< Previous20 Helping owners achieve the most productive use of every capital dollar. FEATURE an opportunity to blossom. The industrial construction industry, and the construction industry in general, have tended to be late adopters of innovation and technology, but why? Is it fear? As B.K.S. Iyengar described, real opportunity only originates from change and the already-underway AI-driven transformation is an opportunity to embrace this change to compress schedule performance, drive down total cost, improve safety and specification compliance, raise achievable profit, and more. However, the construction industry will have to first overcome 20+ years of flat or falling productivity growth (Exhibit 1). As we enter the age of AI, industrial facility owner / operators, industrial contractors and engineers, and skilled trades have a new opportunity to embrace innovation, pursue waste reduction, and improve construction productivity. But how? The concept of artificial intelligence began in the mid-1950s, when an English mathematician, Alan Turing began to wonder if machines could think. Over the intervening years, computer scientists, engineers, mathematicians, and entrepreneurs developed algorithms and models that have accelerated human interaction with technology, bringing us to this precipice. Here are four important terms to understand AI: • Artificial intelligence (AI): The capability of machines to mimic cognitive functions traditionally associated with the human mind, such as perceiving, reasoning, learning, and problem-solving in a manner that seems intelligent. • Natural-language generation (NLG): A software engine that creates seamless interaction between humans and technology by translating data observations into coherent prose. • Machine learning (ML): Systems that can learn and adapt from input, whether from extensive historical data, synthesized datasets, or human feedback, enhancing performance over time. “Deep learning” uses multiple layers of data processing and analysis to mimic the neural structure of the human brain and allows for complex and multi-level experience-based enhancement of performance over time. Exhibit 1. U.S. Construction Productivity Flat or Falling for 20+ Years. Comparison of 2018 to 2022 Productivity Improvement versus 1999 to 2018 Productivity Improvement for Selected Market Sectors. Interpretive note: This plot is of the average annual productivity growth in the 2018 to 2022 period against that in the 1999 to 2018 period for 10 broad sectors that compose the private economy. All estimates represent average annual growth rates of real GDP per full-time-equivalent worker. The diagonal line indicates no change in productivity growth. Sectors above the line show productivity growth acceleration; those below it show productivity growth deceleration. Sectors are weighted by their 2018 share of private employment. The analysis approach is similar to that described by Kevin J. Stiroh in, “Investing in Information Technology: Productivity Payoffs for U.S. Industries,” published in the Federal Reserve Bank of New York, Current Issues in Economics and Finance, Volume 7, Number 6, June 2001. Source: Proprietary Continuum analysis of Bureau of Economic Analysis (BEA) raw data. Exhibit 2. Eight Wastes in Lean Construction. Construction centric redefinition of the traditional eight wastes. Source: Continuum adaptation of seven original wastes identified by Taiichi Ohno within the Toyota Production System.The Construction Users Roundtable 21 FEATURE • Robotic process automation (RPA): AI- enabled robotics, augmented with sensors (including vision devices such as 2D/3D cameras, LiDAR sensors, vibration sensors, proximity sensors, accelerometers, and other environmental sensors) that automate and augment human tasks to improve efficiency and productivity. A subset is “cobots”, where a robot can respond to and learn from human speech and gestures without worker-assisted training. The conversation about the use of AI revolves around what Continuum refers to as “thinking” exercises – consider large database analysis, forecasting, and contract writing or review, etc. The more interesting and impactful assessment is how AI, ML, and robotics will augment, not displace, the industrial construction workforce in three ways, driving out eight types of waste (Exhibit 2): • Production increase (output expansion): Solutions allow crews to raise production and perform more work, safely and in compliance with specifications, in a given time period – offset part of workforce availability constraints. • Individual / crew augmentation (capable workforce expansion): Solutions increase the number of field staff or crews that can perform specific activities – a larger number of people who can lift heavy equipment or materials, utilize complicated equipment, operate in confined space, etc. • Accelerate personal performance (average to superior performance): Solutions allow individual crew managers and crew members, with limited or average experience, to perform at a superior level – shorten the “on-the-job” experience gain time period, accessing expertise, etc. Industrial construction has faced workforce availability challenges for 15 years. The recent upswing in manufacturing-related construction activity, onshoring to escape global manufacturing risks, and rising electricity demand will all place additional strains on the industrial construction workforce. Historic workforce challenges, compounded by higher demand, will result in spending that is budgeted and planned for a given year and cannot occur until the following year. Solutions in this category allow crews to raise production and perform more work, safely and in compliance with specifications, in a given time period, offsetting part of workforce availability constraints (Exhibit 3): • Recoverable lost time reduction: Reduction in unneeded material touching or movement before installation. • Accurate mapping and project planning: Accurate crew placement and material laydown raises wrench time. Industrial construction requires extensive training and ability to operate, lift, and utilize dangerous and heavy equipment, tools, and materials. This requirement restricts the number of individuals and size