The Ultimate Guide To Data-Driven Construction: Optimize Projects, Reduce Risks, & Boost Innovation
- 5. Confidential ©2024 About Dodge Dodge Construction Network delivers an unmatched offering of data, analytics, and industry-spanning relationships to generate the most powerful source of information, knowledge, insights, and connections in the commercial construction industry. We bring together technologies, capabilities and audiences to help construction professionals streamline the preconstruction process to strategically plan for business growth. 5 5 Confidential ©2024
- 6. Confidential ©2024 Research Reports Are Free 6 Dozens of Free Research Reports on Technology and Other Key Trends construction.com/resources
- 7. Confidential ©2024 7 Agenda • Where We Are Now: • Challenges we need to tackle • Current state of digital transformation • Use of digital workflows • Tackling top challenges with technology now • Where We Need to Go: • Industrialized construction • AI – Current and Future
- 8. Confidential ©2024 The Path of Digital Transformation 8 The design and construction industry is already on the path to digital transformation, but we are just at the early stages of truly embracing data-driven construction.
- 9. 9 Where We Are Now
- 10. Confidential ©2024 10 Agenda • Challenges we need to tackle • Current state of digital transformation • Use of digital workflows • Tackling top challenges through technology now
- 11. Confidential ©2024 Managing Risk: Two Studies 11 Based on a 2023 survey of 279 US AEC professionals. • 79 Architects • 43 Engineers • 84 General Contractors • 73 Specialty Trade Contractors Based on a 2024 survey of 151 general and specialty trade contractors. • 100 General Contractors • 51 Specialty Trade Contractors
- 12. Confidential ©2024 Major Risks to AEC Businesses 12
- 13. Confidential ©2024 Top Five Risks Impacting Contractors’ Businesses 13 Supply Chain Impacts
- 14. Confidential ©2024 Contractors Bear Significant Profit Risk Due to Short Windows for Pricing 14
- 15. Confidential ©2024 Contractors Bear Significant Profit Risk Due to Short Windows for Pricing 15
- 16. Confidential ©2024 Top Five Risks Impacting Contractors’ Businesses 16 Impacts of Skilled Worker Shortages
- 17. Confidential ©2024 Expected Retirement of Workers 17 31% Revenue Less Than $10M 45% Revenue $50M or More Share of Trade Contractors** Who Believe That Over 20% of Their Workforce Will Retire in the Next Five Years ** Mechanical, Electrical, Plumbing, Steel, Concrete Contractors
- 18. Confidential ©2024 Performance Overall Still a Challenge 18 Finished Over Budget Finished Behind Schedule 33% 37% 22% 21% Contractors: Poor Budget and Schedule Performance on Typical and Best Projects Typical Project Best Project
- 19. Confidential ©2024 Performance Overall Still a Challenge 19 Finished Over Budget Finished Behind Schedule 33% 37% 22% 21% Contractors: Poor Budget and Schedule Performance on Typical and Best Projects Typical Project Best Project
- 20. Confidential ©2024 20 Agenda • Challenges we need to tackle • Current state of digital transformation • Use of digital workflows • Tackling top challenges through technology now
- 21. Confidential ©2024 Digital Transformation of the Construction Industry 21 Meta Digital Automated Manual Integrated and Connected Virtual and Industrialized Automating manual processes since the 1980s (AutoCAD released in 1982) Drafting CAD BIM
- 22. Confidential ©2024 22 Digital Transformation of the Construction Industry Automated layout Manual layout with chalk lines Laser-guided layout
- 23. Confidential ©2024 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 $0.0M $500.0M $1.0B $1.5B $2.0B $2.5B 0 50 100 150 200 250 $35 $22 $143 $84 $401 $1,447 $637 $831 $2,180 $2,153 14 18 53 36 45 90 121 131 196 129 Source: PitchBook Data, Inc. Capital Invested # Deals Done Recent Investment in Construction Technology
