Designing Buildings - User contributions [en]

Eliminating waste at scale - opportunities for blockchain

2019-04-09T11:28:32Z

Michael Buehler:

[[File:Blockchain_linkedin.jpg|link=File:Blockchain_linkedin.jpg]]

Infrastructure and buildings play a key role in driving economic growth and enabling a high quality of life. Research by Arcadis highlights that almost 40% of global GDP is derived from built assets.

However, the industries that deliver this essential investment are often inefficient. Based on a [https://www.mckinsey.com/~/media/McKinsey/Industries/Capital%20Projects%20and%20Infrastructure/Our%20Insights/Voices%20on%20Infrastructure%20Transforming%20project%20delivery/Voices-on-Infrastructure-Transforming-project-delivery.ashx report by McKinsey & Co], for example, large capital projects typically cost 80% more than budgeted and run 20 months late. Globally, construction productivity has not improved in 20 years, but as the Fourth Industrial Revolution accelerates, it is increasingly clear that the creation, use and operation of infrastructure will be disrupted by digitisation. The elimination of business process waste associated with construction alone has the potential to drive savings of at least 5%, potentially worth $200-400 billion across global markets.

One of the most potent disruptive technologies is blockchain. Distributed ledger technology (DLT) could potentially transform the way in which infrastructure is created, financed and consumed.

By eliminating transactional costs associated with fragmented supply chains, blockchain drives value by simplifying processes. By providing greater transparency, blockchain will facilitate greater trust and collaboration in a sector which is fragmented, adversarial and, in some markets, vulnerable to corruption. By increasing the availability of data, blockchain will contribute to the wider adoption of digital in the built environment industries.

A big problem with blockchain is the hype, in part because of extravagant claims for the transformation potential of disintermediation and process automation. Construction and blockchain have great potential, but effective applications are likely to focus on simple transactions rather than complex design processes or dispute resolution. However, for any DLT solution to work in construction, there are performance, cost and environmental impact issues associated with blockchain’s ability to handle large volumes of data and its consensus methodology that need to be addressed.

Until that is the case, DLT solutions will be restricted to niche applications, where the use value of records, such as the validation of the sourcing of diamonds, far outweighs the transaction cost of using DLT.

In this review, we focus on 8 simple interventions at different stages of the asset lifecycle, highlighting how very high costs of waste and duplication could potentially be eliminated, including use cases such as the creation of blockchain-backed markets for standard digital component designs, as well as keeping records of work to ensure the safe operation of an asset throughout its lifecycle.

=== What is blockchain and how can it be used in the built environment? ===

A blockchain is a decentralised data repository. It provides an immutable record of transactions performed across a network. Blockchain potentially eliminates the need for intermediaries and many businesses are betting that blockchain will enable new means of delivering services through disintermediation. In addition, value propositions associated with the attribution and hosting of data may create new ways to operate infrastructure more effectively.

Some DLT applications are run privately, but most are designed to be accessed by a wider group of stakeholders. Public blockchain applications including many cryptocurrencies require no permissions to participate. Other hybrid solutions such as IBM’s hyper-ledger are public, but access is restricted using permissions.

Permission-less blockchains have unique characteristics that create the potential for networked markets and trust-less transactions. These include:

Distributed networks. A blockchain is hosted on multiple nodes across a network. This capability facilitates market disintermediation.

Blocks. Blocks are a set of transaction records, creating a compete, permanent, tamper-proof record. This capability facilitates new markets underpinned by data.

Verification and security. In public blockchains, new blocks are validated using consensus mechanisms such as the proof of work methodology which supports trusted transactions. Blockchain also benefits from very high levels of encryption.

Permissioned blockchains share many of these characteristics but use methods such as the periodic testing of duplicate blockchains held on different nodes to demonstrate the integrity of the ledger. This reduces the cost of operation but to an extent compromises the extent to which a blockchain can be considered trust-less.

Given the fragmented nature of most global construction industries and low levels of technology adoption and productivity growth, it can easily be argued that the built environment industries are unlikely to adopt blockchain quickly. However, there are many aspects of the built environment industries that will benefit from transformation through blockchain. Examples include:

* The potential for DLT to deal with data sourced from across complex business networks. This is well aligned to the fragmented construction supply chain or to multiple asset users such as apartment residents;
* The role of the immutable ledger in storing a recognised single version of the truth, subject of course to the limitations imposed by data privacy.
* The role for smart contracts enabled by blockchain to automate many of the simple, transaction-based exchanges that are part of routine construction and asset management.

=== Identifying opportunities for blockchain in the built environment ===

Our assessment of the potential for DLT points to the need for a selective approach to identifying the best opportunities for blockchain in the built environment. These are likely to be simple use cases that create value by eliminating waste, which can be widely adopted across construction business networks.

In our analysis, our focus is on a series of use cases across all stages of an asset lifecycle to identify whether there are opportunities for DLT to transform and add value. Rather than thinking of blockchain as a single, all-encompassing solution, we have unpacked the capability of blockchain – highlighting that different use cases rely on distinct characteristics of DLT-based solutions. The capabilities which we call out in this paper are:

Transparency – Ability to make full sets of information available to selected parties;Immutable records repository – Confidence underpinned by a time-stamped, tamper-proof and assured data set;

Dis-intermediation – Elimination of intermediaries and latency in transactions and acceleration of disruptive innovation;

Automated trust-less transactions – such as the recording of exchanges between organisations and individuals within complex, fragmented marketplaces;

Smart contracts – automated low-cost, pre-set transactions triggered by changes in the blockchain; Currency – digital payment avoiding costs of intermediaries.

Repeated analyses have highlighted the slow take-up by businesses in construction and the built environment of technology solutions. There are many reasons for this including the low capitalisation and low profitability of the industry.

However, there are good reasons to predict that DLT will contribute significantly to the transformation of the industry. Three characteristics highlight a strong alignment with blockchain-based solutions. These are:

* The distributed nature of owners, suppliers, users and stakeholders, which favours the use of networked data platforms;
* The role of intermediaries at all stages of the asset life cycle;
* Low levels of trust and transparency, result in unnecessary costs and process latency.

However, the fragmentation of the industry which underpins these opportunities also creates substantial barriers to adoption. For example, the sheer volume of transactions that take place on a construction project will place a huge burden on a DLT unless some hybrid combination of blockchain and database is adopted. Furthermore, until the costs of blockchain transactions fall, and until data protection measures are in place, there will be little opportunity for the technology to add value to a fragmented, low-margin industry.

In conclusion, blockchain is at the peak of the hype cycle, based on the idea that wholesale aspects of business process can be transformed or eliminated using DLT. In sectors that process huge volumes of identical transaction types, such as retail, financial services or manufacturing, the potential for private blockchains is clear. In the fragmented built environment sector, the opportunities are harder to identify. Finding simple, worthwhile opportunities to eliminate waste will be the best blockchain prescription for built environment industries.

Peter Oosterveer, CEO for Arcadis, said: “Business process change with the help of blockchain technology will create enormous efficiencies through the reduction of vast amounts of waste in construction processes. It will not just improve the quality of the built environment, it will also help to keep assets much more affordable over time.”

Simon Rawlinson, Partner, Head of Strategic Research and Insight, Arcadis

Michael Max Buehler, Head of Infrastructure and Urban Development, World Economic Forum

Hani Dakhil, Community Lead, Infrastructure and Urban Development, World Economic Forum

Houman Shadab, Director, Center for Business and Financial Law, New York Law School

Nadia Hewett, Project Lead, Blockchain and Distributed Ledger Technologies, World Economic Forum

First published by the World Economic Forum: [https://www.weforum.org/agenda/2019/04/eliminating-waste-at-scale-eight-opportunities-for-blockchain/ https://www.weforum.org/agenda/2019/04/eliminating-waste-at-scale-eight-opportunities-for-blockchain/]

Eliminating waste at scale - opportunities for blockchain

2019-04-09T11:24:42Z

Michael Buehler:

[[File:Blockchain linkedin.jpg]]

Infrastructure and buildings play a key role in driving economic growth and enabling a high quality of life. Research by Arcadis highlights that almost 40% of global GDP is derived from built assets.

However, the industries that deliver this essential investment are often inefficient. Based on a [https://www.mckinsey.com/~/media/McKinsey/Industries/Capital%20Projects%20and%20Infrastructure/Our%20Insights/Voices%20on%20Infrastructure%20Transforming%20project%20delivery/Voices-on-Infrastructure-Transforming-project-delivery.ashx report by McKinsey & Co], for example, large capital projects typically cost 80% more than budgeted and run 20 months late. Globally, construction productivity has not improved in 20 years, but as the Fourth Industrial Revolution accelerates, it is increasingly clear that the creation, use and operation of infrastructure will be disrupted by digitisation. The elimination of business process waste associated with construction alone has the potential to drive savings of at least 5%, potentially worth $200-400 billion across global markets.

One of the most potent disruptive technologies is blockchain. Distributed ledger technology (DLT) could potentially transform the way in which infrastructure is created, financed and consumed.

By eliminating transactional costs associated with fragmented supply chains, blockchain drives value by simplifying processes. By providing greater transparency, blockchain will facilitate greater trust and collaboration in a sector which is fragmented, adversarial and, in some markets, vulnerable to corruption. By increasing the availability of data, blockchain will contribute to the wider adoption of digital in the built environment industries.

A big problem with blockchain is the hype, in part because of extravagant claims for the transformation potential of disintermediation and process automation. Construction and blockchain have great potential, but effective applications are likely to focus on simple transactions rather than complex design processes or dispute resolution. However, for any DLT solution to work in construction, there are performance, cost and environmental impact issues associated with blockchain’s ability to handle large volumes of data and its consensus methodology that need to be addressed.

Until that is the case, DLT solutions will be restricted to niche applications, where the use value of records, such as the validation of the sourcing of diamonds, far outweighs the transaction cost of using DLT.

In this review, we focus on 8 simple interventions at different stages of the asset lifecycle, highlighting how very high costs of waste and duplication could potentially be eliminated, including use cases such as the creation of blockchain-backed markets for standard digital component designs, as well as keeping records of work to ensure the safe operation of an asset throughout its lifecycle.

What is blockchain and how can it be used in the built environment?

A blockchain is a decentralised data repository. It provides an immutable record of transactions performed across a network. Blockchain potentially eliminates the need for intermediaries and many businesses are betting that blockchain will enable new means of delivering services through disintermediation. In addition, value propositions associated with the attribution and hosting of data may create new ways to operate infrastructure more effectively.

Some DLT applications are run privately, but most are designed to be accessed by a wider group of stakeholders. Public blockchain applications including many cryptocurrencies require no permissions to participate. Other hybrid solutions such as IBM’s hyper-ledger are public, but access is restricted using permissions.

Permission-less blockchains have unique characteristics that create the potential for networked markets and trust-less transactions. These include:

Distributed networks. A blockchain is hosted on multiple nodes across a network. This capability facilitates market disintermediation.

Blocks. Blocks are a set of transaction records, creating a compete, permanent, tamper-proof record. This capability facilitates new markets underpinned by data.

Verification and security. In public blockchains, new blocks are validated using consensus mechanisms such as the proof of work methodology which supports trusted transactions. Blockchain also benefits from very high levels of encryption.

Permissioned blockchains share many of these characteristics but use methods such as the periodic testing of duplicate blockchains held on different nodes to demonstrate the integrity of the ledger. This reduces the cost of operation but to an extent compromises the extent to which a blockchain can be considered trust-less.

Given the fragmented nature of most global construction industries and low levels of technology adoption and productivity growth, it can easily be argued that the built environment industries are unlikely to adopt blockchain quickly. However, there are many aspects of the built environment industries that will benefit from transformation through blockchain. Examples include:

* The potential for DLT to deal with data sourced from across complex business networks. This is well aligned to the fragmented construction supply chain or to multiple asset users such as apartment residents;
* The role of the immutable ledger in storing a recognised single version of the truth, subject of course to the limitations imposed by data privacy.
* The role for smart contracts enabled by blockchain to automate many of the simple, transaction-based exchanges that are part of routine construction and asset management.

Identifying opportunities for blockchain in the built environment

Our assessment of the potential for DLT points to the need for a selective approach to identifying the best opportunities for blockchain in the built environment. These are likely to be simple use cases that create value by eliminating waste, which can be widely adopted across construction business networks.

In our analysis, our focus is on a series of use cases across all stages of an asset lifecycle to identify whether there are opportunities for DLT to transform and add value. Rather than thinking of blockchain as a single, all-encompassing solution, we have unpacked the capability of blockchain – highlighting that different use cases rely on distinct characteristics of DLT-based solutions. The capabilities which we call out in this paper are:

Transparency – Ability to make full sets of information available to selected parties;Immutable records repository – Confidence underpinned by a time-stamped, tamper-proof and assured data set;

Dis-intermediation – Elimination of intermediaries and latency in transactions and acceleration of disruptive innovation;

Automated trust-less transactions – such as the recording of exchanges between organisations and individuals within complex, fragmented marketplaces;

Smart contracts – automated low-cost, pre-set transactions triggered by changes in the blockchain; Currency – digital payment avoiding costs of intermediaries.

Repeated analyses have highlighted the slow take-up by businesses in construction and the built environment of technology solutions. There are many reasons for this including the low capitalisation and low profitability of the industry.

However, there are good reasons to predict that DLT will contribute significantly to the transformation of the industry. Three characteristics highlight a strong alignment with blockchain-based solutions. These are:

* The distributed nature of owners, suppliers, users and stakeholders, which favours the use of networked data platforms;
* The role of intermediaries at all stages of the asset life cycle;
* Low levels of trust and transparency, result in unnecessary costs and process latency.

However, the fragmentation of the industry which underpins these opportunities also creates substantial barriers to adoption. For example, the sheer volume of transactions that take place on a construction project will place a huge burden on a DLT unless some hybrid combination of blockchain and database is adopted. Furthermore, until the costs of blockchain transactions fall, and until data protection measures are in place, there will be little opportunity for the technology to add value to a fragmented, low-margin industry.

In conclusion, blockchain is at the peak of the hype cycle, based on the idea that wholesale aspects of business process can be transformed or eliminated using DLT. In sectors that process huge volumes of identical transaction types, such as retail, financial services or manufacturing, the potential for private blockchains is clear. In the fragmented built environment sector, the opportunities are harder to identify. Finding simple, worthwhile opportunities to eliminate waste will be the best blockchain prescription for built environment industries.

Peter Oosterveer, CEO for Arcadis, said: “Business process change with the help of blockchain technology will create enormous efficiencies through the reduction of vast amounts of waste in construction processes. It will not just improve the quality of the built environment, it will also help to keep assets much more affordable over time.”

Simon Rawlinson, Partner, Head of Strategic Research and Insight, Arcadis

Michael Max Buehler, Head of Infrastructure and Urban Development, World Economic Forum

Hani Dakhil, Community Lead, Infrastructure and Urban Development, World Economic Forum

Houman Shadab, Director, Center for Business and Financial Law, New York Law School

Nadia Hewett, Project Lead, Blockchain and Distributed Ledger Technologies, World Economic Forum

First published by the World Economic Forum: [https://www.weforum.org/agenda/2019/04/eliminating-waste-at-scale-eight-opportunities-for-blockchain/ https://www.weforum.org/agenda/2019/04/eliminating-waste-at-scale-eight-opportunities-for-blockchain/]

File:Blockchain linkedin.jpg

2019-04-09T11:23:58Z

Michael Buehler:

Eliminating waste at scale - opportunities for blockchain

2019-04-09T11:22:27Z

Michael Buehler: Created page with "Infrastructure and buildings play a key role in driving economic growth and enabling a high quality of life. Research by Arcadis highlights that almost 40% of global GDP is deriv..."

Infrastructure and buildings play a key role in driving economic growth and enabling a high quality of life. Research by Arcadis highlights that almost 40% of global GDP is derived from built assets.

However, the industries that deliver this essential investment are often inefficient. Based on a [https://www.mckinsey.com/~/media/McKinsey/Industries/Capital%20Projects%20and%20Infrastructure/Our%20Insights/Voices%20on%20Infrastructure%20Transforming%20project%20delivery/Voices-on-Infrastructure-Transforming-project-delivery.ashx report by McKinsey & Co], for example, large capital projects typically cost 80% more than budgeted and run 20 months late. Globally, construction productivity has not improved in 20 years, but as the Fourth Industrial Revolution accelerates, it is increasingly clear that the creation, use and operation of infrastructure will be disrupted by digitisation. The elimination of business process waste associated with construction alone has the potential to drive savings of at least 5%, potentially worth $200-400 billion across global markets.

One of the most potent disruptive technologies is blockchain. Distributed ledger technology (DLT) could potentially transform the way in which infrastructure is created, financed and consumed.

By eliminating transactional costs associated with fragmented supply chains, blockchain drives value by simplifying processes. By providing greater transparency, blockchain will facilitate greater trust and collaboration in a sector which is fragmented, adversarial and, in some markets, vulnerable to corruption. By increasing the availability of data, blockchain will contribute to the wider adoption of digital in the built environment industries.

A big problem with blockchain is the hype, in part because of extravagant claims for the transformation potential of disintermediation and process automation. Construction and blockchain have great potential, but effective applications are likely to focus on simple transactions rather than complex design processes or dispute resolution. However, for any DLT solution to work in construction, there are performance, cost and environmental impact issues associated with blockchain’s ability to handle large volumes of data and its consensus methodology that need to be addressed.

Until that is the case, DLT solutions will be restricted to niche applications, where the use value of records, such as the validation of the sourcing of diamonds, far outweighs the transaction cost of using DLT.

In this review, we focus on 8 simple interventions at different stages of the asset lifecycle, highlighting how very high costs of waste and duplication could potentially be eliminated, including use cases such as the creation of blockchain-backed markets for standard digital component designs, as well as keeping records of work to ensure the safe operation of an asset throughout its lifecycle.

What is blockchain and how can it be used in the built environment?

