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The Wide-Ranging Impact of AI on the Construction Industry

2024-11-29

The construction industry is widely recognized for its unforgiving project timelines, vast sites that demand meticulous management, hazardous working environments, and razor-thin profit margins. These factors render the industry particularly vulnerable to universal challenges such as supply chain disruptions, the escalating demands of environmental social governance (ESG), and the aging of the workforce. As a result, construction companies find themselves at a crossroads, needing to embrace innovative technologies to stay competitive and meet the growing demands of a global population.

Unleashing the Potential of AI in Construction

The Benefits of AI in Construction

Contrary to popular belief, the construction industry has been slow to embrace digitalization. However, the potential applications of AI in this sector are vast and transformative. Predictive analytics powered by AI can assist construction companies in optimizing project management, maximizing efficiency, and minimizing costs. Computer vision technology enables large-scale data collection, allowing for the early detection of safety hazards and the prevention of workplace injuries. Moreover, AI-enabled autonomous construction machinery holds the promise of supercharging efficiency while keeping human workers out of harm's way.

Construction companies must recognize the significance of investing in AI. The following matrix highlights the key areas where construction companies should focus their time and resources. GlobalData recommends that companies invest in technologies shaded green, explore the potential of technologies shaded yellow, and avoid technologies shaded red.

Decision-Making AI Capabilities

All construction companies, regardless of their value chain segment, should invest in decision-making AI capabilities. These capabilities encompass calculating, forecasting, and planning. From the initial conceptual design phase to project financing and construction, AI-driven decision-making empowers construction companies to make data-driven choices. In every stage of the construction process, except procurement, AI-enabled computer vision provides detailed and up-to-date data to enhance decision-making.

The Motion Capability of Advanced AI in Construction

The motion capability of advanced AI is particularly valuable in certain segments of the construction value chain. In construction, design, and engineering, investing in AI-enabled autonomous construction equipment not only mitigates health and safety hazards but also improves the efficiency of construction projects and alleviates some of the industry's recruitment challenges. Generative AI, another advanced AI capability, uses machine learning algorithms to create various forms of content such as text, images, video, audio, and software code. In the design stages of the construction value chain, AI's creative capabilities can expedite processes by generating building designs. Natural language processing-enabled AI chatbots can assist construction workers in answering their queries in segments like construction, operation, and maintenance.

The State of AI in Construction

A 2024 GlobalData World Construction Network survey reveals that nearly two-thirds of construction workers globally believe AI is already making a significant impact on their industry or will do so within the next five years. Conversely, almost one in five construction workers think AI will never have an impact. Another survey shows that 23% of construction workers consider the cost of technology as the main barrier to investing in AI, followed by the need for more proven technology (20%) and a lack of necessary skills (20) for successful implementation. While cost may be a limiting factor for smaller construction companies, the productivity gains offered by AI solutions make it a necessary investment for those with the means. Technology transformation teams within construction companies must effectively communicate the tangible benefits and reliability of AI solutions, addressing employees' concerns about job displacement and emphasizing how AI tools can work in collaboration with workers.

International construction company Skanska has taken a significant step by launching a new program focused on assisting small businesses and bolstering the workforce. In Douglasville, Georgia, there is a pressing need for skilled labor as the construction industry continues to grow. According to the Associated Builders and Contractors, over 450,000 workers are required to meet the rising demands. Skanska's program aims to address this issue and empower local small businesses.

Skanska's Impact on Small Business Growth and Workforce

Murphy's Journey in the Construction Industry

Some might consider Virginia Murphy an unlikely CEO of Waste Water Industrial Solutions. As she herself would tell you, a lot of her work is behind walls and not immediately visible. When she walks into a room, nine times out of ten, she is the only female present. But her expertise quickly shines through. She started her business in 2017 with just five employees and has since grown to 35. Murphy's determination and skills have been key to her success.She now sees a new partnership with Skanska as a crucial opportunity to take her business to the next level. "Because of the things that Skanska has taught us, we'll be able to manage that growth better," she shared with Good Day's Lindsay Tuman.

