Impact of Automation in Construction

The primary purpose of this article is to explore expectations for technology trends in the construction industry and how those trends might change what construction work looks like for humans. This article also highlights a select group of startups addressing pressing needs with innovative solutions.

The construction industry has a productivity problem. There is a popular statistic from a 2017 McKinsey study that summarizes it well: globally, construction sector labor-productivity growth averaged 1.0% per year over the last 20 years, compared with 2.8% for the total world economy and 3.6% for manufacturing (McKinsey Global Institute 2017).

Part of the problem is that the industry is notorious for being technologically challenged — paper and pencils are still commonplace in the field and the back office; however, there has been a growing appetite for digital technologies.This is primarily due to:

• extremely low profit margins,
• a shortage of skilled labor to replace an aging workforce,
• applying best practices from one project to the next,
• improved safety and mitigated risks, and
• reduced waste to improve sustainability.

So, we have a backward industry, and a newfound desire to use technology to solve problems.

Enter entrepreneurs, technologists, and venture capitalists.

Construction technology is quickly becoming one of the hottest areas for startups and investors.In the US, funding for construction technology startups surged by 324% to nearly $3.1-billion in 2018 compared with $731-million in 2017 (according to Crunchbase data). Globally, funding for construction technology startups has been on a tear, from just $4.5-million in two deals in 2008, to $882-million in 103 deals in 2017 (according to CB Insights data).

Imagining the future

Some have very dramatic visions of what the construction site of the future might look like — most go something like this:

Robotic workers build complex modular structures using dynamic materials as drones fly overhead scanning the site and inspecting the work. The data are used to predict and solve problems before they arise, sending instructions to autonomous cranes and heavy equipment. For the few humans on site, they use robotically enhanced exoskeletons and augmented reality enabled hardhats to mechanically and digitally integrate into workflows. The majority of human involvement will be in the back office, remotely managing multiple projects, surveying sites in VR and synthesizing data to ensure projects are proceeding to specification.

Romantic, right?

Unfortunately, this vision is pretty far out. Remember: today, the use of an iPad on a project site is seen as cutting edge.

My prediction is that, in the next three to five years, there will two revolutions in the construction industry: (1) data capture and analysis, and (2) robotics and building process automation.

Revolution #1: Data capture and analysis

Construction sites are teeming with data, but these data are not being captured or recorded in an efficient manner. Traditionally, capturing construction data relies on workers filling out long checklists — technologies like machine learning can drastically simplify this process. In the future, workers will take a photograph, and information will be automatically extracted from it and the checklist will be automatically populated.

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Technologies like computer vision and “Internet of Things” (IoT) wearables will become more prevalent, more data will become available, and more insights will be unlocked.

One particularly compelling use-case is capturing and inspecting progress from the field and comparing it to the digital model to monitor progress and identify issues quickly. There are a variety of companies addressing this need (Doxel, Avvir, OpenSpace, Reconstruct, among others). For example, Doxel captures LIDAR scans and high-resolution images each day to track progress. The company uses its own neural network infrastructure that is trained to recognize a plethora of construction objects; the AI is smart enough to recognize that a duct it is one model vs. another, or that the ducts were supposed to cost $7 for labor, but are instead costing $8. The software compares scans/images and compares progress to the digital model, then AI checks for deviations, plans for costs, and helps with scheduling.

Wild, right? The technology is still in the nascent stages, but unlocking these kinds of data and insights will give construction managers a firm understanding of the process and risks on construction sites.

Another use for computer vision is safety. Companies like Smartvid and Forsight are using photos and real-time footage to mitigate risks on the construction site. Computer vision can be used to identify if workers are wearing proper equipment, if there are hazards, if heavy machinery is moving too quickly, etc.

Data captured through wearables can improve workforce tracking, and can help optimize the number and types of workers needed at different stages of projects. Companies like Kwant and Triax are making wearables that capture data passively and open up opportunities to understand best practices from project to project.

There’s a lot of knowledge in the construction industry. The problem is most of that knowledge is locked up in the head of a superintendent who’s been learning from experience for 30 or 40 years. But when the superintendent retires or leaves, all that knowledge goes away with them. Data capture and analysis will help to build a more permanent knowledge set that is constantly learning and improving over time.

Revolution #2: Robotic and building process automation

Many expect construction to become more like manufacturing. The difference between fabricating a car vs. a building is that buildings are exponentially larger in magnitude and complexity. The construction worksite is the primary obstacle to robotic automation — the environment is not controlled, which poses a challenge to the robots of today.

In the next 3–5 years, the majority of deployments of robots on construction sites will be for bespoke use-cases. For example Construction Robotics has developed a variety of robots, including the Mule, which is specifically designed for bricklaying and needs human co-workers to function properly.

Although I expect construction to be a primary focus for the robotics industry, in the near-term commercial robotics solutions will be tailored to very specific use-cases. Perhaps one day, we will have a humanoid robots swinging hammers and laying concrete, but the chances of that happening in the near-term are slimmer than the chance of me getting a date with Rihanna.

Alex Summers works as an associate on the ventures team at the global infrastructure firm AECOM. At AECOM Alex helps to identify, invest in, incubate, and commercialize new technologies. Prior to AECOM Alex worked on the M&A team at EY. Alex looks forward to leveraging technology to catalyze positive changes for organizations and the world.