The construction industry has been readily embracing the digital age, particularly with project adoption, plan execution, and meeting staffing needs. According to The Business Research Company, the global construction market was valued at $14.5 trillion in 2022, and it’s expected to reach $19.5 trillion by 2027.
In this article, we’ll explore and discuss the current state of digital transformation in the construction industry and how it’s impacting the sector’s approach to staffing and the job market.
State of Digital Transformation in Construction
Historically, the construction industry has been one of the slowest to adapt to new technologies, especially in terms of communication and worker productivity. However, the tides are changing, and construction digital transformation is increasingly being embraced as an effective approach to reducing costs, improving the safety of construction workers, and boosting overall productivity.
Research by the McKinsey Global Institute found that companies adopting digital technology solutions are seeing productivity gains of 14% to 15% and a 4% to 6% decrease in project costs. One prominent example is the use of advanced building information modeling (BIM), which allows you to digitally represent the physical and functional characteristics of your facility.
With the infrastructure digitized, a number of tasks have become easier, ranging from advanced analytics reporting for real-time data-driven decision-making to progress monitoring and remote site inspection.
These types of digital tools are streamlining processes, improving communication and collaboration, and fundamentally changing the way construction projects are managed and executed.
Moving On From Legacy Systems
While the benefits of digital systems are apparent, the slow progression can be attributed to multiple factors that are unique to the construction industry. One factor is the fragmented nature of the industry and its heavy reliance on traditional methods.
Transitioning from legacy systems to modern digital models can be challenging, particularly for larger organizations with many stakeholders and multiple projects — not to mention that construction managers need to maintain all operations to standard throughout the transition period.
The digital transformation process is likely to require significant investments in software, hardware, and employee training, as well as an adjusted cultural shift toward innovation and flexibility. You must also actively address concerns about data security and integrity during the migration process.
Implementing digital technologies and navigating the shift would result in substantial benefits in the long run, especially in terms of efficiency and competitiveness, allowing you to position yourself as an industry leader in the digital age.
Streamlined Operations
One of the most noticeable impacts of switching to digital solutions is the ability to streamline operations and complete complex projects more quickly. That’s because digital solutions can facilitate better communication and collaboration between multiple parties, enabling them to work more efficiently while reducing error rates.
This, in turn, leads to a higher demand for skilled workers, as well as an increased focus on continuous learning and upskilling. Additionally, more specialized skills, such as BIM proficiency and data analysis, are also growing in demand in the construction industry.
These fundamental changes are leading HR professionals and construction project managers to emphasize both technical and soft skills in their hiring and development processes.
Better Staffing Infrastructure
Organizations have begun embracing the opportunities offered by digital transformation, and they’re able to improve their staffing infrastructure as a result. By leveraging advanced digital technologies, such as top APIs that connect disparate aspects of organizational infrastructure and make for better communications, a construction company can quickly and effectively find, vet, and onboard skilled workers to fill staffing gaps, ensuring their projects stay on track and within budget.
This construction hiring trend doesn’t just benefit the company, but it also provides valuable job opportunities for skilled tradespeople, allowing them to find suitable employment on a wide range of projects.
As a whole, digital staffing fosters an environment of dynamic and adaptable collaboration between the workforce and the company.
Work With Tradesmen International for Your Staffing Needs
While growing ever more crucial, navigating the rapidly changing landscape of digital transformation solutions for construction companies can be challenging, but you don’t have to go through it alone. Tradesmen International is here to support your growing construction sites every step of the way.
As a leader in staffing solutions for innovative construction companies, we understand the necessity of staying ahead of industry trends and are committed to matching you with the skilled workforce you need to succeed in the digital age.
Contact us today to learn more about how we can help you combat the challenges of staffing in the digital age.