Construction Sector in MENA Region: Challenges and Solutions. (1/4)

A report from GlobalData, the leading analytics company, has said that the construction output growth forecast for the Middle East and North Africa (MENA) region for 2020 has been cut to -4.5% from the previous estimate of -2.4%. Due to reduced manufacturing output and supply-chain issues due to the pandemic, materials are harder to source, with delayed timelines for delivery.

What’s more, the current challenges add to all the other security and global economic difficulties already facing the sector. Construction companies within the region have been struggling to complete projects on time, source skilled manpower and subcontractors, combat rising costs of materials, and manage client expectations. While trying to attract new business, obtain certifications and permits, fund projects through loans, remain green and sustainable, as well as ensure job site safety, security, health, and environmental measures,

This article highlights the four major challenges facing the construction sector, proposing solutions and best market practices to mitigate the impact on construction service providers. (Source:’’ BINEX magazine’’).

• Challenge 1: Old technological systems .
• Challenge (2): delay in payments and lack of funds.
• Challenge 3: Expectation and inquiry over safety and quality .
• Challenge 4: Limited reach and customers

In this first part of the article release, we will explore together challenge No. 1: old technological systems and solutions based on the best practices in the industry.

Old technological systems.

There is no denying that most construction companies have been using old-fashioned technologies to manage administrative and onsite operations. These antiquated systems are holding back the industry. Studies show that only 6% of construction contractors in the Saudi market are utilising machine learning in their businesses. An industry-wide reluctance to adopt new technologies is resulting in many inefficiencies. As construction work becomes more complex and as technology continues to transform the way the industry works, being smarter about how you operate is the key factor for success.

Accomplishing this in a high-risk, low-margin environment means data-driven decision-making is much more important for contractors who hope to maintain a competitive edge. The better the business intelligence, the greater the advantage the organisation will have in terms of recovery and profitability.

Solution 1: Adopt onsite operational excellence

It pays to keep in mind that today’s modern construction projects create mountains of data. Effectively processing and analysing all this information requires technologies like cloud computing, integrated software platforms, and mobile applications. By taking advantage of digital transformations, you improve performance and get access to insightful statistics that highlight KPIs to help with better future planning.

• Employing smart systems:?

Smart technologies increase the safety of construction sites while simultaneously enhancing administrative procedures. Accounting and project management software enhance the supervision of supply chains. They help you minimise delays on projects by keeping a constant eye on your supply base to identify potential bottlenecks and replace or diversify your suppliers as needed. Smart systems also help companies reassess inventories, taking into consideration new lead times to ensure business continuity.

Fully integrated, cloud-based enterprise resource planning (ERP) platforms utilise a uniform data set across construction organisations and allow users to collaborate and work in real-time. They connect entire project teams, deliver a deep understanding of project data, automate workflows, boost productivity, and increase profit margins whilst cutting construction costs.

• More efficient remote operations:?With cloud management systems, you can access data remotely to reduce the number of labourers on site. These systems can also update health policies and operational procedures faster to adapt to pandemic conditions. You can adjust work processes, teams, and schedules to accommodate social distancing. For example, rather than bringing everyone to the job site for a single eight-hour shift, you can move to smaller teams that work on staggered schedules. Technologies such as drones can reduce the size of teams on sites, particularly for functions such as inspections. Powerful solutions that provide remote field view and field management further extend the power of ERPs beyond contractors’ back offices to boost data capture and productivity

Solution 2: Invest in Future Technologies,

• As you work on coming out of the challenges brought about by this era, you have to think about past collaborative efforts from digitization in construction. coping with the industrial age, to facilitate lean operations.
• Industry 4.0 advocates for integrating various technologies—including the Internet of Things, big data, social media, cloud computing, sensors, artificial intelligence, and robotics—into the manufacturing, distribution, and utilisation?of tangible products. Embedded computing systems comprise cyber-physical systems. Embedded chips enable manufactured products to function as networks and establish connections with the Internet. The technologies of Industry 4.0, including AI, cloud computing, intelligent automation, IoT, augmented reality (AR), and virtual reality (VR), help reduce costs and improve efficiencies from design to project completion. This trend is called Construction 4.0

• Robot technologies:?The next decade will see the construction industry moving to more advanced technologies like robotics. You must be actively researching and investing in robot technologies that can handle repetitive tasks in the field. While the future of construction seems bright, with many technologies already available and more still in research and development, budgeting for upgrades and investment in technological tools is no longer a matter of choice but rather a necessity. Companies not embracing this digital revolution will lose out to those that are.

The coming part of the article will shed light on the financial challenge and solutions that might remedy that risk.