A blockchain is a decentralised data repository. It provides an immutable record of transactions performed across a network. Blockchain potentially eliminates the need for intermediaries and many businesses are betting that blockchain will enable new means of delivering services through disintermediation. In addition, value propositions associated with the attribution and hosting of data may create new ways to operate infrastructure more effectively.

Some DLT applications are run privately, but most are designed to be accessed by a wider group of stakeholders. Public blockchain applications including many cryptocurrencies require no permissions to participate. Other hybrid solutions such as IBM’s hyper-ledger are public, but access is restricted using permissions.

Permission-less blockchains have unique characteristics that create the potential for networked markets and trust-less transactions. These include:

Distributed networks. A blockchain is hosted on multiple nodes across a network. This capability facilitates market disintermediation.

Blocks. Blocks are a set of transaction records, creating a compete, permanent, tamper-proof record. This capability facilitates new markets underpinned by data.

Verification and security. In public blockchains, new blocks are validated using consensus mechanisms such as the proof of work methodology which supports trusted transactions. Blockchain also benefits from very high levels of encryption.

Permissioned blockchains share many of these characteristics but use methods such as the periodic testing of duplicate blockchains held on different nodes to demonstrate the integrity of the ledger. This reduces the cost of operation but to an extent compromises the extent to which a blockchain can be considered trust-less.

Given the fragmented nature of most global construction industries and low levels of technology adoption and productivity growth, it can easily be argued that the built environment industries are unlikely to adopt blockchain quickly. However, there are many aspects of the built environment industries that will benefit from transformation through blockchain. Examples include:

* The potential for DLT to deal with data sourced from across complex business networks. This is well aligned to the fragmented construction supply chain or to multiple asset users such as apartment residents;
* The role of the immutable ledger in storing a recognised single version of the truth, subject of course to the limitations imposed by data privacy.
* The role for smart contracts enabled by blockchain to automate many of the simple, transaction-based exchanges that are part of routine construction and asset management.

Identifying opportunities for blockchain in the built environment

Our assessment of the potential for DLT points to the need for a selective approach to identifying the best opportunities for blockchain in the built environment. These are likely to be simple use cases that create value by eliminating waste, which can be widely adopted across construction business networks.

In our analysis, our focus is on a series of use cases across all stages of an asset lifecycle to identify whether there are opportunities for DLT to transform and add value. Rather than thinking of blockchain as a single, all-encompassing solution, we have unpacked the capability of blockchain – highlighting that different use cases rely on distinct characteristics of DLT-based solutions. The capabilities which we call out in this paper are:

Transparency – Ability to make full sets of information available to selected parties;Immutable records repository – Confidence underpinned by a time-stamped, tamper-proof and assured data set;

Dis-intermediation – Elimination of intermediaries and latency in transactions and acceleration of disruptive innovation;

Automated trust-less transactions – such as the recording of exchanges between organisations and individuals within complex, fragmented marketplaces;

Smart contracts – automated low-cost, pre-set transactions triggered by changes in the blockchain; Currency – digital payment avoiding costs of intermediaries.

Repeated analyses have highlighted the slow take-up by businesses in construction and the built environment of technology solutions. There are many reasons for this including the low capitalisation and low profitability of the industry.

However, there are good reasons to predict that DLT will contribute significantly to the transformation of the industry. Three characteristics highlight a strong alignment with blockchain-based solutions. These are:

* The distributed nature of owners, suppliers, users and stakeholders, which favours the use of networked data platforms;
* The role of intermediaries at all stages of the asset life cycle;
* Low levels of trust and transparency, result in unnecessary costs and process latency.

However, the fragmentation of the industry which underpins these opportunities also creates substantial barriers to adoption. For example, the sheer volume of transactions that take place on a construction project will place a huge burden on a DLT unless some hybrid combination of blockchain and database is adopted. Furthermore, until the costs of blockchain transactions fall, and until data protection measures are in place, there will be little opportunity for the technology to add value to a fragmented, low-margin industry.

In conclusion, blockchain is at the peak of the hype cycle, based on the idea that wholesale aspects of business process can be transformed or eliminated using DLT. In sectors that process huge volumes of identical transaction types, such as retail, financial services or manufacturing, the potential for private blockchains is clear. In the fragmented built environment sector, the opportunities are harder to identify. Finding simple, worthwhile opportunities to eliminate waste will be the best blockchain prescription for built environment industries.

Peter Oosterveer, CEO for Arcadis, said: “Business process change with the help of blockchain technology will create enormous efficiencies through the reduction of vast amounts of waste in construction processes. It will not just improve the quality of the built environment, it will also help to keep assets much more affordable over time.”

Simon Rawlinson, Partner, Head of Strategic Research and Insight, Arcadis

Michael Max Buehler, Head of Infrastructure and Urban Development, World Economic Forum

Hani Dakhil, Community Lead, Infrastructure and Urban Development, World Economic Forum

Houman Shadab, Director, Center for Business and Financial Law, New York Law School

Nadia Hewett, Project Lead, Blockchain and Distributed Ledger Technologies, World Economic Forum

First published by the World Economic Forum: [https://www.weforum.org/agenda/2019/04/eliminating-waste-at-scale-eight-opportunities-for-blockchain/ https://www.weforum.org/agenda/2019/04/eliminating-waste-at-scale-eight-opportunities-for-blockchain/]

The Fourth Industrial Revolution is about to hit the construction industry. Here’s how it can thrive

2019-02-23T10:16:41Z

Michael Buehler:

[[File:Worker001.jpeg|link=File:Worker001.jpeg]]

Over the past decade, digital progress has transformed whole industries, ushering in a new technological era now known as the [https://www.weforum.org/agenda/2016/01/the-fourth-industrial-revolution-what-it-means-and-how-to-respond/ Fourth Industrial Revolution]. Platforms and streaming services such as Facebook, Spotify and Netflix have transformed media and entertainment. E-commerce giants including Amazon and Alibaba have disrupted bricks-and-mortar retailers. Digital mobility companies are challenging automotive manufacturers.

These new technologies are not only satisfying consumer demand for better entertainment, shopping and transport. Innovation has improved companies’ productivity and sustainability, and redefined the skills and competencies needed to thrive.

[[File:Disruptive_construction_technologies.jpeg|link=File:Disruptive_construction_technologies.jpeg]]

However, over the same period, the construction industry has continued to operate as it has for the past 50 years. It still relies heavily on manual labour, mechanical technology and established operating and business models. As a result, productivity has stagnated.

Only recently have digital technologies begun to enter the industry, gradually changing how infrastructure, real estate and other built assets are designed, constructed, operated and maintained. These technologies, including [https://futureofconstruction.org/practice/an-action-plan-to-accelerate-building-information-modeling-bim-adoption/ building information modeling (BIM)], prefabrication, wireless sensors, 3D printing and automated and robotic equipment, are affecting the entire industry. Their economic and social impact could be substantial, given that the construction industry accounts for 6% of global GDP.

[[File:Youtube_FoC.PNG|link=https://youtu.be/sgPD6lZn904]]

Within a decade, full-scale digitization could help the industry escape its decades-long stagnation and generate an estimated 12-20% in annual cost savings, equal to between $1 trillion and $1.7 trillion, according to our estimates.

Global megatrends should also motivate businesses to rethink industry practices that have not advanced. Climate change, resource depletion, a widening talent gap and rapid urbanization - more than 200,000 people are moving into cities from rural areas every day - are but a few of these trends.

Within a decade, full-scale digitization could help the industry escape its decades-long stagnation and generate an estimated 12-20% in annual cost savings, equal to between $1 trillion and $1.7 trillion, according to our estimates.

Global megatrends should also motivate businesses to rethink industry practices that have not advanced. Climate change, resource depletion, a widening talent gap and rapid urbanization - more than 200,000 people are moving into cities from rural areas every day - are but a few of these trends.

[[File:FoC_Megatrends.png|link=File:FoC_Megatrends.png]]

A new report, [http://www3.weforum.org/docs/Future_Scenarios_Implications_Industry_report_2018.pdf Shaping the Future of Construction: Future Scenarios and Implications] depicts three potential outcomes based on these new forces. The future is likely to include elements of each one.

"Current business models, strategies and capabilities will not be sufficient in any of these future worlds", says Michael Burke, Chairman and CEO of AECOM and Co-Chair of the World Economic Forum Infrastructure and Urban Development community.

"Players along the construction value chain need to prepare strategically to thrive in the face of anticipated disruption."

To keep up, attracting new talent and improving the skills of the existing workforce were deemed priorities by 74% of industry CEOs at the 2018 World Economic Forum in Davos. Improving integration and collaboration along the value chain (65%) and adopting advanced technologies at scale (61%) were other key actions they considered.

"The construction industry’s decision-makers should understand the disruption outlined in the future scenarios as a wake-up call. They should use the identified key actions to prepare and shape a prosperous future that will allow the industry to fulfil its role in promoting economic growth, social progress and environmental responsibility", says Luis Castilla, CEO of Acciona Infrastructure and champion of the World Economic Forum Future of Construction initiative.

[[File:FoC scenarios.png]]

Several scenarios were created by the World Economic Forum and 30 companies for how the industry could look in the future, based on global trends. They clearly show that existing capabilities, business models and strategies will not be sufficient for success. The scenarios also pinpoint several common no-regret moves that companies should take to remain relevant.

Our key conclusion is that businesses must act now to circumvent future disruption. Dramatic changes on the horizon indicate an uncertain future for the global industry and its more than 100 million employees. The following actions will be relevant, whatever unfolds:

=== Attract new talent and build up required skills ===

Any future scenario requires talent with substantially different skills than today's workforce. Adequate upskilling processes are largely not in place.

=== Integrate and collaborate across the construction industry’s value chain ===

The construction industry is characterized by a disintegrated and highly fragmented value chain, which hampers the seamless data flows and integrated systems that are essential in any future scenario.

=== Adopt advanced technologies at scale ===

The construction industry has been slow to adopt new technologies. It still relies heavily on manual labour and mechanical technologies, resulting in poor productivity.

=== Maximize the use of data and digital models throughout processes ===

This involves reviewing existing practices and infrastructure asset portfolios, to embrace new business opportunities and enable change management.

The myriad potential changes in the construction industry lead to high ambiguity and make it impossible to predict what lies ahead. However, with scenario planning, involved stakeholders can prepare for a variety of possible futures.

=== Read more of our reports here ===

[http://www3.weforum.org/docs/Future_Scenarios_Implications_Industry_report_2018.pdf Shaping the Future of Construction: Future Scenarios and Implications]

[http://www3.weforum.org/docs/WEF_Accelerating_BIM_Adoption_Action_Plan.pdf Shaping the Future of Construction: An Action Plan to Accelerate Building Information Modeling (BIM) Adoption]

[http://www3.weforum.org/docs/WEF_Action_plan_to_solve_the_industrys_talent_gap.pdf Shaping the Future of Construction: An Action Plan to solve the Industry’s Talent Gap]

=== Written by ===

[https://www.weforum.org/agenda/authors/michael-buehler Michael Buehler], Head of Infrastructure & Urban Development, World Economic Forum

[https://www.weforum.org/agenda/authors/pierre-patrick-buffet Pierre Patrick Buffet], Director of Analysis and Strategy, CEO Office , ACCIONA Infraestructuras

[https://www.weforum.org/agenda/authors/santiago-castagnino Santiago Castagnino], Partner & Managing Director, Madrid, The Boston Consulting Group

The views expressed in this article are those of the author alone and not the World Economic Forum.

Please find the original article [https://www.weforum.org/agenda/2018/06/construction-industry-future-scenarios-labour-technology/ here]. This article was also published on the [https://futureofconstruction.org/ Future of Construction Knowledge Sharing Platform]and the [http://www.weforum.org/agenda/ WEF Agenda Blog]

File:FoC scenarios.png

2019-02-23T10:10:08Z

Michael Buehler:

The Fourth Industrial Revolution is about to hit the construction industry. Here’s how it can thrive

2019-02-23T10:08:06Z

Michael Buehler:

[[File:Worker001.jpeg|link=File:Worker001.jpeg]]

Over the past decade, digital progress has transformed whole industries, ushering in a new technological era now known as the [https://www.weforum.org/agenda/2016/01/the-fourth-industrial-revolution-what-it-means-and-how-to-respond/ Fourth Industrial Revolution]. Platforms and streaming services such as Facebook, Spotify and Netflix have transformed media and entertainment. E-commerce giants including Amazon and Alibaba have disrupted bricks-and-mortar retailers. Digital mobility companies are challenging automotive manufacturers.

These new technologies are not only satisfying consumer demand for better entertainment, shopping and transport. Innovation has improved companies’ productivity and sustainability, and redefined the skills and competencies needed to thrive.

[[File:Disruptive_construction_technologies.jpeg|link=File:Disruptive_construction_technologies.jpeg]]

However, over the same period, the construction industry has continued to operate as it has for the past 50 years. It still relies heavily on manual labour, mechanical technology and established operating and business models. As a result, productivity has stagnated.

Only recently have digital technologies begun to enter the industry, gradually changing how infrastructure, real estate and other built assets are designed, constructed, operated and maintained. These technologies, including [https://futureofconstruction.org/practice/an-action-plan-to-accelerate-building-information-modeling-bim-adoption/ building information modeling (BIM)], prefabrication, wireless sensors, 3D printing and automated and robotic equipment, are affecting the entire industry. Their economic and social impact could be substantial, given that the construction industry accounts for 6% of global GDP.

[[File:Youtube FoC.PNG|link=https://youtu.be/sgPD6lZn904]]

Within a decade, full-scale digitization could help the industry escape its decades-long stagnation and generate an estimated 12-20% in annual cost savings, equal to between $1 trillion and $1.7 trillion, according to our estimates.

Global megatrends should also motivate businesses to rethink industry practices that have not advanced. Climate change, resource depletion, a widening talent gap and rapid urbanization - more than 200,000 people are moving into cities from rural areas every day - are but a few of these trends.

Within a decade, full-scale digitization could help the industry escape its decades-long stagnation and generate an estimated 12-20% in annual cost savings, equal to between $1 trillion and $1.7 trillion, according to our estimates.

Global megatrends should also motivate businesses to rethink industry practices that have not advanced. Climate change, resource depletion, a widening talent gap and rapid urbanization - more than 200,000 people are moving into cities from rural areas every day - are but a few of these trends.

[[File:FoC_Megatrends.png|link=File:FoC_Megatrends.png]]

A new report, [http://www3.weforum.org/docs/Future_Scenarios_Implications_Industry_report_2018.pdf Shaping the Future of Construction: Future Scenarios and Implications] depicts three potential outcomes based on these new forces. The future is likely to include elements of each one.

"Current business models, strategies and capabilities will not be sufficient in any of these future worlds", says Michael Burke, Chairman and CEO of AECOM and Co-Chair of the World Economic Forum Infrastructure and Urban Development community.

"Players along the construction value chain need to prepare strategically to thrive in the face of anticipated disruption."

To keep up, attracting new talent and improving the skills of the existing workforce were deemed priorities by 74% of industry CEOs at the 2018 World Economic Forum in Davos. Improving integration and collaboration along the value chain (65%) and adopting advanced technologies at scale (61%) were other key actions they considered.

"The construction industry’s decision-makers should understand the disruption outlined in the future scenarios as a wake-up call. They should use the identified key actions to prepare and shape a prosperous future that will allow the industry to fulfil its role in promoting economic growth, social progress and environmental responsibility", says Luis Castilla, CEO of Acciona Infrastructure and champion of the World Economic Forum Future of Construction initiative.

Several scenarios were created by the World Economic Forum and 30 companies for how the industry could look in the future, based on global trends. They clearly show that existing capabilities, business models and strategies will not be sufficient for success. The scenarios also pinpoint several common no-regret moves that companies should take to remain relevant.

Our key conclusion is that businesses must act now to circumvent future disruption. Dramatic changes on the horizon indicate an uncertain future for the global industry and its more than 100 million employees. The following actions will be relevant, whatever unfolds:

Attract new talent and build up required skills

Any future scenario requires talent with substantially different skills than today's workforce. Adequate upskilling processes are largely not in place.

Integrate and collaborate across the construction industry’s value chain

The construction industry is characterized by a disintegrated and highly fragmented value chain, which hampers the seamless data flows and integrated systems that are essential in any future scenario.

Adopt advanced technologies at scale

The construction industry has been slow to adopt new technologies. It still relies heavily on manual labour and mechanical technologies, resulting in poor productivity.

Maximize the use of data and digital models throughout processes

This involves reviewing existing practices and infrastructure asset portfolios, to embrace new business opportunities and enable change management.

The myriad potential changes in the construction industry lead to high ambiguity and make it impossible to predict what lies ahead. However, with scenario planning, involved stakeholders can prepare for a variety of possible futures.

Read more of our reports here

[http://www3.weforum.org/docs/Future_Scenarios_Implications_Industry_report_2018.pdf Shaping the Future of Construction: Future Scenarios and Implications]

[http://www3.weforum.org/docs/WEF_Accelerating_BIM_Adoption_Action_Plan.pdf Shaping the Future of Construction: An Action Plan to Accelerate Building Information Modeling (BIM) Adoption]

[http://www3.weforum.org/docs/WEF_Action_plan_to_solve_the_industrys_talent_gap.pdf Shaping the Future of Construction: An Action Plan to solve the Industry’s Talent Gap]

Written by

[https://www.weforum.org/agenda/authors/michael-buehler Michael Buehler], Head of Infrastructure & Urban Development, World Economic Forum

[https://www.weforum.org/agenda/authors/pierre-patrick-buffet Pierre Patrick Buffet], Director of Analysis and Strategy, CEO Office , ACCIONA Infraestructuras

[https://www.weforum.org/agenda/authors/santiago-castagnino Santiago Castagnino], Partner & Managing Director, Madrid, The Boston Consulting Group

The views expressed in this article are those of the author alone and not the World Economic Forum.