of the workforce capable of performing this work. Solutions in this category increase the number of field staff or crews that can perform specific activities – a larger number of people who can lift heavy equipment or materials, utilize complicated equipment, operate in confined space, etc. (Exhibit 4). • Crew efficiency: Expansion of workforce that can safely operate equipment. • Safety monitoring and compliance: Safety compliance raises production and reduces rework. Exhibit 3. An example of a production increase: Preliminary Continuum AI tool investigations, which allow crews to raise production and perform more work safely. Source: Proprietary Continuum analysis of AI related tools and concepts. Exhibit 4. An example of individual / crew augmentation: Preliminary Continuum AI tool investigations, which increase the number of field staff or crews that can perform specific activities. Source: Proprietary Continuum analysis of AI related tools and concepts. Exhibit 5. An example of accelerating personal performance: The preliminary Continuum AI tool investigations, which allow individual crew managers and crew members with limited or average experience to perform at a superior level. Source: Proprietary Continuum analysis of AI related tools and concepts. 22 Helping owners achieve the most productive use of every capital dollar. FEATURE • Construction robotics and automation: Automation, efficiency, and accuracy in time consuming or repetitive tasks. Shortening schedule duration in industrial construction is the hardest and most impactful type of change possible due to the cascading impacts. It is hard because it takes the most experience and capability to successfully accomplish it. Industrial construction faces the most challenging schedule requirements, crews are large, work is complicated and requires high coordination, the jobsite changes as the facility is completed, stakeholder coordination is multi-faceted, and planning is restricted by site, weather, and other conditions. Solutions in this category allow project managers, crew managers, and crew members with limited or average experience to perform at a superior level – shorten the “on-the-job” experience gain time period, accessing expertise, and shortening schedule (Exhibit 5). • Effective meeting management: Documentation of agreements, actions, and next steps, all of which are shared efficiently raising the collaboration and coordination among the project team participants. • Mistake avoidance: Algorithms analyze project parameters, historical project data, material costs, and labor rates to generate accurate cost estimates and optimized construction schedules. The application of AI, ML, and robotics into the industrial construction market will serve as the most disruptive force over the next decade, and true opportunity only originates from this type of disruption for firms that embrace it. There is fear however – fear of change, fear of displacement, fear of job loss, and fear of the unknown. B.K.S. Iyengar saw this fear of change as paralyzing and embracing it is critical for opportunity and growth. The introduction of AI is already occurring and to balance the fear, there is opportunity. Over the last 20+ years, average productivity improvement in the construction industry has stalled. When Continuum Capital conducts time and motion studies in the field, part of the effort is to document a baseline of performance; establish a plan and set of action for improvement; implement this plan and action; and then monitor improvement. There is tremendous potential for improvement and an opportunity to reverse the trend of flat productivity growth. The application of AI tools makes this type of production improvement possible by compressing schedule performance, driving down total cost, raising achievable profit, and more. Industrial owners, operators, contractors, and designers have a new opportunity – perhaps even a responsibility – to embrace innovation, pursue waste reduction, and improve construction productivity. The time to embrace change is now. Over the coming months, Continuum will profile 100 artificial intelligence, machine learning, and robotic innovations to give your organization a running start. Embrace this AI change to grow and blossom! Mark Bridgers is Principal and Founder of Continuum Capital. He is a specialist in the management of construction risk, author of Beyond the Bell Curve - A Report on Managing Capital Project Risk, and consultant to firms interested in mitigating infrequent and high-impact risks. His passion is helping organizations achieve breakthrough innovations through collaborative or integrated relationships. Kyle Kerestes is a Consultant for Continuum Capital and is responsible for driving field productivity improvement with crews executing the most highly engineered, complicated, and visible projects in the energy, utility, and industrial construction markets. He is passionate about applying LEAN construction methodologies with his clients. Artificial intelligence is the most powerful change that we will experience over the coming decade and firms that embrace it will have an opportunity to blossom. ‘ ‘The Construction Users Roundtable 23 FEATURE People really do want to enter the construction trades! I n recent years, there has been a growing interest in the construction trades, and it’s not hard to see why. The construction industry offers a unique blend of stability, creativity, and the opportunity to make a tangible impact on the world and have a robust career path. Despite the common misconception that young people are not interested in these careers, the reality is quite the opposite. The Iron Workers (IW) is inundated with applications to become safe, skilled, and productive tradespeople, every year. One of the most common reasons for people being attracted to construction trades is the promise of stability and growth. Unlike many other industries, construction is a field where skilled workers are always in demand, and in our case, our contractors and local unions provide ongoing training and professional development. The conduit for the continuous training is our network of local unions, and IMPACT, our labor- management organization. This ongoing