REMAINING COMPETITIVE IN CONSTRUCTION SECTOR
According to the World Economic Forum, more than 70% of the global GDP will be generated from construction by 2050. The forecast acknowledges the role and significance of the construction industry in economy but also makes us ponder on the challenges the sector faces resiliency, technology, equity, and sustainability across the countries. HOW IS TECHNOLOGY IMPACTING THE CONSTRUCTION INDUSTRY, PEOPLE AND BUSINESSES? SS Reddy - The overall goal for the sector is to improve the lives of residents and the community, while safeguarding the environment. Technology plays a big role in these efforts. The pandemic, especially, forced a transformation upon the construction sector with the use of technology expanding to other services such as administration and procurement. The need for operational efficiency and digital transformation can no longer be taken for granted. It is imperative to continue the growth of the sector. This is an opportune time for previous industry practices to be reassessed and for new systems to be introduced including AI and Data Analytics. This applies to all traditional fixtures of the sector such as ERP, project management and customer service. Saurabh Sharma – Technology has had a powerful impact on the construction industry. Traditionally this has been a slow mover in the adoption of tech but since the onset of the 2nd decade of this millennium, we can notice a certain shift in the way things are done. Starting from the design stage of projects, where we have already seen major inclination towards adoption of 3D design methods using BIM and better visualization techniques and software being put to use. In addition to this, we can also notice the use of gaming tech such as AR and VR in helping remote homebuyers get a first-hand experience of how their dream home shall look like. This came to good use during the pandemic when physical commute and contact were limited. A new emergence has been the use of drones in not just in curating promotional videos and aerial views but also remote supervision in treacherous terrain on infrastructure projects in hilly and remote areas. Manish Khandelwal - Much like any other industry, advancements in technology have had quite a significant impact on the construction and infrastructure Industry. We have witnessed an increase in the quality and overall functioning of the construction industry. This has further led to an increase in the demand for technologically smart products focused on sustainable living. From a plumbing and sanitation perspective, technological advances have allowed us to address problems like wastage of water. HOW ARE COMPANIES ENSURING REAL-TIME CONSTRUCTION OPERATION MANAGEMENT? SS Reddy - The incorporation of technology in construction helps simplify large-scale complex operations and streamline data management with more accuracy and efficiency. The goal is to consistently deliver high-quality, relevant information and insights for a better real-time construction operation management. This may include real-time digitization of data and integration of all operations via internet of things (IoT). Furthermore, drone footage of construction sites, combined with advanced analysis and design methodologies, allow the construction of increasingly more efficient buildings with minimal impact on the surrounding environment. Saurabh Sharma - Construction companies have now come to realize the importance of engaging specialist consultants such as PMC’s on major projects to serve the purpose of real-time construction management. In many case scenarios, where the owner/financiers are not from construction background or are foraying into their 1st project into construction domain, prefer to have a specialist Project Management Consultant like David Adamson Group on board with them to help them navigate and mitigate the challenges faced in Construction operation management. The use of Project Trackers and multi-user dashboards is also catching on now. Many companies are adopting Power BI backed dashboards in order to remain up to date in real time regarding the challenges faced on construction projects. Manish Khandelwal –As the demand for housing and development is on the rise, additional public investment in modern infrastructure will prove to be a significant step towards making India a better place. Quite a few technological advances are being made in the field of project management, design tools, and even building technology that is also attracting major funding. WHAT ARE THE CHALLENGES IN MAKING THE CONSTRUCTION SECTOR GO TRULY DIGITAL IN INDIA? SS Reddy - Keeping up with the pace of technological advancement is a significant challenge in the construction sector. The technology behind standard construction industry practices such as ERP and project management is rapidly evolving. Old processes are being disrupted by new technologies that did not exist a decade ago including automation and big data. While digital technology creates powerful business opportunities, it also creates skills gaps. A developer’s capacity for training and developing its workforce to expand their digital skillsets creates a significant competitive advantage. Furthermore, the pandemic has introduced new challenges on construction sites such as supply chain restrictions and absenteeism amongst the workforce. Best practices must be designed that increase efficiency and mitigate risk. Since approximately 80% of savings results from stages prior to construction, using digital analysis to address inefficiencies in vendor management and bid management processes is vital. Saurabh Sharma – India has pre-dominantly been a traditional market as far as construction activities go. Current Industry