YOUR BUSINESS AUTHORITY
Springfield, MO
YOUR BUSINESS AUTHORITY
Springfield, MO
The construction industry is undergoing a technological transformation. From drones that map job sites to artificial intelligence systems that predict project delays, technology is reshaping how projects are executed. These innovations are addressing critical issues in construction, such as safety and project efficiency.
Enhancing safety with tech
Worker safety remains a major concern in the industry. The Occupational Safety and Health Administration reports that 1 in 5 worker fatalities in 2022 occurred in construction. One of the most significant contributions of technology to construction is the improvement of on-site safety. Drones, for instance, are increasingly being used to survey construction areas, allowing project managers to assess potential hazards without exposing workers to dangerous conditions. These aerial surveys make it easier to identify risks, such as uneven terrain or unstable structures, before workers are placed at risk.
Wearable technology is another game-changing innovation. Smart helmets and vests equipped with sensors can monitor a worker’s physical condition, detecting signs of fatigue, elevated heart rates or fall incidents. According to a report by MarketsandMarkets, the wearable tech market in construction is projected to grow at an annual rate of 15.5% through 2025, highlighting the rising importance of these devices in risk mitigation. These tools not only safeguard workers but also provide insurers with valuable data to assess on-site risks, potentially reducing claim severity over time.
Improving communication, reducing delays
Project delays are a common issue in construction, often arising from communication errors. A 2023 study by Dodge Data & Analytics found that 75% of construction companies experienced at least one project delay due to miscommunication and poor data management. Although communication has always been integral to project execution, modern technology offers more efficient ways to facilitate it.
A study by PlanGrid and FMI revealed that over 13% of construction teams’ working hours are spent searching for project data – equating to more than five hours per week per person.
Leadership must first cultivate a culture of openness and transparency, allowing all project stakeholders to communicate freely. Once this culture is in place, digital platforms and applications can be utilized to streamline communication and foster collaboration.
Additionally, construction projects frequently exceed both budgets and timelines. According to a McKinsey & Co. study, large projects are typically completed 20% over budget and 80% later than planned. Predictive analytics, powered by AI, allow construction managers to analyze past project data to forecast potential delays, budget overruns or equipment failures before they occur. By anticipating these issues, managers can proactively plan for contingencies and prevent costly overspending.
Challenges in tech implementation
While the benefits of technology in construction are clear, there are several challenges to consider. One of the primary concerns is the cost. For smaller construction companies, the initial investment required to adopt advanced systems can be a significant barrier. However, these costs should be weighed against the long-term savings in reduced accidents, fewer delays and improved project outcomes.
Training is another critical challenge. Workers and managers need to be properly educated on how to use new tools effectively. Without adequate training, the full potential of these technologies cannot be realized, and the risk of errors or accidents caused by misuse increases. Investing in comprehensive training programs ensures that technology is used efficiently and safely.
Data security is also a growing concern in the construction sector. As companies collect and store more data through digital platforms, they must have adequate safeguards in place to protect this information from cyber threats. A data breach could compromise sensitive project details, leading to delays, financial losses and potential legal liabilities.
Technology for risk management
As technology continues to evolve, its role in construction will only expand, with AI, robotics and data analytics leading the way. These tools offer tremendous potential as proactive risk management strategies. However, as they present new opportunities, they also introduce new risks. The challenge for construction firms is to integrate these tools effectively while remaining vigilant about the exposures they bring.
Partnering with an experienced insurance adviser can help construction companies navigate this new landscape. Ensuring that appropriate coverage is in place can provide essential protection as businesses incorporate advanced technologies into their operation.
Tristin Casper is a commercial risk adviser at Ollis/Akers/Arney. He can be reached at tristin.casper@ollisaa.com.
A 2023 Harvard Business Review study suggests significant positive changes when employees take sabbaticals, including greater self-clarity and management confidence.
