Top 7 Challenges In Industrial Construction 2024
For 2024, the machinery and plant construction industry is characterized by a 'subdued mood,' as revealed by a VDMA flash survey in October 2023. In this article, find out the specific issues currently affecting the industry and how digitization via Insite LMS can enhance your company's competitiveness.
What's Moving the Machinery and Plant Construction Industry in 2024
Plant construction is complex: managing the planning, coordination, and control of numerous subcontractors, trades, and materials in a challenging environment can be demanding. Currently, the industry is facing a declining order situation and high inflation, among other challenges.
- Bureaucratic burden
- Skilled labor shortage
- Cost control and project efficiency: Global investment restraint, price increases in energy and raw materials, labor costs & tax burden, uncertainty due to global crises.
- Volatile supply chain
- Technology and digitization
- Compliance, risk management, regulatory flood
- Sustainability & environmental regulations
Traditional approaches to construction site management clearly have their limits in such a demanding environment. In particular, reducing bureaucratic burdens is urgent for 700 surveyed VDMA member companies.
Traditional Approaches in Construction Site Management
Traditional approaches to construction site management were manual and based on paper and Excel.
In detail, traditional working methods in plant construction are characterized by:
- Manual documentation
Construction site information and data are recorded on paper or in files on numerous storage locations, leading to inefficiencies and errors. Paper documents can be easily lost or damaged, and manual data management is time-consuming.
- Limited real-time communication
Communication between construction site teams, engineers, suppliers, and other stakeholders often occurs through phone calls or emails, resulting in delays in information dissemination and documentation and impacting responsiveness to problems.
- Difficult resource and material management
Managing labor, machinery, and materials on the construction site can be complex, error-prone, time-consuming, and inefficient with such manual processes, leading to increased costs.
- Lack of transparency
Traditional approaches often provide limited transparency regarding the current project status. Problems may not be identified in a timely manner.
- Compliance challenges
Compliance with safety standards, environmental regulations, and other requirements involves extensive, legally secure documentation and adherence to standards. Manual processes can increase legal risks.
- Lack of efficiency
Relying solely on analog, paper-based processes risks negative impacts on the profitability and quality of construction projects (extended project timelines, cost overruns, etc.).
- Frustration in project teams
Not only younger members of project teams are accustomed to managing their lives comfortably via smartphones. Working without digital tools is not attractive to them.
Traditional approaches to construction site management are inefficient, time-consuming, error-prone, and increase dissatisfaction among colleagues on the construction site. And that's where digitization comes in: it helps meet rising demands for efficiency, quality, and compliance, making bureaucratic efforts much easier and more comfortable and bringing more convenience to routine tasks.
Digitization: Automation, Real-time Information, Transparency
Digitization is changing how projects are planned, managed, and executed. It helps project teams make projects more efficient and cost-effective.
Benefits of Digitization
Companies that sensibly digitize construction site management report the following benefits:
- Reduced bureaucratic burden
- Cost reduction through efficient resource management and better control options
- Time savings through optimal support for routine tasks
- Reduced downtimes through optimal support for project logistics and site management
- Optimized global collaboration
- Quality improvement through real-time information and transparent collaboration,
- Sustainability through improved resource utilization
- Legally secure and goal-oriented collaboration through project transparency
THE All-in-one App for Construction Site Management
Digitization will continue to significantly shape plant construction. This proven all-in-one app for construction site management optimally supports you in your projects: Insite LMS is specifically designed for plant construction, taking site management to a new level. The app offers a wide range of features tailored to the industry's requirements:
- Real-time information and communication: Insite LMS enables seamless real-time communication between on-site and office teams, promoting better collaboration and expediting decision-making.
- Resource management: With this app, you can efficiently plan and manage resources such as personnel, materials, and equipment.
- Reduced bureaucratic efforts & maximum reporting comfort: routine tasks are minimized and simplified.
- Safety and compliance: Insite LMS provides functionality for documentation, handling deviations, improving safety, and ensuring compliance with legal regulations and standards.
This solution is well-proven and offers precisely the modules that companies need to manage global projects efficiently and sustainably.