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US Infrastructure Bill: A Critical Opportunity

October 27, 2021
US Infrastructure Bill: A Critical Opportunity

The Bipartisan Infrastructure Bill and the Need for Technological Advancement

The recently passed $1 trillion bipartisan infrastructure bill, alongside President Joe Biden’s broader domestic policy initiatives, has drawn considerable national attention due to the periods of both struggle and unity it represented for the United States.

Funding for Digital Construction Technologies

Within the enacted legislation, $100 million has been allocated over a five-year period to “accelerate the deployment of digital construction technologies,” including 3D modeling software and digital project management platforms. This initiative is a direct result of advocacy by the Coalition for Smarter Infrastructure Investments.

The White House emphasized that President Biden is committed to domestic production of the technologies and goods necessary to address current challenges and capitalize on future opportunities.

The Importance of Modernization

As this expansive package begins implementation, those within the private sector recognize that infrastructure projects of this magnitude necessitate substantial changes incorporating emerging technologies during both the design and construction phases. Without these changes, construction efforts risk hindering the progress of major cities and transportation hubs.

Addressing Industry Challenges

Recent technological breakthroughs offer a vital opportunity to support an industry significantly impacted by the pandemic and subsequent global supply chain disruptions. For example, New York City experienced an estimated $9.8 billion loss in construction activity and 74,000 job losses due to the pandemic’s effects.

Currently, over 73 cargo ships are unable to dock at the ports of Los Angeles and Long Beach due to congestion in offloading goods. This surge in material costs, coupled with these delays, is creating tension in supply-chain relationships, making timely completion of infrastructure projects more critical than ever.

Economic Impact of the Infrastructure Bill

According to ARTBA, the infrastructure bill is projected to contribute $488 billion to the U.S. GDP by 2027, based on the $153.7 billion earmarked for highway, bridge, and public transit investments.

Breakdown of New Spending

The bill allocates $550 billion in new funding, in addition to existing annual allocations for infrastructure. Key areas of investment include:

  • $110 billion for roads and bridges.
  • $66 billion for railroads.
  • $65 billion for the power grid.
  • $65 billion for broadband internet access.
  • $55 billion for water infrastructure.
  • $47 billion for cybersecurity and climate change initiatives.
  • $39 billion for public transit.
  • $25 billion for airports.
  • $21 billion for environmental protection.
  • $17 billion for ports.
  • $11 billion for safety improvements.

The Risk of Outdated Methods

The Smarter Infrastructure Coalition and industry experts believe that over $500 billion of the allocated funds may be used on projects employing outdated methodologies. This could diminish return on investment and ultimately burden future taxpayers.

Leveraging AI and Algorithms for Accountability

Given the scale of this spending, enhanced accountability is essential. Harnessing the power of algorithms and artificial intelligence (AI) is crucial. Machine learning tools can analyze vast datasets to identify patterns and trends.

Construction companies of all sizes will seek solutions to manage applications, mobile devices, and collaborative tools to ensure projects are completed on time and within budget.

The Power of Data Analysis

Companies like Uber, Amazon, and Airbnb have demonstrated the success achievable through the analysis of large datasets. While the construction industry has been slower to adapt, AI is now delivering significant cost savings by reducing equipment and labor expenses, identifying potential delays, and recommending improvements with unprecedented accuracy.

The Importance of Detail

Even seemingly minor details, such as piping insulation, contribute to the overall success of these large-scale projects. Tech enablement is vital to maximize taxpayer dollars.

Real-World Example of AI in Action

A multibillion-dollar project undertaken by a global oil and gas company, utilizing Doxel’s computer vision technology, saved millions of dollars and avoided a three-week delay. The system immediately prioritized corrective action when piping systems were found to be improperly installed.

By identifying the insulation issue through digital surveying and algorithms, the company was able to open the plant on schedule, preventing the need to send thousands of workers home.

Growing Demand for Infrastructure Projects

Even prior to the infrastructure bill, there was a global increase in demand for major infrastructure projects due to their potential to create jobs and stimulate economic growth. However, the number of skilled workers entering the field is declining.

The Imperative of Tech-Enabled Surveillance

Tech-enabled surveillance and daily project reporting are now essential for the infrastructure bill to effectively stimulate GDP growth. Construction represents 13% of global GDP, but has experienced minimal productivity growth (1% annually) due to fragmented solutions and slow tech adoption, as noted by McKinsey.

Potential Savings Through Streamlined Delivery

McKinsey’s Infrastructure Productivity Guidelines suggest that streamlining project delivery, particularly through increased investment in early planning and design, could save up to $400 billion annually and accelerate project timelines.

Precision Tracking and Predictive Analysis

We now have the capability to precisely track job-site progress using cameras and lidar devices, connecting this progress to budget and schedule to predict delays and cost overruns. This technology can also free up workers from time-consuming manual inspections and provide weekly progress reports with contextualized insights.

Embracing Technology for Future Success

A boom in U.S. construction is anticipated after 2022, playing a crucial role in revitalizing the global economy. It is imperative that we embrace technology, when properly implemented, to empower our limited workforce and avoid the costly delays that have plagued past U.S. infrastructure projects.

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