It feels like there’s a lot of change happening currently. The concern, is that I hear of businesses abandoning strategy because of the pace of change. This would be a mistake and why?
Engineering and construction is a great industry in my opinion. Because the industry operates on such small margins, deals with big risks and is highly exposed to economic cycles (the same issues that makes it a problematic industry) means that businesses need a good strategy and must be operated in a disciplined manner.
Another justification for having a strategy is that healthy businesses need to keep evolving, to keep looking to improve and to harness the energy of the staff.
So, the question becomes what strategy should I adopt with a limited budget? What’s going to generate best bang for buck for my business?
And with change and disruption visiting engineering and construction – along with all other industries – there has never been a better time to review strategy. So, what are the investment choices and the potential benefits of these innovation options? I’ve listed the key options to consider below:
Modular and prefabricated construction
- Assembling components off-site and bringing them together on-site, creating the opportunity to produce higher quality and cheaper assemblies by utilising manufacture in a controlled environment, considering transport logistics and costs
Advanced Construction Technologies
- Use of Drones: For measurement purposes such as site surveys, using visual intelligence to monitor progress accurately
- Application of Robotics: To automate repetitive tasks on site like bricklaying and digging trenches, reducing labour time and cost depending on size of the job and practicality of the application
- 3D Printing: To cut down on material waste and labour cost, for formwork and other applications, considering equipment setup cost
Data-driven project management
- To resolve perennial problems in the industry such as accurate translation of forecasts from worksite to accounts, requiring the support of reliable, repeatable processes for data capture and consideration of implementation cost and change management.
Adoption of sustainable construction practices and equipment
- Managing the consumption of expensive inputs such as water and electricity, or utilising renewable energy sources.
- Utilising recycled or reclaimed material where product performance is not compromised.
Site safety management
- Technology (sensors & trackers) to maintain separation between humans and equipment – keeping human workers isolated from dangerous situations.
Investment in Training
- Training personnel, recognising the looming labour shortages due to an ageing workforce and workforce development requirements, particularly around knowledge of how to build the job.
Supply chain management/challenges and material costs
- Taking advantage of bulk purchasing opportunities when prices are lower or locking in long-term deals to help control expenses and manage price escalation.
- Making informed make or buy decisions.
- Building solid relationships with suppliers through proper performance assessments, enabling partnering relationships to be established.
How to evaluate the options set out above for your business? Criteria you might like to consider include:
- Some innovations are better suited to Civil infrastructure vs. building?
- Are you a Subcontractor (meeting the main contractor’s expectations) or a main contractor (able to influence the client)?
- Maturity of technology – are you an experienced early adopter of technology? Noting that trend setting creates its own risks
- Is there an opportunity to partner (JV or the like) with another business that has already developed the innovation of interest, which may create an opportunity to build knowledge and experience?
- What’s your business’ skill? Exploit It!
- What is the implementation cost, risk and skill requirements?
Peter Wilkinson – Director, Sam Wilko Advisory
Author of “The Steel Ceiling: Achieving Sustainable Growth in Engineering and Construction” Wiley, 2023
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