Construction: 67% of players will invest in more digitalization

HeronTrack - Post - Construction invest in digitization 2020

In a recent poll from Letsbuild , 67% of respondents said that more digitalization of the industry was needed.
The question is: what did the other 33% think?

Source: HeronTrack – May 2020

Indeed, the construction industry of the “after 2020” will never be the same.
Whether for work, for living or for business, the vast majority of the valuable housing stock is used for human beings, and that is normal. However, the new social distancing rules will cause the yield per square meter of all constructions to drop significantly.
This will influence the occupation ratio of constructions such as stadiums, shopping centers, stores, stations or crossing points, restaurants, or hotels but also office buildings and any other place used by humans in a specific goal and a defined duration. Furthermore, since it is necessary not only to avoid the spread of the virus at a short distance (interpersonal) but also its rate of movement in space (spread), teleworking which has been used by all workers who could is of course, there to stay.
This means that the use of office space will also be less and generally speaking that the built-up area associated with it will decrease in volume. A drop in yield and a drop in the use of non-private housing stock will, therefore, make the construction sector after 2020 nevermore the same as before.

How to compensate for the lack of digitalization in construction?

It is clear that, riding a wave of cheap and weakly growing bank credit, the construction sector has not changed significantly in recent years. Of course, the construction techniques themselves have greatly evolved, but the part of the work that was done by humans 50 years ago is still very similar to what is done today.
Indeed, if we compare with the automotive sector, it is so automated that a current car built with the methods of 50 years ago should cost around 5 times the price displayed today.
In terms of automation, construction is a relatively unscathed sector. Moreover, no doubt that the need to limit physical contact between workers will ultimately see the emergence of construction robots or in any case greatly increase the assemblies that will be done off-site (“the prefabricated”).
With declining yields, banks are becoming fussier about financing any project. They are already heavily involved in spending thousands of billions to revive the economy and the service industry, and one wonders what will be left to finance low-yield real estate projects.
The only way to respond to this trend is for the construction sector to digitize quickly and completely.

The construction sector is a large provider of labor; it is normal for all workers to use adequate tools in order to be able to carry out their work.
Many of these tools, which they are used to screw, weld, drill, etc. have been greatly modernized in recent years and have become relatively efficient for a very modest price. So much so that, surfing on construction projects galore thanks to cheap credits, companies have not hesitated to invest in their machine fleet, allowing them to maintain or even increase the output of each worked hour. If a tool breaks down, the logistics of repairing it cost more than simply buying a new one. The opportunity cost was far greater than the value of the tool itself.
But here it is, today, it is not only important to know where the fleet of tools is, but also to be sure that it can be used safely.

How can Kleptika with HeronTrack help digitize Construction using its IoT assets management platform?

HeronTrack - IoT assets management - monitor assets anytime anywhere

Do you think a telecommunications company would agree to “not knowing” where its network is located?
Or that a logistician like UPS or DHL can’t tell their customers where their packages are?
For the same reasons, construction companies need to know where their assets are; that allows transforming a skilled and motivated workforce into a successful project.

Let us show you how 21st-century technology will allow your business to get through this crisis and continue to grow in the world of tomorrow.
We offer tool tracking software via IoT sensors and mobile & web applications to better manage your fleet of assets for inventory and inspections, but also to protect it against lost and theft.

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