Is ConTech the Key to a More Resilient Future?

The Engineering & Construction (E&C) industry has a strong effect on the global economy, the environment, and society as a whole. This industry is intertwined with the daily lives of everyone, as quality of life is heavily influenced by the constructed environment surrounding people. The construction industry serves all industries, as all economic value creation occurs within or by means of buildings or other “constructed real assets.” Per the World Economic Forum, “As an industry, moreover, it accounts for 6% of global GDP.” The importance of the E&C industry in the global economy cannot be denied and therefore the emergence of adoption of ConTech requires the industry to continuously innovate and remain resilient.

The COVID-19 pandemic forced a lot of industries to pivot, including the ConTech (construction technology) as it pertains to commercial real estate, per JLL. “Due to the pandemic, three years of construction technology growth and adoption has been compressed into the past nine months,” Henry D’Esposito, JLL’s Construction Research Senior Analyst noted in the report. “The pandemic pressed tech adoption onto every industry, but for construction the shift of office-based workers to a remote work environment was only one small part of the change,” D’Esposito stated in the report. “To keep job sites open and projects running, construction technology was needed to enable virtual inspections, provide contact tracing solutions, track project status remotely, and develop project plans to allow workers to maintain social distancing.”

“Due to the pandemic, three years of construction technology growth and adoption has been compressed into the past nine months,” - Henry D’Esposito, JLL’s Construction Research Senior Analyst noted in the report

Per the Connected Real Estate Magazine, “As construction technology improved, acquisitions and growth has created an ecosystem of hubs and platforms so that construction firms will just need a few core tools to connect to their choice of one-off technology tools.” By developing a culture of connection and collaboration, the ConTech industry was able to adapt, meet its demands as a global economic staple and thrive with increased efficiency in most cases. 

Emerging technologies like wearables, AR (augmented reality), VR (virtual reality), AI (artificial intelligence), blockchain, IoT (Internet of Things), machine learning, digital twin, and more - continue to proliferate the construction industry. Companies need to be aware of what technologies are coming and which are a good fit for the job site. A few of the highlighted pieces of value add ConTech in the industry are the following, but not limited to:

• Drones. As TechCrunch noted in its recent article - Last February, TraceAir announced a new drone management tool. “Haul Router provides the best mathematically objective hauls for each given drone scan,” the company noted at the time. “Any employee can use the tool to design a haul road and export the results to feed into grading equipment.”
• Ground-Penetrating Radar (GPR). ForConstructionPros discusses how GPR Tech Can Provide Safety, Efficiency & Revenue Benefits Contractors are adding ground-penetrating radar to one-call utility-locating services to enhance accuracy, safety and risk avoidance on job sites.
• Building Information Monitoring (BIM). Building information modeling, or BIM, is a building design technology that starts with the creation of an intelligent 3D model. Per Accruent, the most advanced BIM systems include a database of all related building information and intelligent data – including construction sequencing, cost and lifecycle management information – that allows for document management, collaboration and simulation throughout the lifecycle of a project. In many instances, BIM is no longer just a nice-to-have. According to the UN, the world’s population will be 9.7 billion by 2050. In this context, the global AEC industry must be more deliberate and efficient in their construction designs, creating spaces that meet the rising global demand and provide smarter, more efficient construction solutions.
• 3D Printing. Is actually pretty awesome and provides a low-cost, sustainable way to create affordable housing. Per The Magazine of the National Fire Protection Association, Apis Cor is one of several companies that are already leveraging 3D printers to construct houses, office buildings, and other structures worldwide. Dubai, which is known as a global leader in construction innovation, has set a goal of having 25 percent of its new buildings 3D printed by 2030. “This technology will create added economic value and benefits worth billions of dollars during the coming period,” the government-run Dubai Future Foundation says of the objective.
• SmartCities. This one is kind of a catch-all, involving AI, Blockchain, IoT, and much more. It is my opinion that SmartCities will be key to creating a sustainable future for humanity in providing hyperlocale ecosystems and ConTech will no doubt have to play a major role in their developments. Per The Media Line, Saudi Arabia is investing $200 billion to create a green smart city. In ‘The Line’ project, the kingdom aims to build an international high-tech metropolis near the borders of Jordan, Israel and Egypt. The Saudi Arabian Crown Prince Mohammed bin Salman described it as a project that preserves the environment, “Changes the concept of sustainable cities.” By some estimates, global smart city spending will approach $124 billion this year. Singapore, New York, Tokyo and London alone may account for as much as $1 billion of that spending.

Each of these innovative technologies serve a purpose in the ConTech industry in supporting a more safe, secure, efficient, and collaborative workflow for adopters involved. They have allowed for the E&C industry to adapt to the pandemic environment, switch gears and for the successful adopters, it allowed them to thrive.

It is absolutely clear that there is a need for ConTech in the global economy and it is also clear that the demand for housing will not slow down.

In the new low-touch economy adequate housing is more needed than ever. Per the United Nations, “At first glance, it might seem unusual that a subject such as housing would constitute an issue of human rights. However, a closer look at international and national laws, as well as at the significance of a secure place to live for human dignity, physical and mental health, and overall quality of life, begins to reveal some of the human rights implications of housing. Adequate housing is universally viewed as one of the most basic human needs. Yet as important as adequate housing is to everyone, the United Nations Centre for Human Settlements estimates that throughout the world over 1 billion people live in inadequate housing, with in excess of 100 million people living in conditions classified as homelessness.” As the world population continues to grow, this spells out a challenge to be tackled by the ConTech industry.

It is absolutely clear that there is a need for ConTech in the global economy and it is also clear that the demand for housing will not slow down. As the National Public Radio reported when interviewing Lawrence Yun, the Chief Economist at the National Association of Realtors which tracks home sales, "We are simply facing a housing shortage, a major housing shortage. We need to build more homes. Supply is critical in the current environment." Resiliency is key. ConTech has proven to rise to the challenge during the pandemic and will need to continue its resilient nature of innovation, adoption, connectivity, and collaboration in order to meet the needs of humanity in the future.