IT consolidation, AI and prefab’s impact on hyperlocal ecosystems
Three seemingly unrelated factors are having a big impact on the construction industry. They are IT consolidation, the rise of AI, and the resurgence of prefab. While these may seem like separate topics, there is a ripple effect underway.
The need for IT consolidation
Essentially, digital transformations led to an abundance of technology on the jobsite and in the office. As a result, workers are becoming less productive due to having a variety of disconnected apps, tools and platforms. This forces workers to spend on average 11 hours each week just to find the information they need to do their jobs. That time could be better spent on more impactful activities.
In turn, this cuts into a firm’s ability to successfully introduce new technology, including AI, the perceived productivity booster.
According to a recent Quickbase survey of 400 construction professionals, 88 percent of workers report feeling overwhelmed to some degree by the amount of software solutions now required to do their jobs. One reason for this is because they are unable to easily share real-time updates from the jobsite or see all their data in one place.
The key to IT consolidation is centralizing data, tools and information and aligning them with the firm’s processes and best practices. This way, construction firms can see what they have, including redundant solutions, security threats, and the real cost of app sprawl and their impact on productivity and project profitability.
Through the consolidation process, another risk may emerge. It is the reliance on standard construction platforms that requires firms to align with the platform’s processes, instead of empowering the firm to easily input their best practices, workflows and proven processes. Standard platforms can limit a firm’s ability to differentiate their work, properly train the next generation on their own processes, and quickly identify inefficiencies.
Think about it this way. If the workforce never learns to master their crafts, and relies on technology to run projects, they will never be able to innovate. The instant the technology becomes inflexible or outdated; they’re stuck.
This is why a centralized operations platform is a more strategic approach. It aligns with the workforce and makes it easier to see the current state of projects, improve upon existing processes or quickly create new ones, and easily share information.
Preparing for AI
While centralizing information is critical to the successful introduction of AI, many construction companies are foregoing that process and diving in headfirst. The Quickbase construction survey found that 49 percent are already using AI tools daily and 35 percent use them weekly. However, 86 percent admit they have some level of concern about AI when it comes to data security, compliance or privacy risks.
As firms begin to rely on AI more, some may want to consider bringing on an AI workflow consultant. This person helps define the requirements for AI adoption, map the current workflows and business processes to identify opportunities for automation, and gets teams up and running with AI so the consultant’s role can eventually be phased out.
Prefab and the rise of hyperlocal ecosystems
Another factor having a big impact on construction today is the prefab resurgence being driven by innovations in technology such as BIM, digital twins and AI. As a result, prefab shops are transforming into robust, hyperlocal manufacturing centers that act as a hub for local contractors.
By leveraging volume and scale, these hubs can improve material planning, BIM coordination, manufacturing, logistics, and more of the prefab activities in an efficient, cost-effective way.
For these reasons, the next gen of prefab is likely to spark more hyperlocal construction where builders that may have once competed are now working more closely together. These efficient prefab firms will also help create more opportunities for local markets, allowing the areas to win more profitable work that enables continued growth. These strategies help to combat the rising costs of materials, tariffs, labor shortages, and more.
Success will hinge on contractors being able to easily and fully map and understand their processes throughout the value stream, especially as projects become more complex. This view of all processes must be comprehensive, starting from a prefab order through to manufacturing, shipping, and installation and be able to easily resolve potential or impending snags in supply chains.
Hyperlocal construction does not mean that megaprojects are out of reach for local builders. Instead of local contractors competing, there is an opportunity for all to collaborate and work with the large, local prefab hubs.
The future is centralized operations
Strategic deployments of technology, supported by a clear understanding of processes and workflows on a centralized operations platform, sets the foundation for long-term success. This is how construction companies can keep projects on time and on budget.
The prefab renaissance and the rise of hyperlocal ecosystemsA further factor having a big impact is the increasing dependency of offsite manufacturing and its influence on labor and materials.
Prefab is safer, less expensive, improves efficiency, and is not held back by inclement weather. As more projects require additional BIM requirements, the need to review your processes from order, prefab, shipping and installation are becoming more prevalent. Prefab shops are getting bigger and more advanced every month. They are truly transforming into robust manufacturing centers.
When you factor in local labor markets and the inability to find labor or when you look at material supply chains and ensure lead times do not impede construction schedules, or joint ventures possibly all working through a multi-trade BIM coordinated project, we see a renaissance of managing all of this.
This is leading to the emergence of larger, local prefab operations that act as a hub for all contractors. By leveraging volume and scale, these hubs can drastically improve material planning, BIM coordination, manufacturing, logistics, and more of the prefab activities in a more efficient, cost-effective way.
For these reasons, the next gen of prefab is likely to spark more hyperlocal construction where builders that may have once competed are now working more closely together. These prefab firms, through the efficiencies gained, will in turn help to create more opportunities for the local market and help to compete with ongoing tariffs, BIM modeling requirements, and lead times.
Bob Salaj
Bob Salaj is Principal Industry Advisor, Construction, at Quickbase. Quickbase is the leading application platform for dynamic work. It makes the complex simple by helping companies see, connect, and control their projects, from day one to done.