We all must acknowledge: The time for digital transformation in the E&C industry is now.
But, this proclamation requires more than simply investing money into software, hardware, or applications—you also need people to adopt, implement, use, and optimize the technology. People are still at the heart of business. How people leverage technology can significantly improve and advance the way business is conducted.
The pressing challenge remains: in an industry with a labor shortage, how do you attract digitally savvy talent?
Manufacturing and process driven industries, such as oil and gas, have been standardizing their processes for years. On the flip side, the construction industry has historically struggled to develop and implement standardization given the sheer variety of their projects.
For example, John Holland, one of Australia’s leading engineering contractors, has managed projects ranging from a children’s hospital, to a prison, to a regional rail link. That’s a considerable array of projects for a construction company to grapple with.
The digital construction revolution is rapidly underway and will continue accelerating in 2018.
The engineering and construction (E&C) industry is embarking on a new era, with technology changing how companies design, plan, and execute projects. E&C spends $10 trillion on construction-related goods and services each year, and is “ripe for and capable of transformation.” (source)
Global E&C plans are unfolding daily, including creating new smart cities, LNG operations, national infrastructure programs, and even construction for the 2020 Tokyo Olympics. According to a recent McKinsey report, adopting new technology could boost the industry’s value by an estimated $1.6 trillion, adding about 2 percent to the global economy.
So, what major E&C themes can we expect to unfold as we face the new year?
The Middle East is an exciting region for anyone looking to tap into a growing market.
Saudi Arabia is investing US$500B in infrastructure, and Dubai is transforming into a financial hub and tourist destination. In fact, many other cities in the broader region are being built from the ground up. Traditional oil and gas industries still require massive funding, too.
So how can the E&C industry benefit from this surging Middle Eastern boom?
Last week we discussed how Aconex formed the Global Industry Council (GIC) to motivate industry laggards to boost their game. This week we’ll highlight how your organization can start to digitally transform.
The global engineering and construction (E&C) industry is overflowing with revenue potential. In fact, E&C is charted to become a $17.5 trillion business by the year 2030.