training translates into job security and the potential for increased income. Moreover, the construction industry offers numerous opportunities for career advancement. With the right training and experience, workers can move up the ranks, taking on more responsibilities and earning higher wages, and even owning and operating their own businesses. Many of our ironworkers have been hired by the end-users the Construction Users Roundtable (CURT) represents. For many, the appeal of the construction trades lies in the hands-on nature of the work. Construction workers have the satisfaction of seeing the tangible results of their labor at the end of each day. Whether it’s Spoiler Alert! By Eric Dean, International Association of Bridge, Structural, Ornamental and Reinforcing Iron Workers, AFL-CIO (IW)24 Helping owners achieve the most productive use of every capital dollar. FEATURE building a data center, renovating a historic building, or constructing a bridge, the work is both challenging and rewarding. This sense of accomplishment is something that many desk jobs simply cannot offer. The construction industry is not just about manual labor; it also involves a great deal of creativity and innovation. From designing sustainable buildings to developing new construction techniques, there is plenty of room for creative problem-solving. This aspect of the job is particularly appealing to those who enjoy thinking outside the box and coming up with innovative solutions. For example, one of our ironworkers morphed into a contractor, saw the need for estimating software, and now heads a company that offers a steel erection software estimating tool. Another significant draw of the construction trades is the sense of community and camaraderie among workers. Construction projects often require teamwork and collaboration, fostering strong bonds among colleagues. This sense of belonging and mutual support can make the work environment more enjoyable and fulfilling. This culture of camaraderie is needed now more than ever, as we face the challenges of mental health and suicide. The apprentice classes the ironworkers complete foster a bond and respect that stays with them throughout their career, into retirement. Perhaps one of the most rewarding aspects of a career in the construction trades is the ability to make a tangible impact on the world. Construction workers play a crucial role in shaping the built environment, creating spaces where people live, work, and play. This sense of purpose and contribution to society is a powerful motivator for many individuals. As an ironworker you can travel to any city and see the iconic structures, bridges, buildings, stadiums, and arenas where our contractors and ironworker members can say with pride and satisfaction: “I built that.” The construction trades offer a unique combination of stability, creativity, and the opportunity to make a real difference. As more people recognize these benefits, the interest in construction careers will continue to grow. So, the next time you hear someone say that young people aren’t interested in the trades, you can confidently respond with a spoiler alert: People really do want to enter the construction trades. See an IW local union close to you for safe, skilled, and productive tradespeople! Eric Dean is the General President of the International Association of Bridge, Structural, Ornamental and Reinforcing Iron Workers, AFL- CIO (IW). As an accomplished ironworker, he worked for various contractors as a journeyman, foreman, and project superintendent throughout the Chicago area during his career. The IW general executive council unanimously elected Eric as General President effective July 1, 2015. Advertorial! Print! Digital! Packages to fit all marketing campaigns and budgets. Share your expertise, services, and products in The VOICE or with a web ad at www.curt.org. Get a media kit! 866-999-1299 sales@matrixgroupinc.net CURT members refer and recommend from this publication all year long. Don’t miss out!26 Helping owners achieve the most productive use of every capital dollar. Complete Construction Services PCL Industrial Construction Co. ...................................................13 Complete Professional Engineering Services Hargrove Engineers and Constructors .................inside front cover Electrical Construction NLMCC/Powering America ...........................................................25 Labor Organization Operative Plasterers’ and Cement Masons’ Association .......................................................outside back cover Offsite Construction Roeslein and Associates Inc. ........................................................26 Safety Services HazTek Safety Management ............................................................4 Union Trades Programs United Association (UA) ..........................................................14, 15 Please support our advertisers as they make this publication possible!WOMEN’S LEADERSHIP INITIATIVE Empowering Women in Construction Leadership Event Takeaways: Practical tactics for success in construction management/leadership Strategy development & execution Personal branding & visibility Confidence & courage Dr. Gretchen Gagel, Managing Director of Greatness Consulting Ltd Pty and Chair, Brinkman Construction, began her career in construction as an engineering intern for Lone Star Gas in Dallas, Texas in 1983. She has spent over four decades as a strategic advisor in the construction industry and was inducted into the US National Academy of Construction in 2021. Gretchen’s Greatness Podcast focuses on the world’s leading thinkers sharing their ideas on creating greatness.Gretchen’s degrees include BSME, Mechanical Engineering, Southern Methodist University; MBA, University of Denver, PhD, Organization Learning, Performance and Change, Colorado State University ABOUT DR. GRETCHEN GAGEL PROGRAM DETAILS DATES: JUNE 11-12, 2025 IN CHICAGO AND SEPT. 17-18, 2025 IN CINCINNATI (PARTICIPANTS MUST ATTEND BOTH EVENTS) INCLUDES: TWO ADDITIONAL 90-MINUTE VIRTUAL CONTENT SESSIONS. FOR MORE INFORMATION AND REGISTRATION VISIT WWW.CURT.ORG A TRANSFORMATIVE EVENT HOSTED BY CONSTRUCTION USERS ROUNDTABLE (CURT) FEATURING DR.GRETCHEN GAGELNext >