The engineering, construction and operations (EC&O) industry is at the crossroads of change and several trends are driving this change. Today’s construction companies are having to balance disruption and continuity and are facing the need to transform themselves into sustainable businesses for a better future. Here are some key trends that are changing how engineering and construction companies work, and ways in which technology can make this industry more sustainable.
The exponential growth expected to be seen in the engineering and construction industry from now to 2050 will bring with it great complexity in construction – there is a growing need for technologically advanced buildings and sustainable infrastructure that is energy efficient and environmentally friendly. A collaborative mindset, advanced tools for green building design and construction, and next-generation technology that facilitates a green supply chain will help to achieve the desired goals in construction – build a sustainable infrastructure to optimize energy efficiency, reduce energy consumption and greenhouse gas emissions.
The construction industry can gain from the adoption of renewable energy sources such as solar and wind power as both contribute towards sustainability. With global decarbonization being a priority, integration of renewable energy with the help of technology will go a long way in optimized utilization of renewable energy resources. Many industries such as oil and gas and automotive are already looking at renewable energy, and the engineering and construction industry is not far behind in being redefined with renewable energy integration in an aspiring net-zero world.
A move towards intelligent prefabrication and a connected supply chain is already underway in construction. Prefabrication and modular construction methods offer many benefits including delivering high-quality projects, improving project schedule performance and faster delivery, reversing stagnant productivity. The many sustainable benefits include reduced waste, improved resource and cost efficiency, overall enabling precise manufacturing and optimizing construction processes.
The engineering and construction industry is a large consumer of raw materials, and also contributes to significant carbon emissions compared to other industries. This has resulted in the need for a move towards carbon emissions reversals with many innovative companies investing in developing green building and construction materials that not only lower carbon emissions but are also carbon negative, absorbing CO2 and heat from the environment.
Circular economy, smart and future cities, sustainable energy are impacting construction companies and providing new opportunities for growth. Due to heavy consumption of materials, engineering and construction companies generate a large amount of waste. Construction companies can leverage technology to track, manage and analyse waste generation, minimize waste and identify opportunities for recycling and reuse. Implementing efficient waste management practices will reduce landfill waste and help construction companies to adopt a circular economy approach and become sustainable enterprises.
A key trend shaping the future of the engineering and construction industry is the use of next-generation digital technologies for project management. Advanced digital platforms, cloud-based collaboration tools and project management ERP facilitate real-time communication and efficient collaboration among stakeholders. The use of advanced cloud-based technology helps to streamline and bring in excellence in operational processes, minimize the need for physical travel, reduce cost and promote sustainable practices in construction projects.
With the help of data analytics, construction companies can gain insights into energy consumption, resource usage and performance optimization. By leveraging data from sensors and monitoring systems, construction companies can take the advantage of predictive maintenance, allowing for proactive equipment maintenance, reducing downtime and maximizing energy efficiency. Real-time data-driven insights can enable construction companies in sustainable decision making.
Some of the key digital strategies that the engineering and construction industry can leverage to run as sustainable businesses include embracing digitalization, establishing modern connected sites with the help of technology such as IoT, robotics and digital twins. Enable digitalization of intercompany collaboration connecting project teams with clients, subcontractors, suppliers and other stakeholders to operate efficiently in a digital world, digitalization of handover and commissioning, and build a connected digital supply chain of contractors, material suppliers, owners and operators.
These trends and technological advancements are poised to make the engineering and construction industry sustainable by improving efficiency in operations, minimizing energy consumption, reducing resource consumption, minimizing waste, and preparing for a circular economy with sustainable business practices.
If you would like to know more about how Exalogic Consulting is helping the engineering and construction industry leverage SAP S/4HANA public cloud for best practices and next practices in sustainable construction, get in touch with our experts here.