The construction sector today faces no shortage of pressures. The demand for housing isn’t news to anyone, although the labour shortage issues are substantial. Added to these are rising costs along with the need for more sustainable practices.
Yet only thinking about today isn’t enough. To address today’s challenges, construction companies need to think about what they will look like in 2030.
The successful Irish construction firm of the next decade will be defined by the work it does now to adapt to what lies ahead. That will involve being able to embrace technology, manage a low-carbon operation, and develop sustainable organisational resilience.
There are already positive signs in this respect. Historically, construction wouldn’t be considered the fastest to adopt digital tools. That has changed radically in recent years.
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Part of that is influenced by the acute labour shortages faced by the industry, with businesses needing to find new ways to make up for efficiency issues. Far more of a factor, however, is the increased recognition among construction companies of the opportunities that come with artificial intelligence (AI) in terms of increasing overall productivity.
“From our conversations with over 100 Irish companies about AI, construction companies have proved to be some of the early movers,” says Paul Browne, programme manager AI technology centres at Enterprise Ireland. “There is something about the combination of an engineering, problem-solving mindset, combined with a need for more skilled people, it means that companies see AI as a positive force to allow them to address construction bottlenecks now.”
With construction, AI has found something of a sweet spot. There’s a willingness native to the industry’s way of thinking to find ways to use the technology. This can cover a vast range of administrative tasks, such as scheduling and cost management, while also being able to analyse the enormous amounts of data that can influence decisions.
Where there’s a will, there’s a way, but it doesn’t hurt to have some help along the way. External support from the likes of Irish Manufacturing Research (IMR), which is Ireland’s centre for applied manufacturing innovation, and others can make it easier for businesses in the sector to embrace new technologies.
“Enterprise Ireland technology centres like Construct Innovate, and IMR stand ready to support Irish companies on their AI journey through group collaboration, shared expertise and practical industry-ready advice,” says Browne.
These centres offer construction companies a chance to pilot projects while also sharing the research load to find the right solutions they need.
Were the challenges solely concerned with productivity, it would be an easy matter for the sector but the future of construction must also deal with increasing demands around environmental impact.
These requirements are also pushing businesses in the sector towards more digital solutions to help meet them. This includes improving oversight over supply chains.
“Tracking and optimising the construction material supply chain has always been best practice and increasingly needed to validate claims of lower carbon footprints,” says Browne.
This has led to enterprise resource planning (ERP) platforms increasing both in popularity and the depth to which they are used. These platforms can be used to manage procurement, logistics, and bring all the other aspects of the supply chain into a single system.
“Construction companies that have already invested in ERP systems have an advantage here,” says Browne. “But there is an opportunity for companies to leapfrog to the next generation ERP technology, with AI enabling better integration between systems, and with non-technical users being able to query and find business insights.”
That kind of leap forward, speeding up processes for project teams, sounds extraordinary, yet it’s a reality today. Still, particularly for small to mid-sized companies in the sector, taking such a big step can seem daunting.
That’s where programmes like Datum, a cross-Border digital transformation project, can help make the jump seem a bit more manageable.
“The Datum programme, delivered by IMR and Queen’s University Belfast on a cross-Border basis, can enable companies to take practical first steps on their digital and AI journey,” says Browne.
Datum provides companies with support to move along the digital journey, from initial assessments through to full deployments.
Of course, this race to embrace digital brings with it another set of challenges. Labour demands in construction are going to become even more complex as the types of roles required in the sector expand. The digital explosion’s biggest hurdle may be a human one.
“We view AI as a people, talent, and skills challenge. Companies whose people leverage AI already have a key advantage, not only in international markets, but in attracting talent looking for the most interesting and rewarding roles,” says Browne.
Enterprise Ireland is working to help companies bridge that skills gap.
“Enterprise Ireland’s Spotlight on Skills programme is a first step towards a culture of innovation and finding, building and managing the unique knowledge that will give Irish companies the edge against competitors using increasingly capable AI,” he says.
While only four years away, 2030 is going to look radically different for Irish construction firms. Practices more associated with advanced manufacturing today will be the norm, improving efficiency and helping to meet climate targets.
It’s a lot to take in, especially with so many challenges to be met in the here and now. The support available should make the journey a lot easier for companies willing to embrace change.
