Current state of technology in the construction industry

Many believe technology adoption has been slow in the construction industry due to an outdated attitude towards innovation. However, the root cause of the slow adoption is due to the gap in the current technology that solves a problem without the cost of significant manual input from users. Available solutions typically target a singular pain point rather than improving a workflow, and often end up slowing down the overall process.

Thus, instead of using what the tech industry has offered, builders heavily rely on existing tools like MS excel, emails, forms, and phone conversations. The construction industry has adopted technology solutions like Procore and Autodesk that are commonly used in projects today and have been successful in digitizing document control workflows.  But when we look at the current state of projects, most of the workflows are still not digitized and require many hours of coordination through calls, emails, messages, meetings, all tracked in different siloed spreadsheets.

Opportunities for the industry and why we NEED automation

The construction industry averages $2 trillion in annual cost overruns. 40% of those overruns could be avoided with improved controls around construction management workflows. Teams are often overloaded with work, and a minor error can have a cascading effect on the project, which is why there is a need for automation. For example, using the wrong data for an estimate could lead to multiple change orders and issues as the project develops.

Workflows where there is a high need for constant updates and coordination between multiple stakeholders have the highest risk of project impacts. It is common for schedules to shift and plans to change; these are some of the processes to automate and streamline as we look to adopt technology.

Some areas that can be digitized are:

• Providing accurate benchmark data for estimating and cost management
• Connecting the master schedules with site look-ahead plans
• Automating the invoicing process based on site-captured updates
• Improving and automating the supply chain process

How to deploy practical solutions while leveraging AI

Many solutions for streamlining operations often come at the price of heavy manual input. While this works at first, eventually teams lose focus on improving processes as issues come up on projects that require their attention. However, the emergence of access to AI/ML systems and Large Language Models have enabled construction innovation solutions to include built-in virtual assistants. Solutions like Krane ease the deployment of automation while requiring minimal input from users.

A key challenge with embedding automation is the fear of losing human touch. Construction at its core is a relationship-based business and as we deploy solutions, we need to remember to incorporate the human connection between the different stakeholders within our products.

Looking ahead

As the industry continues to evolve and embrace technology, teams should focus on automating the repetitive and lower value tasks that are essential to the high value workflows. For example, a general contractor can put together a great project plan but if one subcontractor misses the update, the effort is lost. By leaning on technology and building trust through systems, the industry will move towards a new culture of collaboration, delivering better, faster, and more profitable projects with less waste and less stress on teams.

A project’s supply chain requires coordination across multiple suppliers, their delivery partners, subcontractors, the general contractor, the design team, and often the developer. Projects frequently incur costs on expediting and acceleration fees due to errors in coordination, and the scattering of data across different platforms. All stakeholders must collaborate to ensure submittals, material takeoffs, install schedules, and deliveries are planned and being executed in accordance with the project master plan.

Krane enables users to manage the flow of material and its corresponding information, like submittals, from the project plans & specifications all the way to site installation and closeout. Learn how you can automate the supply chain workflow, the coordination between project stakeholders, and streamline the flow of information while our AI proprietary system ensures your projects run as planned, adjust as needed, and allow you to easily answer How is your project tracking?