According to the Future of Construction report The global construction market is expected to grow by US$4.5 trillion by 2030 to reach US$15.2 trillion. Just four countries — China, India, the US, and Indonesia — will account for almost 60% of this growth.

The two growth segments are:

• the residential construction markets
• the accelerated infrastructure investment supported by large stimulus programs aimed at boosting post-pandemic economies.

According to the Bureau of Labor Statistics in the USA, construction job openings reached 459,000 in November 2023, a 10.3% increase from October. November’s 5.4% job opening rate is higher than at any point since 2000 when data started being collected. Despite this, contractors continue to experience a skilled labor shortage.

Global funding for major infrastructure and manufacturing projects is flowing, fueling the growth in those segments, and creating more challenges to the skilled workers crisis. So in 2024 labor shortages will still be a major concern for the industry.

To overcome the labor shortage, the industry can introduce more technology in 2024. The UK NBS digital construction report claims that the adoption rate in the use of digital technologies has increased:

• 47% of respondents are concerned the industry is behind the times
• 36% of respondents said they worry that they won’t be up to the challenge when it comes to digital know-how
• 26% believe construction has finally found its “digital feet”, so digitization could be more developed in some areas of construction than others.

In this article, we explore the changes construction companies and individuals will have to embrace this year to stay competitive.

The Challenges to Expect in 2024

In 2024 the world will bounce back from the economic slowdown of the last few years. It will allow the construction industry to continue its transformation through technological innovations.

Labor shortage

We already mentioned the labor shortages will certainly remain a concern in 2024. The challenge comes from an aging workforce and a high turnover rate of new workers. To address this issue, the industry will have to:

• automate its processes and use Artificial Intelligence to boost efficiency
• strengthen employee retention
• attract the younger generation and make recruitment attractive for them by offering competitive wages and benefits.

Sustainability

Construction is one of the main contributors to global carbon emissions. To reach the net zero building initiative, some companies have already taken some steps, such as:

• incorporating recycled components as a building material
• installing energy-efficient doors and windows
• maximizing solar use.

In 2024, adopting the International Energy Conservation Code (IECC), endorsed by the United States, could generate substantial energy savings in construction works to construct more energy-efficient assets.

According to the digital construction report historic buildings must embrace change to help the UK to transition to Net Zero.

Safety

Creating a safe working environment on construction sites is more and more challenging. It involves:

• improved safety training
• stricter inspections happening more frequently
• the use of digital tools to minimize worker accidents.

The digital tools are:

• wearable devices to track worker activities and send alerts in case of emergency
• immersive technologies to implement effective and interactive safe training programs
• artificial intelligence and sensors to detect potential hazards and testing data.

Supply chain

In 2024 building material availability will continue to be an issue but we expect to see prices stabilizing. Product opportunities and delays in transporting building materials will continue to prevent projects from being delivered on time.

Investing in digital platforms like procore could help construction companies manage inventory to avoid delays due to disrupted supply, as these platforms can provide real-time levels of supply.

Offsite construction

Construction companies increasingly use prefabricated construction materials as an alternative to commonly used building materials. Offsite construction will continue in 2024 and beyond. The benefits of prefabrication are:

• more efficiency
• reduced construction time
• lower risks of low supply.

In 2024, construction companies will have to protect themselves against unpredictability and mitigate risks to address:

• current economic issues
• optimize costs
• improve productivity
• be greener and safer for its workers.

Innovations

The use of drones, sensors, software, and other technologies boost productivity by:

• enabling precise planning
• allowing accurate project visualization
• facilitating real-time collaboration among teams across job sites and offices
• cost-cutting
• streamlining processes
• delivering projects on time and on budget.

Automation should not only happen in design and construction but also in construction companies' back offices, reducing administrative and labor-intensive tasks to ease decision-making.

NBS’ 2023 digital construction report surveyed over 700 construction professionals, including architects/engineers and other consultants, contractors, clients, and suppliers, revealing that the industry’s use of technology is growing as described below.

Digital Twins

The report found that the use of digital twins:

• increased since 2021 from 16% to 25%
• 55% use digital twins to mirror construction from other projects to create an ‘as-built model’.

Uptick of off-site construction

In the past twelve months, 57% of respondents to the NBS report were involved in a project that used modern methods of construction (MMC). - 11% of new-build projects were using MMC during the first nine months of 2023 - 9% of new-build projects securing detailed planning approval during the first nine months of 2023 involved an off-site element.

Immersive technology

The study shows an increased interest in the use of immersive technologies, such as AR (Augmented Reality), VR (Virtual Reality), and MR (Mixed Reality)

• 36% are already using this type of technology
• 20% plan to use them within the next three years
• 74% of users use them for stakeholder engagement to present detailed plans
• 62% said immersive tech offers a way to visualize design interfaces, so they can better understand how construction projects fit within existing surroundings
• 35% use it for marketing purposes, particularly amongst suppliers who recognize its value when selling products and systems.

AI and machine learning

Interest in AI has grown significantly within the past year following the launch of ChatGPT and other large language models. Looking back to 2020:

• 38% said they were unsure if their organization was using it
• just 9% were using AI.

Signs of early adopters are already visible:

• 43% do not plan to use it
• 22% have already adopted AI
• 20% will use AI within a year.

Generative AI for research and data analysis is used now in daily workflows. According to an Insight Enterprises survey published with The Harris Poll a survey of 601 leaders at companies with 1,000 or more employees:

• 75% of workers use generative AI tools for data analysis and visualization. Two-thirds of the 75% use AI-powered tools for research and email summarization.
• Other popular use cases include generating written content and crafting personalized learning. More than half are exploring generative AI in software development.

Would your 2024 resolutions be to move from experimentation to implementation of AI to bring you the most value?

Cloud computing

80% now use some sort of cloud computing system as part of their daily workflow. The main uses are data storage, including Google Drive, OnePoll, DropBox, and more:

• 70% use it to share documents and information with clients.
• 75% also use it to collaborate with other team members, particularly on 3D models and specifications.

The focus on digital information management in the construction industry will force companies to invest to increase efficiency and reduce risk in the built environment.

In conclusion

The potential advantages of fully implementing the above technologies are:

• improving customer satisfaction
• reducing operational costs
• boosting productivity
• solving problems easily
• getting a competitive advantage
• growing your business.

Speaking on this year’s report, David Bain, Research Manager at NBS, said:

It’s clear from the results that construction has ramped up digital adoption in recent years and is a far stride from where it was three years ago. Looking ahead, it will be fascinating to see next year’s report as 2024 is shaping up to be big on AI and machine learning.

Russell Haworth, NBS CEO, added:

Looking at the evidence, we can see that construction is shaking off old and tired misconceptions and now relies on all manner of digital skills to produce building excellence. That said, there are still some areas for improvement and no doubt next year will bring further leaps in tech know-how and application.

Driving Vision's technology appraisal looks at the best way to insert modern technology in your workflows and how to move your organization to cloud computing so you can open new possibilities for your daily planning tasks and make sure your data never leaves the optimally secured data center.

A Driving Vision expert will conduct the interviews online and will discuss with you the report and our findings. Together we will decide the best way to implement the solutions at your pace and according to your budget.

Implementing BIM can be daunting, but Driving Vision is here to help you at the pace you are comfortable with. Get started by getting in touch now