Construction Automation & US Infrastructure Rebuild

Infrastructure Investment and the Rise of Automation in Construction

As the United States commits to substantial infrastructure improvements, discussions have largely centered on job creation and the development of new, sustainable industries for the future.

The Biden administration’s infrastructure plan is projected to expand employment opportunities, but it simultaneously presents a significant chance to integrate automation technologies within the construction sector.

Addressing the Labor Shortage

Contrary to the belief that automation eliminates jobs, it often complements the human workforce, particularly when new investments generate opportunities for different roles.

A critical challenge facing the construction industry is a persistent labor shortage, making automation essential for successfully completing these large-scale projects.

Even during peak unemployment in 2020 (15%), the residential construction industry reported between 223,000 and 332,000 unfilled positions. This figure is comparable to the number of vacancies when unemployment was lower, at 4.1%.

Demographic Shifts in the Construction Workforce

From 1985 to 2015, the average age of construction workers rose from 36 to 42.5 years. The proportion of workers aged 55 and older increased significantly, from 12% to over 20% during the same period.

A 2018 Census Bureau Population Survey revealed that individuals under 25 constituted only 9% of the construction industry, compared to 12.3% of the overall U.S. workforce.

Stagnant Productivity and the Need for Change

Construction industry productivity has remained largely unchanged since 1995. This stagnation is largely attributable to the aging workforce, the traditional apprenticeship model, and difficulties in attracting and retaining new talent.

There is currently an insufficient workforce to meet demand, and the productivity of existing staff is declining as experienced workers retire.

Automation as a Key Component of Future Infrastructure

Automation will be crucial for any significant infrastructure initiative, especially if the ambitious objectives of current proposals are to be achieved.

However, it’s important to recognize that not all segments of the construction industry are equally suited for, or capable of, adopting automation technologies.

Construction Automation: Overcoming Key Obstacles

The construction sector represents a significant portion of the global economy, yet it faces substantial hurdles stemming from market fragmentation and the involvement of numerous stakeholders.

Nationally, the construction industry is characterized by a high degree of fragmentation, although localized concentrations can occur. This pattern varies based on specific construction segments and company types, with the majority consisting of businesses employing fewer than ten individuals.

Even the largest 100 general contractors collectively control less than 20% of the overall construction market. The subcontractor landscape is even more dispersed, with leading companies holding less than 1% of the total market share.

Consequently, both sales cycles and business expansion are often protracted and inefficient.

The sheer number of parties involved in construction projects further complicates market dynamics. Achieving consensus among developers, general contractors, and subcontractors can prove exceptionally difficult.

Developers prioritize cost reduction, but their ability to mandate the adoption of specific automation technologies or analytical platforms is typically limited to the bidding phase.

General contractors seeking to implement site management tracking systems to enhance collaboration and productivity frequently encounter resistance from the numerous subcontractors utilized on a project.

Furthermore, upon project completion, a completely new cohort of subcontractors may be engaged, restarting the challenge of gaining acceptance for technological advancements.

Therefore, successful technological solutions and investments must target segments that demonstrate the greatest capacity for scalability and ensure a convergence of interests among the industry’s diverse stakeholders.

While these areas are currently constrained, they present considerable opportunities for substantial impact.

Key Challenges Summarized

• Market Fragmentation: A large number of small companies dominate the industry.
• Stakeholder Alignment: Conflicting priorities between developers, contractors, and subcontractors.
• Technology Adoption: Resistance to new tools and processes, particularly among subcontractors.

Addressing these challenges is crucial for unlocking the full potential of construction automation and driving efficiency gains.

Exploring Automation Potential in Construction

While a significant portion of construction technology firms currently focus on later stages of building, substantial opportunities exist in the initial phases – specifically, site preparation and foundation work.

Topography adjustment, involving excavation and leveling, represents a particularly labor-intensive aspect of site preparation. Autonomous construction machinery offers a clear solution, yet widespread implementation has been hindered by various operational difficulties. Advancements in drone technology are creating conditions ripe for disruption within the surveying sector.

Automating Surveying Tasks

Civ Robotics, for example, is focused on automating demanding tasks like construction staking, where surveyors precisely mark the locations for new structures. However, directly addressing the surveyor shortage may not yield the highest returns. The market for automated surveying fieldwork is smaller compared to the larger excavator market, which faces similar operational hurdles.

Instead of automating fieldwork, prioritizing the automation of “desk work” performed by surveyors could prove more advantageous.

The Shift in Surveying Challenges

The surveying profession is experiencing a surge in data collection. Consequently, the primary challenge has evolved from basic data acquisition to the complex analytical manipulation of resulting geospatial information.

A key technical hurdle involves converting 3D data obtained from drones – utilizing either lidar or photogrammetry – into the more conventional 2D formats like CAD drawings. This conversion is traditionally handled by surveyors or CAD engineers.

AirWorks and the Geospatial Market

AirWorks is addressing this challenge by automating the translation of drone-collected data. This allows surveyors to dedicate more time to fieldwork and alleviates the growing scarcity of CAD engineers, many of whom are seeking higher-paying engineering positions.

