Middle East building firms should digitize to survive: report

Middle Eastern construction companies need to adopt new technologies to keep up with the impending global changes and challenges in the sector, according to management consultancy Ventures Middle East.

“There is no stopping the megatrend toward digitization,” said Mibu John, partner and managing director, Ventures Middle East.

"Companies who move early to develop and implement their own digitization strategy will be the winners as the construction industry goes digital. Otherwise, lack of expertise in new technologies could become a serious competitive drawback.”

Modern construction companies are under increasing pressure to ensure timely delivery amongst costly challenges such as delays, overspending and shortages of skilled labor. With new technologies like Artificial Intelligence, 3D printing, Building Information Modeling (BIM), IOT (Internet of things), and cloud-based solutions to manage the surge of Big Data in construction, the challenges now plaguing the construction industry could soon become less relevant.

“Undoubtedly, adopting these new technologies in construction will improve predictability, speed of delivery, environmental sustainability, design freedom and reduce manpower cost. However, these new technologies need to be supported by compatible tools that connect systems at every link in the value chain, and conditions need to be established that enable the technological revolution in construction at scale," John noted.

Commenting on the future trends, Sassan Hatam, partner at Roland Berger, a global strategy consulting firm, said: “Construction firms of the future will use digital tools to have materials supplied just in time, thereby cutting the cost of storage and transportation and increasing efficiency.

“They will source materials with electronic portals and, in so doing, optimize not only their prices but also their collaboration with suppliers. In production, building suppliers will deploy smart machinery and applications that forge networks in which all production processes are planned in advance and operated with optimal efficiency.”

In the Middle East, the UAE is aiming for 25 percent of new buildings to be printed by 2030; and Saudi Arabia is planning on using 3D printing to reduce its housing deficit.