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Two population trends will notably impact the construction industry . First , an aging population will lead to a smaller workforce . Second , rapid growth in regions such as Africa , the Middle East , India , and the Philippines will demand substantial infrastructure investment .

Pressure to perform

These population trends present a sizeable challenge for those tasked with building the world ’ s infrastructure . The construction industry is already under pressure to repair and upgrade aging infrastructure while also meeting ambitious sustainability goals . Funding isn ’ t the main issue ; the industry ’ s capacity to deliver is . For instance , in the US , the Infrastructure Investment and Jobs Act has allocated $ 185 billion to nearly 7,000 infrastructure projects . Similar funding exists globally , creating a project pipeline that exceeds the industry ’ s current capabilities . Labor shortages , supply chain disruptions , and inflation further strain the industry , making it difficult to keep pace with demand .

Increased construction demand due to population trends exacerbates this challenge . Despite efforts to expand construction employment , a sudden influx of skilled workers is unlikely . The best solution is to improve efficiency and reduce friction in the project delivery pipeline . Faster planning , approval , execution , and handover of projects are crucial . Better planning and risk management can reduce delays , cost overruns , and the need for contingency reserves , allowing more projects to be completed efficiently .

Even small improvements could significantly impact the industry ’ s performance . In 2022 , capital projects exceeded budgets by 17 per cent on average , and only 35 per cent of contractors completed projects on or ahead of schedule , according to the Global Capital Project Outlook ( GCPO ) report . The big question is , how do we rampw up the industry ’ s output while preserving the focus on safety , without diminishing quality or driving up costs ? The answer lies in leveraging data .

Exploiting data to build efficiently

Data can be used to create risk-adjusted plans , a crucial step as unmanaged or unexpected risks are top concerns for both owners and contractors . In fact , the impact that unmanaged risk has on delivering projects on time and on budget is top of most owners ’ ( 56 per cent ) and contractors ’ ( 55 per cent ) minds , according to the GCPO report . The construction industry generates vast amounts of data during capital projects , but much of it remains underutilised . By leveraging historical project data , risks can be better identified , managed , and mitigated , leading to more efficient project delivery . Standardisation across processes and systems is essential for leveraging

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