Why do prefabricated steel building construction companies need to invest in technology? Have you ever pondered over this question before going for the big leap? The simple response to this would always be to enhance the efficiency of the project. While this is true to some extent, there are various factors that highlight the increased importance of digitization of construction projects as we chart out the next growth trajectory, which gains an even greater magnitude when it comes to prefab construction. The construction industry, which is infamous for cost and schedule overruns, can quickly overturn this status and achieve enormous efficiency by gradually embracing modern technology. Let’s understand why we need to digitize…

Why is there a need for digital intervention? The construction industry, which is still fraught with challenges such as manual mechanisms, outdated operationalities, and inconsistent communication, needs a catalyst to transform its landscape and make the sector more consistent, convenient, and cohesive. According to a McKinsey analysis, when it comes to defining the worldwide worker productivity rate, the construction industry lagged behind the others. As per the report, the construction industry has grown at a pace of roughly 1% per year over the past two decades, compared to the 2.8% for other industries. Underinvestment in software and technology innovation is one of the reasons for the slow pace of productivity in this field. The report also highlighted that the construction industry was one of the least digitized sectors in the world, according to the digitization index.

For project contractors and allied partners, the lack of useful digital solutions or construction project management solutions results in chaos and inefficiencies. There are many factors that challenge the timely completion of a construction project, which includes problems with the supply chain, changes in the project’s scope, design flaws, communication issues, unanticipated risks, etc. With three Ps – Prioritize; Potential; and Proficient, construction companies can manage all the complexities seamlessly. Construction companies need to evaluate what to Prioritize, what could be its Potential, and whether is it really as Proficient as it looks. The response to all these questions points towards digitization.

With the changing times, things are going in the right direction, albeit slowly. In fact, an Autodesk survey revealed that 66% of construction firms in India see digital transformation as a top priority for driving much-required improvements in processes, business models, and ecosystems. Digitization’s immense potential in the field of construction can be gauged by modern digital tools and their operational efficiencies that are bringing a plethora of differences. Digital tools like Building Information Modeling (BIM), 3D printing, drones, and a connected data environment offer comprehensive visibility to all stages of a project, thereby facilitating construction companies to avoid complex situations that might result in project delays or even a temporary halt.

In fact, the 2020 CIO survey by KPMG also emphasized how digitization has provided a much-needed impetus to pioneering companies who’ve embraced it over those who’ve lagged behind. Many industries have noticed a significant rise in operational efficiency (+12%); customer experience (+14%); customer trust (+12%); and employee experience (+11%) with digital transformation. In 2021, for example, an Indian construction project management application was deployed to manage projects and activities worth 7000 crore, the same as about 1% of India’s construction projects. Such success stories reflect the potential that technology possesses to transform prefab construction projects.

Step Into A New Era Of Construction

According to the Ministry of Statistics and Programme Implementation, the rescheduling of 504 projects has resulted in cost hikes of more than 19%! Do you need any more reasons to invest in tech tools? Construction project management apps can seamlessly monitor project development, site attendance, material inventories, and invoices; automate reporting; identify problems; and manage finances, and ultimately avoid any potential delays. It is a powerful and intuitive software solution with the capacity to effectively manage project operations and streamline teamwork & communication on the job site. The construction management software gives the construction project ecosystem a triple advantage by strengthening and integrating the three Os of the construction project workflow: On-site teams, Office staff, and project Owners. The possibilities of BIM, the rapid growth of various start-ups, and increasingly demanding client expectations make it mandatory to shift from a siloed POC mode to a real overall strategy, with a clear mid/long-term disruptive vision.

According to McKinsey Global Institute (MGI) report, if construction companies invest in digitization while also continuing to embrace new materials and advanced automation, they could see a 50-60% increase in their overall productivity. This MGI research indicates that making a digital transformation alone can result in productivity gains of about 15% and cost reductions in the range of 4 to 6%.

The new era of the construction industry, where innovative technology is leveraged as a pure-play notion, has already started taking shape. New age prefab companies such as Steelion are already making the best use of tech advancements such as analytics, digitization, machine learning, and the Internet of Things, to not only offer the best return on investment for their clientele but also deliver the prefab construction projects in the most efficient and timely manner.

Sources: Oliver Wyman, CXO Today, McKinsey