The Future of Construction: Embracing Digital Transformation

Overview of the Construction Landscape

The construction industry is undergoing a tectonic shift as companies begin to embrace new technologies to navigate growing challenges. A recent survey commissioned by KPMG in Canada highlights a significant gap between current practices and technological uptake in the sector. While approximately 80% of construction firms express excitement about innovation, many recognize that barriers still exist.

A Growing Demand for Technology

As Canada’s construction sector faces unprecedented demand for housing and infrastructure, a reported 90% of firms are currently grappling with a shortage of skilled labor. This dire situation strains their ability to bid on projects and meet deadlines. The KPMG survey revealed that almost nine in 10 firms believe digital technologies can alleviate these labor constraints and enhance overall efficiency.

Tom Rothfischer, KPMG’s National Industry Leader for Building, Construction, and Real Estate, emphasizes the potential of these digital tools to save time and money while increasing worker safety and productivity. “If used smartly, technology can help address Canada’s housing and infrastructure challenges,” he states.

Key Technologies Reshaping Construction

3D Printing and Robotics

3D printing is revolutionizing the way materials are used in construction, allowing for the rapid creation of complex structures. Its application in laying concrete and forming intricate steel shapes can significantly expedite project timelines. Robotics, specifically in bricklaying and tying steel, also showcases how automation can streamline labor-intensive tasks.

Drones and Digital Twin Technologies

Drones offer contractors an efficient means of surveying, mapping, and monitoring project progress in real-time. Coupled with Building Information Modelling (BIM), which enhances collaboration among project teams, these technologies allow for the proactive identification of potential disruptions and cost overruns.

Digital twin technology takes this a step further by creating near-real-time simulations of physical structures. This allows teams to run "what-if" scenarios that can inform decisions related to design changes and construction sequences.

The Slow Adoption Rate of Technology

Despite these promising tools, Canada’s construction industry has historically lagged in technology adoption, primarily due to conservative practices and a reliance on traditional methods. However, the COVID-19 pandemic has accelerated the push for digitization, forcing companies to rethink their business models and operational frameworks.

Mr. Rothfischer notes, "We’re seeing a definite recalibration taking place in the construction sector." Leaders within the industry recognize the need for technology to reshape their operational approaches in the face of growing challenges.

Insights from the KPMG Survey

The KPMG survey provides insights into industry sentiment:

• 73% of respondents believe the Canadian construction sector lags behind other countries in digital technology adoption.
• 67% indicated that the pandemic prompted them to invest in new technologies.
• 86% agree that disruptive technologies can enhance efficiency and competitiveness.
• 80% of laborers and project teams are excited about new technologies.

Investments in digital transformation are on the rise: 46% of firms plan to allocate more than 11% of their corporate operating budget to tech upgrades in the coming years.

Overcoming Financial Barriers

Mary Van Buren, President of the Canadian Construction Association (CCA), highlights a persistent issue: while leading firms are adopting technology, the financial burden often falls disproportionately on smaller contractors. Margins are typically tight in construction, making it hard for small- to medium-sized enterprises (SMEs) to justify technology investments.

The CCA is actively working with federal departments to modernize procurement processes, advocating for frameworks that share the risks and rewards associated with innovation.

Addressing Labor Shortages through Innovation

With 90% of construction firms reporting difficulties in finding skilled labor, the KPMG survey underscores the urgent need for comprehensive solutions. This includes not just the adoption of advanced technologies but also the restructuring of labor roles to accommodate new skill sets, such as data analytics and drone operation.

Jordan Thomson, a Senior Manager at KPMG, emphasizes that adapting to digital transformation is vital for the industry’s survival. He notes the importance of bridging the gap between technical and practical skills in the workforce by integrating new roles that support technology application.

Conclusion: The Path Forward

As the construction industry evolves, the successful integration of digital technologies will rely on more than just investment; it will require a cultural shift towards innovation and collaboration. The key to thriving in this new landscape lies in embracing digital tools to improve efficiency, reduce waste, and enhance project management.

By leveraging innovative technologies, Canadian construction companies can not only address immediate challenges but also lay a foundation for sustainable growth in the industry. If firms can effectively navigate these changes, they stand poised not only to compete but to lead in the global construction arena.