People, governments, organisations, and enterprises frequently do not recognise the opportunity for change when things are going well. They only embrace change once they are confronted with a problem. With the war, the pandemic, and the inflationary pressures that are currently engulfing the entire world and touching all sectors, the challenges facing the global economy are growing in complexity, and many industries are struggling to function properly and overcome these challenges. Angelica Krystle Donati, Head of Business Development at Donati S.p.A., shares why technology is the ideal antidote for the construction industry.

Shortages of critical infrastructure materials

Due to supply chain disruption, energy scarcity, and inflation, a prolonged war in Ukraine risks being even worse for the European economy than the coronavirus outbreak. EU inflation skyrocketed to an estimanted 7.5 percent, but with the price of oil, gas, and food supplies all rising as a result of the Ukraine conflict, it could rise even more. According to the European Commission, the continent is entering a challenging phase, with slower growth and high inflation forecast until the end of 2022 at the earliest. There is a real risk of recession.

The construction sector has been severely impacted by the current situation as some essential materials largely sourced from Ukraine, such as Corten steel, a vital commodity for infrastructure projects, are now in limited supply. The material is used for the construction of bridges in Italy, and shortages are projected to endure for years, causing significant delays in the maintenance and construction of critical infrastructure projects. If essential maintenance cannot be carried out because replacement materials simply aren’t available, it puts infrastructure projects in a very precarious position and most importantly, public safety at large is in danger. Steel, ceramic, clay, and wood, all of which are resources supplied by Ukraine, are also in short supply.

Soaring commodities prices and unprecedented inflation levels in Europe are bringing the construction sector to its knees and threatens to bring building sites to a halt. Construction firms in Italy are losing around 30% on their current projects and this is largely due to the fact that companies do not have the possibility to raise their prices, so the risk of construction sites grinding to a halt is real and increasing.

In Italy, for example, the measures taken so far by the government are not enough. A structural intervention is needed, as well as an immediate adjustment of the reference price lists for works in progress and for works to be tendered. The majority of companies are currently working below cost, a condition that is unsustainable in the medium to long term and which jeopardises the implementation of the National Recovery and Resilience Plan (NRRP).

Innovating 

The construction sector has generally been reluctant to recognise the potential benefits presented by technology, and genuine progress in adaptation and advancement has lagged behind. While Covid-19 brought global activity to a halt, it also aided in the acceleration of change and the adoption of new technologies. In moments such as this, technology plays an important role in making processes more efficient and reliable, therefore mitigating risks. 

Innovative construction technology has enabled massive improvements in the safety, efficiency, and productivity of large-scale construction projects. Overhead costs are reduced, safety rates are improved, and projects are completed faster. Furthermore, the most up-to-date technological gadgets and software applications enable management teams to keep better track of projects and workers remotely. 

In the construction sector, project management and site safety tech helped not only simplify the on-site construction process, but helped make it safer, as greater control of the process enabled better social distancing.

The sector has already shown efficiency, adaptability and resilience during a period of immense uncertainty. It is important that we remember how essential innovation is in preparing for unexpected events and the use of technology in construction needs to become the norm as opposed to the exception, even when we return to a more normal way of working.

Building a sustainable future

Finally, technology and innovation can help drive efficiencies. While the built environment and construction are one of the main contributors to climate change, being responsible for 40% of CO2 emissions globally, they also have an opportunity to engender positive change. The sector has responded to the COVID-19 pandemic by focusing more heavily on innovation and by understanding that sustainability must be treated as a core part of every project. In this regard, sustainable construction and green innovation are fundamental to respond to the evolving needs of the construction market and to ensure the industry’s transformation. Builders and developers are increasingly aware of the considerable benefits from the application of innovative construction  and management methods that are cleaner, greener, and help reduce waste. Buildings are more energy-efficient and sustainable, so they have a lower carbon footprint and a reduced impact on the environment.