Connected construction is the sector’s future

Tom Karemacher

After the storm comes the calm, and the construction sector may soon be getting their day in the sun. 

The past two years had been particularly tumultuous for the engineering and construction (E&C) industry, which is heavily reliant on labour workers. Lockdowns and border closures had stalled plenty of construction work, and many of these workers were forced to leave the industry due to income insecurity. 

As the world adapts to the pandemic, the economy is starting to see signs of recovery. In Singapore, the value of construction contracts to be awarded in 2022 is projected at between S$27 billion and S$32 billion. This comes on the back of strong support by the public sector, with master-plan projects across transport, residential, mixed-use and tourism providing a strong project pipeline for the industry. 

But while the optimistic outlook does bode strong confidence for the construction sector, there remains temporary headwinds that could slow down this recovery. 

Taking stock of the headwinds

Manpower shortage continues to be the most persistent issue facing the industry. As with most countries in Asia and around the world, Singapore is grappling with a tight labour market. Industry players have echoed concerns that while the industry growth is nearing pre-pandemic levels, manpower shortage could stall its performance. The impact of not filling job openings can negatively affect E&C firms in more ways than one, including project delays and cancellations, projects being scaled back, inability to respond to market needs, losing project bids, and failing to innovate, among others. 

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At the same time, the construction industry is vulnerable to black swan events such as supply chain crises, geopolitical uncertainties, and worsening Covid developments outside of Singapore. Disruptions within the supply chain upset the project lifecycle as materials cannot be ordered on time. Case in point – delays for Build-to-Order (BTO) housing projects continue to hover between six and 12 months. Furthermore, the shortfall in construction and building materials has not only delayed projects significantly but led to double-digit price spikes that significantly impair the industry’s margins. 

While the government has rolled out measures to support the retention of work permit holders and alleviate the manpower crunch, these schemes only partially alleviate project delays and soaring labour costs. Regulations and policies are critical in the recovery of the construction sector, but there is only so much that support schemes can do. 

As taxing as these challenges are, they have also spurred transformation in the industry. In particular, businesses are feeling the heat and urgency to embrace technology as a way to navigate these roadblocks. Businesses are finally recognising that the world has moved into the digital realm, and they need to move with the times or risk getting left behind.  The fact is, digital tools are becoming as important as the physical equipment used to build the huge skyscrapers in our cities.  

Digitalising the construction toolbox

As with all other industries, the construction workforce was forced during the pandemic to adopt a remote working model – something that would have seemed unthinkable just a decade ago. With the Covid management curbs, the industry needed to be creative and think outside of the construction toolbox. 

Enter virtual reality and augmented reality (VR/AR). E&C firms, particularly architects and designers, can take advantage of these technologies to enhance design visualisation, conduct virtual inspections and facilitate virtual collaboration – all without donning boots on the ground. 

On the project management front, digital tools such as connected construction solutions can eliminate wasted time and maximise productivity by centralising all project data and people in one place. By channelling all the apps, documents, and people into one integrated platform, E&C firms can maximise collaboration and empower their workforce to do more in less time – a huge leg up in today’s competitive labour market. Such tools also present contractors with a holistic view of their workforce, have a real-time and forward-looking understanding of all workers, assignments and commitments. These valuable insights enable them to accurately plan, schedule and budget the limited labour at hand.

The supply chain issue is a longstanding one. While such disruptions may inevitably result in delays, construction companies can better manage challenges if they have ample visibility into their impact.  Construction management platforms can help communicate real-time data to all project stakeholders, presenting construction managers with the opportunity to manage client expectations and project schedules while alternative suppliers are sourced. Additionally, the transparency and added visibility afforded by these digital tools allow construction managers to have a better control of their financial data and prevent projects from running at a loss. In the highly competitive construction landscape, effective management of profit projections could decide whether an organisation ‘sinks or swims’.

It’s time the industry digitalises

2022 presents the construction industry in Singapore with a huge opportunity to blow off the dust of the previous years and capitalise on this momentum for growth.

It’s worthy to note that there is no lack of projects going around. At the end of the day, it all boils down to whether the industry is ready to drive digital transformation initiatives and turn these challenges into opportunities. The future of construction is connected construction, and technology will not only digitise but revolutionise the way we build. 

The writer is vice president, Asia Pacific, at Procore Technologies