How digital construction could turn an entire industry inside out
Notes, pens and good old cell phones still rule on German construction sites. But a turning point is heralding itself – and that’s right. How digital construction promises growth.
Anyone who has ever had an apartment or house renovated is familiar with the fact that tradespeople often think a little differently than office workers in some areas. Even in spite of groundbreaking changes, such as digitization, such a blanket generalization can be maintained. The experiences of numerous landlords and builders show it: Digitization has not really found its way into the skilled trades. This is probably one of the reasons why very few investors think of the construction industry when it comes to digitization. But that’s a mistake. Because the advantages of digital solutions for the construction industry are obvious. Complex projects have to be managed here and different companies work hand in hand. Digital solutions are therefore finding their way into larger construction projects in particular. This is an opportunity for investors.
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Robots and apps are on the rise
The area of ​​application, which is also obvious for private construction projects, is the use of construction software. This involves project control and the documentation of the work. The best example is the interaction between floor layers and joiners. If the former have already stored the height of the floor covering used in the software, the dimensions for doors can change – and good software can issue an automatic warning.
Other technology can be used on large construction sites, such as robots that perform certain tasks autonomously. Artificial intelligence is also suitable for recognizing patterns wherever large amounts of data arise and to sound the alarm when problems arise. Anyone who thinks of construction projects like Berlin Airport quickly understands: If software “thinks for itself”, problems can be identified earlier. That saves time and money – after all, not adhering to schedules and budgets are typical problems in large projects.
That digital solutions for everything to do with construction are a growth market, show data from PwC’s management consultants. According to this, only one in five construction companies has solid skills and methods for digital planning and construction. By contrast, more than 70 percent of construction companies see potential in solutions for everything to do with cloud technology, platforms and visualizations. In order to bring both findings together, a solution is very close: construction companies could get external expertise to become more digital. Obvious candidates are around Nemetschek, the provider of construction software, or a manufacturer of robots, such as the Japanese company Shmizu Corp. or the German company Kuka.
First come first serve
If digital solutions have proven themselves in large projects and lead to success, they should also find their way to domestic construction sites. An app in which craftsmen can enter dimensions, dimensions and free time slots or in which communication between clients and craftsmen or site managers takes place is already obvious today. Since the construction industry and the trades are still not sufficiently digitized, it depends on solution providers who pick up their currently somewhat backward potential customers where they are and transfer them to the digital future.
The advantages for everyone involved are obvious: In addition to a more customer-oriented process, there are also lower costs due to increased efficiency. Ultimately, more digitization in the construction industry could also have a positive impact on the problem areas of housing and skilled labor shortages. Companies that already offer solutions for the construction industry and thus hit a nerve in the industry have great growth potential.
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