In review: the rise of Construction Technology in 2017
Summarising the biggest takeaways from JBKnowledge’s ConTech 2017 report.
JBKnowledge’s 2017 Construction Technology Report revealed many useful insights on broad tech trends in the industry. Measures such as IT expenditure, size of companies’ IT departments and forms of tech/software adoption painted a picture of how the industry’s opinions towards the role of IT are rapidly changing.
Allocating Resources for IT
IT Budget in 2017
In 2017, more companies allocated 1% or more of their annual sales volume to IT. However, the construction industry remains notoriously frugal with budgeting for IT.
The trend indicates that more companies recognise the value of dedicating funds to IT, as well as the need to plan for technology upgrades.
On the flip side, the report also highlighted that most companies are not billing IT to projects nor are they being reimbursed by owners for IT expenses.
This reveals that most construction companies are missing an opportunity to legitimise and recapture IT expenses to help justify the investment on future projects. Dated perceptions of IT expenses being low-priority or potentially unnecessary will continue to hinder acceptance of IT’s role in construction.
Human resource allocation for IT
21.9% of respondents reported that their companies task certain employees with IT responsibilities, rather than tasking the employees with full-time IT roles. This means that a potential conflict of roles may occur, at the expense of either the employee’s IT responsibilities or otherwise.
Fewer companies have a dedicated IT department in 2017 (49.6%), as compared to 2016 (57.4%) and 2014 (58.9%).
Most significantly, 30.1% of companies are outsourcing a portion of IT instead. While this presents an opportunity to scale resources for the company, it also creates the challenge of managing new vendors and processes.
Addressing data security
Actions to ensure data security and management (employee training, installing security on mobile devices, corporate IT policy, etc.) have reported an increase of 15 to 20% more application over the past year.
All methods of securing cloud data have seen at least a 5% increase in application since 2016. Companies show growing awareness about the importance of data security, which will help safeguard long-term adoption of tech solutions.
However, even though 67% of respondents reported they are training employees on securing cloud data, nearly 80% of them admit that only half of their employees really understand and apply the policies.
This suggests that IT training is either not as prevalent as reported or not fully implemented and monitored as necessary to drive full adoption. No matter the reason, the fact remains that companies are still significantly vulnerable and should adopt more strategies and educate more employees in an effort to secure data.
Value of mobile devices in the office and on construction sites
2017’s data supports the adage, “The iPad is the new hammer!”
83.1% of all respondents found mobile capabilities to be Important to Very Important, with only 16.9% of respondents finding mobile capabilities Not Very Important.
While adoption of apps and devices has grown since 2013, respondents in 2016 reported using fewer mobile devices daily in every category besides wearables. A possible explanation for the decrease in apps and devices in play may be because respondents are eschewing the use of multiple devices in favor of a single device for multiple purposes.
Utilising technology to improve or guide day-to-day workflows
Most respondents acknowledge that companies are not outsourcing workflows. Workflow needs are instead met in-house.
When a company chooses to manage workflows in-house, it’s important to consider seeking external advice or consulting on systems and processes in order to achieve optimal implementation and results.
“What workflow needs a dedicated technology solution?”
The most requested technology solution was BIM. The large concentration of respondents requesting BIM solutions begs the question: are respondents aware of the existing applications available across the BIM spectrum? If respondents are aware of BIM applications, is it a knowledge gap preventing respondents from using BIM?
Other popular responses requested workflow solutions for safety and scheduling, which also have existing solutions. Workflow technology responses echo the sentiment often heard in construction technology consulting — “We don’t know what we don’t know.”
A resulting hesitance towards new technology’s price, training time, ROI, and lack of technological literacy often stunts the prospect of exploring that new technology.
It is important to note that the number of software solutions in use by the average contractor continued to decline in 2017. The largest group of respondents in 2012 reported using 6 or more software solutions. The largest group of respondents in 2017 reported using only 2 software solutions. Popular software in 2017 may integrate more features rendering additional software superfluous, or respondents may have simplified and trimmed down their technology tools due to cost or implementation issues.
