Two years ago, the UK entered the first national lockdown and businesses were forced to rethink how they operated. Nick Nieder, director of product management at Deltek, explains how the construction industry can embrace the post-pandemic mindset
For some businesses, the national lockdown meant closing offices and working from home. For others it involved putting staff on furlough and scaling back operations. But for the construction industry, it meant a complete overhaul of operations continuing critical projects.
From material shortages and implementing new safety measures on-site, to remote working and labour challenges, construction had to adapt to the new Covid environment – fast.
As well as the pandemic, the UK experienced added pressures from Brexit, creating supply chain challenges. With the cost of materials increasing and mass shortages, flexibility had to be worked into each and every project.
In June 2021, the UK saw the strongest output rate (66.3) in the construction sector since 1997. Not only did the industry continue operations throughout years of disruption and uncertainty, business boomed and delivery skyrocketed.
In the past, it has been difficult for the construction industry to roll out new technologies, but has the ‘post-pandemic mindset’ unlocked an entirely new, more efficient way of working? I’d say so.
Construction firms have seen that they, and the industry as a whole, can truly change and adapt when needed, embracing challenges as opportunities.
How the construction industry can implement the post-pandemic mindset
Firms left one world behind at the end of 2019 only to operate in a completely different one today, with new ways of working boosting operations. The future is bright for the industry, with a fresh set of opportunities available to forward-thinking firms. So, what’s on the horizon for construction?
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Housing and infrastructure markets
The UK population continues to grow rapidly, almost doubling in the last 140 years. Right now, we need to not only be building new homes but develop the social infrastructure to support the rising population.
We need to lay down the foundations for our sustainable future, with improved infrastructure at the heart of society. These developments promise lucrative work for AEC firms.
2. Sustainable building
The green buildings market is predicted to grow at 14.3% CAGR by 2027.
Whilst sustainability and green building aren’t new, they are predicted to increase at an unprecedented rate. Increased eco-friendly infrastructure means increased demand from the building firms.
3. Emerging technology
Increased demand, requires greater outputs from construction firms and technology is here to help.
Embraced fully during the pandemic, tech such as data analytics and AI can be used to help firms become more competitive and efficient.
Previously only available to large scale companies, these types of technology are becoming increasingly more accessible and present vast opportunities.
4. Project management
Whilst a core foundation of any AEC firm, Covid put a greater emphasis on the need for robust, accurate and real-time project management.
From supply chain shortages to labour issues, robust project management was the key that allowed the construction industry to continue to thrive throughout various lockdowns and other issues. Going forward, firms with a strong project management function will continue to thrive.
5. New ways of working
Over the last decade, the way in which we work has completely changed. With technology playing a much bigger role and the pandemic adapting operations, working in construction now looks a lot different. The benefit? The industry is becoming more attractive to technology talent and we’re seeing more tech-roles being filled in construction firms.
It’s time to profile the construction industry to revolutionise stereotypes and attract the best talent aligned to the business.
The landscape has completely shifted over the past few years, and I’d say for the better.
Despite the hardship, challenges, headaches and sleepless nights, the construction industry is now in arguably the best shape it’s ever been. And it doesn’t stop there. In tandem with these opportunities has been the development of entirely new skills sets.
Why should you embrace a post-pandemic mindset?
With two years of lockdowns, restrictions and uncertainty, you might ask why embracing the pandemic mindset is a good thing. Whilst one of the most difficult periods in our lifetimes, challenges present the need for development. Today, at the tail end of the disruption and uncertainty, we can realise the silver lining.
Out of the bad, comes the good, and we need to embrace the good to define the pandemic as not just a challenge, but a challenge that has revolutionised the industry for the better.
The pandemic has given the industry a wake-up call that shouldn’t be put to bed. Organisations are less afraid of change and speedier to adopt and adapt, whether that’s collaborating virtually using online conferencing tools or starting to look at their back end processes. With massive opportunities on the horizon, improved operations are one way to reduce costs and increase capacity.
Faced with changing rules around social distancing and remote working, the industry had to adopt additional digital technologies to keep teams productive and safe. And to the surprise of many, it did – fast. Deltek’s 2021 Clarity research saw a doubling of the number of A&E firms in the sector who feel they have a clear digital strategy, up from just 9% to 18% over the past year.
Whilst delays were inevitable, through robust project management, resilience conquered and projects continued despite endless challenges.
Digital technology helped AEC firms do more with less. With the right technology in place, businesses can attract employees, unlock new business models and revenue streams and optimise project management and remote collaboration processes, giving them the ability to quickly pivot to seize opportunities.
Last but not least, firms should continue to embrace the post-pandemic mindset by valuing their workforce as their greatest asset.
The past two years have shone a light on the importance of connection and putting one another first. As we get back to normal, firms should embrace the adoption of digital tools and solutions to make positive changes for employees, whilst benefiting business growth in tandem.
The construction industry can thrive from learning from the past
Let’s not pretend that the evolution of the industry has been, or will be an easy ride. There will be inevitable challenges, but the opportunities out-weight any potential roadblocks.
By taking a positive, optimistic approach in the future and embracing the skills learnt in the past, the construction industry can not only survive but thrive unlike ever before.
Although we have been dealing with an unprecedented level of uncertainty since March 2020, from the viewpoint of the construction industry there have been overdue positive changes as a result. But the work has really just begun.
Continuing to embrace change and embed the lessons learnt, firms can benefit from process improvement, more effectivity levels of connection and collaboration and the knowledge that they are building a sustainable business over the long term, with digital transformation at the core.
Nick Nieder
Director of product management
Deltek
Twitter: @Deltek_Intl
LinkedIn: Deltek