File:Youtube FoC.PNG

2019-02-23T10:06:52Z

Michael Buehler:

The Fourth Industrial Revolution is about to hit the construction industry. Here’s how it can thrive

2019-02-23T10:04:45Z

Michael Buehler:

[[File:Worker001.jpeg|link=File:Worker001.jpeg]]

Over the past decade, digital progress has transformed whole industries, ushering in a new technological era now known as the [https://www.weforum.org/agenda/2016/01/the-fourth-industrial-revolution-what-it-means-and-how-to-respond/ Fourth Industrial Revolution]. Platforms and streaming services such as Facebook, Spotify and Netflix have transformed media and entertainment. E-commerce giants including Amazon and Alibaba have disrupted bricks-and-mortar retailers. Digital mobility companies are challenging automotive manufacturers.

These new technologies are not only satisfying consumer demand for better entertainment, shopping and transport. Innovation has improved companies’ productivity and sustainability, and redefined the skills and competencies needed to thrive.

[[File:Disruptive_construction_technologies.jpeg|link=File:Disruptive_construction_technologies.jpeg]]

However, over the same period, the construction industry has continued to operate as it has for the past 50 years. It still relies heavily on manual labour, mechanical technology and established operating and business models. As a result, productivity has stagnated.

Only recently have digital technologies begun to enter the industry, gradually changing how infrastructure, real estate and other built assets are designed, constructed, operated and maintained. These technologies, including [https://futureofconstruction.org/practice/an-action-plan-to-accelerate-building-information-modeling-bim-adoption/ building information modeling (BIM)], prefabrication, wireless sensors, 3D printing and automated and robotic equipment, are affecting the entire industry. Their economic and social impact could be substantial, given that the construction industry accounts for 6% of global GDP.

<iframe width="658" height="370" src="https://www.youtube.com/embed/sgPD6lZn904" frameborder="0" allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe>

[https://youtu.be/sgPD6lZn904 https://youtu.be/sgPD6lZn904]

Within a decade, full-scale digitization could help the industry escape its decades-long stagnation and generate an estimated 12-20% in annual cost savings, equal to between $1 trillion and $1.7 trillion, according to our estimates.

Global megatrends should also motivate businesses to rethink industry practices that have not advanced. Climate change, resource depletion, a widening talent gap and rapid urbanization - more than 200,000 people are moving into cities from rural areas every day - are but a few of these trends.

Within a decade, full-scale digitization could help the industry escape its decades-long stagnation and generate an estimated 12-20% in annual cost savings, equal to between $1 trillion and $1.7 trillion, according to our estimates.

Global megatrends should also motivate businesses to rethink industry practices that have not advanced. Climate change, resource depletion, a widening talent gap and rapid urbanization - more than 200,000 people are moving into cities from rural areas every day - are but a few of these trends.

[[File:FoC_Megatrends.png|link=File:FoC_Megatrends.png]]

A new report, [http://www3.weforum.org/docs/Future_Scenarios_Implications_Industry_report_2018.pdf Shaping the Future of Construction: Future Scenarios and Implications] depicts three potential outcomes based on these new forces. The future is likely to include elements of each one.

"Current business models, strategies and capabilities will not be sufficient in any of these future worlds", says Michael Burke, Chairman and CEO of AECOM and Co-Chair of the World Economic Forum Infrastructure and Urban Development community.

"Players along the construction value chain need to prepare strategically to thrive in the face of anticipated disruption."

To keep up, attracting new talent and improving the skills of the existing workforce were deemed priorities by 74% of industry CEOs at the 2018 World Economic Forum in Davos. Improving integration and collaboration along the value chain (65%) and adopting advanced technologies at scale (61%) were other key actions they considered.

"The construction industry’s decision-makers should understand the disruption outlined in the future scenarios as a wake-up call. They should use the identified key actions to prepare and shape a prosperous future that will allow the industry to fulfil its role in promoting economic growth, social progress and environmental responsibility", says Luis Castilla, CEO of Acciona Infrastructure and champion of the World Economic Forum Future of Construction initiative.

Several scenarios were created by the World Economic Forum and 30 companies for how the industry could look in the future, based on global trends. They clearly show that existing capabilities, business models and strategies will not be sufficient for success. The scenarios also pinpoint several common no-regret moves that companies should take to remain relevant.

Our key conclusion is that businesses must act now to circumvent future disruption. Dramatic changes on the horizon indicate an uncertain future for the global industry and its more than 100 million employees. The following actions will be relevant, whatever unfolds:

Attract new talent and build up required skills

Any future scenario requires talent with substantially different skills than today's workforce. Adequate upskilling processes are largely not in place.

Integrate and collaborate across the construction industry’s value chain

The construction industry is characterized by a disintegrated and highly fragmented value chain, which hampers the seamless data flows and integrated systems that are essential in any future scenario.

Adopt advanced technologies at scale

The construction industry has been slow to adopt new technologies. It still relies heavily on manual labour and mechanical technologies, resulting in poor productivity.

Maximize the use of data and digital models throughout processes

This involves reviewing existing practices and infrastructure asset portfolios, to embrace new business opportunities and enable change management.

The myriad potential changes in the construction industry lead to high ambiguity and make it impossible to predict what lies ahead. However, with scenario planning, involved stakeholders can prepare for a variety of possible futures.

Read more of our reports here

[http://www3.weforum.org/docs/Future_Scenarios_Implications_Industry_report_2018.pdf Shaping the Future of Construction: Future Scenarios and Implications]

[http://www3.weforum.org/docs/WEF_Accelerating_BIM_Adoption_Action_Plan.pdf Shaping the Future of Construction: An Action Plan to Accelerate Building Information Modeling (BIM) Adoption]

[http://www3.weforum.org/docs/WEF_Action_plan_to_solve_the_industrys_talent_gap.pdf Shaping the Future of Construction: An Action Plan to solve the Industry’s Talent Gap]

Written by

[https://www.weforum.org/agenda/authors/michael-buehler Michael Buehler], Head of Infrastructure & Urban Development, World Economic Forum

[https://www.weforum.org/agenda/authors/pierre-patrick-buffet Pierre Patrick Buffet], Director of Analysis and Strategy, CEO Office , ACCIONA Infraestructuras

[https://www.weforum.org/agenda/authors/santiago-castagnino Santiago Castagnino], Partner & Managing Director, Madrid, The Boston Consulting Group

The views expressed in this article are those of the author alone and not the World Economic Forum.

The Fourth Industrial Revolution is about to hit the construction industry. Here’s how it can thrive

2019-02-23T08:52:22Z

Michael Buehler:

[[File:Worker001.jpeg|link=File:Worker001.jpeg]]

Over the past decade, digital progress has transformed whole industries, ushering in a new technological era now known as the [https://www.weforum.org/agenda/2016/01/the-fourth-industrial-revolution-what-it-means-and-how-to-respond/ Fourth Industrial Revolution]. Platforms and streaming services such as Facebook, Spotify and Netflix have transformed media and entertainment. E-commerce giants including Amazon and Alibaba have disrupted bricks-and-mortar retailers. Digital mobility companies are challenging automotive manufacturers.

These new technologies are not only satisfying consumer demand for better entertainment, shopping and transport. Innovation has improved companies’ productivity and sustainability, and redefined the skills and competencies needed to thrive.

[[File:Disruptive_construction_technologies.jpeg|link=File:Disruptive_construction_technologies.jpeg]]

However, over the same period, the construction industry has continued to operate as it has for the past 50 years. It still relies heavily on manual labour, mechanical technology and established operating and business models. As a result, productivity has stagnated.

Only recently have digital technologies begun to enter the industry, gradually changing how infrastructure, real estate and other built assets are designed, constructed, operated and maintained. These technologies, including [https://futureofconstruction.org/practice/an-action-plan-to-accelerate-building-information-modeling-bim-adoption/ building information modeling (BIM)], prefabrication, wireless sensors, 3D printing and automated and robotic equipment, are affecting the entire industry. Their economic and social impact could be substantial, given that the construction industry accounts for 6% of global GDP.

[https://youtu.be/sgPD6lZn904 https://youtu.be/sgPD6lZn904]

Within a decade, full-scale digitization could help the industry escape its decades-long stagnation and generate an estimated 12-20% in annual cost savings, equal to between $1 trillion and $1.7 trillion, according to our estimates.

Global megatrends should also motivate businesses to rethink industry practices that have not advanced. Climate change, resource depletion, a widening talent gap and rapid urbanization - more than 200,000 people are moving into cities from rural areas every day - are but a few of these trends.

Within a decade, full-scale digitization could help the industry escape its decades-long stagnation and generate an estimated 12-20% in annual cost savings, equal to between $1 trillion and $1.7 trillion, according to our estimates.

Global megatrends should also motivate businesses to rethink industry practices that have not advanced. Climate change, resource depletion, a widening talent gap and rapid urbanization - more than 200,000 people are moving into cities from rural areas every day - are but a few of these trends.

[[File:FoC_Megatrends.png|link=File:FoC_Megatrends.png]]

A new report, [http://www3.weforum.org/docs/Future_Scenarios_Implications_Industry_report_2018.pdf Shaping the Future of Construction: Future Scenarios and Implications] depicts three potential outcomes based on these new forces. The future is likely to include elements of each one.

"Current business models, strategies and capabilities will not be sufficient in any of these future worlds", says Michael Burke, Chairman and CEO of AECOM and Co-Chair of the World Economic Forum Infrastructure and Urban Development community.

"Players along the construction value chain need to prepare strategically to thrive in the face of anticipated disruption."

To keep up, attracting new talent and improving the skills of the existing workforce were deemed priorities by 74% of industry CEOs at the 2018 World Economic Forum in Davos. Improving integration and collaboration along the value chain (65%) and adopting advanced technologies at scale (61%) were other key actions they considered.

"The construction industry’s decision-makers should understand the disruption outlined in the future scenarios as a wake-up call. They should use the identified key actions to prepare and shape a prosperous future that will allow the industry to fulfil its role in promoting economic growth, social progress and environmental responsibility", says Luis Castilla, CEO of Acciona Infrastructure and champion of the World Economic Forum Future of Construction initiative.

Several scenarios were created by the World Economic Forum and 30 companies for how the industry could look in the future, based on global trends. They clearly show that existing capabilities, business models and strategies will not be sufficient for success. The scenarios also pinpoint several common no-regret moves that companies should take to remain relevant.

Our key conclusion is that businesses must act now to circumvent future disruption. Dramatic changes on the horizon indicate an uncertain future for the global industry and its more than 100 million employees. The following actions will be relevant, whatever unfolds:

Attract new talent and build up required skills

Any future scenario requires talent with substantially different skills than today's workforce. Adequate upskilling processes are largely not in place.

Integrate and collaborate across the construction industry’s value chain

The construction industry is characterized by a disintegrated and highly fragmented value chain, which hampers the seamless data flows and integrated systems that are essential in any future scenario.

Adopt advanced technologies at scale

The construction industry has been slow to adopt new technologies. It still relies heavily on manual labour and mechanical technologies, resulting in poor productivity.

Maximize the use of data and digital models throughout processes

This involves reviewing existing practices and infrastructure asset portfolios, to embrace new business opportunities and enable change management.

The myriad potential changes in the construction industry lead to high ambiguity and make it impossible to predict what lies ahead. However, with scenario planning, involved stakeholders can prepare for a variety of possible futures.

Read more of our reports here

[http://www3.weforum.org/docs/Future_Scenarios_Implications_Industry_report_2018.pdf Shaping the Future of Construction: Future Scenarios and Implications]

[http://www3.weforum.org/docs/WEF_Accelerating_BIM_Adoption_Action_Plan.pdf Shaping the Future of Construction: An Action Plan to Accelerate Building Information Modeling (BIM) Adoption]

[http://www3.weforum.org/docs/WEF_Action_plan_to_solve_the_industrys_talent_gap.pdf Shaping the Future of Construction: An Action Plan to solve the Industry’s Talent Gap]

Written by

[https://www.weforum.org/agenda/authors/michael-buehler Michael Buehler], Head of Infrastructure & Urban Development, World Economic Forum

[https://www.weforum.org/agenda/authors/pierre-patrick-buffet Pierre Patrick Buffet], Director of Analysis and Strategy, CEO Office , ACCIONA Infraestructuras

[https://www.weforum.org/agenda/authors/santiago-castagnino Santiago Castagnino], Partner & Managing Director, Madrid, The Boston Consulting Group

The views expressed in this article are those of the author alone and not the World Economic Forum.

The Fourth Industrial Revolution is about to hit the construction industry. Here’s how it can thrive

2019-02-23T08:51:35Z

Michael Buehler:

[[File:Worker001.jpeg|link=File:Worker001.jpeg]]

Over the past decade, digital progress has transformed whole industries, ushering in a new technological era now known as the [https://www.weforum.org/agenda/2016/01/the-fourth-industrial-revolution-what-it-means-and-how-to-respond/ Fourth Industrial Revolution]. Platforms and streaming services such as Facebook, Spotify and Netflix have transformed media and entertainment. E-commerce giants including Amazon and Alibaba have disrupted bricks-and-mortar retailers. Digital mobility companies are challenging automotive manufacturers.

These new technologies are not only satisfying consumer demand for better entertainment, shopping and transport. Innovation has improved companies’ productivity and sustainability, and redefined the skills and competencies needed to thrive.

[[File:Disruptive_construction_technologies.jpeg|link=File:Disruptive_construction_technologies.jpeg]]

However, over the same period, the construction industry has continued to operate as it has for the past 50 years. It still relies heavily on manual labour, mechanical technology and established operating and business models. As a result, productivity has stagnated.

Only recently have digital technologies begun to enter the industry, gradually changing how infrastructure, real estate and other built assets are designed, constructed, operated and maintained. These technologies, including [https://futureofconstruction.org/practice/an-action-plan-to-accelerate-building-information-modeling-bim-adoption/ building information modeling (BIM)], prefabrication, wireless sensors, 3D printing and automated and robotic equipment, are affecting the entire industry. Their economic and social impact could be substantial, given that the construction industry accounts for 6% of global GDP.

[https://youtu.be/sgPD6lZn904 https://youtu.be/sgPD6lZn904]

Within a decade, full-scale digitization could help the industry escape its decades-long stagnation and generate an estimated 12-20% in annual cost savings, equal to between $1 trillion and $1.7 trillion, according to our estimates.

Global megatrends should also motivate businesses to rethink industry practices that have not advanced. Climate change, resource depletion, a widening talent gap and rapid urbanization - more than 200,000 people are moving into cities from rural areas every day - are but a few of these trends.

Within a decade, full-scale digitization could help the industry escape its decades-long stagnation and generate an estimated 12-20% in annual cost savings, equal to between $1 trillion and $1.7 trillion, according to our estimates.

Global megatrends should also motivate businesses to rethink industry practices that have not advanced. Climate change, resource depletion, a widening talent gap and rapid urbanization - more than 200,000 people are moving into cities from rural areas every day - are but a few of these trends.

[[File:FoC Megatrends.png]]

A new report, [http://www3.weforum.org/docs/Future_Scenarios_Implications_Industry_report_2018.pdf Shaping the Future of Construction: Future Scenarios and Implications] depicts three potential outcomes based on these new forces. The future is likely to include elements of each one.

"Current business models, strategies and capabilities will not be sufficient in any of these future worlds", says Michael Burke, Chairman and CEO of AECOM and Co-Chair of the World Economic Forum Infrastructure and Urban Development community.

"Players along the construction value chain need to prepare strategically to thrive in the face of anticipated disruption."

To keep up, attracting new talent and improving the skills of the existing workforce were deemed priorities by 74% of industry CEOs at the 2018 World Economic Forum in Davos. Improving integration and collaboration along the value chain (65%) and adopting advanced technologies at scale (61%) were other key actions they considered.

"The construction industry’s decision-makers should understand the disruption outlined in the future scenarios as a wake-up call. They should use the identified key actions to prepare and shape a prosperous future that will allow the industry to fulfil its role in promoting economic growth, social progress and environmental responsibility", says Luis Castilla, CEO of Acciona Infrastructure and champion of the World Economic Forum Future of Construction initiative.

Several scenarios were created by the World Economic Forum and 30 companies for how the industry could look in the future, based on global trends. They clearly show that existing capabilities, business models and strategies will not be sufficient for success. The scenarios also pinpoint several common no-regret moves that companies should take to remain relevant.

Our key conclusion is that businesses must act now to circumvent future disruption. Dramatic changes on the horizon indicate an uncertain future for the global industry and its more than 100 million employees. The following actions will be relevant, whatever unfolds:

Attract new talent and build up required skills

Any future scenario requires talent with substantially different skills than today's workforce. Adequate upskilling processes are largely not in place.

Integrate and collaborate across the construction industry’s value chain

The construction industry is characterized by a disintegrated and highly fragmented value chain, which hampers the seamless data flows and integrated systems that are essential in any future scenario.

Adopt advanced technologies at scale

The construction industry has been slow to adopt new technologies. It still relies heavily on manual labour and mechanical technologies, resulting in poor productivity.

Maximize the use of data and digital models throughout processes

This involves reviewing existing practices and infrastructure asset portfolios, to embrace new business opportunities and enable change management.

The myriad potential changes in the construction industry lead to high ambiguity and make it impossible to predict what lies ahead. However, with scenario planning, involved stakeholders can prepare for a variety of possible futures.

Read more of our reports here

[http://www3.weforum.org/docs/Future_Scenarios_Implications_Industry_report_2018.pdf Shaping the Future of Construction: Future Scenarios and Implications]

[http://www3.weforum.org/docs/WEF_Accelerating_BIM_Adoption_Action_Plan.pdf Shaping the Future of Construction: An Action Plan to Accelerate Building Information Modeling (BIM) Adoption]

[http://www3.weforum.org/docs/WEF_Action_plan_to_solve_the_industrys_talent_gap.pdf Shaping the Future of Construction: An Action Plan to solve the Industry’s Talent Gap]

Written by

[https://www.weforum.org/agenda/authors/michael-buehler Michael Buehler], Head of Infrastructure & Urban Development, World Economic Forum

[https://www.weforum.org/agenda/authors/pierre-patrick-buffet Pierre Patrick Buffet], Director of Analysis and Strategy, CEO Office , ACCIONA Infraestructuras

[https://www.weforum.org/agenda/authors/santiago-castagnino Santiago Castagnino], Partner & Managing Director, Madrid, The Boston Consulting Group

The views expressed in this article are those of the author alone and not the World Economic Forum.

