How to make the most of increased global infrastructure investment in construction
The world of construction is changing rapidly. On a journey to decarbonise their operations, businesses are quickly adapting to new ways of working.
The world of construction is changing rapidly. On a journey to decarbonise their operations, businesses are quickly adapting to new ways of working. It helps that construction is a sector set to be in high demand during 2023. Many governments have identified the positive impact construction can have on global economies and are ramping up their investments in infrastructure projects.
For example, in the US, construction spending is expected to increase by 5.5% in 2023 with the $1.2 trillion Infrastructure Investment and Jobs Act driving increased demand.1 China put even more money behind infrastructure projects in 2022, boosting construction with its own $2.3 trillion plan2 鈥 and the country is set to invest further during 2023.3
Elsewhere, the energy crisis has inspired governments to invest in long-term alternatives to oil and gas. This is the case in the 麻豆传媒, which plans to accelerate the development of new nuclear, wind, solar and hydrogen power.4 Similarly, India faces the need to invest around $840 billion in urban infrastructure over the next 15 years to meet the needs of its rapidly growing population.5
All this investment creates a vital opportunity for the construction industry to drive growth 鈥 for the businesses themselves and the communities they operate in. From new housing to families to sustainable infrastructure, construction companies can help to build a better economic and environmental future for people everywhere.
The big question now is: how can construction businesses make the most of this opportunity?
To realise the potential of increased global investments in infrastructure, companies need the ability to take on a range of new projects on top of their current workloads. This means getting themselves set up for success by optimising their processes and maximising equipment uptime.
There are several reasons why these two areas are important. Across multiple industries, there鈥檚 a shortage of skilled workers. Construction is one of the worst affected, with hundreds of thousands of unfilled vacancies worldwide.6 So, companies need to make the most of the skilled teams they have and equip them with the right tools and processes.
Also, with rising material, fuel and labour costs companies need to find as many efficiency savings as possible to protect their margins. A vital place to look for these savings is in equipment operations, where breakdowns contribute to missed deadlines and account for roughly 40% of the industry鈥檚 cost overruns.7
That鈥檚 why reducing equipment downtime to increase productivity is top of mind across the industry. Three-quarters of construction staff are already looking to expand the lifespan of their existing equipment as a priority, highlighting the importance of effective maintenance on any construction site.8
Preparing for the influx: making sure your equipment can work as hard as you do
As construction companies take on more projects, the reliability of their equipment and process will be critical in delivering on time and to budget.
Thankfully there鈥檚 already a wide variety of tools, technologies and initiatives available to businesses that they can use to maximise equipment uptime and drive efficiency across site operations.
Here are just some of the solutions that companies can explore:
Technologies to maximise equipment uptime
- Connected construction platforms
Bringing together information on people, equipment and workflows, connected construction gives companies the ability to manage their resources more efficiently. As well as helping to reduce equipment downtime, these platforms can drive collaboration between teams, contribute to improved product quality and minimise site risks.
An example of this in action is Shell RemoteSense, which helps companies to optimise their maintenance schedules and maximise equipment uptime with real-time insights from live oil condition monitoring. Another is MachineMax, a platform that brings data from different sources across a site together in one place. This enables operators to gain greater visibility of their equipment operations 鈥 helping them to reduce idling times and drive productivity.
- Predictive maintenance
So much equipment damage can go unnoticed until it鈥檚 too late. Unplanned downtime can easily come from previously unnoticed equipment damage. With predictive maintenance practices (including oil condition monitoring), construction crews can spot and fix issues before they escalate 鈥 preventing avoidable breakdowns and unplanned downtime. Sensors play a vital role in this, creating a valuable new source of data for companies to generate actionable insights from.
- Preventative maintenance
Ineffective lubrication has caused breakdowns for four out of ten companies.9 High-performance lubricants for engines, hydraulics, gears and transmission systems are an essential part of avoiding unplanned downtime and maximising equipment productivity. That鈥檚 why regular ongoing maintenance 鈥 from on-site assessments with Shell LubeExpert to services like Shell LubeAnalyst and Shell RemoteSense that optimise lubrication practices 鈥 can make a huge difference to a company鈥檚 ability to deliver projects on time and on budget.
- 3D printing for spare parts
Sometimes downtime is unavoidable, but it shouldn鈥檛 be extended by the wait for replacement parts. That鈥檚 where 3D printing can help 鈥 giving construction companies the opportunity to create their own spare parts and other essentials, rather than reordering them.
Tools and systems to enhance site efficiency
- Drones for site monitoring
Able to make a full sweep of a construction site swiftly and at little expense, drones can speed up site monitoring and drive project efficiency (even in severe weather). Not only that, but they can improve site safety and help to prevent the theft of construction equipment and materials.
- Predictive modelling
Another good reason to have an integrated data process in place across a construction company is the ability to use predictive modelling to improve site efficiency. As well as helping to manage resources more effectively during a project (and increasing equipment uptime), it can also contribute to enhanced decision making and planning up front 鈥 enabling sites to optimise their operations.
- Artificial Intelligence (AI)
The use of AI in construction is expected to grow 183% over the next two years, so how can it help companies improve efficiency?10 In the initial stages of a project, it can aid planning to prevent cost overruns and missed deadlines. Out on the site, autonomous equipment can free up workers for more valuable tasks 鈥 helping teams to streamline operations and increase productivity while mitigating the issues caused by the labour shortage.
Work with an expert partner to drive efficient construction projects
Your business has a huge opportunity ahead of it 鈥 and collaboration will be crucial in setting you up for success. Working closely with a partner you can trust to help you select the solutions that meet your specific needs (and then make the most of them to get the job done) is vital.
That鈥檚 why, at Shell, we can help you make sense of the solutions available as you navigate your biggest challenges and take advantage of the opportunities that increased investment in construction will bring.
Disclaimers:
1 GEP. 鈥.鈥 2022.
2 Bloomberg. 鈥.鈥 2022.
3 Global Times. 鈥.鈥 2023.
4 Construction News. 鈥.鈥 2022.
5 The World Bank. 鈥.鈥 2022.
6 4castplus. 鈥.鈥 2022.
7 Construction Review Online. 鈥.鈥 2022.
8 Shell. 鈥淪hell Lubricant Solutions COVID-19 TCO Business Case (Construction) Whitepaper.鈥 N.D.
9 Salesforce. 鈥.鈥 2022.
