EPC Industry: Transformation through Technology

Challenges & Issues in engineering, procurement, and construction (EPC) Industry

Labor/Engineer Shortage - The industry will need to hire hundreds of thousands of skilled, qualified workers each year to meet the demand gap.

Workers Burnout - Workers in the Construction Industry are more vulnerable to Burnout than in any other field. A study found that only 3% of people aged 18-25 would like to work in this industry

Safety Challenges - Showcasing the huge gap in the safety tools and solutions that are currently being used.

EPC Industry Market Today:

·???????? Project Owners are likely overpaying for projects due to poor productivity.

·???????? Industry suffer increasingly low profit margins due to inefficiencies & Trades are often delayed getting paid

·???????? Lots of disconnected point solutions, systems & data silos leads to wasted step and lost TIME, causing delays & cost overruns to the project.

“It’s estimated that construction teams in the India alone will lose $185 billion! in non-productive labor activities. The loss includes looking for project data & information, conflict resolution and dealing with mistakes & rework, especially between the FIELD and FINANCE teams”.

The Key Driving Forces behind Digital Transformation

1.?????? According to McKinsey, if construction’s productivity had grown at the same rate as the global economy, the added value would have equated to?$1.6 trillion, making economic benefit one of the most powerful driving forces.

2.?????? The second reason is linked to two deeply rooted challenges: cost and schedule overruns. The average delay for a construction project is 20 months, with an average?cost overrun of 80%. For such a low-margin industry with single-digit percentages, these overruns are extremely problematic but also present the construction industry with the chance to do things differently.

3.?????? This industry is also one of the world’s least developed in terms of technology and invests far less in IT than other sectors.

4.?????? Several mega-trends also have the potential to profoundly impact the construction sector, including aging infrastructure, population growth outstripping capacity growth, sustainability, changes in the way we engage with the workforce, evolving politics, and regulatory pressures.

While these driving forces are beneficial, these can also intimidate an organization comfortable with its existing system. ?However, the benefits are undeniable, if EPC industry stay where they are and don’t innovate, will be disrupted by other players, perhaps, for example, by non-traditional construction players from other industries. Corporate cross-over is on the rise, and it is inevitable that with machine learning, AI, and digitization, corporate players, so far excluded from construction, will seek ways to break into what, up till now has been considered a closed shop.

Digital transformation is critical for the engineering, procurement, and construction (EPC) industry because it can help companies:

The Future of Construction is Digital - Looking ahead, digital transformation will become increasingly essential for construction companies to maintain their competitive edge. With technologies like artificial intelligence and machine learning set to redefine the industry, the firms that embrace these innovations will be the ones leading the way. These tools promise not only increased productivity but also enhanced safety, better decision-making, and streamlined workflows. The automation in various business processes i.e. Supply Chain, Inventory Management, Project Execution, Plants and Machinery will improve the operational efficiency and increase the productivity.

Construction companies, if continue to ignore the call to digitize will find themselves at a significant disadvantage. As more clients demand digital deliverables and more competitors invest in advanced technology, those who fail to adapt risk being left behind.

Why is Digital Transformation Important in Construction?

Whether it’s automation for improved productivity and performance, cloud-based software for greater collaboration, or the use of?digital construction?technology for on-site risk management through off-site manufacturing, digital transformation offers a host of qualitative benefits across the value chain. Most business leaders, however, agree that the biggest advantage will be experienced in project management and performance.

Improves Operational Efficiency - With automation and?cloud-based construction software, all types of businesses and industries have track record of maximize their efficiency in a time line. Automation technology can now speed up time-consuming tasks, such as data entry, freeing up more time for more important tasks. Additionally, it helps improve accuracy by eliminating the need to perform manual tasks, preventing the risks of human error.

Reduces Costs - Digitization can help businesses save money by enhancing?construction productivity. With the right digital tools, data becomes easier to manage, projects can be completed faster, and certain costly processes can be automated. Technology can also help businesses scale far more easily, cutting down on the significant costs associated with growth.

Boosts Collaboration - The cloud nature of digital construction tools eliminates the everlasting issue of?construction collaboration?by offering a centralized location to manage all documentation and activities. This ensures team members can work together regardless of location, preventing misunderstandings or errors due to outdated information.

Revenue Growth - Construction businesses need a digital advantage to access new markets and beat the competition in today’s world. For example,?BIM management software?allows construction companies to offer their clients a 3D model of the project that allows for the simulation of different activities for efficient cost and time management strategies. This gives the company an added value that can lead to an increase in revenue.

Data-driven Decisions - Digital transformation technologies in construction make managing data and using it to your advantage significantly easier. Modern software offers?construction reporting?capabilities that allow companies to visualize their data in real-time and eliminate intuition from the decision-making process, making every process more efficient and with almost no errors.

Reduces Waste and ESG Compliance - Technology like IoT sensors helps track material usage on-site in real time to extract valuable conclusions and adjust to minimize waste. This is an invaluable benefit that saves the project money by avoiding material waste and reducing its environmental impact. Plus, the data extracted can be used for future projects to stay one step ahead of potential waste.

Improves Safety - Another benefit related to sensors and drones is enhanced safety on the building site. The sensors track everything from workers’ movements to environmental hazards, equipment, and more to significantly reduce incident risks and ensure adherence to safety protocols. Just like with material waste, the data extracted from the sensors can be used to predict potential safety risks and mitigate them for future projects.

Promotes Sustainability - Digital technologies help make companies and projects in the building industry more sustainable.?6D BIM?technology adds a sustainability layer to the 3D model, allowing for greener designs, better resource allocation, sourcing of sustainable materials, and tracking carbon emissions, among many other things.

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