In today’s dynamic landscape, the property industry faces myriad challenges, from fluctuating material costs to a protracted shortage of workers.
As outlined in Procore’s ANZ Construction Forecast, amidst these pressures, companies are exploring unconventional funding avenues and eagerly anticipating potential market shifts.
Property Council Group Executive Policy and Advocacy Matthew Kandelaars said market capacity and labour scarcity are the key construction cost drivers to the end of the decade.
“Even with capital partners onboard and overcoming planning obstacles, the costs and delays in constructing homes, commercial and industrial projects are worsened by a historic shortage in labour and market capacity.”
However, amidst the financial and staffing concerns, the report noted that two critical areas have emerged as focal points for innovation and progress: mental health awareness and the integration of artificial intelligence (AI) technology.
Artificial Intelligence
While the world is abuzz with the potential for AI, the immediate opportunity to leverage AI to improve efficiency in construction is more accessible than most would think.
Effective AI implementation requires more than just technology—it needs a strategic approach that encompasses data management, process optimisation and organisational alignment, according to Will Twomey, senior director, solutions consulting, APAC at Procore Technologies.
“Effective AI needs both a good data strategy and a good process strategy,” Mr Twomey said.
“If you put AI on top of a bad process, it’s not going to be a great outcome.
“The forward-thinking construction companies are using this as a mechanism or a trigger to review their current processes to be able to say, ‘if I were to be able to wrap an AI layer over this, how could we ensure that we are serving up the right processes to maximise the output?’”
Furthermore, collaboration with technology partners is crucial for successful AI adoption, Mr Twomey said.
“As we think about process documentation and process improvement, a lot of that will stem through a partnership with a technology partner that will provide guidance, support and continued innovation through this changing landscape,” he said.
Platforms like Procore are at the forefront of innovation, delivering solutions such as Copilot—a generative AI guide that aims to revolutionise workflows by automating tasks, swiftly surfacing pertinent information, and providing succinct summaries of extensive documents.
“We must ensure that as construction companies consider the integration of AI and data management into their operations, executives and key decision-makers are actively engaging in these discussions and factor technology into the strategic planning regarding the direction the business intends to take,” he said.
“It may sound daunting, however having a strong and trusted technology partner who sets you up for success by helping to streamline processes and connecting disparate systems will help you to get ahead of the curve.
“What Procore has developed in Copilot, is the ability to inform on relevant information for your construction project, assist on actions that customers can take, and be a guide as an expert on Procore and Construction. Those capabilities are fueled through procedures established for the collection, ingestion and connection of data into a centralised system.”
This new technology signifies a promising direction for streamlining processes and enhancing efficiency within the industry.
Mental health awareness
The construction industry, traditionally perceived as rugged and resilient, is increasingly recognising the importance of mental health support.
Initiatives are underway to foster open conversations and provide support mechanisms for workers.
Mr Twomey said technology, often at the forefront of change, offers unique opportunities to facilitate these efforts.
By leveraging technology platforms, such as forums and learning modules, Procore has partnered with B1M to create safe spaces for dialogue and support through programs such as Get Construction Talking.
As the property industry navigates market pressures, innovations in mental health support and AI integration offer a path forward. By prioritising employee well-being and embracing technological advancements, construction companies can not only thrive in today’s environment but also lay the foundation for a sustainable and resilient future.
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