Q&A: What does a 100% technological approach mean to the construction industry?

Should the industry invest heavily in automation, robotics and AI? If so, why?

When we compare the construction industry to other industries, we see that it has one of the lowest rates of technology adoption. Industries such as fintech, automation, and automotive have advanced much further in this regard.

We need to invest in technology for construction, but we should have a clear reason for doing so. For instance, we could focus on improving productivity, reducing surplus materials, streamlining procurement, and better project scheduling and cost control. These are areas where technology solutions could make a big difference.

What does a 100% technological approach mean to the construction industry?

I believe that achieving a 100% technological approach in the construction industry may not be currently feasible. This is because the construction industry, particularly the building materials sector, is quite traditional in its mindset and not as advanced as some other industries. However, it would be possible to automate certain aspects of the construction process such as the specification of materials and the entire construction phase.

This could involve digitising the entire construction value chain, including activities such as online tenders, specification of the construction phase, and the adoption of predictive maintenance tools like sensors and small IoT devices to improve operational efficiency. We are also starting to see technological advancements in the deconstruction phase of building life cycles, which could involve implementing digital strategies for demolition, material recovery, and the subsequent use of recovered materials. In summary, the goal would be to digitise and integrate these digital aspects into a single value chain.

Is the construction industry relying too heavily on legacy technologies? If so, why is this?

We work in a very traditional industry with a traditional mindset. Due to this, we are not very open to implementing or testing new things, as there is a fear of change.

We heavily rely on legacy technologies and are hesitant to adopt new technologies or implement innovative strategies.

However, embracing new technologies and innovative strategies could address the top priorities and challenges of the industry, such as the lack of productivity and shortage of skilled workforce. Additionally, implementing sustainable and greener strategies, like more efficient waste management and materials, is essential for our industry.

You already touched on technology being regarded as too slow; what can be done to change the speed of adoption?

It’s not easy, but for example, having different parts of the value chain, such as different corporations or players, working together could be a possibility. In the case of Cemex, apart from developing our own internal projects with innovative solutions in the material space or supply chain, one of the top priorities for us is also working with other industry players that may not be directly related to our activity.

We need to understand each other for more efficient management of our construction projects. For example, we are working closely with contractors in the specification or adoption of more sustainable materials, including those made of recycled components. We are also strengthening relationships with prescribers of sustainable materials, such as architects, designers, or individuals working in the pre-construction and design phases. In the supply chain phase, we are working with truckers and logistic companies to implement vehicles fueled with alternative fuels or more sustainable energy instead of relying on gas.

At the end of the day, the key is to put all parts together and have them work together. For us, the best approach is to start by implementing small changes step by step in one single city or region, then expand to other countries or regions within the same scope once the efficiency and effectiveness of the solution is proven. Showing the benefits of the operations is one of the best drivers for adopting more technology in the company.

Where do you see technology in five years time?

That’s a tricky question, but I think adopting sustainable strategies and activities will become mandatory in the next five or ten years. This is mainly because of regulations. For example, in the case of cement production, it accounts for 8% to 10% of global CO2 emissions. To fulfill the Paris Agreement on climate change, these emissions will need to fall by 15-16% by 2030.

In response to this, we will see initiatives and regulations such as the implementation of recycled components in cement or concrete, the use of alternative fuels in construction and logistics, and the industrialisation of repetitive tasks through methods like off-site or modular construction and 3D printed buildings.

The two main trends we could see in the short and medium term are the adoption of greener strategies and sustainability, and the industrialisation of certain construction tasks.