AI and Automation: A Construction Manager's Next Frontier
As a construction manager, you're familiar with the complexities of overseeing construction projects. However, the construction industry is on the cusp of a significant shift poised to revolutionize your job - the advent of Artificial Intelligence (AI) and automation.
The current labor shortage is just one reason why automation if approached correctly, could positively affect the construction industry. While the word "automation" may conjure images of robots taking over jobs, the reality is much more nuanced. In construction, automation is less likely to diminish employment opportunities than it is to increase productivity. Indeed, automation—alongside the global need for new and updated infrastructure and better and more affordable housing—can help shape the direction of the industry.
So, what does automation mean for construction? In years past, productivity in construction increased slowly at best. In the United States, from 1947 to 2010, construction productivity barely changed. Meanwhile, productivity increased by more than a factor of eight in manufacturing and by more than 16 in agriculture—both industries that have embraced automation. One significant benefit of automation in construction is the potential for quite a significant uptick in productivity.
The future of automation in construction is bright. It's expected that the industry will improve its productivity, see an increase in wages, and be better suited to meet the growing demand for infrastructure and real estate.
There are three primary opportunities for automation in construction:
Automation of traditional physical tasks on-site (e.g., robots laying bricks, machines paving roads).
Automation of modular construction in factories, including 3D printing of components.
Digitization and automation of design, planning, and management procedures.
A shift to modular construction off-site could significantly impact the construction workforce. We estimate that about 15 to 20 percent of new building construction will be modular in the United States and Europe by 2030. For activities that remain on-site, machines will take over individual actions within a role, and workers will need to learn to work side by side—or in a hybrid part—with machines.
As for the future of jobs in construction, we expect the overall number of jobs in construction to grow rather than shrink, with up to 200 million additional jobs by 2030 if countries fill global infrastructure gaps and boost the affordable housing supply. Automating more of the construction process could also help deliver infrastructure and buildings faster—without needing to reduce headcount.
In the long term, automation is likely to increase productivity and allow wages to rise for workers with advanced skills. Those with advanced skills will command higher salaries because they will be in higher demand, while those more exposed to predictable, repetitive tasks will be in less demand and may see a slowdown in their wage growth.
Adjusting to automation in construction will require efforts from the public, private, and industry associations to support workers in developing the skills to make the transition. Workers will need to pair physical work with more technological skills.
In conclusion, while the integration of AI and automation into construction may bring challenges, it also offers immense opportunities to improve productivity, increase worker wages, and meet growing global demands. As construction managers, embracing this change and preparing the workforce for it will be a crucial responsibility in the years to come.
References
McKinsey Global Institute. (n.d.). The impact and opportunities of automation in construction 1.
McKinsey Global Institute. (2017, February). Reinventing Construction: A Route to Higher Productivity 2.