File:FoC Megatrends.png

2019-02-23T08:49:51Z

Michael Buehler: Megatrends create imperative for change Image: World Economic Forum, Boston Consulting Group

Megatrends create imperative for change Image: World Economic Forum, Boston Consulting Group

The Fourth Industrial Revolution is about to hit the construction industry. Here’s how it can thrive

2019-02-23T08:47:42Z

Michael Buehler:

[[File:Worker001.jpeg|link=File:Worker001.jpeg]]

Over the past decade, digital progress has transformed whole industries, ushering in a new technological era now known as the [https://www.weforum.org/agenda/2016/01/the-fourth-industrial-revolution-what-it-means-and-how-to-respond/ Fourth Industrial Revolution]. Platforms and streaming services such as Facebook, Spotify and Netflix have transformed media and entertainment. E-commerce giants including Amazon and Alibaba have disrupted bricks-and-mortar retailers. Digital mobility companies are challenging automotive manufacturers.

These new technologies are not only satisfying consumer demand for better entertainment, shopping and transport. Innovation has improved companies’ productivity and sustainability, and redefined the skills and competencies needed to thrive.

[[File:Disruptive construction technologies.jpeg]]

However, over the same period, the construction industry has continued to operate as it has for the past 50 years. It still relies heavily on manual labour, mechanical technology and established operating and business models. As a result, productivity has stagnated.

Only recently have digital technologies begun to enter the industry, gradually changing how infrastructure, real estate and other built assets are designed, constructed, operated and maintained. These technologies, including [https://futureofconstruction.org/practice/an-action-plan-to-accelerate-building-information-modeling-bim-adoption/ building information modeling (BIM)], prefabrication, wireless sensors, 3D printing and automated and robotic equipment, are affecting the entire industry. Their economic and social impact could be substantial, given that the construction industry accounts for 6% of global GDP.

[https://youtu.be/sgPD6lZn904 https://youtu.be/sgPD6lZn904]

Within a decade, full-scale digitization could help the industry escape its decades-long stagnation and generate an estimated 12-20% in annual cost savings, equal to between $1 trillion and $1.7 trillion, according to our estimates.

Global megatrends should also motivate businesses to rethink industry practices that have not advanced. Climate change, resource depletion, a widening talent gap and rapid urbanization - more than 200,000 people are moving into cities from rural areas every day - are but a few of these trends.

Within a decade, full-scale digitization could help the industry escape its decades-long stagnation and generate an estimated 12-20% in annual cost savings, equal to between $1 trillion and $1.7 trillion, according to our estimates.

Global megatrends should also motivate businesses to rethink industry practices that have not advanced. Climate change, resource depletion, a widening talent gap and rapid urbanization - more than 200,000 people are moving into cities from rural areas every day - are but a few of these trends.

A new report, [http://www3.weforum.org/docs/Future_Scenarios_Implications_Industry_report_2018.pdf Shaping the Future of Construction: Future Scenarios and Implications] depicts three potential outcomes based on these new forces. The future is likely to include elements of each one.

"Current business models, strategies and capabilities will not be sufficient in any of these future worlds", says Michael Burke, Chairman and CEO of AECOM and Co-Chair of the World Economic Forum Infrastructure and Urban Development community.

"Players along the construction value chain need to prepare strategically to thrive in the face of anticipated disruption."

To keep up, attracting new talent and improving the skills of the existing workforce were deemed priorities by 74% of industry CEOs at the 2018 World Economic Forum in Davos. Improving integration and collaboration along the value chain (65%) and adopting advanced technologies at scale (61%) were other key actions they considered.

"The construction industry’s decision-makers should understand the disruption outlined in the future scenarios as a wake-up call. They should use the identified key actions to prepare and shape a prosperous future that will allow the industry to fulfil its role in promoting economic growth, social progress and environmental responsibility", says Luis Castilla, CEO of Acciona Infrastructure and champion of the World Economic Forum Future of Construction initiative.

Several scenarios were created by the World Economic Forum and 30 companies for how the industry could look in the future, based on global trends. They clearly show that existing capabilities, business models and strategies will not be sufficient for success. The scenarios also pinpoint several common no-regret moves that companies should take to remain relevant.

Our key conclusion is that businesses must act now to circumvent future disruption. Dramatic changes on the horizon indicate an uncertain future for the global industry and its more than 100 million employees. The following actions will be relevant, whatever unfolds:

Attract new talent and build up required skills

Any future scenario requires talent with substantially different skills than today's workforce. Adequate upskilling processes are largely not in place.

Integrate and collaborate across the construction industry’s value chain

The construction industry is characterized by a disintegrated and highly fragmented value chain, which hampers the seamless data flows and integrated systems that are essential in any future scenario.

Adopt advanced technologies at scale

The construction industry has been slow to adopt new technologies. It still relies heavily on manual labour and mechanical technologies, resulting in poor productivity.

Maximize the use of data and digital models throughout processes

This involves reviewing existing practices and infrastructure asset portfolios, to embrace new business opportunities and enable change management.

The myriad potential changes in the construction industry lead to high ambiguity and make it impossible to predict what lies ahead. However, with scenario planning, involved stakeholders can prepare for a variety of possible futures.

Read more of our reports here

[http://www3.weforum.org/docs/Future_Scenarios_Implications_Industry_report_2018.pdf Shaping the Future of Construction: Future Scenarios and Implications]

[http://www3.weforum.org/docs/WEF_Accelerating_BIM_Adoption_Action_Plan.pdf Shaping the Future of Construction: An Action Plan to Accelerate Building Information Modeling (BIM) Adoption]

[http://www3.weforum.org/docs/WEF_Action_plan_to_solve_the_industrys_talent_gap.pdf Shaping the Future of Construction: An Action Plan to solve the Industry’s Talent Gap]

Written by

[https://www.weforum.org/agenda/authors/michael-buehler Michael Buehler], Head of Infrastructure & Urban Development, World Economic Forum

[https://www.weforum.org/agenda/authors/pierre-patrick-buffet Pierre Patrick Buffet], Director of Analysis and Strategy, CEO Office , ACCIONA Infraestructuras

[https://www.weforum.org/agenda/authors/santiago-castagnino Santiago Castagnino], Partner & Managing Director, Madrid, The Boston Consulting Group

The views expressed in this article are those of the author alone and not the World Economic Forum.

File:Disruptive construction technologies.jpeg

2019-02-23T08:42:40Z

Michael Buehler: Top 10 disruptive technologies in construction, Image: World Economic Forum, Boston Consulting Group

Top 10 disruptive technologies in construction, Image: World Economic Forum, Boston Consulting Group

The Fourth Industrial Revolution is about to hit the construction industry. Here’s how it can thrive

2019-02-23T08:07:17Z

Michael Buehler:

[[File:Worker001.jpeg]]

Over the past decade, digital progress has transformed whole industries, ushering in a new technological era now known as the [https://www.weforum.org/agenda/2016/01/the-fourth-industrial-revolution-what-it-means-and-how-to-respond/ Fourth Industrial Revolution]. Platforms and streaming services such as Facebook, Spotify and Netflix have transformed media and entertainment. E-commerce giants including Amazon and Alibaba have disrupted bricks-and-mortar retailers. Digital mobility companies are challenging automotive manufacturers.

These new technologies are not only satisfying consumer demand for better entertainment, shopping and transport. Innovation has improved companies’ productivity and sustainability, and redefined the skills and competencies needed to thrive.

However, over the same period, the construction industry has continued to operate as it has for the past 50 years. It still relies heavily on manual labour, mechanical technology and established operating and business models. As a result, productivity has stagnated.

Only recently have digital technologies begun to enter the industry, gradually changing how infrastructure, real estate and other built assets are designed, constructed, operated and maintained. These technologies, including [https://futureofconstruction.org/practice/an-action-plan-to-accelerate-building-information-modeling-bim-adoption/ building information modeling (BIM)], prefabrication, wireless sensors, 3D printing and automated and robotic equipment, are affecting the entire industry. Their economic and social impact could be substantial, given that the construction industry accounts for 6% of global GDP.

Within a decade, full-scale digitization could help the industry escape its decades-long stagnation and generate an estimated 12-20% in annual cost savings, equal to between $1 trillion and $1.7 trillion, according to our estimates.

Global megatrends should also motivate businesses to rethink industry practices that have not advanced. Climate change, resource depletion, a widening talent gap and rapid urbanization - more than 200,000 people are moving into cities from rural areas every day - are but a few of these trends.

Within a decade, full-scale digitization could help the industry escape its decades-long stagnation and generate an estimated 12-20% in annual cost savings, equal to between $1 trillion and $1.7 trillion, according to our estimates.

Global megatrends should also motivate businesses to rethink industry practices that have not advanced. Climate change, resource depletion, a widening talent gap and rapid urbanization - more than 200,000 people are moving into cities from rural areas every day - are but a few of these trends.

A new report, [http://www3.weforum.org/docs/Future_Scenarios_Implications_Industry_report_2018.pdf Shaping the Future of Construction: Future Scenarios and Implications] depicts three potential outcomes based on these new forces. The future is likely to include elements of each one.

"Current business models, strategies and capabilities will not be sufficient in any of these future worlds", says Michael Burke, Chairman and CEO of AECOM and Co-Chair of the World Economic Forum Infrastructure and Urban Development community.

"Players along the construction value chain need to prepare strategically to thrive in the face of anticipated disruption."

To keep up, attracting new talent and improving the skills of the existing workforce were deemed priorities by 74% of industry CEOs at the 2018 World Economic Forum in Davos. Improving integration and collaboration along the value chain (65%) and adopting advanced technologies at scale (61%) were other key actions they considered.

"The construction industry’s decision-makers should understand the disruption outlined in the future scenarios as a wake-up call. They should use the identified key actions to prepare and shape a prosperous future that will allow the industry to fulfil its role in promoting economic growth, social progress and environmental responsibility", says Luis Castilla, CEO of Acciona Infrastructure and champion of the World Economic Forum Future of Construction initiative.

Several scenarios were created by the World Economic Forum and 30 companies for how the industry could look in the future, based on global trends. They clearly show that existing capabilities, business models and strategies will not be sufficient for success. The scenarios also pinpoint several common no-regret moves that companies should take to remain relevant.

Our key conclusion is that businesses must act now to circumvent future disruption. Dramatic changes on the horizon indicate an uncertain future for the global industry and its more than 100 million employees. The following actions will be relevant, whatever unfolds:

Attract new talent and build up required skills

Any future scenario requires talent with substantially different skills than today's workforce. Adequate upskilling processes are largely not in place.

Integrate and collaborate across the construction industry’s value chain

The construction industry is characterized by a disintegrated and highly fragmented value chain, which hampers the seamless data flows and integrated systems that are essential in any future scenario.

Adopt advanced technologies at scale

The construction industry has been slow to adopt new technologies. It still relies heavily on manual labour and mechanical technologies, resulting in poor productivity.

Maximize the use of data and digital models throughout processes

This involves reviewing existing practices and infrastructure asset portfolios, to embrace new business opportunities and enable change management.

The myriad potential changes in the construction industry lead to high ambiguity and make it impossible to predict what lies ahead. However, with scenario planning, involved stakeholders can prepare for a variety of possible futures.

Read more of our reports here

[http://www3.weforum.org/docs/Future_Scenarios_Implications_Industry_report_2018.pdf Shaping the Future of Construction: Future Scenarios and Implications]

[http://www3.weforum.org/docs/WEF_Accelerating_BIM_Adoption_Action_Plan.pdf Shaping the Future of Construction: An Action Plan to Accelerate Building Information Modeling (BIM) Adoption]

[http://www3.weforum.org/docs/WEF_Action_plan_to_solve_the_industrys_talent_gap.pdf Shaping the Future of Construction: An Action Plan to solve the Industry’s Talent Gap]

Written by

[https://www.weforum.org/agenda/authors/michael-buehler Michael Buehler], Head of Infrastructure & Urban Development, World Economic Forum

[https://www.weforum.org/agenda/authors/pierre-patrick-buffet Pierre Patrick Buffet], Director of Analysis and Strategy, CEO Office , ACCIONA Infraestructuras

[https://www.weforum.org/agenda/authors/santiago-castagnino Santiago Castagnino], Partner & Managing Director, Madrid, The Boston Consulting Group

The views expressed in this article are those of the author alone and not the World Economic Forum.

File:Worker001.jpeg

2019-02-23T08:05:07Z

Michael Buehler: Construction, which accounts for 6% of global GDP, still relies on manual labour and mechanical tools.

Construction, which accounts for 6% of global GDP, still relies on manual labour and mechanical tools.

The Fourth Industrial Revolution is about to hit the construction industry. Here’s how it can thrive

2019-02-23T08:02:41Z

Michael Buehler:

Over the past decade, digital progress has transformed whole industries, ushering in a new technological era now known as the [https://www.weforum.org/agenda/2016/01/the-fourth-industrial-revolution-what-it-means-and-how-to-respond/ Fourth Industrial Revolution]. Platforms and streaming services such as Facebook, Spotify and Netflix have transformed media and entertainment. E-commerce giants including Amazon and Alibaba have disrupted bricks-and-mortar retailers. Digital mobility companies are challenging automotive manufacturers.

These new technologies are not only satisfying consumer demand for better entertainment, shopping and transport. Innovation has improved companies’ productivity and sustainability, and redefined the skills and competencies needed to thrive.

However, over the same period, the construction industry has continued to operate as it has for the past 50 years. It still relies heavily on manual labour, mechanical technology and established operating and business models. As a result, productivity has stagnated.

Only recently have digital technologies begun to enter the industry, gradually changing how infrastructure, real estate and other built assets are designed, constructed, operated and maintained. These technologies, including [https://futureofconstruction.org/practice/an-action-plan-to-accelerate-building-information-modeling-bim-adoption/ building information modeling (BIM)], prefabrication, wireless sensors, 3D printing and automated and robotic equipment, are affecting the entire industry. Their economic and social impact could be substantial, given that the construction industry accounts for 6% of global GDP.

Within a decade, full-scale digitization could help the industry escape its decades-long stagnation and generate an estimated 12-20% in annual cost savings, equal to between $1 trillion and $1.7 trillion, according to our estimates.

Global megatrends should also motivate businesses to rethink industry practices that have not advanced. Climate change, resource depletion, a widening talent gap and rapid urbanization - more than 200,000 people are moving into cities from rural areas every day - are but a few of these trends.

Within a decade, full-scale digitization could help the industry escape its decades-long stagnation and generate an estimated 12-20% in annual cost savings, equal to between $1 trillion and $1.7 trillion, according to our estimates.

Global megatrends should also motivate businesses to rethink industry practices that have not advanced. Climate change, resource depletion, a widening talent gap and rapid urbanization - more than 200,000 people are moving into cities from rural areas every day - are but a few of these trends.

A new report, [http://www3.weforum.org/docs/Future_Scenarios_Implications_Industry_report_2018.pdf Shaping the Future of Construction: Future Scenarios and Implications] depicts three potential outcomes based on these new forces. The future is likely to include elements of each one.

"Current business models, strategies and capabilities will not be sufficient in any of these future worlds", says Michael Burke, Chairman and CEO of AECOM and Co-Chair of the World Economic Forum Infrastructure and Urban Development community.

"Players along the construction value chain need to prepare strategically to thrive in the face of anticipated disruption."

To keep up, attracting new talent and improving the skills of the existing workforce were deemed priorities by 74% of industry CEOs at the 2018 World Economic Forum in Davos. Improving integration and collaboration along the value chain (65%) and adopting advanced technologies at scale (61%) were other key actions they considered.

"The construction industry’s decision-makers should understand the disruption outlined in the future scenarios as a wake-up call. They should use the identified key actions to prepare and shape a prosperous future that will allow the industry to fulfil its role in promoting economic growth, social progress and environmental responsibility", says Luis Castilla, CEO of Acciona Infrastructure and champion of the World Economic Forum Future of Construction initiative.

Several scenarios were created by the World Economic Forum and 30 companies for how the industry could look in the future, based on global trends. They clearly show that existing capabilities, business models and strategies will not be sufficient for success. The scenarios also pinpoint several common no-regret moves that companies should take to remain relevant.

Our key conclusion is that businesses must act now to circumvent future disruption. Dramatic changes on the horizon indicate an uncertain future for the global industry and its more than 100 million employees. The following actions will be relevant, whatever unfolds:

Attract new talent and build up required skills

Any future scenario requires talent with substantially different skills than today's workforce. Adequate upskilling processes are largely not in place.

Integrate and collaborate across the construction industry’s value chain

The construction industry is characterized by a disintegrated and highly fragmented value chain, which hampers the seamless data flows and integrated systems that are essential in any future scenario.

Adopt advanced technologies at scale

The construction industry has been slow to adopt new technologies. It still relies heavily on manual labour and mechanical technologies, resulting in poor productivity.

Maximize the use of data and digital models throughout processes

This involves reviewing existing practices and infrastructure asset portfolios, to embrace new business opportunities and enable change management.

The myriad potential changes in the construction industry lead to high ambiguity and make it impossible to predict what lies ahead. However, with scenario planning, involved stakeholders can prepare for a variety of possible futures.

Read more of our reports here

[http://www3.weforum.org/docs/Future_Scenarios_Implications_Industry_report_2018.pdf Shaping the Future of Construction: Future Scenarios and Implications]

[http://www3.weforum.org/docs/WEF_Accelerating_BIM_Adoption_Action_Plan.pdf Shaping the Future of Construction: An Action Plan to Accelerate Building Information Modeling (BIM) Adoption]

[http://www3.weforum.org/docs/WEF_Action_plan_to_solve_the_industrys_talent_gap.pdf Shaping the Future of Construction: An Action Plan to solve the Industry’s Talent Gap]

Written by

[https://www.weforum.org/agenda/authors/michael-buehler Michael Buehler], Head of Infrastructure & Urban Development, World Economic Forum

[https://www.weforum.org/agenda/authors/pierre-patrick-buffet Pierre Patrick Buffet], Director of Analysis and Strategy, CEO Office , ACCIONA Infraestructuras

[https://www.weforum.org/agenda/authors/santiago-castagnino Santiago Castagnino], Partner & Managing Director, Madrid, The Boston Consulting Group

The views expressed in this article are those of the author alone and not the World Economic Forum.

