The Architecture, Engineering, and Construction (AEC) industry is a heavily design and fabrication centric industry, with many parallels to the manufacturing industry. If anything, the formerly distinct lines between AEC and manufacturing are becoming ever more blurred by the adoption of techniques such as modular prefabrication. However, in one regard the contrast between AEC and Manufacturing remains stark—the gap in digitalization between the two industries. In this blog posting, I will explore why I believe this gap exists and why it will close.
Large manufacturers have repeatedly driven the adoption, and in many cases the development, of new digital technologies and processes, and they have been at the forefront of digitalization. These companies have had the scale and influence to drive investment and competition in the market, and they have also been successful in driving technology adoption into their supply chains. In contrast, the adoption of new digital technologies in AEC has largely been driven by architects and engineers, many of whom work for small and medium sized organizations. General contractors and owner-operators have been slower to invest in technology. In fact, a 2015 study from McKinsey ranked construction as the second lowest industry for adoption of digital technology, outranking only agriculture and hunting.[1]
Several factors have contributed to this digital gap. AEC is a project-based industry, and it can be difficult to justify technology and process improvement investments on a project-by-project basis. The clear majority of value add in construction takes place on the jobsite, involving workers who may be more comfortable with drawings than digital tools. Until recently, the focus has been on getting the design right, then handing it over to the contractor to build. Construction companies are understandably risk-averse and will usually invest in change only when the benefits are undeniable.
A convergence of technology, process, and organizational trends is promising to change this picture. On the technology front, the availability of on-demand cloud services, mobile devices, and high-speed wireless communications can extend digital tools to the jobsite. From a process perspective, both contractors and their suppliers (many of which are manufacturing companies) are increasingly seeing the benefits of modular design, prefabrication, and standards-based data exchange. The most meaningful change is organizational. Large contractors are recognizing the need for digitization to adapt to a changing workforce and to improve project delivery, while progressive owner-operators are beginning to dictate the adoption of digital technology and process improvements.
CIMdata will explore the topic of digitalization in much more depth during the upcoming CIMdata PLM Market & Industry Forums (see http://www.cimdata.com/en/education/plm-market-industry-forums for dates and locations). Join us to learn more and discuss how CIMdata can help accelerate your digitalization strategies.
Ed