- 24. Confidential ©2024 24 Blockchain AR/VR Autonomy BIM AI/ML Advanced Materials Digital Twins Drones UAV IoT LiDAR Mobile Modular Prefab Photogrammetry Robotics 3D Printing Huge Growth in Applications Automating at Increasingly Sophisticated Levels
- 25. Confidential ©2024 25 Confidential ©2023 Blockchain AR/VR Autonomy BIM AI/ML Advanced Materials Digital Twins Drones UAV IoT LiDAR Mobile Modular Prefab Photogrammetry Robotics 3D Printing Huge Growth in Applications Automating at Increasingly Sophisticated Levels
- 26. Confidential ©2024 26 Confidential ©2023 Blockchain AR/VR Autonomy BIM AI/ML Advanced Materials Digital Twins Drones UAV IoT LiDAR Mobile Modular Prefab Photogrammetry Robotics 3D Printing Huge Growth in Applications Automating at Increasingly Sophisticated Levels
- 27. Confidential ©2024 Technology Options Can Be Overwhelming 27
- 28. Confidential ©2024 Impact of Under Investment 28 One in five contractors reports that having older/inefficient technology has a MAJOR impact on the success of their business. Partner: Egnyte
- 29. Confidential ©2024 Use of Software for Design and Construction 29 82% Use software solutions for many of the core functions of design and/or construction of owners, architects, engineers and contractors
- 30. Confidential ©2024 Integration of Software Solutions 30 Has Integrations Between Software Solutions and/or a Single Integrated Solution Average: 44%
- 31. Confidential ©2024 Top Two Reasons Why Contractors Invest in Technology Onsite 31 Partner: CPWR
- 32. Confidential ©2024 Capturing Data Onsite 32 Partner: CPWR Technology Use Use Frequently 2023 2021 % Change 2023 2021 % Change 1. BIM 47% 49% 2% 57% 53% 4% 2. Drones 38% 37% 1% 46% 31% 15% 3. Laser Scanning 37% 32% 5% 50% 38% 12% 4. Remotely Controlled Equipment 19% 14% 5% 39% 26% 13% 5. Predictive Analytics 14% 10% 4% 59% 52% 7% 6. Virtual Reality for Training 10% 10% 0% 30% 32% 2% 7. Wearable Sensors 10% 11% 1% 19% 21% 2%
- 33. Confidential ©2024 Capturing Data Onsite 33 Partner: CPWR Technology Use Use Frequently 2023 2021 % Change 2023 2021 % Change 1. BIM 47% 49% 2% 57% 53% 4% 2. Drones 38% 37% 1% 46% 31% 15% 3. Laser Scanning 37% 32% 5% 50% 38% 12% 4. Remotely Controlled Equipment 19% 14% 5% 39% 26% 13% 5. Predictive Analytics 14% 10% 4% 59% 52% 7% 6. Virtual Reality for Training 10% 10% 0% 30% 32% 2% 7. Wearable Sensors 10% 11% 1% 19% 21% 2% #1 #2 #3
- 34. Confidential ©2024 Getting Good Data: Automated Data Gathering 34 9% Use Automated Solutions to Gather Site Data Partner: Versatile
- 36. Confidential ©2024 Data-Driven Safety 36 Top Technologies Contractors Think Can Help Improve Safety
- 37. Confidential ©2024 Confidential ©2023 Meta Digital Automated Manual Virtual and Industrialized Automating manual processes since the 1980s (AutoCAD released in 1982) Digital Transformation of the Construction Industry • Single purpose/function • Single user/company-type • Proprietary data formats • Not “connecting” the ecosystem “Silos of Excellence”
- 38. Confidential ©2024 38 Agenda • Challenges we need to tackle • Current state of digital transformation • Use of digital workflows • Tackling top challenges through technology now
- 39. Confidential ©2024 Collaboration and Productivity 39
- 40. Confidential ©2024 Digital Workflows 40 Digital Workflow Definition An automated or integrated construction business process that uses one or more software tools to improve formerly paper- based or manual tasks. Types of workflows included in the study • Internal--A construction business process within just your organization, such as data transfer between the estimating and project management departments of a general contractor. • Multicompany--A construction business process between at least 2 distinct organizations that serve different roles on a construction project.