The Fourth Industrial Revolution is about to hit the construction industry. Here’s how it can thrive

2019-02-23T08:01:26Z

Michael Buehler: Created page with "Over the past decade, digital progress has transformed whole industries, ushering in a new technological era now known as the [https://www.weforum.org/agenda/2016/01/the-fourth-i..."

Over the past decade, digital progress has transformed whole industries, ushering in a new technological era now known as the [https://www.weforum.org/agenda/2016/01/the-fourth-industrial-revolution-what-it-means-and-how-to-respond/ Fourth Industrial Revolution]. Platforms and streaming services such as Facebook, Spotify and Netflix have transformed media and entertainment. E-commerce giants including Amazon and Alibaba have disrupted bricks-and-mortar retailers. Digital mobility companies are challenging automotive manufacturers.

These new technologies are not only satisfying consumer demand for better entertainment, shopping and transport. Innovation has improved companies’ productivity and sustainability, and redefined the skills and competencies needed to thrive.

However, over the same period, the construction industry has continued to operate as it has for the past 50 years. It still relies heavily on manual labour, mechanical technology and established operating and business models. As a result, productivity has stagnated.

Only recently have digital technologies begun to enter the industry, gradually changing how infrastructure, real estate and other built assets are designed, constructed, operated and maintained. These technologies, including [https://futureofconstruction.org/practice/an-action-plan-to-accelerate-building-information-modeling-bim-adoption/ building information modeling (BIM)], prefabrication, wireless sensors, 3D printing and automated and robotic equipment, are affecting the entire industry. Their economic and social impact could be substantial, given that the construction industry accounts for 6% of global GDP.

Within a decade, full-scale digitization could help the industry escape its decades-long stagnation and generate an estimated 12-20% in annual cost savings, equal to between $1 trillion and $1.7 trillion, according to our estimates.

Global megatrends should also motivate businesses to rethink industry practices that have not advanced. Climate change, resource depletion, a widening talent gap and rapid urbanization - more than 200,000 people are moving into cities from rural areas every day - are but a few of these trends.

Within a decade, full-scale digitization could help the industry escape its decades-long stagnation and generate an estimated 12-20% in annual cost savings, equal to between $1 trillion and $1.7 trillion, according to our estimates.

Global megatrends should also motivate businesses to rethink industry practices that have not advanced. Climate change, resource depletion, a widening talent gap and rapid urbanization - more than 200,000 people are moving into cities from rural areas every day - are but a few of these trends.

A new report, [http://www3.weforum.org/docs/Future_Scenarios_Implications_Industry_report_2018.pdf Shaping the Future of Construction: Future Scenarios and Implications] depicts three potential outcomes based on these new forces. The future is likely to include elements of each one.

"Current business models, strategies and capabilities will not be sufficient in any of these future worlds", says Michael Burke, Chairman and CEO of AECOM and Co-Chair of the World Economic Forum Infrastructure and Urban Development community.

"Players along the construction value chain need to prepare strategically to thrive in the face of anticipated disruption."

To keep up, attracting new talent and improving the skills of the existing workforce were deemed priorities by 74% of industry CEOs at the 2018 World Economic Forum in Davos. Improving integration and collaboration along the value chain (65%) and adopting advanced technologies at scale (61%) were other key actions they considered.

"The construction industry’s decision-makers should understand the disruption outlined in the future scenarios as a wake-up call. They should use the identified key actions to prepare and shape a prosperous future that will allow the industry to fulfil its role in promoting economic growth, social progress and environmental responsibility", says Luis Castilla, CEO of Acciona Infrastructure and champion of the World Economic Forum Future of Construction initiative.

Several scenarios were created by the World Economic Forum and 30 companies for how the industry could look in the future, based on global trends. They clearly show that existing capabilities, business models and strategies will not be sufficient for success. The scenarios also pinpoint several common no-regret moves that companies should take to remain relevant.

Our key conclusion is that businesses must act now to circumvent future disruption. Dramatic changes on the horizon indicate an uncertain future for the global industry and its more than 100 million employees. The following actions will be relevant, whatever unfolds:

Attract new talent and build up required skills

Any future scenario requires talent with substantially different skills than today's workforce. Adequate upskilling processes are largely not in place.

Integrate and collaborate across the construction industry’s value chain

The construction industry is characterized by a disintegrated and highly fragmented value chain, which hampers the seamless data flows and integrated systems that are essential in any future scenario.

Adopt advanced technologies at scale

The construction industry has been slow to adopt new technologies. It still relies heavily on manual labour and mechanical technologies, resulting in poor productivity.

Maximize the use of data and digital models throughout processes

This involves reviewing existing practices and infrastructure asset portfolios, to embrace new business opportunities and enable change management.

The myriad potential changes in the construction industry lead to high ambiguity and make it impossible to predict what lies ahead. However, with scenario planning, involved stakeholders can prepare for a variety of possible futures.

Read more of our reports here

[http://www3.weforum.org/docs/Future_Scenarios_Implications_Industry_report_2018.pdf Shaping the Future of Construction: Future Scenarios and Implications]

[http://www3.weforum.org/docs/WEF_Accelerating_BIM_Adoption_Action_Plan.pdf Shaping the Future of Construction: An Action Plan to Accelerate Building Information Modeling (BIM) Adoption]

[http://www3.weforum.org/docs/WEF_Action_plan_to_solve_the_industrys_talent_gap.pdf Shaping the Future of Construction: An Action Plan to solve the Industry’s Talent Gap]

Shar

Written by

[https://www.weforum.org/agenda/authors/michael-buehler Michael Buehler], Head of Infrastructure & Urban Development, World Economic Forum

[https://www.weforum.org/agenda/authors/pierre-patrick-buffet Pierre Patrick Buffet], Director of Analysis and Strategy, CEO Office , ACCIONA Infraestructuras

[https://www.weforum.org/agenda/authors/santiago-castagnino Santiago Castagnino], Partner & Managing Director, Madrid, The Boston Consulting Group

The views expressed in this article are those of the author alone and not the World Economic Forum.

Recruiting and retaining talent in the construction industry

2017-03-14T20:07:10Z

Michael Buehler:

[[File:Talent_construction.jpg|link=File:Talent_construction.jpg]]

* Written by

Michael Max Buehler, Head of Infrastructure & Urban Development, World Economic Forum

Recruiting and managing talent in the coming years will be challenging for the construction sector, as it will be in many other industries, according to [https://futureofconstruction.org/blog/ our latest report]. The prospective scarcity of skilled labour driven by demographic shifts, and the increasing sophistication of technology, which demands new and broader skill sets at all levels; coupled with the traditionally high volatility of workforce demand and composition, will be major tests.

[[File:Talent_diagram1.png|link=File:Talent_diagram1.png]]

Figure 1: worker age in the US construction sector

Leaders need to engage in strategic workforce planning to better anticipate workforce needs and priorities. Proactive measures, such as comprehensive talent management, including smart hiring and enhanced retention strategies, must be developed. Continuous training can help address the demographic changes and advances in technology and processes.

Many organizations, in particular in construction, are characterized by a conservative corporate culture and mindset. They are often hampered by organizational inertia. To support their overall business goals, the companies themselves need to drive organizational change. This is an iterative process, which requires careful alignment of a company’s culture and goals, its organizational design, and its incentive schemes.

= Culture is a talent magnet – attract talent by your tribal culture =

How can company leaders build a better organization that the best people want to work for?

[https://www.linkedin.com/pulse/trying-preach-values-tribes-stages-one-two-lower-parts-buehler Based on a study of 30,000 people from 30 global organizations], Dave Logan, Professor in Management and Organization at the USC Marshall School of Business, introduced the concept that organizations are tribal cultures. As Logan defines it, “a tribe is a group of 20 to 150 people who know one another enough that, if they saw another walking down the street, would stop and say hello”. In their research, Logan and his team wanted to understand why leadership appears effortless in some situations and chronically ineffective in others. In a nutshell, what makes a tribe more effective than others is its culture: a product of the language people use, the reality this creates and the behaviour this prompts.

Logan also observed so-called “tribal leaders”, individuals who focus their energy on advancing their tribal culture to the next level. He studied how they set standards for corporate performance, from productivity and profitability, to employee retention and attraction of talent. Tribal leaders bring groups closer together by recognizing their “tribalness” and, with their help, people start to talk about the things they really care about. They begin to convene around common causes and to make something purposeful, something greater than them, happen. Most importantly, a strong tribal culture is able to attract the best talent, as Logan explains: “Tribal leaders are talent magnets, with people so eager to work for the leader that they will take a pay cut if necessary.”

= Forget competencies: hire character and potential, and train for skill =

Why do so many corporate leaders, who seem the right fit for a position, fail; while many who are less competent succeed so spectacularly?

The simple answer is “potential” or the ability to adapt and grow into increasingly complex roles and environments. Five qualities are reliable indicators for potential: motivation, curiosity, insight, engagement and determination.

Claudio Fernández-Aráoz, senior adviser at Egon Zehnder and the author of It’s Not the How or the What but the Who, has spent three decades evaluating and tracking executives, studying their performance. [https://www.linkedin.com/pulse/forget-competencies-hire-character-potential-train-skill-buehler Fernández-Aráoz considers potential to be the most important predictor of success] at all levels: “As business environments becomes more volatile, uncertain, complex and ambiguous (…), competency-based appraisals and appointments are increasingly insufficient. Organizations and their leaders must transition to a new era of talent-spotting.”

Talent successful in a specific role today, might not be so successful tomorrow if the corporate strategy changes, the competitive environment shifts, or internal or external stakeholders change. The question is not whether your talent has the right skills, it’s whether it has the potential to learn new ones. As Peter Schutz, former President and CEO of Porsche, puts it: “Hire character. Train for skill.”

Hiring for potential and effectively retaining and developing those who have it, at every level of the organization, should be the highest priority. This opinion was shared some years ago by Lawrence Bossidy, former Chairman of Honeywell, who said: “I am convinced that nothing we do is more important than hiring and developing people. At the end of the day you bet on people, not on strategies.”

= Pale, male and stale was yesterday – invest in diversity =

In an increasingly fast-paced and interconnected world of highly volatile and complex markets, diverse teams are becoming crucial at all levels of an organization. Diversity can have numerous characteristics, involving gender, age, nationality, ethnic or cultural differences.

A global mindset, openness and international knowledge are vital to executives and organizations succeeding in a world that’s more and more intertwined. According to [http://www.mckinsey.com/business-functions/organization/our-insights/why-diversity-matters a recent McKinsey report], ethnic and racial diversity in management ultimately results in better financial performance. Similarly, [https://www.credit-suisse.com/us/en/about-us/media/news/articles/media-releases/2012/07/en/42035.html Credit Suisse’s assessment of more than 2,400 companies] suggests boards with women on them deliver significantly higher returns. Diversity has a bigger impact on organizations with greater managerial discretion, such as the high tech sector, or those undertaking new initiatives.

[[File:Talent_diagram2.jpg|link=File:Talent_diagram2.jpg]]

Mary Barra, left, CEO of General Motors, sits next to Warren Buffett, CEO of Berkshire Hathaway

Image: REUTERS/Elaine Thompson

[https://www.linkedin.com/pulse/pale-male-stale-yesterday-invest-todays-smart-power-buehler Why are diverse teams smarter?] Working with people from diverse backgrounds challenges the way we think and modifies a team’s social behaviour, leading to improved and more accurate group thinking.

In this environment, teams are more likely to remain objective and able to reassess facts dynamically. Diverse groups also encourage greater scrutiny of each team member’s actions and therefore tend to process critical information more carefully. Finally, there is strong evidence that diverse leadership teams, in particular those including women, are more likely to develop innovative products and services.

There are, of course, risks. When hiring and composing a diverse team, time and effort is required to overcome communication barriers and reach a common understanding. Corporate leaders have to ensure that everyone is heard. In this context, corporate culture is key to creating an environment of mutual appreciation, tolerance and respect. The prospective return on this work is indispensable, as Stephen R. Covey, the American author of bestselling book The 7 Habits of Highly Effective People, puts it: “Strength lies in differences, not in similarities”.

= Getting beyond money: tomorrow’s talent prioritizes flexibility, purpose and ethics =

[http://www.mckinsey.com/business-functions/organization/our-insights/motivating-people-getting-beyond-money Various reports] have concluded that for talent with a reasonable salary, non-financial incentives are more effective than financial rewards. For so-called “knowledge workers”, money mainly causes short-term and less-sustained motivation, which [https://www.youtube.com/watch?v=u6XAPnuFjJc&feature=youtu.be can have further unintended, negative consequences].

[https://www.linkedin.com/pulse/getting-beyond-money-tomorrows-talent-prioritizes-purpose-buehler For millennials in particular, money isn’t everything]. Young talent wants to be part of something bigger than itself. Work doesn’t define millennials to the same degree as previous generations: they want to be happy at home and happy on the job, and money is somewhat secondary. To be successful in attracting the right talent, offering flexibility and a sufficient work-life balance will be essential. Bill Gates explains how businesses could benefit: “The competition to hire the best will increase in the years ahead. Companies that give extra flexibility to their employees will have the edge in this area.”

[[File:Talent_diagram3.png|link=File:Talent_diagram3.png]]

Figure 2: Non-financial incentives are more effective motivators

Millennials are significantly more receptive than other age groups, as both employees and consumers, to Corporate Social Responsibility (CSR) projects. In a McKinsey survey, of those respondents who demanded sustainable products and joined companies with a CSR reputation, more than half were millennials. The UN’s MY World 2014 survey identified transparency and corruption as a top priority for people under the age of 34. This survey suggests that millennials are most concerned about the impact that corruption will have on growth and on the future, in particular on voting and the viability of a career in the public sector.

Written by

[https://www.weforum.org/agenda/authors/michael-buehler Michael Buehler], Head of Infrastructure & Urban Development, World Economic Forum

The views expressed in this article are those of the author alone and not the World Economic Forum.

This article was originally published on the [https://futureofconstruction.org/blog/how-elon-musk-and-other-pioneers-are-shaking-up-the-construction-industry/ Future of Construction Knowledge Sharing] [https://futureofconstruction.org/blog/how-elon-musk-and-other-pioneers-are-shaking-up-the-construction-industry/ Platform] and the [http://www.weforum.org/agenda/2017/03/elon-musk-innovation-construction-industry WEF Agenda Blog].

[[Category:Education]] [[Category:Organisations]] [[Category:Research_/_Innovation]]

Recruiting and retaining talent in the construction industry

2017-03-14T20:05:34Z

Michael Buehler:

[[File:Talent_construction.jpg|link=File:Talent_construction.jpg]]

* Written by

Michael Max Buehler, Head of Infrastructure & Urban Development, World Economic Forum

Recruiting and managing talent in the coming years will be challenging for the construction sector, as it will be in many other industries, according to [https://futureofconstruction.org/blog/ our latest report]. The prospective scarcity of skilled labour driven by demographic shifts, and the increasing sophistication of technology, which demands new and broader skill sets at all levels; coupled with the traditionally high volatility of workforce demand and composition, will be major tests.

[[File:Talent_diagram1.png|link=File:Talent_diagram1.png]]

Figure 1: worker age in the US construction sector

Leaders need to engage in strategic workforce planning to better anticipate workforce needs and priorities. Proactive measures, such as comprehensive talent management, including smart hiring and enhanced retention strategies, must be developed. Continuous training can help address the demographic changes and advances in technology and processes.

Many organizations, in particular in construction, are characterized by a conservative corporate culture and mindset. They are often hampered by organizational inertia. To support their overall business goals, the companies themselves need to drive organizational change. This is an iterative process, which requires careful alignment of a company’s culture and goals, its organizational design, and its incentive schemes.

= 1. Culture is a talent magnet – attract talent by your tribal culture =

How can company leaders build a better organization that the best people want to work for?

[https://www.linkedin.com/pulse/trying-preach-values-tribes-stages-one-two-lower-parts-buehler Based on a study of 30,000 people from 30 global organizations], Dave Logan, Professor in Management and Organization at the USC Marshall School of Business, introduced the concept that organizations are tribal cultures. As Logan defines it, “a tribe is a group of 20 to 150 people who know one another enough that, if they saw another walking down the street, would stop and say hello”. In their research, Logan and his team wanted to understand why leadership appears effortless in some situations and chronically ineffective in others. In a nutshell, what makes a tribe more effective than others is its culture: a product of the language people use, the reality this creates and the behaviour this prompts.

Logan also observed so-called “tribal leaders”, individuals who focus their energy on advancing their tribal culture to the next level. He studied how they set standards for corporate performance, from productivity and profitability, to employee retention and attraction of talent. Tribal leaders bring groups closer together by recognizing their “tribalness” and, with their help, people start to talk about the things they really care about. They begin to convene around common causes and to make something purposeful, something greater than them, happen. Most importantly, a strong tribal culture is able to attract the best talent, as Logan explains: “Tribal leaders are talent magnets, with people so eager to work for the leader that they will take a pay cut if necessary.”

= 2. Forget competencies: hire character and potential, and train for skill =

Why do so many corporate leaders, who seem the right fit for a position, fail; while many who are less competent succeed so spectacularly?

The simple answer is “potential” or the ability to adapt and grow into increasingly complex roles and environments. Five qualities are reliable indicators for potential: motivation, curiosity, insight, engagement and determination.

Claudio Fernández-Aráoz, senior adviser at Egon Zehnder and the author of It’s Not the How or the What but the Who, has spent three decades evaluating and tracking executives, studying their performance. [https://www.linkedin.com/pulse/forget-competencies-hire-character-potential-train-skill-buehler Fernández-Aráoz considers potential to be the most important predictor of success] at all levels: “As business environments becomes more volatile, uncertain, complex and ambiguous (…), competency-based appraisals and appointments are increasingly insufficient. Organizations and their leaders must transition to a new era of talent-spotting.”

