often-repeated refrain where one day technology will fix it all, do away with the old and replace it with the new.

From our position within the industry, we’ve watched waves of tech break upon hard-nosed realities again and again, but all of that is beginning to change fast. The tide is out, the wave is rising and Construction 2.0 is coming our way fast.

The use-case for construction technology (ConTech) has always been there, but the need to take a risk on it has never been as unavoidable as it is now. The labour shortage in North America is exacerbating any already inefficient processes, increasing the likelihood of construction delays, work stoppages, safety hazards and equipment rescheduling and diminishing the efficient management of everyday processes such as invoicing and lead time management. In short, construction teams are doing more with less and everyone knows it is unsustainable. There is an epidemic of burnout and mental stress in the industry, made all the worse by COVID and leading to a measurable uptick in tech adoption as teams look for solutions.

There is also a clear mandate from clients to address corporate social responsibility (CSR) concerns, with global warming being of particular note in our industry. Scalable solutions have room to grow in construction and we are already seeing a large percentage of ConTech start-ups whose focus is on reducing the industry’s carbon footprint. Clients want it, so builders want to offer it. Some things are just that simple.

It is also worth noting that the tech itself has reached a tipping point in practicality, easing adoption.  Building Information Modelling (BIM) has been around for decades, for example, but now every phone and drone have LiDAR capabilities. The hardware is less cumbersome, the software is more intuitive, and those two barriers are getting lower each day. Even artificial intelligence, which excels at taking massive amounts of data and turning it into intelligible results, has reached a tipping point in accessibility this year. With an increasing number of tech startups looking at construction as a new playground, and with each project being a veritable foundry of data, it’s up to industry players to notice that the walls have come down.

The number of tech-savvy industry players has also increased, with former or existing contractors now leading conventions and accelerators. Over a decade ago, Silicon Valley said the days of the general contractor were numbered, which is why we have been increasing self-performing IT and tech ever since. At EllisDon – one of Canada’s largest construction firms, completing over $6 billion of work a year – we have a 200-person ConTech division, use our own software platform (developed and serviced entirely in-house), have our own data analytics department, offer a variety of digital visualisation services and have just completed our first ConTech Accelerator programme. We are not the only industry player ready for this wave, but we are definitively far up that learning curve.

One final reason why we are confident that the coming years will bring about the single greatest leap forward in our industry – the first of its kind – is competition. The need is there, the external pressures are there, the readiness is there and the starting bell has already been rung. Any general contractor, subcontractor or client who hasn’t dedicated resources to vetting, deploying or developing ConTech solutions is already behind. The market is being flooded with new tech, many of which are going to definitively change the way we do things. We’ve seen them, we’re using some and there is plenty more out there.

We’re builders, and we understand that our industry is typically the last one to adopt new tech. We have risk-averse clients, which has made us risk-averse ourselves. Yet, even today, there are still builders who entirely discount advances in artificial intelligence, machine learning, digital design and networks of automated scanners capable of collecting data at every step of the process. So, if you haven’t heard the starting bell, consider this a friendly competitive ring from within the industry.

We’re excited for Construction 2.0. Builders are a serious, competitive and ultimately collaborative bunch – we have to be – which is why we intend to help one another out. EllisDon is launching a separate division, under a new banner, called Building Digital, which intends to leverage our more than 70 years of construction experience and our over 15 years of software and ConTech development. We do a lot, but we love breaking new ground. Let’s change this industry together!