Danger! Technology Disrupts AEC! Urgency, and Solution

If you’ve been in the AEC industry for a long while, you’ve probably seen a lot of change. I was a founding member of the Engineering Change Lab-USA. In 2017 we began to analyze opportunities and threats.  We knew that no one could predict what was about to hit us. But we knew the industry is generally not prepared for change.  Thus, we engaged thought leaders across the globe at over two dozen summits, to understand and prepare for the opportunities and risks.

As a result of this plethora of information, and a number of real business initiatives, we can see where these technologies are starting to change our world. However, the vast majority of AEC firms lack clarity and direction on how to proceed. A key challenge is that the AEC industry makes use of technology, but does not originate their development. We are also trapped in our conservative paradigm of how we conduct our business and we don’t invest much in research and development.

It may feel as dangerous as navigating through fog. But, if we use the right tools, navigating through fog can be safely accomplished. The author has navigated many firms to thrive in a changed technology markets. Keep reading to learn the tools that AEC can use to navigate to the new state of delivering solutions to our clients. 

Monsters are Hunting AECs for Dinner

Artificial intelligence, big data and robotics are starting to reveal how software might take over many of the thought processes and judgements reserved for technically educated humans. Owners of these systems are salivating at the thought of the AEC industry for dinner. Have you tried ChatGPT to research and solve a problem? If you haven’t, you will be shocked at how well it performs. Looking ahead, what might be left of the poor engineer?

The case for continued demand for licensed professional services skills has merit. New technologies will create new commerce and social systems. For example, should autonomous vehicles and transit take over, the retooling of roads, parking garages and transit systems will be massive. To support this massive infrastructure retrofit, it seems likely that the demand for firms involved with delivering the required services will explode. Is this the same as saying that the demand for traditional AEC firms will explode?

What if automation and robotics are able to replace engineering, architecture and construction processes and even judgement? Might this mean that some day when we talk about “firms involved with delivering infrastructure”, we are not talking about engineering, architecture and construction companies?  Might a new entity move into that space?

Who might this be? How about entities that today are already proficient at data management, automation design, and robot delivery? All they need to do to replace the traditional AEC role is to incorporate core AEC skills and knowledge into their processes. Is there any doubt that some will do this successfully?

No one knows the outcome of this transformation. If we use the last three industrial resolutions as an indicator, many “old delivery system” AEC businesses will cease to exist. Those who pay attention and take action now may be able to position themselves to evolve to a new state before these “outsiders” do.

Strategies to Slay the Monsters

Is there a way an AEC firm and its employees to be the victors in the hunt? The key to riding the next disruptive wave of business is to figure out how to leverage technology to meet clients’ needs more effectively than current processes and to evolve into that space. We are the ones who best understand our clients and our processes to achieve their goals. That is a powerful advantage. While the outcome is not possible to predict with certainty, the methods to assess one’s situation is not new. Here is FosterGrowth’s approach.

1. Inventory the core skills of employees. Break services down to each component, like hydraulic calculations, drainage control, and structural design. This breakdown is a starting point for assessing the processes that might be automated.
2. Develop an intimate understanding of clients’ business drivers. For instance, a university must attract students and quality academic instructors. What are those two groups looking for and what are the competitive trends? For most firms, this is a deeper awareness than just the clients’ infrastructure needs.
3. Examine the firm’s brand as a business that is seen by those clients as providing a direct aide to their core business drivers. Then research firms external to the firm who have moved into the emerging space. There are plenty of examples of how remote sensing is providing opportunities. It is still early for AI.
4. Explore strategies to develop new strengths. While doing that, also recognize the weaknesses other entities have in entering our market. Might factors such as public trust be a huge disadvantage for non-professionally licensed external entities? How can AEC leverage trust? What new skills are required to integrate technology while maintaining trust? What project delivery systems will depend on software skills, data management skills and robotics in addition to engineering and architecture?

The outcome of this analysis is a set of tactics to advance employees and the firm in this new direction. Expect to learn along the way and to make many adjustments. You will need a lot of guidance from someone who understands your business and also understands the methods to analyze threats and opportunities.

This guidance will ensure that your employer and you learn how to think outside of the box and to safely experiment. By adding new skills incrementally, integrating them into your processes, and testing them on your most progressive clients, risk can be managed and success assured.

Interested in learning more? Email me and ask. Also, follow this link to the World Economic Forum website to read the many thought leader pieces posted.

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Doug Reed, PE, president of FosterGrowth, is a business consultant and corporate adviser. He is a member of the non-profit Engineering Change Lab-USA, a think tank with a mission to assist the engineering community to control its destiny amongst technological change. He is the author of the peer reviewed book, Lead A Movement: The Insider’s Guide to Powerful Strategy Execution. Prior to FosterGrowth, Doug spent over 30 years with fast growing AEC firms, much as an owner and recently, as CEO and Chairman. He can be reached at dreed@fostergrowth.biz and www.fostergrowth.biz