This article has been sponsored by Eide Bailly.

The construction industry is experiencing a pivotal moment in digital transformation, facing persistent challenges threatening efficiency and growth. From navigating economic volatility and fluctuating material costs to labor shortages and productivity issues, construction executives are looking to technology as a motivating force for maintaining a competitive edge and solving challenges.

Based on the needs and goals of the construction industry, here are the key areas of focus to improve performance:

Data Collection & Management

Poor data management and utilization can contribute to significant project inefficiencies and budget overruns. Proper data handling has the potential to address these issues, streamline operations, and enhance decision-making processes. 

Despite recognizing the value of data, many construction entities still rely on paper records or non-digital processes in their workflows. Without a single source of truth, making informed decisions in a timely manner is nearly impossible.

Data collection is also crucial for organizations focused on sustainability efforts. The Global Alliance for Buildings and Construction[DP2]  reports that construction accounts for about 10% of total greenhouse gas emissions. Strategic and growth-minded construction leaders are reacting by tracking — or planning to start tracking — carbon emissions on their projects within the next 12 months.

Cybersecurity & Risk Mitigation

A top challenge toward digital transformation within construction is overcoming concerns around data security. It’s a double-edged sword — companies must become more digital to stay ahead of the competition, but more data and information hosted online increases risk. Balancing innovation with safety can be challenging. 

An example of this conflict is the internet of things (IoT). While the IoT provides incredible opportunities for site monitoring, predictive maintenance, and supply chain optimization, data privacy and security regulations may impact implementation.

The best solution to combat risk is not to avoid transforming but rather to take steps to prepare for and defend against threats. Most cybercriminals select targets based on accessibility, so investing in cybersecurity infrastructure and educating staff members can significantly help construction companies ward off these bad actors.

AI & Automation

Many construction companies are looking for solutions to increase productivity, make teams more efficient, and reduce rework. AI and automation (or, even better, AI-enhanced automation) can offer promising opportunities to reshape how the construction industry operates. 

AI can analyze large quantities of historical data from previous projects, including material costs, labor expenses, and timelines. By identifying patterns and trends, AI can predict future costs with greater precision. Additionally, machine learning algorithms can be trained on extensive datasets to create cost prediction models.

Implementing generative AI also allows organizations to streamline processes, reduce manual workloads, and enable employees to focus on tasks that require creativity and critical thinking. This shift drives innovation and growth, helping construction entities remain productive and efficient despite labor shortages.

Technology Optimization & Combination

With economic volatility causing many construction organizations to analyze their current costs, many are reassessing their technology investments. 

To better understand the impact of your current technology investments, consider the following: 

• Align technology investments with the strategic objectives of your organization
• Identify major contributors to technical debt
• Eliminate redundant tools that perform similar functions
• Evaluate whether a comprehensive tool can replace multiple specialized solutions
• Consider the total cost of ownership for each tool, including licensing fees, maintenance costs, and training expenses

By taking these steps, construction industry leaders can systematically evaluate their technology investments, identify opportunities for optimization, and make informed decisions about consolidating or adopting new solutions.

Paving the Way to the Future

To thrive in today’s rapidly evolving construction landscape, embracing modern technology is essential — but it’s not enough to simply react to challenges as they arise.

A comprehensive digital strategy is the key to avoiding costly technical debt and ensuring your data drives real, measurable growth.

A version of this insight first appeared on EideBailly.com.