The construction industry: It’s time to shift the dial 

Optimism is baked into our industry. Looking at an empty space and seeing what’s possible takes hope and courage. Creating a structure that lasts is not simple. Ask anyone who has ever built anything, and they’ll tell you there are always challenges to be overcome.  That is the broader story of our industry. There are always challenges in front of us – an ageing workforce, market uncertainty and low margins. Fortunately, overcoming challenges is what we do best.

Last week we released Laing O’Rourke’s Report and Accounts. It’s a good and building story and I’m proud of our people for making it happen. It gave me a chance to think about those challenges and how we might overcome them to create an industry that is sustainable and productive, that pushes boundaries in service of humanity. An attractive industry that is worthy of the 21st Century and the great people who work in it.

Here are three ways we can do things differently to start this shift:

• Embrace technology. The fundamental tools of construction have not evolved at the same speed or consistency as other industries. We’re often working in the same way we did decades ago. Take rebar. We’ve been tying it by hand since the 1900s. The first battery operated rebar tying tool wasn’t invented until 1993. Even today our workers are still using their hands and pliers to do this job on sites. Something needs to change. Digital design and modern methods of construction deliver better outcomes for clients and protect our people. Advanced manufacturing for construction saves time and creates new jobs requiring new skills, meaning we can safeguard our workers over longer more productive careers, reduce the challenge of mobility and unlock a great workforce not as constrained by skills shortages – deploying capital to bridge the gap in the shrinking workforce.
• Collaborate with our clients. Our best client experiences are when we are brought in early at the design phase and when there is a collaborative discussion. Digital design should drive precision and certainty. It also means we can deploy those modern methods of construction like advanced manufacturing – saving time, reducing on site resources and delivering a more certain, higher quality product.
• Better contracting. Contracting can be complicated and combative. We have seen the benefits of equitable contract clauses to share risk fairly, with risk sitting with the party best able to manage it, not just the one that will say yes. A fair model will encourage investment, a key pillar in setting up the industry for a successful and sustainable future. This in part will enable us to change the agenda, leap into the future and make construction contracting AI ready. We want to see this as the norm, not just the exception.

If we do these things we can move those challenges, tackle the productivity gap that is the focus of government, business and communities, drive sustainable growth and shape a new industry and create new modern jobs.

We are a company with a purpose: ‘Pushing the boundaries of what’s possible, in service of humanity’. That means smarter hospitals, cleaner water, secure energy, and better-connected cities. It also means opportunities for our people: jobs that are meaningful and rewarding, careers that are long-lasting, and workplaces where everyone can thrive.

Our industry more than any other can be a major agent for change. What else can we do? Join the conversation on LinkedIn.