Talent successful in a specific role today, might not be so successful tomorrow if the corporate strategy changes, the competitive environment shifts, or internal or external stakeholders change. The question is not whether your talent has the right skills, it’s whether it has the potential to learn new ones. As Peter Schutz, former President and CEO of Porsche, puts it: “Hire character. Train for skill.”

Hiring for potential and effectively retaining and developing those who have it, at every level of the organization, should be the highest priority. This opinion was shared some years ago by Lawrence Bossidy, former Chairman of Honeywell, who said: “I am convinced that nothing we do is more important than hiring and developing people. At the end of the day you bet on people, not on strategies.”

= 3. Pale, male and stale was yesterday – invest in diversity =

In an increasingly fast-paced and interconnected world of highly volatile and complex markets, diverse teams are becoming crucial at all levels of an organization. Diversity can have numerous characteristics, involving gender, age, nationality, ethnic or cultural differences.

A global mindset, openness and international knowledge are vital to executives and organizations succeeding in a world that’s more and more intertwined. According to [http://www.mckinsey.com/business-functions/organization/our-insights/why-diversity-matters a recent McKinsey report], ethnic and racial diversity in management ultimately results in better financial performance. Similarly, [https://www.credit-suisse.com/us/en/about-us/media/news/articles/media-releases/2012/07/en/42035.html Credit Suisse’s assessment of more than 2,400 companies] suggests boards with women on them deliver significantly higher returns. Diversity has a bigger impact on organizations with greater managerial discretion, such as the high tech sector, or those undertaking new initiatives.

[[File:Talent_diagram2.jpg|link=File:Talent_diagram2.jpg]]

Mary Barra, left, CEO of General Motors, sits next to Warren Buffett, CEO of Berkshire Hathaway

Image: REUTERS/Elaine Thompson

[https://www.linkedin.com/pulse/pale-male-stale-yesterday-invest-todays-smart-power-buehler Why are diverse teams smarter?] Working with people from diverse backgrounds challenges the way we think and modifies a team’s social behaviour, leading to improved and more accurate group thinking.

In this environment, teams are more likely to remain objective and able to reassess facts dynamically. Diverse groups also encourage greater scrutiny of each team member’s actions and therefore tend to process critical information more carefully. Finally, there is strong evidence that diverse leadership teams, in particular those including women, are more likely to develop innovative products and services.

There are, of course, risks. When hiring and composing a diverse team, time and effort is required to overcome communication barriers and reach a common understanding. Corporate leaders have to ensure that everyone is heard. In this context, corporate culture is key to creating an environment of mutual appreciation, tolerance and respect. The prospective return on this work is indispensable, as Stephen R. Covey, the American author of bestselling book The 7 Habits of Highly Effective People, puts it: “Strength lies in differences, not in similarities”.

= 4. Getting beyond money: tomorrow’s talent prioritizes flexibility, purpose and ethics =

[http://www.mckinsey.com/business-functions/organization/our-insights/motivating-people-getting-beyond-money Various reports] have concluded that for talent with a reasonable salary, non-financial incentives are more effective than financial rewards. For so-called “knowledge workers”, money mainly causes short-term and less-sustained motivation, which [https://www.youtube.com/watch?v=u6XAPnuFjJc&feature=youtu.be can have further unintended, negative consequences].

[https://www.linkedin.com/pulse/getting-beyond-money-tomorrows-talent-prioritizes-purpose-buehler For millennials in particular, money isn’t everything]. Young talent wants to be part of something bigger than itself. Work doesn’t define millennials to the same degree as previous generations: they want to be happy at home and happy on the job, and money is somewhat secondary. To be successful in attracting the right talent, offering flexibility and a sufficient work-life balance will be essential. Bill Gates explains how businesses could benefit: “The competition to hire the best will increase in the years ahead. Companies that give extra flexibility to their employees will have the edge in this area.”

[[File:Talent_diagram3.png|link=File:Talent_diagram3.png]]

Figure 2: Non-financial incentives are more effective motivators

Millennials are significantly more receptive than other age groups, as both employees and consumers, to Corporate Social Responsibility (CSR) projects. In a McKinsey survey, of those respondents who demanded sustainable products and joined companies with a CSR reputation, more than half were millennials. The UN’s MY World 2014 survey identified transparency and corruption as a top priority for people under the age of 34. This survey suggests that millennials are most concerned about the impact that corruption will have on growth and on the future, in particular on voting and the viability of a career in the public sector.

Written by

[https://www.weforum.org/agenda/authors/michael-buehler Michael Buehler], Head of Infrastructure & Urban Development, World Economic Forum

The views expressed in this article are those of the author alone and not the World Economic Forum.

This article was originally published on the [https://futureofconstruction.org/blog/how-elon-musk-and-other-pioneers-are-shaking-up-the-construction-industry/ Future of Construction Knowledge Sharing] [https://futureofconstruction.org/blog/how-elon-musk-and-other-pioneers-are-shaking-up-the-construction-industry/ Platform] and the [http://www.weforum.org/agenda/2017/03/elon-musk-innovation-construction-industry WEF Agenda Blog].

[[Category:Education]] [[Category:Organisations]] [[Category:Research_/_Innovation]]

Recruiting and retaining talent in the construction industry

2017-03-14T19:58:32Z

Michael Buehler: Created page with "File:Talent construction.jpg * Written by<br /> Michael Max Buehler, Head of Infrastructure & Urban Development, World Economic Forum Recruiting and managing talent in..."

[[File:Talent construction.jpg]]

* Written by<br />
Michael Max Buehler, Head of Infrastructure & Urban Development, World Economic Forum

Recruiting and managing talent in the coming years will be challenging for the construction sector, as it will be in many other industries, according to [https://futureofconstruction.org/blog/ our latest report]. The prospective scarcity of skilled labour driven by demographic shifts, and the increasing sophistication of technology, which demands new and broader skill sets at all levels; coupled with the traditionally high volatility of workforce demand and composition, will be major tests.

[[File:Talent diagram1.png]]

Figure 1: worker age in the US construction sector

Leaders need to engage in strategic workforce planning to better anticipate workforce needs and priorities. Proactive measures, such as comprehensive talent management, including smart hiring and enhanced retention strategies, must be developed. Continuous training can help address the demographic changes and advances in technology and processes.

Many organizations, in particular in construction, are characterized by a conservative corporate culture and mindset. They are often hampered by organizational inertia. To support their overall business goals, the companies themselves need to drive organizational change. This is an iterative process, which requires careful alignment of a company’s culture and goals, its organizational design, and its incentive schemes.

1. Culture is a talent magnet – attract talent by your tribal culture

How can company leaders build a better organization that the best people want to work for?

[https://www.linkedin.com/pulse/trying-preach-values-tribes-stages-one-two-lower-parts-buehler Based on a study of 30,000 people from 30 global organizations], Dave Logan, Professor in Management and Organization at the USC Marshall School of Business, introduced the concept that organizations are tribal cultures. As Logan defines it, “a tribe is a group of 20 to 150 people who know one another enough that, if they saw another walking down the street, would stop and say hello”. In their research, Logan and his team wanted to understand why leadership appears effortless in some situations and chronically ineffective in others. In a nutshell, what makes a tribe more effective than others is its culture: a product of the language people use, the reality this creates and the behaviour this prompts.

Logan also observed so-called “tribal leaders”, individuals who focus their energy on advancing their tribal culture to the next level. He studied how they set standards for corporate performance, from productivity and profitability, to employee retention and attraction of talent. Tribal leaders bring groups closer together by recognizing their “tribalness” and, with their help, people start to talk about the things they really care about. They begin to convene around common causes and to make something purposeful, something greater than them, happen. Most importantly, a strong tribal culture is able to attract the best talent, as Logan explains: “Tribal leaders are talent magnets, with people so eager to work for the leader that they will take a pay cut if necessary.”

2. Forget competencies: hire character and potential, and train for skill

Why do so many corporate leaders, who seem the right fit for a position, fail; while many who are less competent succeed so spectacularly?

The simple answer is “potential” or the ability to adapt and grow into increasingly complex roles and environments. Five qualities are reliable indicators for potential: motivation, curiosity, insight, engagement and determination.

Claudio Fernández-Aráoz, senior adviser at Egon Zehnder and the author of It’s Not the How or the What but the Who, has spent three decades evaluating and tracking executives, studying their performance. [https://www.linkedin.com/pulse/forget-competencies-hire-character-potential-train-skill-buehler Fernández-Aráoz considers potential to be the most important predictor of success] at all levels: “As business environments becomes more volatile, uncertain, complex and ambiguous (…), competency-based appraisals and appointments are increasingly insufficient. Organizations and their leaders must transition to a new era of talent-spotting.”

Talent successful in a specific role today, might not be so successful tomorrow if the corporate strategy changes, the competitive environment shifts, or internal or external stakeholders change. The question is not whether your talent has the right skills, it’s whether it has the potential to learn new ones. As Peter Schutz, former President and CEO of Porsche, puts it: “Hire character. Train for skill.”

Hiring for potential and effectively retaining and developing those who have it, at every level of the organization, should be the highest priority. This opinion was shared some years ago by Lawrence Bossidy, former Chairman of Honeywell, who said: “I am convinced that nothing we do is more important than hiring and developing people. At the end of the day you bet on people, not on strategies.”

3. Pale, male and stale was yesterday – invest in diversity

In an increasingly fast-paced and interconnected world of highly volatile and complex markets, diverse teams are becoming crucial at all levels of an organization. Diversity can have numerous characteristics, involving gender, age, nationality, ethnic or cultural differences.

A global mindset, openness and international knowledge are vital to executives and organizations succeeding in a world that’s more and more intertwined. According to [http://www.mckinsey.com/business-functions/organization/our-insights/why-diversity-matters a recent McKinsey report], ethnic and racial diversity in management ultimately results in better financial performance. Similarly, [https://www.credit-suisse.com/us/en/about-us/media/news/articles/media-releases/2012/07/en/42035.html Credit Suisse’s assessment of more than 2,400 companies] suggests boards with women on them deliver significantly higher returns. Diversity has a bigger impact on organizations with greater managerial discretion, such as the high tech sector, or those undertaking new initiatives.

[[File:Talent diagram2.jpg]]

Mary Barra, left, CEO of General Motors, sits next to Warren Buffett, CEO of Berkshire Hathaway

Image: REUTERS/Elaine Thompson

[https://www.linkedin.com/pulse/pale-male-stale-yesterday-invest-todays-smart-power-buehler Why are diverse teams smarter?] Working with people from diverse backgrounds challenges the way we think and modifies a team’s social behaviour, leading to improved and more accurate group thinking.

In this environment, teams are more likely to remain objective and able to reassess facts dynamically. Diverse groups also encourage greater scrutiny of each team member’s actions and therefore tend to process critical information more carefully. Finally, there is strong evidence that diverse leadership teams, in particular those including women, are more likely to develop innovative products and services.

There are, of course, risks. When hiring and composing a diverse team, time and effort is required to overcome communication barriers and reach a common understanding. Corporate leaders have to ensure that everyone is heard. In this context, corporate culture is key to creating an environment of mutual appreciation, tolerance and respect. The prospective return on this work is indispensable, as Stephen R. Covey, the American author of bestselling book The 7 Habits of Highly Effective People, puts it: “Strength lies in differences, not in similarities”.

4. Getting beyond money: tomorrow’s talent prioritizes flexibility, purpose and ethics

[http://www.mckinsey.com/business-functions/organization/our-insights/motivating-people-getting-beyond-money Various reports] have concluded that for talent with a reasonable salary, non-financial incentives are more effective than financial rewards. For so-called “knowledge workers”, money mainly causes short-term and less-sustained motivation, which [https://www.youtube.com/watch?v=u6XAPnuFjJc&feature=youtu.be can have further unintended, negative consequences].

[https://www.linkedin.com/pulse/getting-beyond-money-tomorrows-talent-prioritizes-purpose-buehler For millennials in particular, money isn’t everything]. Young talent wants to be part of something bigger than itself. Work doesn’t define millennials to the same degree as previous generations: they want to be happy at home and happy on the job, and money is somewhat secondary. To be successful in attracting the right talent, offering flexibility and a sufficient work-life balance will be essential. Bill Gates explains how businesses could benefit: “The competition to hire the best will increase in the years ahead. Companies that give extra flexibility to their employees will have the edge in this area.”

[[File:Talent diagram3.png]]

Figure 2: Non-financial incentives are more effective motivators

Millennials are significantly more receptive than other age groups, as both employees and consumers, to Corporate Social Responsibility (CSR) projects. In a McKinsey survey, of those respondents who demanded sustainable products and joined companies with a CSR reputation, more than half were millennials. The UN’s MY World 2014 survey identified transparency and corruption as a top priority for people under the age of 34. This survey suggests that millennials are most concerned about the impact that corruption will have on growth and on the future, in particular on voting and the viability of a career in the public sector.

Written by

[https://www.weforum.org/agenda/authors/michael-buehler Michael Buehler], Head of Infrastructure & Urban Development, World Economic Forum

The views expressed in this article are those of the author alone and not the World Economic Forum.

[[Category:Education]] [[Category:Organisations]] [[Category:Research_/_Innovation]]

File:Talent diagram3.png

2017-03-14T19:55:43Z

Michael Buehler: Talent Diagram 3

Talent Diagram 3

File:Talent diagram2.jpg

2017-03-14T19:54:09Z

Michael Buehler: Talent Diagram 2

Talent Diagram 2

File:Talent diagram1.png

2017-03-14T19:52:03Z

Michael Buehler: Talent Diagram 1

Talent Diagram 1

File:Talent construction.jpg

2017-03-14T19:49:16Z

Michael Buehler: Talent in Construction

Talent in Construction

Shaping the Future of Construction: Inspiring innovators redefine the industry

2017-03-14T15:57:09Z

Michael Buehler:

* Written by

Michael Buehler, Head of Infrastructure & Urban Development, World Economic Forum | Philipp Gerbert, Senior Partner & Managing Director, The Boston Consulting Group

= "Traffic is driving me nuts. Am going to build a tunnel boring machine and just start digging …” =

Elon Musk’s tweet in December 2016 startled the construction industry. He was not joking: only a month later, he started excavating the [http://www.wired.co.uk/article/elon-musk-tunnel-boring first test trench on Space X headquarters] in Los Angeles – an incredibly fast move for such a traditionally slow sector.

Thanks to Musk’s visionary and bold approach, he succeeds in attracting the best talent to his projects – a challenge traditional construction companies find hard to meet.

[[File:ElonMusk.PNG|link=https://futureofconstruction.org/]]

This is just one prominent example of a growing number innovators and disruptive companies shaking up the industry. With 3D-printed houses, automatically designed hospitals, prefabricated skyscrapers – once futuristic dreams are now becoming a reality, [http://www.weforum.org/reports/shaping-the-future-of-construction-inspiring-innovators-redefine-the-industry according to a new report] by the World Economic Forum and Boston Consulting Group.

= Building the future =

Relative to other industries, productivity in construction has stalled over the past 50 years. Technology was not making any fundamental advances, and companies remained averse to changing their traditional methods. Recently, however, transformative technological developments have emerged, and some pioneering firms have adopted them for current projects. These developments – 3D printing, building information modeling, wireless sensing and autonomous equipment, to name just a few – are already starting to turn traditional business models upside down.

The [http://www.weforum.org/reports/shaping-the-future-of-construction-inspiring-innovators-redefine-the-industry Shaping the Future of Construction] report outlines [http://futureofconstruction.org/case/ 10 cases] that illustrate the value of embracing innovation. Prominent flagship projects, such as [http://futureofconstruction.org/case/burj-khalifa/ Dubai’s Burj Khalifa], the world’s tallest building, and [http://futureofconstruction.org/case/the-edge/ the Edge in Amsterdam], the world’s most sustainable office building, showcase state-of-the-art innovation. So, too, do the various pilot projects or start-ups that the report analyses, such as the [http://futureofconstruction.org/case/winsun/ 3D printing of houses by Chinese company Winsun] or the predictive analytics of construction data by [http://futureofconstruction.org/case/uptake Chicago-based Uptake], Forbes’s hottest start-up of 2015 and now valued at over $2 billion. Jointly, their inspirational stories give a glimpse of the industry’s future.

For society, it could be a bright future: construction clients and communities at large will benefit from the long overdue transformation of the industry. And change is urgently needed if we’re going to respond to megatrends such as climate change, migration into urban areas and a new global push for infrastructure.

As a reliable source of entry-level jobs for immigrants and as a provider of affordable housing, the construction industry is sure to be at the centre of public debate. And if public budgets tighten further, the industry’s cost-effectiveness will come under even sharper scrutiny. Incremental change is not an option; innovations in construction could help make a serious difference, both economically and environmentally.

= How construction companies can keep up =

So the pace of innovation is accelerating, and that’s a good thing. But companies must act swiftly to keep up and reap the full benefits of these new technologies. Or, to paraphrase sci-fi writer William Gibson, the future of construction is here now – it’s just not evenly distributed. Innovative companies and projects may demonstrate the art of the possible, but what impact will they have on traditional construction? According to the Shaping the Future of Construction report, there’s a widening gap between the innovation laggards and leaders, in particular with regards to their digital transformation.

So how can companies stimulate innovative ideas, turn them into reality and ultimately succeed in the market? The report offers a few examples from pioneering firms, with lessons such as: create an innovation-friendly culture that rewards risk-taking; take a longer-term product perspective, rather than thinking in terms of individual projects; and proactively shape the regulatory environment. Companies have nothing to gain from delaying. Once they start improving, the benefits – lower costs, shorter delivery times and reduced environmental impact – can begin to accumulate.

But it’s not up to companies alone. Governments are crucial in the transformation of the construction industry. They need to make it easier for regulators, strategic incubators and project owners to adopt new technologies. The report recommends that governments should update building codes, move to forward-looking, performance-based standards, and introduce more flexible procurement models in infrastructure projects to overcome typical hurdles for innovation.