- 41. Confidential ©2024 Use of Digital Workflows 41 92% 8% Use of Internal Digital Workflows Use Internal Digital Workflows at Least Some of the Time Do Not Use Any Internal Digital Workflows 83% 17% Use of Multicompany Digital Workflows Use Multicompany Digital Workflows at Least Some of the Time Do Not Use Multicompany Digital Workflows
- 42. Confidential ©2024 Engagement With Digital Workflows 42
- 43. Confidential ©2024 Connections Through Internal Digital Workflows 43
- 44. Confidential ©2024 Connections Through Multicompany Digital Workflows 44
- 45. Confidential ©2024 Processes Done With Digital Workflows Frequently/Very Frequently 45
- 46. Confidential ©2024 Top Benefits of Using Digital Workflows 46 Reported by Those With a High Level of Use of Digital Workflows
- 47. Confidential ©2024 Biggest Benefit: Transparency Those using digital workflows extensively can connect the issues they experience with the processes that are causing them. 47 89% Average of those using digital workflows for those processes 47% Average of those not using digital workflows for those processes Can Identify Specific Processes as Root Causes of Errors and Delays Deblina Banerjee, Global Leader of Project Management Systems and Technology, Jacobs
- 48. Confidential ©2024 Biggest Benefit: Transparency Those using digital workflows extensively can connect the issues they experience with the processes that are causing them. 48 89% Average of those using digital workflows for those processes 47% Average of those not using digital workflows for those processes Can Identify Specific Processes as Root Causes of Errors and Delays Britton Lawson, Director of Technology, Veit
- 49. Confidential ©2024 What Will Encourage More Use of Digital Workflows 49 Low/Non-Users Who Believe Digital Workflows Will be Important in the Next 5 Years Require Contractors to Use Digital Documentation and Practices Owners Other Contractors
- 50. Confidential ©2024 Cybersecurity 50 Partner: Egnyte 20 DAYS Average duration of loss of data due to ransomware attacks in the US
- 51. Confidential ©2024 51 Agenda • Challenges we need to tackle • Current state of digital transformation • Use of digital workflows • Tackling top challenges through technology now
- 52. Confidential ©2024 Digital Supply Chain Management: Still Emerging 52 • Ranks 7 out of 7 in the approaches measured for managing supply chain risks for use AND effectiveness. • But, about one quarter of contractors surveyed find it currently at least somewhat effective at reducing the supply chain risks they face.
- 53. Confidential ©2024 Supply Chain Strategies in Use 53
- 54. Confidential ©2024 Effectiveness of Supply Chain Strategies 54
- 55. Confidential ©2024 Top 5 Most Widely Used Strategies to Address Skilled Worker Shortages 55
- 56. Confidential ©2024 Using Tech to Help Attact/Retain Workers 56 Attract Workers Retain Workers
- 57. Confidential ©2024 Effectiveness of Specific Tech in Helping Resolve Workforce Issues 57
- 58. Confidential ©2024 Effectiveness of Specific Tech to Improve Project Performance 58
- 59. 59 Where We Need to Go
- 60. Confidential ©2024 Digital Transformation of the Construction Industry 60 Meta Digital Automated Manual Integrated and Connected Virtual and Industrialized • Data formats • Functions • Multi-party workflows
- 61. Confidential ©2024 Integrated Digital Project Delivery 61 DIGITAL PROJECT TEAM Supply Chain Data Reality Capture Data Regulatory Data Construction Performance Data Model Data Digital Twin Progress Data Sustainability Data Seamless data access enabling: • Generative design with AI, simulations • Integrated design and construction • Industrialized construction • Digital Twins connected to embedded sensors
- 62. Confidential ©2024 Digital Transformation of the Construction Industry 62 Meta Digital Automated Manual Virtual and Industrialized
- 63. Confidential ©2024 63 Agenda • Industrialized construction • AI: Current and Future
