Statistics say the industry as a whole, has a reputation for slower tech adoption.

Written by LDCA Staff and ChatGPT

In recent years, many have argued that the construction industry is lagging in technology adoption compared to sectors like finance, healthcare, and retail. Although some construction companies and stakeholders actively implement advanced technologies, the industry as a whole has a reputation for slower tech adoption. Is this perception accurate, and if so, why does it exist? And what steps can LDCA members take to help close the gap?

The Reality Behind the Perception
Data from various industry studies indeed suggests that construction has been slower to adopt certain technologies. For example, according to a McKinsey report, construction ranks among the least digitized industries, alongside agriculture and hunting. Historically, our industry has maintained conservative spending on technology, focusing instead on reliable, tried-and-true methods. This approach is understandable, as construction projects carry high financial stakes, and changes that impact safety, timelines, or costs require a careful approach.

Simply labeling construction as "technologically behind" does not capture the full picture. Building projects require specialized, real-world solutions that differ from those in other industries. Construction projects involve unique, one-off requirements rather than standardized, repeatable processes typical in manufacturing. Our sector also faces high regulatory and compliance standards, making tech adoption a multifaceted process.

Challenges in Technology Adoption

Several factors contribute to the lag in tech adoption by the construction industry:

• Complexity of projects presents unique challenges.
• High Initial Costs which firms may find it hard to justify such investments, especially in uncertain economic times.
• Training and skills gaps especially as the industry workforce is skilled primarily in traditional methods.
• Fragmented and unconnected parties as technology adoption requires alignment across all project stakeholders, which can be difficult to achieve.
• Construction projects must comply with and adhere to strict safety and other regulations, where unproven or unapproved technology poses risks.

Technology’s Growing Role in Construction

Despite these challenges, recent years have seen a marked increase in tech integration by the local construction industry and LDCA members, driven by demand for efficiency, sustainability, and improved project outcomes.

We are beginning to see more frequent use of a range of tech services to support construction project management, safety, and operations.

Some of the most commonly adopted types are:

• Project Management Software tools like Procore, Autodesk Construction Cloud, and Buildertrend.
• Building Information Modeling (BIM) software such as Autodesk and Revit.
• Drones and UAVs used for site surveying, progress monitoring, and inspection.
• Safety Management platforms like SiteDocs and eCompliance
• IoT Devices and Wearable tech for worker safety, such as GPS trackers and health monitors, along with IoT devices for equipment tracking and predictive maintenance.
• Robotics and Automation are increasingly being used for repetitive tasks like bricklaying, concrete printing, and demolition.
• Data Analytics and Reporting Tools that integrate with project management platforms and provides real-time data analytics like Procore, Sage Analytics and Power BI.
• Augmented and Virtual Reality (AR/VR) has already been adopted by many architects and engineers in pre-construction planning, and LDCA has member using VR on site to help installers visualize the work.

There is also evidence to suggest estimating and bidding Software is gaining popularity by LDCA members.

Strategies to Help LDCA members Close the Tech Gap

Some LDCA members have made the switch, and others are gradually embracing the technology available to our industry. Closing the gap further requires intentional strategies.

Here are some approaches that can drive faster adoption:

• Foster a Culture of Innovation: Change starts at the top, with leadership willing to embrace and promote new ideas. When leaders actively support technology adoption, it creates an environment where innovation can thrive.
• Prioritize Workforce Training: A technology-savvy workforce is essential to successful tech adoption. LDCA members can invest in training, to build the necessary skills for tech-enabled construction.
• Find out more bout the ROI of Technology: If you are not clear on how or if technology can help your business find out more about how it can help you in terms of operational efficiency, and overall project outcomes. Find case studies focussed on industry-specific examples that help demonstrate what the long-term cost savings and risk reduction looks like.

Moving Forward

The perception of delayed tech adoption in construction has some truth, but the industry is catching up, driven by the pressures of efficiency, safety, and sustainability. A growing number of LDCA members recognize that technology is not a luxury but a necessity to stay competitive in an ever-evolving market. With a proactive approach to hiring practices, training, and industry understanding, we can transform our industry’s tech reputation, bridging the gap and paving the way for a more efficient and forward-thinking future.