Skanska's Excellence in Construction Leadership Program

Skanska chose Murphy's company as one of the small businesses for its Excellence in Construction Leadership Program. This program connects Skanska leadership with local construction companies, offering executive-level training and networking opportunities. Matt Frey, the vice president and account manager of Skanska USA Building, explained, "It is designed to impact that local small business, empower them to grow their forces. When they're empowered, they have the ability to reach down and bring up more workforce, and it just trickles down. It's a chain effect we're proud to lead with the small business community."The program provides valuable resources and guidance that Murphy is leveraging to expand her business and bring in more employees. Some of these employees receive skills training right on-site.

The Impact on the Community

Murphy emphasizes the importance of respecting the hard work of these employees who build America. She believes that with the support of Skanska, her business can make a significant impact on the community. As Frey stated, "Now we're changing the community, now we're changing schools, now we're changing health care facilities. The entire community starts to change, grow, and be better together."This collaborative effort between Skanska and small businesses holds the promise of filling more jobs and narrowing the gap in the workforce, ultimately leading to a more prosperous future for all.

During Thanksgiving, grain and soybean trading came to a halt overnight. As per schedule, trading is set to resume at 8:30 a.m. in Chicago. This pause in trading provides a moment for reflection and anticipation of the market's resumption.

Uncover the Dynamics of Grain and Soybean Trading

Grain and Soybean Trading During Thanksgiving

Trading in grains and soybeans was suspended overnight as a mark of respect for Thanksgiving. This break allows market participants to spend time with their families and gives the market a chance to stabilize. Once trading resumes, it will bring with it a new wave of opportunities and challenges. 1: The significance of this overnight closure cannot be underestimated. It serves as a reminder of the importance of holidays and the need for balance in our lives. While the markets are closed, industry experts and analysts will be closely monitoring the situation and preparing for the upcoming trading sessions. 2: The resumption of trading at 8:30 a.m. in Chicago will mark the beginning of a new trading day. Market participants will be eager to assess the impact of the Thanksgiving break on prices and market sentiment. This will be a crucial time for traders to make informed decisions and adjust their strategies accordingly.

Ethanol Production: Reaching New Heights

According to data from the Energy Information Administration, ethanol output last week witnessed a significant surge and inventories also climbed. The production of this biofuel increased to an average of 1.119 million barrels a day in the week that ended on Nov. 22. This is an impressive achievement, surpassing the previous week's production of 1.11 million barrels and reaching the highest level since record keeping began in 2010. 1: In the Midwest, the largest producing region, output rose to an average of 1.048 million barrels. This regional gain showcases the strength and potential of the Midwest's ethanol industry. The increase in production is a result of various factors such as improved production techniques and increased demand for biofuels. 2: However, it's not all good news. While Midwest production saw a significant increase, other regions faced some challenges. East Coast production remained steady at 12,000 barrels per day, and Rocky Mountain production was unchanged at 15,000 barrels per day. Gulf Coast production also fell to 34,000 barrels a day from 35,000 barrels, and West Coast output declined to 9,000 barrels from 10,000 the week prior. These regional variations highlight the complexity of the ethanol market and the need for careful monitoring.

Snowfall: A Forecast for Several States

The National Weather Service has forecasted snow for much of central Missouri tonight into tomorrow morning. While most areas will only get a dusting, some regions can expect up to 2 inches of snow. Wind chills will be in the single digits or teens in the mornings through the weekend into next week. 1: Flurries are also expected in parts of Iowa, Minnesota, South Dakota, and Nebraska. However, accumulations are likely to remain below a half inch. This forecast indicates that while there will be some snowfall, it may not have a significant impact on daily activities. 2: The additional snowfall forecast for tomorrow and possibly Sunday adds an element of uncertainty to the weather situation. It will be important for residents and businesses in these areas to be prepared and take appropriate measures to ensure their safety and well-being.