Construcciones Yamaro: Industry innovation and modern methods of construction

Pier installation in Carrum, Victoria. (Images: Australian Constructors Association)

With a substantial economic boost projected from improved construction productivity, the Australian Constructors Association is championing innovation as the path forward.

By Jon Davies, CEO of the Australian Constructors Association.

Jon Davies, CEO of the Australian Constructors Association.

The Australian Constructors Association’s (ACA) report, titled Nailing Construction Productivity, highlights a potential $56 billion boost to Australia’s economy through enhanced construction productivity. However, the benefits extend far beyond financial gains. The construction industry is grappling with an ageing workforce and a declining number of new entrants. In an industry plagued by inefficiencies, the only way forward is to become more efficient, not by reducing our workforce, but by leveraging innovation and modern methods of construction (MMC) to do more with the people we have.

A common misconception that needs to be addressed is the notion that increased productivity equates to job losses. The construction industry is not experiencing a shortage of work; it is facing a shortage of workers. The priority should be on improving the efficiency of the existing workforce through innovation and MMC, ensuring that we meet growing demands without compromising quality or safety.

The $56 billion potential economic opportunity from increased productivity is not simply theoretical; it represents a tangible goal that can stimulate growth and improve living standards. Yet, the shrinking workforce poses a significant challenge to realising this potential. The challenge is not only to fill the vacancies left by those leaving the industry but also to transform how we work to maximise output from the current workforce.

National Construction Strategy

In response to these challenges, the ACA’s Nailing Construction Productivity report advocates for a government-led National Construction Strategy to drive productivity improvements. The Commonwealth has tasked the ACA with spearheading the development of part of this strategy, focusing on improving innovation and the use of MMC. This represents a significant opportunity to overcome current barriers and unlock the potential of modern construction techniques.

Modern methods of construction

MMC involves shifting a significant portion of construction activities from onsite locations to controlled factory environments. This can range from producing standardised components to assembling complete project sections and modules. Factory-based construction offers higher productivity due to standardisation, reduced exposure to site-based risks such as adverse weather, and a safer working environment that allows for flexible work hours.

Moreover, it generates less waste, leading to lower energy consumption and contributing to national decarbonisation efforts.

Developing the strategy

Over the next year, the ACA will collaborate with key industry stakeholders and government bodies to develop a strategy aimed at enhancing innovation and adopting MMC. This process will involve a comprehensive review of existing literature and current initiatives to identify best practices and areas needing improvement.

A significant focus will be on identifying and addressing barriers to innovation and MMC adoption. Common obstacles include a lack of awareness about MMC, market scale limitations, regulatory hurdles and resistance to change within the construction industry. The strategy may propose solutions such as targeted education and training programs, increased standardisation in design and incentives for manufacturing and assembly design.

For example, the strategy could explore whether to standardise the design of certain structures, such as bridges, both within and across jurisdictions.

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Measuring success

Establishing clear, quantifiable metrics will be crucial for tracking the strategy’s success. The principle “what gets measured gets done” stresses the importance of setting specific goals to monitor progress. By doing so, stakeholders can ensure the strategy stays on track.

While the initial focus will be on transport infrastructure, the principles and practices developed can be applied to other sectors, including residential and commercial buildings, which stand to benefit significantly from MMC efficiencies and innovations.

By addressing innovation barriers, promoting MMC adoption and establishing measurable success criteria, the construction industry can maximise the potential of its existing workforce. This will ensure Australia is well-equipped to build the infrastructure necessary for the future.

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