Construction Tech 2020: The Age of Integration

Unless you’re lucky enough to have some kind of magical crystal ball, it can be difficult to accurately predict the future, especially when it comes to the ever-changing nature of construction technology. But by looking at current trends, we can see changes emerging that could cause a shift in the industry by 2030. We’re starting to see these occur already as construction technology becomes more prevalent on jobsites and the industry becomes more open to incorporating software to solve their problems. Coupled with new, tech-savvy generations entering the workforce with increased expectations for tech- based solutions, the construction industry — and particularly its technology vendors — has to grow to accommodate this new generation of workers and the ways in which they address work-related problems.

Working together is also key to exOver the next 10 years, a generational shift will be occurring within the workforce. In 2030, even the youngest of Baby Boomers will be approaching retirement age while the incoming generation will simultaneously be reaching their prime working age. This new generation, referred to as Generation Z or Gen Z, consists of anyone born between 1997 and 2012, though the exact cutoff year is still up for debate. According to Business Insider, Gen Z represents 27% of the total U.S. population and makes up the single largest generation in history, surpassing even the peak population of Baby Boomers by about 12 million. By 2030, all members of Gen Z will be eligible to enter the job market and will be the largest majority of new, incoming workers.

Bringing Gen Z into the construction industry will be essential for companies to survive. Adding new workers at any time is obviously important for growing a business, but it’s even more important as generational shifts occur. To entice Gen Z into construction, it’s likely that similar changes to those that have taken place over the past 10 years to attract the millennial workforce — particularly in the case of adopting efficient and integrated technology — will become more vital than ever before.

This need is a result of technology’s prevalence over the past 20 years. Unlike millennials, who were born between 1980-1996 and can remember a time before technology impacted nearly all aspects of life, Gen Z has always been around its influence. The World Wide Web, which brought the Internet to every household, came around in 1991 — a full six years before anyone in Gen Z was born. In 2006, social media giant Facebook dropped its for-college-students-only restrictions, opening up to the general public and subsequently changing how information is spread when the oldest members of Gen Z were nine years old and six years before the youngest in the generation were born. Apple launched the first iPhone in 2007, effectively kicking off the “a-smartphone-in-every-home” era, when the oldest Gen Z’ers were only 10 years old.

The lasting effects of having access to all of this tech so early haven’t been fully realized. Pessimists will point to stereotypical negatives — decreased attention spans or struggles with communication skills — but the real change, or at least the one the construction industry should be most concerned with, is how Gen Z leans on technology as a fundamental problemsolving tool. With solutions often just a quick Internet search away, Gen Z relies on tech more than previous generations, and that’s not necessarily a bad thing. But as much as tech integrates into their lives, construction

Calls for integration with construction technology are already happening. According to a 2019 survey from The Institute of Construction Management, 63% of respondents indicated that integrations were a top-influencing factor when selecting technology or software. The only factors of more importance were the needs of the office and field staff — as they should be. When looking at the software programs contractors indicated using in the same survey, it’s not surprising that integrations rank so highly in terms of importance. Lacking an all-in-one package, construction professionals are using combinations of software to accomplish business tasks — often one system for project management, another for estimating, another for accounting and another still for scheduling. Without integrations to allow software to efficiently communicate and transfer data, workers are left with performing double-entries while making sure that accurate data is shared across multiple teams. Integrations will become an expectation for Gen Z by 2030 because it’s already a part of their everyday interactions with technology. Popular technology — from smartphones and wearables to smart televisions and thermostats — are showing these integrations already. Much like I can start a video on my phone and stream it to the nearest smart television at the press of a button, construction technology will need to exhibit this same ease-of-use, albeit with dronemaps converting to 3D-imaging on job sites or scheduling software aligning with payroll at the office.

These expectations carry benefits for everyone in the industry. Improving efficiency, data accuracy and communication across all teams are positives that come along naturally with effective integrations. By putting these pieces in place, the entire function of the business improves without having to wait until the end of the decade.

To prepare for 2030, the construction industry and its technology vendors need to move toward easy and efficient integrations. Without it, attracting the next generation of the industry will become increasingly difficult. Plus, by preparing for the tech-heavy expectations of Gen Z, businesses also reap the added rewards of faster, more reliable data and minimize human error. It’s a lot to prepare for, but the next 10 years should be an incredibly exciting time for everyone in the industry.

Steve Antill is VP of business development at Foundation Software and Payroll4Construction. com, where he leads the charge for continual revenue growth, including new entry points into the market to serve contractors. He invests much of his time building partnerships and relationships across the construction industry with contractors, CPA firms, associations and technology vendors. For more than 20 years, he’s led more than 1,000 software selections and implementations for contractors of numerous sizes and trades. santill@ foundationsoft.com | (800) 246-0800

PwC has researched possible scenarios for what the future may hold based on megatrends, technological breakthroughs, rapid ubanization, aging populations, and other factors. Click here to see what possibilities they envision.