In a rapidly evolving construction industry influenced by megatrends like market shifts, sustainability concerns, societal changes, and regulatory dynamics, staying ahead is crucial for survival. A recent report from the World Economic Forum highlights the need for construction companies to adapt and thrive in the face of these transformative forces. Here are 10 Things Construction Companies Must Do to Succeed that construction firms should take to navigate and succeed in the evolving market:
Table of contents
- 1 10 Things Construction Companies Must Do to Succeed – 1. Embrace Innovation in Building Materials
- 2 2. Embrace Standardization, Modularization, and Prefabrication
- 3 3. Embrace Cutting-Edge Technology
- 4 4. Design Buildings with a Focus on Lifecycle Costs
- 5 5. Embrace Collaborative Risk-Sharing Models
- 6 6. Foster a Culture of Continuous Learning
- 7 7. Emphasize Long-Term Considerations
- 8 8. Expand Global Presence
- 9 9. Transform Recruitment and Hiring Strategies
- 10 10. Prioritize Comprehensive Training
10 Things Construction Companies Must Do to Succeed – 1. Embrace Innovation in Building Materials
To meet the demands of a changing market, construction companies should proactively invest in and adopt advanced building materials. These materials, whether enhancements of traditional standards or inspired by nature, offer improved performance, sustainability, and resilience.
Overcoming barriers such as limited awareness and initial costs requires collaborative efforts from manufacturers, construction firms, and design professionals.
By fostering education, testing, and market adoption, stakeholders can expedite the integration of innovative building materials, ushering in more efficient, cost-effective, and environmentally friendly construction practices.
2. Embrace Standardization, Modularization, and Prefabrication
Promoting standardization in material sizes, along with the utilization of modular and prefabricated components, can significantly streamline construction processes. This approach not only reduces build times but also lowers costs while enhancing productivity and safety.
Buildings that once took months to complete can now be erected in a matter of days, leading to increased efficiency and minimized material wastage.
Despite the advantages, challenges such as the perception of one-size-fits-one structures and transportation issues have hindered the widespread adoption of modular and prefab solutions. Educating stakeholders about the versatility of these building methods, especially early in project discussions, can dispel misconceptions. It becomes evident that projects incorporating modular and prefab elements can be uniquely designed, catering to diverse sizes and shapes.
3. Embrace Cutting-Edge Technology
The construction industry has been historically slow in integrating new technologies effectively into the job site. Technologies like 3D printing, despite being available for several years, have seen sluggish adoption in construction practices.
Concerns surrounding 3D printing, such as size limitations, speed, and cost, have contributed to hesitancy. However, the technology’s unique capability to produce intricate shapes and components unavailable through traditional methods compensates for these challenges.
As technology advances, it promises a remarkable increase in productivity—some estimates suggest up to 80%—while simultaneously reducing project timelines and overall costs.
Additionally, the implementation of Building Information Modeling (BIM), drones, and augmented reality can enhance project visualization, collaboration, and efficiency. Embracing these technological advancements positions construction firms at the forefront of innovation, offering transformative benefits to project execution.
4. Design Buildings with a Focus on Lifecycle Costs
Recognizing that operation and maintenance costs constitute a significant portion—ranging from 40% to 80%—of a building’s total expenses over its lifespan, it’s crucial to prioritize design decisions that can mitigate both initial construction costs and long-term maintenance expenses.
To achieve this, involving contractors, suppliers, and maintenance personnel in the design process from its early stages is highly recommended. Their insights can contribute to optimizing construction processes and identifying potential maintenance challenges.
5. Embrace Collaborative Risk-Sharing Models
Depart from the traditional design-bid-build approach, where accountability is often fragmented, and explore alternative contract methods that distribute risks among involved parties. Contracting models like design-build and early contractor involvement foster collaborative efforts toward common objectives.
This approach encourages teamwork and collaboration, allowing contractors and suppliers to provide innovative solutions to challenges when involved early in a project.
6. Foster a Culture of Continuous Learning
Sharing insights gained from both mistakes and successes across the entire organization facilitates collective learning. Rather than moving from one project to another without reflecting on challenges faced, progressive companies acknowledge the value of sharing experiences and developing strategies to avoid similar pitfalls in the future.
Successes should be celebrated, and the knowledge gained should be disseminated throughout the company.
7. Emphasize Long-Term Considerations
When evaluating project costs, extend the perspective to encompass the long-term lifecycle performance of a building. Beyond design and construction costs, assessing the 30-year life of a structure involves understanding the impact on utilities and maintenance expenses.
Encourage clients to adopt a forward-thinking approach, evaluating the enduring effects of present-day design decisions.
Promoting sustainability and integrating green building practices into the corporate culture of construction companies is essential. This commitment should be woven into every project, becoming a fundamental aspect rather than a discretionary add-on based on available funds.
Over time, the lifecycle costs associated with durable and environmentally friendly materials prove to be more economical than their flashier, cheaper counterparts. Construction companies should also scrutinize their internal processes and procurement practices for opportunities to enhance sustainability.
8. Expand Global Presence
In an increasingly interconnected world, companies must transition from local to global perspectives. Through strategic partnerships and acquisitions, construction firms should broaden their market reach beyond regional boundaries.
Developing countries, in particular, offer promising opportunities for construction services, signaling a shift toward a more international market approach.
While acknowledging the importance of local knowledge, especially in construction, collaboration with larger firms possessing extensive resources and efficient processes enhances the influence of local connections. This synergistic approach combines local insights with the capabilities of a well-resourced partner.
9. Transform Recruitment and Hiring Strategies
As the construction industry faces challenges in securing a skilled, young workforce, proactive measures are imperative to ensure sustained growth. Forward-thinking companies should move beyond immediate hiring needs and proactively plan for the future.
Collaborating with training programs or universities to attract candidates upon graduation taps into a latent labor pool. Recognizing the valuable contributions of women to construction teams and leveraging their strengths is an avenue for diversifying the workforce.
Promoting the industry’s appeal and emphasizing the role of technology in construction can attract individuals with relevant experience to push technological boundaries.
10. Prioritize Comprehensive Training
Investing in comprehensive training programs benefits both the company and its employees. This approach yields workers with updated skills, contributing to their professional development and advancement within the organization.
Addressing recruitment needs becomes more feasible when companies plan strategically. Training programs, whether delivered through traditional classroom methods or e-learning platforms, can cover a spectrum of subjects, including technology, processes, new products, regulatory compliance, safety and health, leadership, project management, lean construction, and Building Information Modeling (BIM).
By prioritizing ongoing training, construction companies ensure a skilled workforce capable of navigating the evolving demands of the industry.
In the current landscape, the construction industry faces significant challenges and new opportunities. APPMVN is dedicated to partnering with construction businesses, providing them with the most modern and innovative solutions to overcome these challenges and fully exploit emerging opportunities.
From efficient project management to embracing new technologies, AppMVN aims to support construction enterprises in navigating the evolving demands of the industry. Our commitment is to offer cutting-edge solutions that empower construction companies to thrive in the ever-changing construction environment.