In fact, infrastructure is again high on the agenda in almost all regions of the world. In the words of John Beck, president and CEO of Canada’s Aecon Construction Group: “There has always been a mismatch between the need for infrastructure assets and the capital to fund them. By leveraging all the remarkable innovations that have emerged in recent years, we have a new opportunity to narrow that gap.”

= [http://www.weforum.org/reports/shaping-the-future-of-construction-inspiring-innovators-redefine-the-industry Shaping the Future of Construction: read the report here] =

[[File:FoC_Report_Landing_Page.PNG|link=https://futureofconstruction.org/blog/new-report-shaping-the-future-of-construction-inspiring-innovators-redefine-the-industry/]]

This article was originally published on the [https://futureofconstruction.org/blog/how-elon-musk-and-other-pioneers-are-shaking-up-the-construction-industry/ Future of Construction Knowledge Sharing Platform] and the [http://www.weforum.org/agenda/2017/03/elon-musk-innovation-construction-industry WEF Agenda Blog].

[[Category:International]] [[Category:Organisations]] [[Category:Projects_and_case_studies]] [[Category:Publications_/_reports]] [[Category:Research_/_Innovation]] [[Category:Policy]] [[Category:Sustainability]] [[Category:Construction_management]] [[Category:Construction_techniques]] [[Category:Design]]

Shaping the Future of Construction: Inspiring innovators redefine the industry

2017-03-14T15:56:30Z

Michael Buehler:

* Written by

Michael Buehler, Head of Infrastructure & Urban Development, World Economic Forum | Philipp Gerbert, Senior Partner & Managing Director, The Boston Consulting Group

= "Traffic is driving me nuts. Am going to build a tunnel boring machine and just start digging …” =

Elon Musk’s tweet in December 2016 startled the construction industry. He was not joking: only a month later, he started excavating the [http://www.wired.co.uk/article/elon-musk-tunnel-boring first test trench on Space X headquarters] in Los Angeles – an incredibly fast move for such a traditionally slow sector.

Thanks to Musk’s visionary and bold approach, he succeeds in attracting the best talent to his projects – a challenge traditional construction companies find hard to meet.

[[File:ElonMusk.PNG|link=File:ElonMusk.PNG]]

This is just one prominent example of a growing number innovators and disruptive companies shaking up the industry. With 3D-printed houses, automatically designed hospitals, prefabricated skyscrapers – once futuristic dreams are now becoming a reality, [http://www.weforum.org/reports/shaping-the-future-of-construction-inspiring-innovators-redefine-the-industry according to a new report] by the World Economic Forum and Boston Consulting Group.

= Building the future =

Relative to other industries, productivity in construction has stalled over the past 50 years. Technology was not making any fundamental advances, and companies remained averse to changing their traditional methods. Recently, however, transformative technological developments have emerged, and some pioneering firms have adopted them for current projects. These developments – 3D printing, building information modeling, wireless sensing and autonomous equipment, to name just a few – are already starting to turn traditional business models upside down.

The [http://www.weforum.org/reports/shaping-the-future-of-construction-inspiring-innovators-redefine-the-industry Shaping the Future of Construction] report outlines [http://futureofconstruction.org/case/ 10 cases] that illustrate the value of embracing innovation. Prominent flagship projects, such as [http://futureofconstruction.org/case/burj-khalifa/ Dubai’s Burj Khalifa], the world’s tallest building, and [http://futureofconstruction.org/case/the-edge/ the Edge in Amsterdam], the world’s most sustainable office building, showcase state-of-the-art innovation. So, too, do the various pilot projects or start-ups that the report analyses, such as the [http://futureofconstruction.org/case/winsun/ 3D printing of houses by Chinese company Winsun] or the predictive analytics of construction data by [http://futureofconstruction.org/case/uptake Chicago-based Uptake], Forbes’s hottest start-up of 2015 and now valued at over $2 billion. Jointly, their inspirational stories give a glimpse of the industry’s future.

For society, it could be a bright future: construction clients and communities at large will benefit from the long overdue transformation of the industry. And change is urgently needed if we’re going to respond to megatrends such as climate change, migration into urban areas and a new global push for infrastructure.

As a reliable source of entry-level jobs for immigrants and as a provider of affordable housing, the construction industry is sure to be at the centre of public debate. And if public budgets tighten further, the industry’s cost-effectiveness will come under even sharper scrutiny. Incremental change is not an option; innovations in construction could help make a serious difference, both economically and environmentally.

= How construction companies can keep up =

So the pace of innovation is accelerating, and that’s a good thing. But companies must act swiftly to keep up and reap the full benefits of these new technologies. Or, to paraphrase sci-fi writer William Gibson, the future of construction is here now – it’s just not evenly distributed. Innovative companies and projects may demonstrate the art of the possible, but what impact will they have on traditional construction? According to the Shaping the Future of Construction report, there’s a widening gap between the innovation laggards and leaders, in particular with regards to their digital transformation.

So how can companies stimulate innovative ideas, turn them into reality and ultimately succeed in the market? The report offers a few examples from pioneering firms, with lessons such as: create an innovation-friendly culture that rewards risk-taking; take a longer-term product perspective, rather than thinking in terms of individual projects; and proactively shape the regulatory environment. Companies have nothing to gain from delaying. Once they start improving, the benefits – lower costs, shorter delivery times and reduced environmental impact – can begin to accumulate.

But it’s not up to companies alone. Governments are crucial in the transformation of the construction industry. They need to make it easier for regulators, strategic incubators and project owners to adopt new technologies. The report recommends that governments should update building codes, move to forward-looking, performance-based standards, and introduce more flexible procurement models in infrastructure projects to overcome typical hurdles for innovation.

In fact, infrastructure is again high on the agenda in almost all regions of the world. In the words of John Beck, president and CEO of Canada’s Aecon Construction Group: “There has always been a mismatch between the need for infrastructure assets and the capital to fund them. By leveraging all the remarkable innovations that have emerged in recent years, we have a new opportunity to narrow that gap.”

= [http://www.weforum.org/reports/shaping-the-future-of-construction-inspiring-innovators-redefine-the-industry Shaping the Future of Construction: read the report here] =

[[File:FoC_Report_Landing_Page.PNG|link=https://futureofconstruction.org/blog/new-report-shaping-the-future-of-construction-inspiring-innovators-redefine-the-industry/]]

This article was originally published on the [https://futureofconstruction.org/blog/how-elon-musk-and-other-pioneers-are-shaking-up-the-construction-industry/ Future of Construction Knowledge Sharing Platform] and the [http://www.weforum.org/agenda/2017/03/elon-musk-innovation-construction-industry WEF Agenda Blog].

[[Category:International]] [[Category:Organisations]] [[Category:Projects_and_case_studies]] [[Category:Publications_/_reports]] [[Category:Research_/_Innovation]] [[Category:Policy]] [[Category:Sustainability]] [[Category:Construction_management]] [[Category:Construction_techniques]] [[Category:Design]]

Shaping the Future of Construction: Inspiring innovators redefine the industry

2017-03-14T15:51:32Z

Michael Buehler:

* Written by

Michael Buehler, Head of Infrastructure & Urban Development, World Economic Forum | Philipp Gerbert, Senior Partner & Managing Director, The Boston Consulting Group

= "Traffic is driving me nuts. Am going to build a tunnel boring machine and just start digging …” =

Elon Musk’s tweet in December 2016 startled the construction industry. He was not joking: only a month later, he started excavating the [http://www.wired.co.uk/article/elon-musk-tunnel-boring first test trench on Space X headquarters] in Los Angeles – an incredibly fast move for such a traditionally slow sector.

Thanks to Musk’s visionary and bold approach, he succeeds in attracting the best talent to his projects – a challenge traditional construction companies find hard to meet.

[[File:ElonMusk.PNG]]

This is just one prominent example of a growing number innovators and disruptive companies shaking up the industry. With 3D-printed houses, automatically designed hospitals, prefabricated skyscrapers – once futuristic dreams are now becoming a reality, [http://www.weforum.org/reports/shaping-the-future-of-construction-inspiring-innovators-redefine-the-industry according to a new report] by the World Economic Forum and Boston Consulting Group.

= Building the future =

Relative to other industries, productivity in construction has stalled over the past 50 years. Technology was not making any fundamental advances, and companies remained averse to changing their traditional methods. Recently, however, transformative technological developments have emerged, and some pioneering firms have adopted them for current projects. These developments – 3D printing, building information modeling, wireless sensing and autonomous equipment, to name just a few – are already starting to turn traditional business models upside down.

The [http://www.weforum.org/reports/shaping-the-future-of-construction-inspiring-innovators-redefine-the-industry Shaping the Future of Construction] report outlines [http://futureofconstruction.org/case/ 10 cases] that illustrate the value of embracing innovation. Prominent flagship projects, such as [http://futureofconstruction.org/case/burj-khalifa/ Dubai’s Burj Khalifa], the world’s tallest building, and [http://futureofconstruction.org/case/the-edge/ the Edge in Amsterdam], the world’s most sustainable office building, showcase state-of-the-art innovation. So, too, do the various pilot projects or start-ups that the report analyses, such as the [http://futureofconstruction.org/case/winsun/ 3D printing of houses by Chinese company Winsun] or the predictive analytics of construction data by [http://futureofconstruction.org/case/uptake Chicago-based Uptake], Forbes’s hottest start-up of 2015 and now valued at over $2 billion. Jointly, their inspirational stories give a glimpse of the industry’s future.

For society, it could be a bright future: construction clients and communities at large will benefit from the long overdue transformation of the industry. And change is urgently needed if we’re going to respond to megatrends such as climate change, migration into urban areas and a new global push for infrastructure.

As a reliable source of entry-level jobs for immigrants and as a provider of affordable housing, the construction industry is sure to be at the centre of public debate. And if public budgets tighten further, the industry’s cost-effectiveness will come under even sharper scrutiny. Incremental change is not an option; innovations in construction could help make a serious difference, both economically and environmentally.

= How construction companies can keep up =

So the pace of innovation is accelerating, and that’s a good thing. But companies must act swiftly to keep up and reap the full benefits of these new technologies. Or, to paraphrase sci-fi writer William Gibson, the future of construction is here now – it’s just not evenly distributed. Innovative companies and projects may demonstrate the art of the possible, but what impact will they have on traditional construction? According to the Shaping the Future of Construction report, there’s a widening gap between the innovation laggards and leaders, in particular with regards to their digital transformation.

So how can companies stimulate innovative ideas, turn them into reality and ultimately succeed in the market? The report offers a few examples from pioneering firms, with lessons such as: create an innovation-friendly culture that rewards risk-taking; take a longer-term product perspective, rather than thinking in terms of individual projects; and proactively shape the regulatory environment. Companies have nothing to gain from delaying. Once they start improving, the benefits – lower costs, shorter delivery times and reduced environmental impact – can begin to accumulate.

But it’s not up to companies alone. Governments are crucial in the transformation of the construction industry. They need to make it easier for regulators, strategic incubators and project owners to adopt new technologies. The report recommends that governments should update building codes, move to forward-looking, performance-based standards, and introduce more flexible procurement models in infrastructure projects to overcome typical hurdles for innovation.

In fact, infrastructure is again high on the agenda in almost all regions of the world. In the words of John Beck, president and CEO of Canada’s Aecon Construction Group: “There has always been a mismatch between the need for infrastructure assets and the capital to fund them. By leveraging all the remarkable innovations that have emerged in recent years, we have a new opportunity to narrow that gap.”

= [http://www.weforum.org/reports/shaping-the-future-of-construction-inspiring-innovators-redefine-the-industry Shaping the Future of Construction: read the report here] =

[[File:FoC_Report_Landing_Page.PNG|link=File:FoC_Report_Landing_Page.PNG]]

This article was originally published on the [https://futureofconstruction.org/blog/how-elon-musk-and-other-pioneers-are-shaking-up-the-construction-industry/ Future of Construction Knowledge Sharing Platform] and the [http://www.weforum.org/agenda/2017/03/elon-musk-innovation-construction-industry WEF Agenda Blog].

[[Category:International]] [[Category:Organisations]] [[Category:Projects_and_case_studies]] [[Category:Publications_/_reports]] [[Category:Research_/_Innovation]] [[Category:Policy]] [[Category:Sustainability]] [[Category:Construction_management]] [[Category:Construction_techniques]] [[Category:Design]]

File:ElonMusk.PNG

2017-03-14T15:51:07Z

Michael Buehler: Elon Musk is really boring

Elon Musk is really boring

Shaping the Future of Construction: Inspiring innovators redefine the industry

2017-03-14T15:48:19Z

Michael Buehler:

* Written by

Michael Buehler, Head of Infrastructure & Urban Development, World Economic Forum | Philipp Gerbert, Senior Partner & Managing Director, The Boston Consulting Group

= "Traffic is driving me nuts. Am going to build a tunnel boring machine and just start digging …” =

Elon Musk’s tweet in December 2016 startled the construction industry. He was not joking: only a month later, he started excavating the [http://www.wired.co.uk/article/elon-musk-tunnel-boring first test trench on Space X headquarters] in Los Angeles – an incredibly fast move for such a traditionally slow sector.

Thanks to Musk’s visionary and bold approach, he succeeds in attracting the best talent to his projects – a challenge traditional construction companies find hard to meet.

This is just one prominent example of a growing number innovators and disruptive companies shaking up the industry. With 3D-printed houses, automatically designed hospitals, prefabricated skyscrapers – once futuristic dreams are now becoming a reality, [http://www.weforum.org/reports/shaping-the-future-of-construction-inspiring-innovators-redefine-the-industry according to a new report] by the World Economic Forum and Boston Consulting Group.

= Building the future =

Relative to other industries, productivity in construction has stalled over the past 50 years. Technology was not making any fundamental advances, and companies remained averse to changing their traditional methods. Recently, however, transformative technological developments have emerged, and some pioneering firms have adopted them for current projects. These developments – 3D printing, building information modeling, wireless sensing and autonomous equipment, to name just a few – are already starting to turn traditional business models upside down.

The [http://www.weforum.org/reports/shaping-the-future-of-construction-inspiring-innovators-redefine-the-industry Shaping the Future of Construction] report outlines [http://futureofconstruction.org/case/ 10 cases] that illustrate the value of embracing innovation. Prominent flagship projects, such as [http://futureofconstruction.org/case/burj-khalifa/ Dubai’s Burj Khalifa], the world’s tallest building, and [http://futureofconstruction.org/case/the-edge/ the Edge in Amsterdam], the world’s most sustainable office building, showcase state-of-the-art innovation. So, too, do the various pilot projects or start-ups that the report analyses, such as the [http://futureofconstruction.org/case/winsun/ 3D printing of houses by Chinese company Winsun] or the predictive analytics of construction data by [http://futureofconstruction.org/case/uptake Chicago-based Uptake], Forbes’s hottest start-up of 2015 and now valued at over $2 billion. Jointly, their inspirational stories give a glimpse of the industry’s future.

For society, it could be a bright future: construction clients and communities at large will benefit from the long overdue transformation of the industry. And change is urgently needed if we’re going to respond to megatrends such as climate change, migration into urban areas and a new global push for infrastructure.

As a reliable source of entry-level jobs for immigrants and as a provider of affordable housing, the construction industry is sure to be at the centre of public debate. And if public budgets tighten further, the industry’s cost-effectiveness will come under even sharper scrutiny. Incremental change is not an option; innovations in construction could help make a serious difference, both economically and environmentally.

= How construction companies can keep up =

So the pace of innovation is accelerating, and that’s a good thing. But companies must act swiftly to keep up and reap the full benefits of these new technologies. Or, to paraphrase sci-fi writer William Gibson, the future of construction is here now – it’s just not evenly distributed. Innovative companies and projects may demonstrate the art of the possible, but what impact will they have on traditional construction? According to the Shaping the Future of Construction report, there’s a widening gap between the innovation laggards and leaders, in particular with regards to their digital transformation.

So how can companies stimulate innovative ideas, turn them into reality and ultimately succeed in the market? The report offers a few examples from pioneering firms, with lessons such as: create an innovation-friendly culture that rewards risk-taking; take a longer-term product perspective, rather than thinking in terms of individual projects; and proactively shape the regulatory environment. Companies have nothing to gain from delaying. Once they start improving, the benefits – lower costs, shorter delivery times and reduced environmental impact – can begin to accumulate.

But it’s not up to companies alone. Governments are crucial in the transformation of the construction industry. They need to make it easier for regulators, strategic incubators and project owners to adopt new technologies. The report recommends that governments should update building codes, move to forward-looking, performance-based standards, and introduce more flexible procurement models in infrastructure projects to overcome typical hurdles for innovation.

In fact, infrastructure is again high on the agenda in almost all regions of the world. In the words of John Beck, president and CEO of Canada’s Aecon Construction Group: “There has always been a mismatch between the need for infrastructure assets and the capital to fund them. By leveraging all the remarkable innovations that have emerged in recent years, we have a new opportunity to narrow that gap.”

= [http://www.weforum.org/reports/shaping-the-future-of-construction-inspiring-innovators-redefine-the-industry Shaping the Future of Construction: read the report here] =

[[File:FoC Report Landing Page.PNG]]

This article was originally published on the [https://futureofconstruction.org/blog/how-elon-musk-and-other-pioneers-are-shaking-up-the-construction-industry/ Future of Construction Knowledge Sharing Platform] and the [http://www.weforum.org/agenda/2017/03/elon-musk-innovation-construction-industry WEF Agenda Blog].

[[Category:International]] [[Category:Organisations]] [[Category:Projects_and_case_studies]] [[Category:Publications_/_reports]] [[Category:Research_/_Innovation]] [[Category:Policy]] [[Category:Sustainability]] [[Category:Construction_management]] [[Category:Construction_techniques]] [[Category:Design]]

File:FoC Report Landing Page.PNG

2017-03-14T15:47:50Z

Michael Buehler: 3D-printed houses, automatically designed hospitals, prefabricated skyscrapers — once futuristic dreams are now a reality as described in the new report Shaping the Future of Construction: Inspiring innovators redefine the industry developed with the Wo

3D-printed houses, automatically designed hospitals, prefabricated skyscrapers once futuristic dreams are now a reality as described in the new report Shaping the Future of Construction: Inspiring innovators redefine the industry developed with the World Economic Forum. It showcases and analyses 10 Lighthouse innovation cases prominent flagship projects as well as start-ups and pilot projects that demonstrate the potential of innovation in construction and give a glimpse of the industrys future.

