The only thing constant in this world is change, according to a famous quote. Unfortunately, many industries are seemingly stuck in neutral when it comes to development. Refusing to change will cause any business to get left behind by its competitors, but some companies don’t realize the reason behind their failure to hit it big is because of their resistance to innovation.
Despite some technological upgrades here and there, the construction industry hasn’t really changed much in decades. In fact, the world has drastically changed in recent years due to advancements in technology and business modeling, but many construction companies cannot seem to ride this wave of innovation. Many construction firms today are hesitant to implement upgrades in their equipment and systems because of exorbitant expenses, and some choose to focus on local markets instead of branching out offshore. While some have embraced the mindset of investing for the future, others are still not jumping aboard.
Although it’s true that nobody can predict the future, failing to join the global market in terms of development could leave the entire construction field in the dust. Here are eight reasons why the construction industry must act fast and start innovating:
- The global market is shifting to new locations
According to the International Monetary Fund, Asia is increasingly becoming a powerhouse in terms of economy and politics. Meanwhile, the U.S. will continue to experience economic imbalance because of the new business model of global interconnection.
- Emerging countries will surpass the G7 countries
The greatest growth potential is now predicted to occur in emerging countries such as Brazil, China, India, Indonesia, Mexico, Russia, and Turkey – by as much as 50 percent more than the big G7 countries!
- Global is better than local
Nurturing local businesses is great, but if the construction industry wants in on the big action, businesses must expand their reach to regional or even international markets.
- Big data and the Internet has changed the business landscape
Gone are the days when companies rely on manual data crunching. Brand new technologies have given rise to the possibility of processing big data using computers and online software.
- New technology increases productivity
Upgrading data processing equipment has been reported in a news release to boost productivity by up to 40 percent. Although tech ventures in the construction field are few and far between, companies need to start amping up their systems in order to become benchmarks in the industry.
- Workforce is not ready for new technologies
Aside from obsolete equipment, employees in the construction field are less skilled in new tech compared to those in other industries.
- Environmental changes need the construction industry to step up
The impact of climate change has created higher demand for better infrastructures to protect the population against potentially harsh conditions. Without innovation, construction companies might not be able to meet the global demand.
- Many construction firms are not environmentally friendly
Carbon emissions from construction projects need to be significantly reduced, but unfortunately only a few companies are participating in the global race for carbon footprint reduction.
The field of construction needs to accelerate in embracing innovation, not only for the survival of the industry but also for the preservation of the world.