The construction surveying market provides an excellent starting point for developing automation tools applicable to the broader geospatial market across diverse industries, mirroring the success achieved by companies like Trimble.

The Complexity of Direct Construction Automation

Direct automation of many construction tasks presents significant difficulties. Activities like electrical wiring installation by electricians or framing by carpenters involve intricate, non-repetitive work. These tasks demand substantial contextual awareness, exceeding the capabilities of current AI and robotics technologies.

Foundation Work: A Repeatable Opportunity

However, foundation construction is predominantly concrete-based for nearly all construction projects. Foundation footings typically account for 15%-30% of the total construction expenses.

While challenging, processes like rebar placement and concrete pouring are relatively repeatable. Companies such as Toggle and Rebartek are actively working to overcome these challenges. Technologies offering sufficient versatility and improved repeatability with minimal setup time remain limited, but possess considerable potential.

Addressing Inefficiencies in Construction Project Management

Within the construction sector, exceeding both time and budgetary constraints is a frequent occurrence. KPMG’s analysis reveals that a mere 25% of construction projects are finalized within a 10% deviation from their initial deadlines. Similarly, only 31% of projects remain within a 10% range of the allocated budget.

Larger projects typically experience completion delays averaging 20% beyond the planned schedule and cost overruns reaching up to 80%. A staggering 98% of megaprojects encounter either delays or budgetary excesses. This issue is particularly pronounced in large-scale infrastructure endeavors, where capital expenditure overruns can reach 80%, accompanied by delays extending up to 20 months against a typical project duration of three to six years.

Due to existing technological and market limitations, directly addressing shortages in specific construction trades proves challenging. Therefore, the most practical approach lies in improving the overall productivity of construction management to mitigate both delays and cost escalations.

Early-stage decisions made during conceptual planning and design exert a substantial influence on both project costs and completion timelines. Consequently, solutions focused on enhancing the construction management process during the pre-construction phase yield the greatest impact, delivering value to asset owners and general contractors – the primary consumers of these solutions.

The Rise of Generative Design and its Limitations

In recent years, generative design has emerged as a field focused on standardizing design inputs to produce consistent outputs. Employing a linear optimization methodology, this approach generates numerous outputs, often highly specific but limited in scope, based on predefined criteria like the number of restrooms or required sunlight exposure.

While generative design can potentially reduce design errors, it represents a relatively inflexible tool. It necessitates the pre-definition of inputs and deterministic variables, which often clashes with the more fluid and creative nature of existing design and construction workflows. Client needs can also shift and evolve throughout the project lifecycle.

Currently, a tool that effectively combines high design specificity – eliminating ambiguity – without requiring a comprehensive library of predetermined inputs remains elusive. Such a solution would likely resemble Google’s Smart Compose, which predicts text within Google Docs, rather than a simple autocorrect function. An AI tool capable of predictively identifying and resolving design flaws, through automation or proactive glitch detection, would significantly reduce both cost and time overruns across the entire project lifecycle.

Leveraging AI and BIM for Optimized Construction Planning

Many construction firms are now integrating the detailed 3D design capabilities of building information modeling (BIM) into their complex construction planning processes. Companies such as ALICE provide an AI-powered platform for construction simulation and optimization.

This platform deconstructs BIM designs into task-by-task schedules, enabling companies to optimize cost parameters – including labor, equipment, and tooling – against the project schedule. The goal is to identify the most cost-effective and labor-efficient solutions to meet both budgetary and scheduling objectives.

Looking ahead, we can anticipate the development of a cost planning tool that leverages augmented reality/virtual reality (AR/VR). This tool will allow users to manipulate the design in real-time, with costs being recalculated dynamically and integrated with scheduling tools to establish a clear correlation between design, cost, and schedule.

Infrastructure Growth Anticipated in the Coming Decade

Significant infrastructure projects will necessitate the implementation of automation, not merely for the purpose of reducing expenses, but also to address existing labor shortages. Currently, the majority of firms operating within this sector are focused on optimizing processes at the final stages, where gains are typically marginal.

However, tackling the more complex and uncertain challenges present during the initial phases of construction offers the potential for considerably greater impact. Proactive and effective project management from the outset is demonstrably more likely to yield substantial long-term cost savings for organizations.

The inherent ambiguity of early-stage construction can be effectively managed through the application of big data and predictive analytics. Addressing design and scheduling concerns upfront, coupled with analytical monitoring throughout construction, is poised to assist companies in mitigating escalating costs and adhering to project timelines.

The total value of the construction industry in the United States is estimated at $1.3 trillion, with approximately $400 billion representing construction labor costs. Given the renewed emphasis on infrastructure investment, automation within this industry is expected to represent a substantial growth opportunity throughout the next ten years.

Key Opportunities for Automation

• Optimizing initial project design and scheduling.
• Utilizing predictive analytics for cost control.
• Addressing labor shortages through automated processes.
• Improving construction monitoring with data-driven insights.

These areas represent prime targets for innovation and investment, promising significant returns for companies that embrace automation technologies. The ability to proactively manage ambiguity and leverage data will be crucial for success in the evolving construction landscape.