As a professional consultant running a Welsh SME in the construction industry, I’ve witnessed a period of immense change and challenge over the last few years.
Without question, this is one of the most difficult periods for the construction sector, driven by a convergence of factors that require businesses like ours to adapt quickly. From new legislation to economic challenges, we’re at a crossroads – and the decisions we make now will shape the future of our industry.
There’s no doubt that legislation has transformed the construction landscape in recent years. Quite rightly, following the Grenfell tragedy, building safety is now a top priority. Ensuring that all projects meet these stricter safety standards is essential, but it also introduces complexities that businesses must navigate. This will be particularly challenging for smaller firms that may not have the resources to pivot as quickly.
Beyond safety, climate change and sustainability are central to every decision in construction. The world is changing dramatically, and the construction sector is being called upon to not only build for the present but also for a sustainable future. This means adapting to new materials, new energy standards, and a whole new way of thinking about what we build and how we build it. It’s not just about meeting regulatory requirements; it’s about recognising our role in tackling the climate crisis.
On top of all this, we have faced significant economic challenges. For SMEs, navigating the construction landscape right now is incredibly tough. The cost of materials has skyrocketed causing financial pressures on many projects, labour shortages have created delays, and inflation has affected everything from project bids to operating costs. For a small business trying to plan ahead, it’s like trying to predict the weather a year in advance – uncertain at best, and at worst, disastrous.
Amid all these challenges, procurement still remains the most critical issue for the industry. As an SME, the procurement process is incredibly burdensome and costly. Each time we bid for a public sector project, we could be looking at tens of thousands of pounds in costs – money that’s often tied up with no guarantee of a return. Public sector procurement frameworks, while well-intentioned, have yet to create a fair and streamlined system for businesses, especially smaller ones.
Until we resolve the procurement issues, it will be difficult for SMEs to plan, grow, or even survive in some cases. The sheer cost and complexity of the current system mean that many smaller firms will struggle to compete, and that will limit innovation and diversity in the construction industry in Wales. On top of the procurement process, the time it takes from the initial decision-making process to actual project approval and implementation is far too long. This stagnation impacts everything else we’re trying to tackle – whether it’s building safety, sustainability, or innovation. Procurement has to be the priority for reform.
However, it’s not all bleak. One of the bright spots in the industry is digital transformation, and it’s changing the way we design and build. Gone are the days of drawing boards and set squares; today, construction is driven by Building Information Modelling (BIM) and other smart technologies.
In our practice, we now design everything in 3D from the outset. Take a school project, for example. From early in the design process we create a fully interactive 3D model of the proposed scheme, which is shared among all consultants and contractors. This BIM model allows the design team to collaborate in real-time, ensuring that the entire project is fully coordinated before it even breaks ground. This level of collaboration reduces the kind of on-site problems that used to plague construction projects. The days of getting to site only to find that pipes clash with structural elements are, thankfully, becoming a thing of the past. Through crash detection in these 3D models, we can address potential issues long before they materialise on-site. This has been a massive shift for the industry and has been crucial for improving efficiency and reducing costly mistakes.
Looking ahead, the next major transformation on the horizon is Artificial Intelligence (AI). While we’re not fully there yet, it’s clear that AI will play a significant role in the future of construction both in terms of administrative and digital processes. At the moment, we’re only scratching the surface of what AI can do. For example, we’re starting to look at how AI can help us with tendering processes. AI can search through our existing databases, select the best quality responses from our previous tenders, and streamline our whole bidding process. While this might seem like a small step, the efficiency gains could be enormous. Instead of spending countless hours manually searching for and drafting responses, AI can do the heavy lifting, allowing us to focus on refining our bids and targeting the right projects.
The potential for AI in design and construction is even more exciting. Imagine being able to run simulations of entire buildings, from structural integrity to energy efficiency, all driven by AI. We’re not quite there yet, but the industry is starting to explore these possibilities. The next decade could see AI revolutionising the way we approach every aspect of construction, from concept to completion.
Despite the significant challenges facing the industry, I believe the future of construction in Wales can provide fantastic opportunities for existing businesses and for young people considering entering our profession – if we can address the procurement challenges and fully embrace the technological advancements at our disposal.
It’s an exciting time to be in construction, but it’s also a time for action. We must seize the opportunities presented by new technologies while working together to overcome the challenges that continue to impact our industry in Wales.