leaders and pioneers are majorly 1st Gen Entrepreneurs who made it big by being the torch bearers in revolutionising construction across India. But now 75 years after independence and 60 years after the initial surge of Mega-Construction companies, we see a sluggishness and unwillingness to adapt to new trends which are modernising construction elsewhere across the world. Not just the big companies but we can easily see many new ventures mushrooming in this domain and carrying out activities as they used to do decades ago without any major change in working methods and no major USP’s as such. Manish Khandelwal – Going digital, albeit the need of the hour, is a fairly complicated proposition, especially in the construction industry. For starters, almost every construction project comes with its own unique needs. Adopting digital solutions for every project is not the most feasible. Additionally, construction projects involve multiple participants at each stage of the whole life cycle. They often work in silos, following their processes making it hard to implement any digital solution across the construction projects. However, there have been efforts to upskill the workforce and lead them toward the digital era. DO YOU SEE MORE INVESTMENTS AND START-UPS COMING IN THE CONSTRUCTION TECHNOLOGY SECTOR? SS Reddy - Due to the global impact of the construction sector, environmental responsibility is now a high priority for all stakeholders. This trend is driving more investments and start-ups in the construction technology sector. Start-ups are creating innovative ways of utilising eco-friendly materials and integrating natural sources of energy into the architectural design such as rainwater harvesting, waste management and solar power. Building Information Modelling has been a growing trend and is now a necessity in the construction sector. The top developers are investing in energy modelling tools to optimise a building’s architecture and layout. This improves operational efficiency of the buildings, promotes conservation of natural resources and enhances the overall health of residents. Saurabh Sharma - We can surely see the Indian Start-ups ecosystem now trying to bring construction into their purview. Previously focused on just E-commerce, Fintech, Supply-chain management etc. we can now see a diversification in the type of companies that Venture Capitalists are now investing into. With respect to the construction sector, we are now witnessing investments into Drone Tech companies not just limited to Drone Mapping and usage of LiDar scanning capabilities but also development and enhancement of the overall drone technology which has numerous uses. There are also construction design related companies who are getting funded now, for their venture into unconventional design methods and usage of new age tech to develop designs and showcase projects. Manish Khandelwal –There are many operational applications of AR and VR technology in the construction market which will likely be an area where we can expect investments in. In the real estate sector, property technology or proptech has already been making waves, we can take that as a precedent for increased investments in the construction sector as well “India’s urban planning initiatives depend heavily on smart and sustainable cities, wherein in technology will play a massive role. These smart cities have underlying themes including device connectivity, utilization of big data and creation of feedback loops. Smart Cities Mission is an urban renewal and retrofitting programme by the Government that aims to develop 100 cities across the country making them citizen-friendly and sustainable. India has unique challenges due to its large population and fragmented social infrastructure. Innovative technological approaches to housing, transportation and utilities will have to be implemented in order to overcome these challenges.”- SS REDDY MANAGING DIRECTOR, APARNA CONSTRUCTIONS AND ESTATES “The government has done a lot of gr ound work in terms of laying down the foundation and providing platforms such as Start-Up India for the new age entrepreneurs to foray into new areas and try out new things without much fear of failure. In terms of future prospects, we do have a long way to go in terms of adoption of tech in construction sector. The government in its own has surely added value to public projects by using technology to some extent. And by means of setting this example they expect the industry to follow suit. But prior to that we need to understand that our industry is a price sensitive one and factors such as affordability and availability of tech for use in construction projects, currently seems to be a major deterrent in terms of implementation of the latest advancements in our field.”- SAURABH SHARMA INDIA DIRECTOR, DAVID ADAMSON GROUP "Increasing technology in the c onstruction sector does not only boos t productivity but also delivers substantial benefits to both the public and priv ate sector. With initiatives like PM G ati Shakti and Har Ghar, Nal Se Jal being implement ed, the need f or increasing and refining technology has taken the limelight t o ensure a smooth running and c ompletion of the projects in time. With projects on mass urbanization being planned, ther e has been a sur ge in both the number and the magnitude of the pr ojects and this, in turn, has incr eased the importance of technology to new heights".- MANISH KHANDELWAL COMMERCIAL DIRECTOR, WAVIN
Tags : MANISH KHANDELWAL COMMERCIAL DIRECTOR WAVIN SAURABH SHARMA INDIA DIRECTOR DAVID ADAMSON GROUP SS REDDY MANAGING DIRECTOR APARNA CONSTRUCTIONS AND ESTATES CONSTRUCTION SECTOR THE CONSTRUCTION INDUSTRY MATERIAL COSTS SUPPLY CHAIN IRREGULARITIES LABOUR AND SKILL SHORTAGES