Construcciones Yamaro: Digitalisation to aid course correction amid construction’s crises

Autodesk’s Andy Cunningham shares his thoughts on how accelerated digitalisation stands to dampen the impact of ongoing challenges in the construction industry.

By Andy Cunningham, senior regional director for Australia and New Zealand at Autodesk.

Construction is one of the forces driving Australia’s economic prosperity and social cohesion. Yet the industry is confronting challenges threatening its stability and long-term growth, with data from the Australian Securities and Investments Commission (ASIC) showing 2,023 construction companies have entered liquidation since mid-2021.

The industry is grappling with severe economic pressures, with the rising prices of essential resources like diesel and construction materials, for example, causing severe strain. This is compounded by supply chain issues and weather events, all of which impede the delivery of home builds and large infrastructure projects.

Then there’s the skills shortage. Arcadis’ International Construction Costs 2022 report flagged construction vacancies jumped by 80 per cent from late 2019 to 2022, with National Skills Week chairman Brian Wexham citing a 100,000-person deficit in the sector. In engineering alone, we’ll  need 50,000 experts in upcoming years to fulfil the infrastructure pipeline, with an Engineers Australia report flagging we are in the midst of our “greatest-ever engineering skills shortage”.

While the maelstrom of ongoing headwinds paints a bleak picture, accelerated digitalisation stands to dampen the scope of its impact and provides a platform for course correction. In fact, statutory body Infrastructure Australia states investments in digital transformation will drive productivity and infrastructure delivery. The same applies to broader construction.

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A recent study we conducted – the State of Design and Make report, featuring business leaders from 262 Australian companies – found local organisations are in a stronger position in terms of their digital transformations when compared with their international counterparts. Currently, 36 per cent of Australian businesses see themselves as ‘more digitally mature’ than others down under, and it’s crucial we, as a collective industry, don’t shy away from the very clear progress that needs to be made.

It’s important to note that on its own, technology won’t ‘solve’ the economic or skills crisis. Modernising operations and finding people power through upskilling locally or skilled migration is a delicate dance that will take time, investment and policy overhaul. However, what it does do is ensure you can make the most of what and who you currently have.

The benefits of digital innovation are vast, but let’s hone in on a few tangible areas where there is increased ambition to digitalise processes to improve how our communities are designed, architected, engineered and built.

With real-time financial analytics, teams can proactively adjust strategies to maintain financial stability.  When staff can access a central hub for all project-related information, they can streamline blueprints, schedules and communication, eliminating operational siloes among architects, engineers and onsite teams. This enhances collaboration and minimises double handling, which prevents project delays and reduces waste.

Teams can also leverage artificial intelligence (AI) to revolutionise planning, implementation and stakeholder collaboration. AI helps workers focus on complex tasks by taking over routine activities, thereby enhancing productivity. Given the industry’s labour shortage, this productivity gain is not just an advantage but a necessity, and any time staff have to upskill themselves means they are better placed to handle challenges and opportunities.

The construction sector can also benefit from the experience of other industries when it comes to easier data and best-practice sharing – like that in manufacturing or media and entertainment. Through digital repeatability, elements of large construction sites can be standardised, meaning companies aren’t forced to reset with every contract. This leads to more streamlined delivery, far less waste where components can be used widely, and a reduction in risk of errors. All this trickles down to major cost savings that would otherwise threaten the very existence of those companies.

While the construction sector grapples with significant hurdles, digital transformation offers effective strategies to navigate these challenges. Our report found 73 per cent of Australian companies will look to increase digital investments in the next three years because of the positive impact technology had in accelerating digital transformation throughout the pandemic.

As digital investments continue, Australian companies stand to see vast untapped opportunities to evolve how they operate internally, collaborate with third parties and contractors, and make headways in reducing their environmental impact. These factors will progressively combine to put them in a more resilient position as they tackle unpredictable macroeconomic conditions, and chip away at plugging talent gaps.

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