P U B L I S H E R ’ S D E S K
HOW CAN CONSTRUCTION
COMPANIES KEEP PACE WITH DEMAND
Despite an easing off in activity,
according to Rider Levett Bucknall’s
Forecast Report for Q3, 2018,
construction companies are still
struggling to keep pace with
demand. The industry appears to
have reached a turning point and is
facing a number of major disruptive
trends.
The most acute trends are the
ongoing labour shortage and
pressure on project margins.
The entrance of new technologies
– including BIM, drones, IoT,
laser scanning, virtual reality (VR),
augmented reality (AR), robotics,
etc. – into construction has started
and is gathering pace.
Global competition is also intensifying
and we are seeing competition
from new industry entrants who will
do things differently. This will drive
new business models such as construction
integrated manufacturing
and servitisation where asset owners
want a total asset lifecycle delivery
partner.
The industry is generally conservative
and risk averse and has been
working in a traditional way, with low
adoption of technology, for a long
time. Only when companies accept
the need to change, however, can
they begin to address the challenges
they face.
Overcoming the construction
skills shortage
The industry is facing a major skills
shortage at all levels, including both
professional staff and direct trades
that work on the construction sites.
There are a number of initiatives that
may help to reduce this impact:
• Using apprenticeships and other
training schemes
• Drive improved labour efficiency
supported by modern digital
technology
• Make your organisation attractive
to work for with a modern open
culture
• Attract younger employees by
embracing new digital technology
• Implement a modular or offsite
manufacturing strategy
Transitioning from traditional
systems to new technology
Most companies in the construction
and engineering industry have a
complex business system landscape
often comprising over 100 different
systems.
Because systems are not fully
integrated, MS Excel spreadsheets
pop up everywhere in the business
and become the joining connection.
The result is a lack of timely, trusted,
accurate management information
and huge inefficiency.
The goal should be to replace many
of these systems with an integrated
business system. The solution
should be able to support traditional
ways of working and then transition
to more modern digital methods
such as building information
modelling (BIM) in a controlled way
over time.
Gaining competitive advantages
from an integrated solution
As a specialist in integrated project
lifecycle management solutions, we
have a number of customers who
have replaced the majority of their
existing non-integrated business
systems with a modern integrated
solution, allowing them to:
• Reduce IT costs
• Easily transition to a cloud
solution
• Improve management information
and governance
• Implement best practice and
consistent business processes
One of our customers, global
construction company Multiplex,
needed to address its top challenge
of obtaining consistency across all
the regions in which it operates,
while still respecting regional
nuances. Since implementing IFS
Applications, Multiplex has increased
its operational agility, has faster and
more accurate reporting, and has
streamlined its processes.
Platform for continual innovation
A modern integrated solution also
creates a platform for continual
innovation. With regular updates to
the latest technology and industry
business practices, companies can
keep pace with change and stay
ahead of the competition.
This enables transition to the new
digital world and supports business
transformation. If companies need
systems to transition to construction
integrated manufacturing or
servitisation, it is simply a question
of adding the necessary software
modules.
Despite the industry’s natural conservatism,
many leading construction
companies have accepted
that change is necessary and are
addressing today’s challenges with
modern, integrated solutions that
also prepare them for whatever is
coming up next.
- By Kenny Ingram, Global Industry director, IFS
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