Smart Firms: How AI and Automation Are Transforming Small Construction Firms
As we stand on the brink of a technological revolution, the construction industry is included. The growing integration of Artificial Intelligence (AI) and automation is transforming small construction businesses, promising to resolve perennial issues while unlocking new opportunities for productivity and efficiency.
Setting the Context
The construction industry has traditionally needed to adopt technological advancements. However, the industry now stands at a pivotal juncture. The labor shortage and global demand for new and updated infrastructure point to a need for change 1. This is where AI and automation come in, offering a solution that addresses the labor issue and significantly boosts productivity 1.
Influencing the Industry
There are three main opportunities for automation in construction: traditional physical tasks on-site, automation of modular construction in factories, and digitization and automation of design, planning, and management procedures. These opportunities can create significant efficiencies on-site, such as eliminating mistakes and better coordinating the workforce 1.
Consider the use of drones, for example. Drones with advanced imaging capabilities can perform site inspections more quickly and safely than human workers. They provide real-time data, enabling project managers to make informed decisions and reducing costly delays and errors.
Moreover, the automation of modular construction in factories has the potential to revolutionize the industry. By producing individual components or modules in factories, the structure becomes less dependent on on-site labor and more predictable, reducing the likelihood of project overruns. It's estimated that 15-20% of new building construction will be modular by 2030, signaling a slow but significant shift in the industry 1.
Implications and Trends
While automation and AI can lead to shifts in the workforce, they are less likely to replace jobs but rather transform them. Workers will need to adapt to hybrid roles, working alongside AI and automated systems. For instance, the average construction worker might use a tablet to access building plans or operate a drone for a site walkthrough 1.
The adoption of AI and automation is also expected to have a positive impact on wages. With increased productivity, wages for workers with advanced skills are likely to rise, contributing to the stabilization of the middle class. However, this also signifies a growing skill mismatch, highlighting the need for reskilling and upskilling initiatives from the public and private sectors 1.
Furthermore, the global market for AI in construction was valued at $522.1 million in 2021 and is projected to reach $4,172.2 million by 2027, growing at a CAGR of 34.3%. This indicates a promising future for small construction businesses ready to embrace these technological advancements 2.
Conclusion
The integration of AI and automation in the construction industry has its challenges. However, the potential benefits - increased productivity, improved efficiency, and enhanced safety - make it an investment worth considering for small construction businesses. As we step into the future, these technologies will play an increasingly important role in shaping the industry, filling in labor gaps, and meeting global infrastructure demands efficiently and sustainably.
