Data-driven strategies to meet infrastructure demands in a growing world
In late 2022, the world’s population reached a significant milestone of eight billion people, as reported by the UN. While this milestone hasn’t caused immediate changes to how the world lives and works, it prompts reflection on the future. Population growth is expected to continue, reaching 9.7 billion by 2050, though some forecasts predict a decline around 2100.
Two population trends will notably impact the construction industry. First, an aging population will lead to a smaller workforce. Second, rapid growth in regions such as Africa, the Middle East, India, and the Philippines will demand substantial infrastructure investment.
Pressure to perform
These population trends present a sizeable challenge for those tasked with building the world’s infrastructure. The construction industry is already under pressure to repair and upgrade aging infrastructure while also meeting ambitious sustainability goals. Funding isn’t the main issue; the industry’s capacity to deliver is. For instance, in the US, the Infrastructure Investment and Jobs Act has allocated $185 billion to nearly 7,000 infrastructure projects. Similar funding exists globally, creating a project pipeline that exceeds the industry’s current capabilities. Labor shortages, supply chain disruptions, and inflation further strain the industry, making it difficult to keep pace with demand.
Increased construction demand due to population trends exacerbates this challenge. Despite efforts to expand construction employment, a sudden influx of skilled workers is unlikely. The best solution is to improve efficiency and reduce friction in the project delivery pipeline. Faster planning, approval, execution, and handover of projects are crucial. Better planning and risk management can reduce delays, cost overruns, and the need for contingency reserves, allowing more projects to be completed efficiently.
Even small improvements could significantly impact the industry’s performance. In 2022, capital projects exceeded budgets by 17 per cent on average, and only 35 per cent of contractors completed projects on or ahead of schedule, according to the Global Capital Project Outlook (GCPO) report. The big question is, how do we rampw up the industry’s output while preserving the focus on safety, without diminishing quality or driving up costs? The answer lies in leveraging data.
Exploiting data to build efficiently
Data can be used to create risk-adjusted plans, a crucial step as unmanaged or unexpected risks are top concerns for both owners and contractors. In fact, the impact that unmanaged risk has on delivering projects on time and on budget is top of most owners’ (56 per cent) and contractors’ (55 per cent) minds, according to the GCPO report. The construction industry generates vast amounts of data during capital projects, but much of it remains underutilised. By leveraging historical project data, risks can be better identified, managed, and mitigated, leading to more efficient project delivery.
Standardisation across processes and systems is essential for leveraging data effectively. Currently, the lack of standardisation hampers project completion, as noted by 54 per cent of contractors. Although no two projects are identical, breaking them down to an atomic level can create a valuable knowledge library. This library can provide benchmarks to predict performance and risks for specific tasks, such as forming a concrete slab or welding pipes. Each task performed should generate a digital representation that can be analyzed to understand its impact on scope, cost, and schedule. When used properly, historical data can provide powerful insights to improve future project speed and efficiency.
The right software can turn this growing historical knowledge library into a valuable asset, increasing confidence at every stage of a project, from conception and funding to design, engineering, construction, and start-up. By augmenting human intelligence, risks that might have derailed a project can be managed early, and opportunities for greater productivity can be highlighted.
Data and the talent shortage
Exploiting historical data can also help mitigate the construction industry’s talent shortage. While technology can’t replace human intelligence, automating project checks and balances allows for greater workforce flexibility. Less experienced workers can be placed in productive roles more quickly, while more experienced workers focus on complex issues. This ensures project delivery continues efficiently.
Progressive use of technology is also crucial for attracting the tech-savvy workers needed to meet global infrastructure demands. The skills required in construction – planning, modeling, problem-solving, risk mitigation, and communication – are similar to those in industries like aerospace or manufacturing, which are often seen as more attractive. The construction industry represents a unique intersection of innovations like artificial intelligence, virtual reality, and simulations, combined with the creation of enduring structures that stand the test of time.
With 1.7 billion more people to support by 2050 and billions more benefiting from infrastructure upgrades, the construction industry faces immense pressure. Connecting past and present through data, using standardised processes and systems, is a key part of the industry’s digital transformation and its best bet for meeting growing demand.
By Brad Barth
For a list of the sources used in this article, please contact the editor.
Brad Barth is Chief Product Officer at InEight. InEight provides field-tested project management software for the owners, contractors, engineers, and designers who are building the world around us. From pre-planning to design, from estimating to scheduling, and from field execution to turnover, customers worldwide rely on InEight for real-time insights that help manage risk and keep projects on schedule and under budget across the entire life cycle.