University of Salford Global Supply Chain Management: Construction Industry
How Industry 5.0 enables firms in Construction Industry Gain Competitive Edge
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3.2 How Industry 5.0 enables firms in Construction Industry Gain Competitive EdgeAI, blockchain, and IoT technologies, as part of Industry 5.0, offer construction firms the opportunity to gain a competitive edge by driving innovation, efficiency, and collaboration. AI technology can revolutionize the construction industry by automating and optimizing various processes. For example, AI-powered algorithms can analyse large volumes of data to identify patterns and generate insights for more accurate project estimation and scheduling (Regona et al., 2022). By leveraging AI, construction firms can make data-driven decisions, reduce project risks, and improve overall project outcomes. Additionally, AI-driven machine learning algorithms can improve equipment and resource utilization through predictive maintenance, optimizing project efficiency and reducing downtime (Krakowski, Luger and Raisch, 2023). For instance, Mortenson Construction implemented an AI-powered project management system that improved their project scheduling accuracy by 30%, resulting in cost savings and timely project completion (Shaieb and El-Rahman, 2022). Blockchain technology offers construction firms the ability to enhance transparency, trust, and efficiency in supply chain management. By implementing blockchain, firms can create a secure and immutable ledger that records all transactions and interactions among stakeholders. This ensures transparency and eliminates the risk of data tampering or fraud (Shojaei, 2019). For example, ProBuild, a building materials supplier, partnered with IBM to develop a blockchain-based platform that tracks construction materials from the manufacturer to the construction site (Allison and Warren, 2019). This improves traceability, reduces counterfeit materials, and enhances the overall quality of construction projects. Furthermore, blockchain-based smart contracts automate and enforce agreements, streamlining payment processes and reducing disputes. This provides a competitive edge by improving cash flow and fostering stronger relationships with suppliers and subcontractors. IoT technology empowers construction firms with real-time visibility, monitoring, and predictive capabilities (Pundir, Jagannath and Ganapathy, 2019). IoT sensors and devices can collect data on various aspects of construction projects, such as equipment performance, environmental conditions, and worker safety. This data enables firms to optimize resource allocation, monitor project progress, and proactively address potential issues. For example, Skanska, a leading construction company, implemented IoT-based sensors in their construction sites to monitor worker safety and improve hazard detection (Korman and Zulps, 2017). This not only enhances worker well-being but also reduces risks and project delays. Moreover, IoT-enabled asset tracking and management systems enhance supply chain visibility and logistics planning. By precisely tracking the location and condition of materials and equipment, firms can minimize loss, theft, and inventory discrepancies, gaining a competitive edge through improved efficiency and cost savings (Pundir, Jagannath and Ganapathy, 2019). Download 215.55 Kb. Share with your friends:
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