October Technology Seminar, ‘Technology, Data Capture, and the Role of the Mechanical Contractor’
“You can’t become more efficient until you admit where the waste is. And that can hurt.”
Speaker Nathan Wood
Mechanical contractors have the potential to reap big rewards in efficiencies if they can face that pain, said Nathan Wood, founder & CEO of Spectrum AEC, recently addressing members of UMCA. Looking at productivity, growth and technology, the opportunities are vast in the construction industry, especially compared to where other industries are already performing.
The World Economic Forum published an industry agenda in May, “Shaping the Future of Construction – A Breakthough in Mindset and Technology”, which studied and assessed the construction industry across the globe. Much of the information Nathan shares originated from this report. (It and other resources are included at the end of this article.)
Fig. 1
There are various technologies in the works that can impact the mechanical contracting and construction industries. Comparing the likelihood of different technologies being used against the impact of their use (Fig. 1), pinpoints their relative importance to contractors in Utah.
Integrated Building Information Modeling (BIM) and prefabricated building components rate high on the use/impact scale, and we can see those technologies already used somewhat within our own membership. Their high rating, however, also indicate that they will quickly become the norm in the industry.
Not far behind – and closer than some members guessed at the seminar – are technologies like augmented reality, Wireless monitoring (IoT: Internet of Things) and 3D laser scanning.
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Fig. 2
As illustrated in Fig. 2, information can and does get lost as a construction project moves forward in the different stages of a building’s construction and lifecycle. In the traditional model (shown) information is lost between what the owner wants (programming) and what is designed.
Fig. 2a Click for full image.
The loss of information continues until the end stage, when building maintenance receives unreliable data about the building because of the difference between what was designed and what was constructed.
An integrated design process would flatten this information loss curve because all stakeholders – owner, architect, general contractor, engineer, mechanical contractor, other subcontractors, building maintenance – would have access to all the information on the building, so there wouldn’t be guesswork or loss of information, Fig. 2a.
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Fig. 3
Building up the four main components together within a company – Tools, Processes, Strategy and Culture – support the adoption of new technologies and collaborations in the mechanical contracting industry.
Example:
Standardized, modularized and prefabricated components: (first row, second block in Fig. 3) Standardization produces lower construction costs and greater certainty over outcomes. Prefabrication increases construction efficiency and reduces weather-related hold-ups. Modularization increases the possibilities for flexibility and customizations.
For the company that adopts even just one of these ‘bridges’, they can increase productivity, reduce delivery times, and lower construction costs compared to traditional methods.
“The benefits of many technological advances, such as BIM, will materialize only if the whole ecosystem is ready, but investments have to be made on an individual company level, of course.” – Shaping the Future of Construction, page 41
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Fig. 4
Disruptive innovation – displacing high-end competitors by creatively filling a niche lower in the market and relentlessly moving upward until the competition is displaced – is a fertile area for mechanical contractors looking to improve their business.
Balance between people, process and technology is the key to disruption in the industry, and investing in all three areas creates the return on investment.
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Fig. 5
Collaboration across the industry – and even between industries – is necessary for the mechanical contracting industry to transform and thrive. The Engineering and Construction (E&C) industry is much more fragmented than other markets, and therefore has few, if any, universal standards that aid in efficiency and trade within the country or internationally.
Across the industry, there is an opportunity to create and agree upon standardizations to open up large new areas of growth (Fig. 5). Collaborating to produce the set of standards puts the industry ahead of regulation, and drives the public conversation.
“Increased knowledge sharing among peers can help to close the gap between technological development and application.” – Shaping the Future of Construction, page 41
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Fig. 6
With BIM’s growing adoption in the industry, studies have shown that familiarity and use of the software has a direct correlation with return on investment (ROI) (Fig. 6, far right graph). When engagement was scored “Very High”, ROI followed. On the flipside, fewer contractors saw a loss or only a break-even return. Even a low engagement with BIM recorded more positive than negative ROI.
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Fig. 7
The Industry Transformation Framework (Fig. 7) is the collection of the 30 measures of innovative approaches recommended by the World Economic Forum, and the combination of the company level and industry level frameworks (Fig. 3 & 5). To fully realize their potential, the construction industries need to act on many of these measures to catch up to where other industries, such as automotive, are.
“Construction companies need to act quickly and decisively: lucrative rewards await nimble companies, while the risks are serious for hesitant companies.” – Shaping the Future of Construction, page 17
The combination of both tables emphasizes that even though individual companies have a responsibility to make changes within, it is only through collaboration across the industry, and the inclusion of government, that full potential can be realized.
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Nineteen UMCA companies sent participants to the inaugural Technology Seminar to learn about the integration of technology within the mechanical contracting industry. Technology was a popular area of interest uncovered through the 2016 UMCA Contractor Survey as well as Board of Trustee meetings, and UMCA will continue to bring relevant big picture seminars and smaller aspect-specific classes in its education series to feed members’ desire to learn more, stay competitive, and lead the mechanical contracting industry in Utah.
The next technology-based class is “Basic Integration Between Autodesk BIM 360 Glue, and Navisworks” with Robert Maxfield on Thursday, November 17. More Information here.
RESOURCES & FURTHER INFORMATION:
Nathan Wood’s ‘Technology, Data Capture, and the Role of the Mechanical Contractor’ Slideshow PDF
Nathan Wood’s Presentation Online
World Economic Forum: Shaping the Future of Construction: A Breakthrough in Mindset and Technology
World Economic Forum: What’s the future of the construction industry?
Engineering News-Record: United They Build
Augmented Reality: Microsoft HoloLens: Partner Spotlight with Trimble
Augmented Reality: No Plans, No Problem
Building Systems Planning Webinar: BuildingSP.com
All graphics in this article, except for the first speaker photograph, are from Nathan Wood’s presentation slideshow ‘Technology, Data Capture, and the Role of the Mechanical Contractor’ and courtesy of Nathan Wood.
