The engineering and construction sector is estimated to be worth around USD 10 trillion per year, but the sector has seen almost no productivity growth in 50 years. Perhaps the most prominent reason behind the decline in the construction sector's productivity is its failure to use innovations and technologies leveraged by other sectors to modernize their mechanisms and products and enhance their efficiency and productivity. Things were different for the construction sector that did not harness technology and innovation to update its mechanisms and tools, which negatively impacted its productivity.
On another note, the building and construction sector is responsible for 39% of carbon emissions worldwide. Although climate change impact is under-discussed or lacks clear information, real estate industry leaders have recognized the impacts of the construction sector on society and the environment.
Since 2006, the World Economic Forum (WEF) has discussed entering the era of the Fourth Industrial Revolution, which will introduce a qualitative shift and radical transformations across all sectors through advanced technologies, such as cyber-physical systems, the internet of things, and data-driven networks. As for the construction sector, WEF estimates that its full digital transformation will generate global cost savings of USD 1.0 – 1.7 trillion per annum.
In March 2020, Karen Andrews, the Minister for Industry, Science, and Technology, announced an AUD 28 million grant to launch the cooperative research center, Building 4.0 CRC, to serve as a platform for collaborative R&D in the construction sector and develop the built environment. Moreover, CRC has commitments in cash and in-kind contributions of over AUD 100 million from active entities in the sector and research institutions with the participation of leading companies like Lendlease, Bluescope, and Master Builders. In general, the CRC program consists of 30 partners, including Monash University, the University of Melbourne, and the Donovan Group.
Thanks to its well-considered work structure, the CRC structure of Building 4.0 will bring together the expertise of a diverse group of partners who implement long- and medium-term collaborations. The program will focus on three core research streams:
1) Sectoral transformation to spread a prevailing culture along with standard protocols and practices that support its transformation;
2) Digital transformation by leveraging the latest technologies, data sciences, and artificial intelligence in the development of new construction technologies and processes; and
3) Building transformation by targeting the development of construction "hardware” and processes, and understanding their interaction with digital and sectoral programs.
The program has set ambitious goals that include the reduction of project costs by 30% through the use of digital technologies. The program also aspires to achieve its sustainability goal of reducing carbon emissions by 50%, thus decreasing construction waste and re-work by 80% through the implementation of more efficient construction projects.
On another note, Building 4.0 will generate more job opportunities and advanced skills training opportunities using modern technologies, in addition to providing research opportunities for about 36 Ph.D. students and 1,000 master's students.
Resources:
1) https://www.cnbc.com/2020/03/18/millions-in-funding-for-scheme-looking-to-transform-construction.html
2) https://tarongagroup.com/building-4-0-crc-towards-a-safer-more-efficient-and-sustainable-building-industry/