File:FoC report 2017.PNG

2017-03-14T15:43:20Z

Michael Buehler: Shaping the Future of Construction: Inspiring innovators redefine the industry

Shaping the Future of Construction: Inspiring innovators redefine the industry

2017-03-14T15:39:30Z

Michael Buehler:

* Written by<br />
Michael Buehler, Head of Infrastructure & Urban Development, World Economic Forum | Philipp Gerbert, Senior Partner & Managing Director, The Boston Consulting Group

= "Traffic is driving me nuts. Am going to build a tunnel boring machine and just start digging …” =

Elon Musk’s tweet in December 2016 startled the construction industry. He was not joking: only a month later, he started excavating the [http://www.wired.co.uk/article/elon-musk-tunnel-boring first test trench on Space X headquarters] in Los Angeles – an incredibly fast move for such a traditionally slow sector.

Thanks to Musk’s visionary and bold approach, he succeeds in attracting the best talent to his projects – a challenge traditional construction companies find hard to meet.

This is just one prominent example of a growing number innovators and disruptive companies shaking up the industry. With 3D-printed houses, automatically designed hospitals, prefabricated skyscrapers – once futuristic dreams are now becoming a reality, [http://www.weforum.org/reports/shaping-the-future-of-construction-inspiring-innovators-redefine-the-industry according to a new report] by the World Economic Forum and Boston Consulting Group.

= Building the future =

Relative to other industries, productivity in construction has stalled over the past 50 years. Technology was not making any fundamental advances, and companies remained averse to changing their traditional methods. Recently, however, transformative technological developments have emerged, and some pioneering firms have adopted them for current projects. These developments – 3D printing, building information modeling, wireless sensing and autonomous equipment, to name just a few – are already starting to turn traditional business models upside down.

The [http://www.weforum.org/reports/shaping-the-future-of-construction-inspiring-innovators-redefine-the-industry Shaping the Future of Construction] report outlines [http://futureofconstruction.org/case/ 10 cases] that illustrate the value of embracing innovation. Prominent flagship projects, such as [http://futureofconstruction.org/case/burj-khalifa/ Dubai’s Burj Khalifa], the world’s tallest building, and [http://futureofconstruction.org/case/the-edge/ the Edge in Amsterdam], the world’s most sustainable office building, showcase state-of-the-art innovation. So, too, do the various pilot projects or start-ups that the report analyses, such as the [http://futureofconstruction.org/case/winsun/ 3D printing of houses by Chinese company Winsun] or the predictive analytics of construction data by [http://futureofconstruction.org/case/uptake Chicago-based Uptake], Forbes’s hottest start-up of 2015 and now valued at over $2 billion. Jointly, their inspirational stories give a glimpse of the industry’s future.

For society, it could be a bright future: construction clients and communities at large will benefit from the long overdue transformation of the industry. And change is urgently needed if we’re going to respond to megatrends such as climate change, migration into urban areas and a new global push for infrastructure.

As a reliable source of entry-level jobs for immigrants and as a provider of affordable housing, the construction industry is sure to be at the centre of public debate. And if public budgets tighten further, the industry’s cost-effectiveness will come under even sharper scrutiny. Incremental change is not an option; innovations in construction could help make a serious difference, both economically and environmentally.

= How construction companies can keep up =

So the pace of innovation is accelerating, and that’s a good thing. But companies must act swiftly to keep up and reap the full benefits of these new technologies. Or, to paraphrase sci-fi writer William Gibson, the future of construction is here now – it’s just not evenly distributed. Innovative companies and projects may demonstrate the art of the possible, but what impact will they have on traditional construction? According to the Shaping the Future of Construction report, there’s a widening gap between the innovation laggards and leaders, in particular with regards to their digital transformation.

So how can companies stimulate innovative ideas, turn them into reality and ultimately succeed in the market? The report offers a few examples from pioneering firms, with lessons such as: create an innovation-friendly culture that rewards risk-taking; take a longer-term product perspective, rather than thinking in terms of individual projects; and proactively shape the regulatory environment. Companies have nothing to gain from delaying. Once they start improving, the benefits – lower costs, shorter delivery times and reduced environmental impact – can begin to accumulate.

But it’s not up to companies alone. Governments are crucial in the transformation of the construction industry. They need to make it easier for regulators, strategic incubators and project owners to adopt new technologies. The report recommends that governments should update building codes, move to forward-looking, performance-based standards, and introduce more flexible procurement models in infrastructure projects to overcome typical hurdles for innovation.

In fact, infrastructure is again high on the agenda in almost all regions of the world. In the words of John Beck, president and CEO of Canada’s Aecon Construction Group: “There has always been a mismatch between the need for infrastructure assets and the capital to fund them. By leveraging all the remarkable innovations that have emerged in recent years, we have a new opportunity to narrow that gap.”

= [http://www.weforum.org/reports/shaping-the-future-of-construction-inspiring-innovators-redefine-the-industry Shaping the Future of Construction: read the report here] =

This article was originally published on the [https://futureofconstruction.org/blog/how-elon-musk-and-other-pioneers-are-shaking-up-the-construction-industry/ Future of Construction Knowledge Sharing Platform] and the [http://www.weforum.org/agenda/2017/03/elon-musk-innovation-construction-industry WEF Agenda Blog].

[[Category:International]] [[Category:Organisations]] [[Category:Projects_and_case_studies]] [[Category:Publications_/_reports]] [[Category:Research_/_Innovation]] [[Category:Policy]] [[Category:Sustainability]] [[Category:Construction_management]] [[Category:Construction_techniques]] [[Category:Design]]

Shaping the Future of Construction: Inspiring innovators redefine the industry

2017-03-14T15:36:25Z

Michael Buehler:

= "Traffic is driving me nuts. Am going to build a tunnel boring machine and just start digging …” =

Elon Musk’s tweet in December 2016 startled the construction industry. He was not joking: only a month later, he started excavating the [http://www.wired.co.uk/article/elon-musk-tunnel-boring first test trench on Space X headquarters] in Los Angeles – an incredibly fast move for such a traditionally slow sector.

Thanks to Musk’s visionary and bold approach, he succeeds in attracting the best talent to his projects – a challenge traditional construction companies find hard to meet.

This is just one prominent example of a growing number innovators and disruptive companies shaking up the industry. With 3D-printed houses, automatically designed hospitals, prefabricated skyscrapers – once futuristic dreams are now becoming a reality, [http://www.weforum.org/reports/shaping-the-future-of-construction-inspiring-innovators-redefine-the-industry according to a new report] by the World Economic Forum and Boston Consulting Group.

= Building the future =

Relative to other industries, productivity in construction has stalled over the past 50 years. Technology was not making any fundamental advances, and companies remained averse to changing their traditional methods. Recently, however, transformative technological developments have emerged, and some pioneering firms have adopted them for current projects. These developments – 3D printing, building information modeling, wireless sensing and autonomous equipment, to name just a few – are already starting to turn traditional business models upside down.

The [http://www.weforum.org/reports/shaping-the-future-of-construction-inspiring-innovators-redefine-the-industry Shaping the Future of Construction] report outlines [http://futureofconstruction.org/case/ 10 cases] that illustrate the value of embracing innovation. Prominent flagship projects, such as [http://futureofconstruction.org/case/burj-khalifa/ Dubai’s Burj Khalifa], the world’s tallest building, and [http://futureofconstruction.org/case/the-edge/ the Edge in Amsterdam], the world’s most sustainable office building, showcase state-of-the-art innovation. So, too, do the various pilot projects or start-ups that the report analyses, such as the [http://futureofconstruction.org/case/winsun/ 3D printing of houses by Chinese company Winsun] or the predictive analytics of construction data by [http://futureofconstruction.org/case/uptake Chicago-based Uptake], Forbes’s hottest start-up of 2015 and now valued at over $2 billion. Jointly, their inspirational stories give a glimpse of the industry’s future.

For society, it could be a bright future: construction clients and communities at large will benefit from the long overdue transformation of the industry. And change is urgently needed if we’re going to respond to megatrends such as climate change, migration into urban areas and a new global push for infrastructure.

As a reliable source of entry-level jobs for immigrants and as a provider of affordable housing, the construction industry is sure to be at the centre of public debate. And if public budgets tighten further, the industry’s cost-effectiveness will come under even sharper scrutiny. Incremental change is not an option; innovations in construction could help make a serious difference, both economically and environmentally.

= How construction companies can keep up =

So the pace of innovation is accelerating, and that’s a good thing. But companies must act swiftly to keep up and reap the full benefits of these new technologies. Or, to paraphrase sci-fi writer William Gibson, the future of construction is here now – it’s just not evenly distributed. Innovative companies and projects may demonstrate the art of the possible, but what impact will they have on traditional construction? According to the Shaping the Future of Construction report, there’s a widening gap between the innovation laggards and leaders, in particular with regards to their digital transformation.

So how can companies stimulate innovative ideas, turn them into reality and ultimately succeed in the market? The report offers a few examples from pioneering firms, with lessons such as: create an innovation-friendly culture that rewards risk-taking; take a longer-term product perspective, rather than thinking in terms of individual projects; and proactively shape the regulatory environment. Companies have nothing to gain from delaying. Once they start improving, the benefits – lower costs, shorter delivery times and reduced environmental impact – can begin to accumulate.

But it’s not up to companies alone. Governments are crucial in the transformation of the construction industry. They need to make it easier for regulators, strategic incubators and project owners to adopt new technologies. The report recommends that governments should update building codes, move to forward-looking, performance-based standards, and introduce more flexible procurement models in infrastructure projects to overcome typical hurdles for innovation.

In fact, infrastructure is again high on the agenda in almost all regions of the world. In the words of John Beck, president and CEO of Canada’s Aecon Construction Group: “There has always been a mismatch between the need for infrastructure assets and the capital to fund them. By leveraging all the remarkable innovations that have emerged in recent years, we have a new opportunity to narrow that gap.”

= [http://www.weforum.org/reports/shaping-the-future-of-construction-inspiring-innovators-redefine-the-industry Shaping the Future of Construction: read the report here] =

This article was originally published on the [https://futureofconstruction.org/blog/how-elon-musk-and-other-pioneers-are-shaking-up-the-construction-industry/ Future of Construction Knowledge Sharing Platform] and the [http://www.weforum.org/agenda/2017/03/elon-musk-innovation-construction-industry WEF Agenda Blog].

[[Category:International]] [[Category:Organisations]] [[Category:Projects_and_case_studies]] [[Category:Publications_/_reports]] [[Category:Research_/_Innovation]] [[Category:Policy]] [[Category:Sustainability]] [[Category:Construction_management]] [[Category:Construction_techniques]] [[Category:Design]]

Shaping the Future of Construction: Inspiring innovators redefine the industry

2017-03-14T15:33:54Z

Michael Buehler: Created page with "Traffic is driving me nuts. Am going to build a tunnel boring machine and just start digging …” Elon Musk’s tweet in December 2016 startled the construction industry. He w..."

Traffic is driving me nuts. Am going to build a tunnel boring machine and just start digging …”

Elon Musk’s tweet in December 2016 startled the construction industry. He was not joking: only a month later, he started excavating the [http://www.wired.co.uk/article/elon-musk-tunnel-boring first test trench on Space X headquarters] in Los Angeles – an incredibly fast move for such a traditionally slow sector.

Thanks to Musk’s visionary and bold approach, he succeeds in attracting the best talent to his projects – a challenge traditional construction companies find hard to meet.

This is just one prominent example of a growing number innovators and disruptive companies shaking up the industry. With 3D-printed houses, automatically designed hospitals, prefabricated skyscrapers – once futuristic dreams are now becoming a reality, [http://www.weforum.org/reports/shaping-the-future-of-construction-inspiring-innovators-redefine-the-industry according to a new report] by the World Economic Forum and Boston Consulting Group.

Building the future

Relative to other industries, productivity in construction has stalled over the past 50 years. Technology was not making any fundamental advances, and companies remained averse to changing their traditional methods. Recently, however, transformative technological developments have emerged, and some pioneering firms have adopted them for current projects. These developments – 3D printing, building information modeling, wireless sensing and autonomous equipment, to name just a few – are already starting to turn traditional business models upside down.

The [http://www.weforum.org/reports/shaping-the-future-of-construction-inspiring-innovators-redefine-the-industry Shaping the Future of Construction] report outlines [http://futureofconstruction.org/case/ 10 cases] that illustrate the value of embracing innovation. Prominent flagship projects, such as [http://futureofconstruction.org/case/burj-khalifa/ Dubai’s Burj Khalifa], the world’s tallest building, and [http://futureofconstruction.org/case/the-edge/ the Edge in Amsterdam], the world’s most sustainable office building, showcase state-of-the-art innovation. So, too, do the various pilot projects or start-ups that the report analyses, such as the [http://futureofconstruction.org/case/winsun/ 3D printing of houses by Chinese company Winsun] or the predictive analytics of construction data by [http://futureofconstruction.org/case/uptake Chicago-based Uptake], Forbes’s hottest start-up of 2015 and now valued at over $2 billion. Jointly, their inspirational stories give a glimpse of the industry’s future.

For society, it could be a bright future: construction clients and communities at large will benefit from the long overdue transformation of the industry. And change is urgently needed if we’re going to respond to megatrends such as climate change, migration into urban areas and a new global push for infrastructure.

As a reliable source of entry-level jobs for immigrants and as a provider of affordable housing, the construction industry is sure to be at the centre of public debate. And if public budgets tighten further, the industry’s cost-effectiveness will come under even sharper scrutiny. Incremental change is not an option; innovations in construction could help make a serious difference, both economically and environmentally.

How construction companies can keep up

So the pace of innovation is accelerating, and that’s a good thing. But companies must act swiftly to keep up and reap the full benefits of these new technologies. Or, to paraphrase sci-fi writer William Gibson, the future of construction is here now – it’s just not evenly distributed. Innovative companies and projects may demonstrate the art of the possible, but what impact will they have on traditional construction? According to the Shaping the Future of Construction report, there’s a widening gap between the innovation laggards and leaders, in particular with regards to their digital transformation.

So how can companies stimulate innovative ideas, turn them into reality and ultimately succeed in the market? The report offers a few examples from pioneering firms, with lessons such as: create an innovation-friendly culture that rewards risk-taking; take a longer-term product perspective, rather than thinking in terms of individual projects; and proactively shape the regulatory environment. Companies have nothing to gain from delaying. Once they start improving, the benefits – lower costs, shorter delivery times and reduced environmental impact – can begin to accumulate.

But it’s not up to companies alone. Governments are crucial in the transformation of the construction industry. They need to make it easier for regulators, strategic incubators and project owners to adopt new technologies. The report recommends that governments should update building codes, move to forward-looking, performance-based standards, and introduce more flexible procurement models in infrastructure projects to overcome typical hurdles for innovation.

In fact, infrastructure is again high on the agenda in almost all regions of the world. In the words of John Beck, president and CEO of Canada’s Aecon Construction Group: “There has always been a mismatch between the need for infrastructure assets and the capital to fund them. By leveraging all the remarkable innovations that have emerged in recent years, we have a new opportunity to narrow that gap.”

[http://www.weforum.org/reports/shaping-the-future-of-construction-inspiring-innovators-redefine-the-industry Shaping the Future of Construction: read the report here]

This article was originally published on the [https://futureofconstruction.org/blog/how-elon-musk-and-other-pioneers-are-shaking-up-the-construction-industry/ Future of Construction Knowledge Sharing Platform] and the [http://www.weforum.org/agenda/2017/03/elon-musk-innovation-construction-industry WEF Agenda Blog].

User:Michael Buehler

2017-03-14T15:30:10Z

Michael Buehler:

Michael Max Buehler is the Head of Infrastructure & Urban Development at the World Economic Forum. Michael is responsible for managing strategic relationships with approximately 50 global CEOs from the engineering & construction, real estate and urban services sectors.

Michael has sixteen years of international, academic and professional experience in the construction, mining and real estate industries including project management positions on major public infrastructure and public-private partnership projects. Prior to joining the Forum, Michael worked with Deloitte in the Infrastructure and Capital Projects Advisory practices in Vancouver, British Columbia.

Michael managed projects for clients and industry leaders at C-suite level including major public infrastructure, mining and real estate projects as well as on capital programs and portfolios for private and public entities. Before, Michael worked for Bilfinger, a leading industry player for major infrastructure projects providing worldwide engineering, procurement, construction management, O&M and project finance services. Michael is experienced in managing project stakeholders in complex multi-contract project environments. Michael has a PhD in civil engineering, an MBA with finance and accounting specialization, is registered and licensed as a Professional Engineer in British Columbia and is a certified Project Management Professional.

User:Michael Buehler

2017-03-14T15:29:27Z

Michael Buehler:

Michael Max Buehler is the Head of Infrastructure & Urban Development at the World Economic Forum. Michael is responsible for managing strategic relationships with approximately 50 global CEOs from the engineering & construction, real estate and urban services sectors.<br />
Michael has sixteen years of international, academic and professional experience in the construction, mining and real estate industries including project management positions on major public infrastructure and public-private partnership projects. Prior to joining the Forum, Michael worked with Deloitte in the Infrastructure and Capital Projects Advisory practices in Vancouver, British Columbia.

Michael managed projects for clients and industry leaders at C-suite level including major public infrastructure, mining and real estate projects as well as on capital programs and portfolios for private and public entities. Before, Michael worked for Bilfinger, a leading industry player for major infrastructure projects providing worldwide engineering, procurement, construction management, O&M and project finance services. Michael is experienced in managing project stakeholders in complex multi-contract project environments. Michael has a PhD in civil engineering, an MBA with finance and accounting specialization, is registered and licensed as a Professional Engineer in British Columbia and is a certified Project Management Professional.