Have premier engineering institutions become mere feeders of talent to software companies and banks, irrespective of the engineering background?

Have premier engineering institutions become mere feeders of talent to software companies and banks, irrespective of the engineering background? Are the leaders and professional bodies in the construction industry mere spectators to this shift?

Recently, I was invited by IIT Tirupati to deliver a guest lecture on "Construction Industry Opportunities, Challenges, and Possible Innovative Solutions." I invested a significant amount of time preparing, providing valuable insights on industry opportunities, challenges, and advocating for a paradigm shift akin to the "Industry 4.0" transformation seen in manufacturing and the automobile sector.

While students initially appeared apprehensive about my argumentative thoughts, a productive question-and-answer session ensued. One question, however, lingered in my mind: "Why haven't we witnessed as much campus hiring activity in the construction industry as in other sectors, with top talent being absorbed by tech companies, banks, and BPOs? Moreover, potential candidates seem more inclined to accept offers from smaller tech firms over leading construction companies."

While numerous professional organizations in India and globally prioritize goals such as membership growth, retention, and event statistics, the larger issue remains largely undiscussed, undeliberated, and absent from white papers or government representations. A disclaimer is necessary - this observation is not meant to disrespect any professional organization, and I am actively involved in many such groups in India and globally.

According to my research paper, the productivity growth rate of the construction industry has stagnated at 1% for the past three decades, in stark contrast to the 3.6% of the manufacturing industry and the overall economy's 2.7%#. Researchers argue that resistance to technology adoption and adherence to age-old construction methodologies are the primary culprits. However, an underlying issue is the lack of the right young talent to drive breakthrough innovations, similar to the transformative impact of Smart Phones, Cloud Computing, AI, Block Chain, LLM "Chat GPT" on their respective industries over the past decades.

While acknowledging some progress, it's essential to recognize that this advancement hasn't significantly impacted the industry's productivity growth rate or improved working conditions.

In conclusion, let's reflect on a crucial fact from my research and offer advice to industry leaders, policymakers, and economists: "If the global construction industry's productivity growth aligns with the rest of the economy, construction's value-added could rise by $1.6 trillion per year. This substantial increase could cover approximately half of the world's annual infrastructure needs or account for 2% of global GDP"# These findings underscore the urgency for collaborative action and strategic investments in cultivating the right talent.

#McKinsey Global Institute Analysis