- 64. Confidential ©2024 Impact of Using Industrialized Construction Contractors using panelized or modular construction were asked about its impacts. 64 Volumetric and/or Modular Has Impacted Workers and/or Projects No Impact Don't Know the Impact 52% 36% 12% 41% 39% 20% GCs Trades Top Positive Impacts 1. PRODUCTIVITY 'image: Flaticon.com 2. SAFETY
- 65. Confidential ©2024 Industrialized Construction and Labor Difficulty Finding Skilled Workers (1-5 scale) • 1=Not a Problem • 5= Severe Problem 65 Average Age of Workers 22% 41% IC Manufacturers General and Specialty Trade Contractors 39 42 • In 2020, 23% of construction workers were 55 and over, nearly double the amount in 2003. • Employment trends older in construction than the average of all industries Bureau of Labor Statistics BLS NREL, Dodge, WSU Rated 4 or 5
- 66. Confidential ©2024 Will Industrialized Construction Help With Workforce Challenges? • 70% of IC Manufacturers report that they recruit construction laborers 66 0-24% 25%-49% 50%-74% 75-100% 9% 32% 42% 17% What percentage of workers in your factory do you estimate come from a construction background? 59% report that more than half of their workforce comes from construction
- 67. Confidential ©2024 Automation of IC Factories • Only 22% of IC Manufacturers use high levels of automation currently 67 Little to no automation Labor intensive Equal amount manual labor & automation Highly automated 15% 20% 42% 22% How labor-intensive vs. automated is your manufacturing process from materials input to output of your product?
- 68. Confidential ©2024 What Does the Future Look Like? Manufacturing a building will be as automated and customizable as manufacturing a car. • Manufacturing centers are easier to automate than jobsites. • Work at one location with flexible hours and conducting tasks at waist height with more automated support allows for a more diverse workforce to be recruited. 68
- 69. Confidential ©2024 69 Agenda • Industrialized construction • AI: Current and Future
- 70. Confidential ©2024 Current Use of AI Technology in Construction 70 11 Technologies Deployed Adoption is Low (10th out of 11) construction.com/resources
- 71. Confidential ©2024 Current Use of AI Technology in Construction 71 “Poised for Growth” because the Implementation Level is High construction.com/resources
- 72. Confidential ©2024 Current Use of AI in Construction 72 • AI dashcams for fleet safety construction.com/resources
- 73. Confidential ©2024 Current Use of AI in Construction (and Beyond) 73 • AI dashcams for fleet safety construction.com/resources
- 74. Confidential ©2024 History of AI What is Generative AI? • A type of deep learning that can create new content, such as text, code, images, audio or video. Definition courtesy of EY 74
- 75. Enterprise Use Cases for Generative AI in AEC Building Innovation Conference 2024 75 Environmental, Health and Safety (EHS) Planning, Design, and Engineering Get design suggestions based on past projects Generate construction product specifications Validate submissions for building code compliance Skills and Knowledge Development Construction and Handover Optimize supply chain dependencies Compile handover documentation Generate bid documents based on past projects Data cleaning, processing, classification, tagging Identify EHS risk from project documents, real time or historical data Generate project-specific EHS plans Extract insights from EHS reports Extract knowledge from drawings, BIM, specs Create micro-learnings from training plans Interpret complex compliance and standards documents Information courtesy of EY
- 76. Confidential ©2024 76 Concluding Thoughts • The industry is investing in data driven construction. Data and technology are already driving safety, productivity, quality and other benefits. • However, more help is needed to tackle core challenges facing the industry. • Need to break out of “silos of excellence” to push the industry forward. Data in isolation is useful, but shared data is powerful. • Better data can also help drive advances that have the potential to help transform the industry: • Industrialized Construction • AI
Editor's Notes
- #75: review and maybe add (jay)