Disrupting workflows and technology with R&D
What are the obstacles to adopting new technology?
Management reluctance to try new technology is the only factor steadily increasing since 2014. 2017’s ConTech Report indicates the biggest factors influencing technology adoption are people and budgets.
What workflows are prime for automation in the immediate future?
Several construction workflows can be automated using technological advancements such as 360 cameras, drones, pre-fabrication, and BIM. Technology has become more streamlined than previous years; 360 cameras take one composite image now instead of several images to piece together. As drones grow more complex, they are capable of serving more diverse automated workflows.
R&D budget in 2017
More companies have a dedicated R&D budget, even though in 2017 this still amounts for less than half of all companies.
“We do not have a dedicated R&D budget”:
- 2015–67.2%
- 2016–57.6%
- 2017–54.4%
The reasons provided for not having an R&D budget were:
- We don’t have budget for it.
- We perform R&D as needed.
- R&D is not needed.
- It’s not a priority.
- Our company is too small.
- IT handles R&D.
- We are working on it.
What can the next generation in the industry offer?
Respondents were asked what they hope architecture, engineering, construction management and construction science students across the country are learning to build a better industry in the future.
- Field experience was the most requested skillset, which aligns with earlier reported shortage of labour
- BIM was the second most requested skill.
- The third most requested skill was technology, in particular to help further companies’ R&D efforts.
Emerging technologies in 2017
In 2017, significantly less companies are NOT experimenting with emerging technologies.
Interest in drones has increased by 10% over the year, while pre-fabrication technology use has risen 12%.
360 photos are also a popular tool, with more features and functions being introduced by companies such as LG, Ricoh, Holobuilder, Bluebeam, PlanGrid, and StructionSite.
Is employee tracking becoming more commonplace?
More companies are considering utilising employee tracking tools.
57% of respondents reported they were “Considering” using worksite tracking, despite the assumed privacy concerns. 10.1% are already using such tools.
33% said no to employee tracking tools for the following reasons:
- Not needed
- Do Not See Benefit Or Value
- Cost
- Big Brother Feeling
- We haven’t considered it yet
- Lack of Support Or Manpower
- Trust in Employees
What smart tools are being used?
Innovations in smart tools over the last year include tracking features on new tools as well as offering additives to retrofit older tools with new technology solutions.
DEWALT was extremely popular in the smart tools category of the survey. DEWALT Tool Connect is becoming standardized on more models, with the Tag which can be added to any device for tracking GPS location. DEWALT’s The Connector can also be added to any DEWALT 20 Volt Max tools to add tracking without adding weight.
What will happen in 2018?
Nobody can predict the future, but trends can be studied. Here are four broad trajectories that construction companies will likely experience in 2018:
1 The lines will continue to blur between personal and corporate data, hardware and software, so data security will remain a key issue.
The construction industry will continue to innovate given the technologies interspersed throughout our daily lives, including apps, smartphones, tablets, and other devices. The industry will continue to force business technology providers to match the efficiency, availability and low-cost we get from our consumer tech providers. Until then, contractors will opt to use personal devices and try personal solutions to solve short term problems.
2 Automation is here and will gain traction, whether companies and individuals embrace it is a matter of choice and education.
Education around what “automation” means for each company is key. If more construction professionals understood the work tasks that automation and Artificial Intelligence technologies can augment and enhance, they might focus less on the tasks they will “replace.”
3 The demand for BIM will continue as will BIM’s influence on how construction projects are bid and won in 2018.
Companies still not exploring BIM will find themselves more and more limited in areas of work.
4 Workflows will be further digitized as companies mature and update processes, tinker with the latest mobile apps and devices, but they’ll need integration capabilities to follow.
Software and devices will continue to become more affordable, and with more technology options than ever before, companies are using fewer solutions than ever before to avoid the headache of integrating data across multiple solutions. To remain competitive, tech providers will have to continue to team up to get on contractors’ short list of solutions that offer simplicity and data continuity.
We hope you found this summary useful. If you would like to find out what else was mentioned in the report, head on over to JBKnowledge now!
