The transformative power of BIM
With annual revenues of nearly $10 trillion, or about 6% of global GDP, the engineering and construction (E&C) industry is a cornerstone of the world’s economy. It serves almost all other industries, much of whose value creation involves buildings, infrastructure facilities, and other 'constructed assets'.
Yet, unlike other industries, E&C has been slow to adopt new technologies and has never undergone a major transformation. Consider, for example, the opportunity offered by lean process methodologies—take-up has been limited, and many companies that have adopted them have failed to apply them wholeheartedly.
In addition, construction firms now find themselves struggling to cope with ever-larger and more complex 'megaprojects', particularly in infrastructure. As a result of these setbacks and challenges, the construction industry has registered disappointing efficiency gains, and its growth in labour productivity continues to lag far behind that of other industries.
Substantial change is on the way, however, driven by digitalisation: the development and deployment of digital technologies and processes. Construction will soon be characterised by connected systems of sensors, intelligent machines, mobile devices, and new software applications—all integrated on a central platform of building information modeling (BIM).
As their adoption increases, digital technologies are enabling companies to boost productivity, manage complexity, reduce project delays and cost overruns, and enhance safety and quality.
Other industries, such as the automotive industry, underwent radical process changes earlier and are now well into their digital transformation. In E&C, digitalisation is just beginning. Given the sector’s vast size, however, even small improvements will translate into substantial benefits for companies and for society.
Within ten years, according to our estimates, full-scale digitalisation in non-residential construction will lead to annual global cost savings of $0.7 trillion to $1.2 trillion (13% to 21%) in the engineering and construction phases, and $0.3 trillion to $0.5 trillion (10% to 17%) in the operations phase.
Digitalisation will change the game fundamentally in E&C, not only enabling efficiency and quality gains along the value chain but also reshuffling the competitive league table of companies and countries.
Post originally published on bcgperspectives.com.
This article was written by Philipp Gerbert, Santiago Castagnino, Christoph Rothballer, Andreas Renz, and Rainer Filitz.
This article was also published on the Future of Construction Knowledge Sharing Platform and the WEF Agenda Blog.
--Future of Construction 15:22, 16 Jun 2017 (BST)
[edit] Find out more
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
Combating burnout.
The 5 elements of seiri, seiton, seiso, seiketsu and shitsuke.
Shading for housing, a design guide
A look back at embedding a new culture of shading.
The Architectural Technology Awards
The AT Awards 2025 are open for entries!
ECA Blueprint for Electrification
The 'mosaic of interconnected challenges' and how to deliver the UK’s Transition to Clean Power.
Grenfell Tower Principal Contractor Award notice
Tower repair and maintenance contractor announced as demolition contractor.
Passivhaus social homes benefit from heat pump service
Sixteen new homes designed and built to achieve Passivhaus constructed in Dumfries & Galloway.
CABE Publishes Results of 2025 Building Control Survey
Concern over lack of understanding of how roles have changed since the introduction of the BSA 2022.
British Architectural Sculpture 1851-1951
A rich heritage of decorative and figurative sculpture. Book review.
A programme to tackle the lack of diversity.
Independent Building Control review panel
Five members of the newly established, Grenfell Tower Inquiry recommended, panel appointed.
Welsh Recharging Electrical Skills Charter progresses
ECA progressing on the ‘asks’ of the Recharging Electrical Skills Charter at the Senedd in Wales.
A brief history from 1890s to 2020s.
CIOB and CORBON combine forces
To elevate professional standards in Nigeria’s construction industry.
Amendment to the GB Energy Bill welcomed by ECA
Move prevents nationally-owned energy company from investing in solar panels produced by modern slavery.
Gregor Harvie argues that AI is state-sanctioned theft of IP.
Experimental AI housing target help for councils
Experimental AI could help councils meet housing targets by digitising records.