Challenges Driving the Industrialization of Construction

By Akio

This post is an excerpt from the paper, “Industrialization of the Construction Industry,” by Dr. Perry Daneshgari and  Dr. Heather Moore of  MCA Inc.

A monumental and historical study conducted by the National Research Council of the National Academies on behalf of NIST outlined the challenges and obstacles facing the construction industry.

BREAKINGWITHTRADITION2-200x300

Fragmentation of the Industry

“The sheer number of construction firms (760,000 in 2004) and their size—only 2 percent had 100 or more workers, while 80 percent had 10 or fewer workers—make it difficult to effectively deploy new technologies, best practices, or other innovations across a critical mass of owners, contractors, and subcontractors.

Tweet: Construction is fragmented: only 2% have 100+ workers while 80% have 10 or fewer. @Dassault3DS @3DSAEC #AEC http://ctt.ec/eTAeP+Click to tweet: “Construction is fragmented: only 2% have 100+ workers while 80% have 10 or fewer.”

The industry is also segmented into least four distinct sectors—residential, commercial, industrial, and heavy construction.

Interconnectivity and Interoperability

  • Its diverse and fragmented set of stakeholders: owners, users, designers, constructors, suppliers, manufacturers, operators, regulators, manual laborers, and specialty trade contractors including plumbers, electricians, masons, carpenters, and roofers.
  • Its segmented processes: planning and financing, design, engineering, procurement, construction, operations, and maintenance. Each process involves different groups of stakeholders, and shifting levels of financial risk.
  • The image of the industry—work that is cyclical, low tech, physically exhausting, and unsafe—which makes it difficult to attract skilled workers.
  • The one-of-a-kind, built-on-site nature of most construction projects.
  • Variation in the standards, processes, materials, skills, and technologies required by different types of construction projects.
  • Variation in building codes, permitting processes, and construction-related regulations by states and localities.
  • Lack of an industry-wide strategy to improve construction efficiency.
  • Lack of effective performance measures for construction-related tasks, projects, or the industry as a whole.
  • Lack of an industry-wide research agenda and inadequate levels of funding for research.

The industry is moving to address these challenges.

To learn how, download the white paper “Industrialization of the Construction Industry,” by Dr. Perry Daneshgari and Heather Moore.

Tweet: How does the history of industrialization inform #AEC industry? @Dassault3DS @3DSAEC @AgileConst http://ctt.ec/9cna5+Click to tweet: “How does the history of
industrialization inform #AEC industry?”

This post is an excerpt from the white paper, “Industrialization of the Construction Industry,” by Dr. Perry Daneshgari and Dr. Heather Moore. Commissioned by Dassault Systemes and prepared by MCA Inc., this whitepaper focuses on industrialization of construction industry.

It maps out the construction industry challenges, relates the history of industrialization in the manufacturing industry, and summarizes five critical aspects and approaches.

 

Tweet: Challenges Driving the Industrialization of #Construction | @Dassault3DS @3DSAEC #AEC #BIM http://ctt.ec/0eQKb+Click to tweet this article

 


Related resources:

Lean Construction Industry Solution Experience

Download Lean Construction Solution Brief

White Paper: Industrialization of the Construction Industry

MCA® Website

The Case for Industrialization of the Construction Industry

By Akio

This post is an excerpt from the paper, “Industrialization of the Construction Industry,” by Dr. Perry Daneshgari and  Dr. Heather Moore of  MCA Inc.

Like many other industries the construction industry is under constant pressure to improve productivity, reduce cost, and minimize waste in the operation.

While the productivity in the manufacturing industry has improved by four hundred percent (400%) over the last century, the construction industry’s productivity has, in the best case, stayed flat or turned negative.

Tweet: Problem: Over the last 100 yrs productivity in the #AEC industry has, in best case, stayed flat. Solution: http://ctt.ec/mf0SU+ @3DSAECClick to tweet: “Problem: over the 100 yrs productivity in the #AEC
industry has, in the best case, stayed flat. Solution: industrialization”

One main reason for the improvement of the manufacturing and other industries’ productivity is the “Industrialization” of those industries. Industrialization of any industry will rely on the following five factors:

  1. Management of Labor
  2. Management of work
  3. Lean Operations
  4. Modeling and Simulation
  5. Feedback from the source

The driver for establishing and applying industrialization in manufacturing was the American Society of Mechanical Engineers (ASME) in the late 1800s and early 1900s. Currently no known association is leading this mission in the construction industry.

A marked result of the advancement in productivity of the manufacturing industry is the relative price of an automobile.  Whilst the cost of an automobile has gone from 140% in 1910 of the average national per capita income in the United States down to 33% in 2012, the cost of an average dwelling has gone up from 333% to 619% of per capita income during the same period.

