According to the World Economic Forum, the automation rate is expected to jump from 33% to 47% by 2025.
So what does this mean for construction companies?
It means the fourth industrial revolution will usher in a new era of construction, with unprecedented challenges to the industry that must be addressed.
If you’re a project manager or an owner, you want to be ready to face the obstacles ahead.
Luckily you don’t need a crystal ball to see what the future holds; you need to be updated on the current challenges in the construction industry.
We’re here to provide you with the top 7 challenges that construction firms are currently facing + tips on how to overcome them!
Project costs can quickly spiral out of control if not appropriately managed. Unforeseen delays and changing project scope can cause cost overruns that can be difficult to recoup.
For example, if it’s not in the budget to purchase new equipment, a construction manager may have to rent instead, which can add up quickly.
To avoid these issues, project managers should create complete budgets that account for all possible contingencies and ensure that everyone is aware of them during the planning process.
Climate change is a reality, and the construction industry is not immune to its effects. According to Stanford researchers, extreme weather will be more common and less predictable in the following years.
Unpredictable weather can cause delays in outdoor projects or even force a project to be put on hold. To combat this, construction companies must develop a strategy to minimize the impact of weather-related delays and have contingency plans in place.
The construction industry faces a shortage of skilled workers due to the increasing demand for labor and a decrease in the number of new workers entering the field.
This shortage can lead to project delays and drive up costs if companies have to pay overtime or hire unskilled workers who need additional training.
Construction companies can plan by accurately assessing their workforce needs and building strong relationships with training centers and trade unions.
Construction projects often involve multiple stakeholders with different goals, making collaboration difficult. This is especially true when the team is geographically dispersed or working remotely.
To overcome this challenge, construction companies must invest in communication tools that facilitate collaboration among all their stakeholders.
Tip: investing in project management software can help ensure everyone is on the same page and working towards the same goal.
The increased demand for construction materials has caused the cost of raw materials to rise exponentially. This is especially true for commodities such as steel and cement, which have seen a sharp increase in prices.
Construction companies must anticipate these price increases and account for them in their budgets to ensure that projects are completed on time and within budget.
Due to the prevalence of connected devices in the construction industry, cyber threats are becoming an increasing concern. If a hacker gains access to a company’s system, its operations could have disastrous consequences.
Companies must invest in cybersecurity tools such as encrypted networks, antivirus software, and firewalls to protect their data and systems.
Construction projects must comply with myriad regulations, which can be costly and time-consuming. Regular inspections and audits can delay projects and lead to costly changes if requirements are unmet.
To avoid this, construction companies must stay up-to-date on the regulations that apply to their projects and ensure that all stakeholders are aware of the requirements.
Even if you’re a particularly meticulous person, it’s impossible to anticipate or avoid every issue that may arise in the construction industry.
However, by understanding the construction challenges and developing strategies to mitigate them, you can ensure that your projects are completed on time and within budget. Keeping track of your cash flow will help you avoid any surprises along the way.
Good planning is critical- ensure all stakeholders, especially your construction workers, know construction project requirements from the onset, invest in communication and collaboration tools, and anticipate potential risks.
By investing in technology and training programs, companies can stay ahead of the curve as the industry evolves.
Construction companies must be prepared to face the challenges of the fourth industrial revolution. With the right strategies in place, there’s no limit to what you can achieve!
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