Tweet: Since 1910 automobile production cost decreased 75%. The cost of a dwelling has doubled. Time to industrialize @3DSAEC http://ctt.ec/Urcfa+Click to tweet: “Since 1910 automobile production cost decreased
75%. Production cost of a dwelling has doubled. Time to industrialize”

This post is an excerpt from the white paper, “Industrialization of the Construction Industry,” by Dr. Perry Daneshgari and Dr. Heather Moore. Commissioned by Dassault Systemes and prepared by MCA Inc., this whitepaper focuses on industrialization of construction industry. It maps out the construction industry challenges, relates the history of industrialization in the manufacturing industry, and summarizes five critical aspects and approaches.

Download the whitepaper and start accelerating the “Industrialization of the Construction Industry” through lessons learned from manufacturing and other industries.

Tweet: The Case for Industrialization of the #Construction Industry @3DSAEC @Dassault3DS #AEC #BIM http://ctt.ec/Uz_OK+Click to tweet this article

 

Akio MoriwakiAkio Moriwaki
Dassault Systèmes’ head of global marketing for the Architecture, Engineering and Construction industry, Mr. Moriwaki led the launch of the groundbreaking Lean Construction Solution Experience and is a member of buildingSMART

Related resources:

Lean Construction Industry Solution Experience

Download Lean Construction Solution Brief

White Paper: Industrialization of the Construction Industry

MCA® Website

Who Will Lead the Prefabrication Movement?

By Patrick

 

This post is part of a series of articles found in “Prefabrication and Industrialized Construction,” a Dassault Systèmes whitepaper.

 

The shift toward prefabrication means embracing a new project delivery method. While the use of prefabrication offers clear advantages on many project types, the construction industry is notoriously slow to adapt to new business models.

Tweet: The shift toward #prefab means embracing a new project delivery method. @Dassault3DS @3DSAEC #BIM #AEC http://ctt.ec/eNHY2+

Click to tweet: “The shift toward #prefab
means embracing a new project delivery method.”

Widespread adoption of prefabrication is being seen from two drivers in particular: Building Product Manufacturers and Subcontractors.

Building Product Manufacturers

During the latest construction downturn, a handful of building product manufacturers flourished by consolidating with and/or acquiring a range of related building product companies.

Workers build a floor on a chassis at a factory. ©iStock.com/EdStock

The result is a handful of suppliers that are now able to deliver multiple building systems to a single project. This delivery system promotes a move toward prefabricated systems since it allows the supplier to move more product.

Take for example United Technologies, which manufactures both elevators and air conditioners. Such suppliers are more motivated to sell a complete system directly to the building owner, avoiding the battle to get each individual component specified by the designer or selected by the general contractor.

Subcontractors

For some time, subcontractors seeking to secure bigger contracts have looked to become a resource to architect in the design phase. These design-build partners are able to advise architects on product selection, and consequently lock in their preferred products and services.

However, many of these companies are focusing on a new advantage of selling directly to the building owner. With today’s focus on sustainability, more building owners are taking a long-term view of new construction; the future operation of systems is now a greater part of design considerations.

Tweet: Sustainability means the future operations of systems is now a greater part of design. @Dassault3DS @3DSAEC #AEC #BIM http://ctt.ec/dsdSa+Click to tweet: “Sustainability means the future
operations of systems is now a greater part of design.”

The emergence of design-build-operate-maintain contracts means subcontractors earn not only installation work but also a contract to provide maintenance work over the life cycle of their system.

Take again the case of United Technologies: while the supplier may only earn a small profit margin for installing its elevators, its labor force can earn as much as three times that by managing the operation of that elevator for the duration of its existence.

That movement toward life cycle maintenance is a major motivator for installers to be part of the early specification process — although building owners win as well with a more efficiently delivered product.

Next Steps

Forward-thinking suppliers and subcontractors already are promoting this new method of project delivery. As more building owners buy into the benefits of prefabrication, more members of the construction industry may find themselves adapting to this new reality.

Tweet: Who Will Lead the #Prefabrication Movement? @Dassault3DS @3DSAEC #AEC #BIM http://ctt.ec/Y2g1a+Click to tweet this article.

 

Patrick_Mays

Patrick Mays, AIA
With over 30 years of AEC experience, Mr. Mays is part of the core team driving the AEC industry strategy at Dassault Systèmes. He was  General Manager for North America at Graphisoft, and served as CIO at NBBJ Architects, where he led the firm’s transition to BIM in the 1990s.

 


Related Resources

Lean Construction Industry Solution Experience from Dassault Systèmes

Download the full whitepaper: Prefabrication and Industrialized Construction

Prefab and Industrialized Construction whitepaper



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