The construction industry is sometimes perceived as resistant to change, firmly adhering to how things were done in the past. While a solid foundation is integral to organizational success, the industry is at a tipping point, and the current technological revolution poses a profound choice for construction — move forward with innovation or risk being surpassed by competitors.

From new digital project delivery processes and sustainable materials to novel solutions and methods, the time to innovate is now. Companies and contractors risk falling behind as these developments reshape every area of construction.

The mounting pressure of tariffs, material supply costs, and labor shortages supports the need to embrace change as a way to overcome stressors.

The construction industry is sometimes perceived as resistant to change, firmly adhering to how things were done in the past. While a solid foundation is integral to organizational success, the industry is at a tipping point, and the current technological revolution poses a profound choice for construction — move forward with innovation or risk being surpassed by competitors.

From new digital project delivery processes and sustainable materials to novel solutions and methods, the time to innovate is now. Companies and contractors risk falling behind as these developments reshape every area of construction.

The mounting pressure of tariffs, material supply costs, and labor shortages supports the need to embrace change as a way to overcome stressors.

Benefits of Innovation

Construction industry innovation can take many forms. Beyond new ways of working, there are opportunities to refine and improve current practices, such as enhancing the efficiency of the bidding process, using automation for accounts payable (A/P), and streamlining operations.

For example, using drones and jobsite cameras, experimenting with advanced materials, and leveraging machine learning and robotics are all innovations driving change in construction businesses by enhancing and improving current practices.

Innovation also extends to ideas and a mindset refresh. Brandon Spears, CCIFP, CFO at Wayne Brothers Companies, shares that “Anytime we try a new solution [or innovation], especially in the field, we really go through three phases.

“Phase one is the super users: folks who want to do it, are tech-savvy, and understand how it works. The next phase is a small group of non-tech people — those who don’t enjoy technology changes. With this group, you start to see more of the problems you’ll run into before a full rollout. The last phase is the full company implementation.

“What we’ve found to be the most critical piece is the training effort that has to happen at the jobsite. You have to have the right person leading it.”¹

In the same vein, embedding innovation into company culture can help construction businesses remain agile and competitive while preparing for future obstacles and uncertainty. Cost savings, improved efficiency, and time saved merely scratch the surface.

Efficiency & Productivity

Time is an invaluable resource, and innovative technologies can help accelerate project timelines.

Automation tools and robotics can take on repetitive, hazardous tasks — freeing skilled laborers for more complex and strategic work. This collaborative method can help enhance overall productivity and boost efficiencies.

For example, a company can integrate computer-aided design drawings into its design and fabrication system, allowing its equipment to be manufactured based on drawings, thereby reducing the potential for human errors.

Profitability & Cost

The budget is one of a company’s most critical aspects; it affects everything, just as cost-reduction measures do. Innovation offers many avenues to cost savings for construction companies.

Consider automation: automating A/P invoice entries and services can streamline approval, reduce manual entry errors, and expedite routing processes. In this case, automation can reduce labor expenses and expedite payment cycles. Faster payment cycles can help companies use early payment discounts.

In addition to cost savings, automation can help enhance productivity. When laborers’ time is freed up to focus on strategic tasks, such as financial analysis and vendor relationship management, there is more opportunity to focus on business drivers and outcomes.

For example, A/P automation can reduce staff workload by several hours per month, allowing teams to refocus time and energy on strategic tasks.

Prioritizing Safety & Mitigating Risks

The construction industry has inherent safety challenges — automation and innovative solutions can help improve safety.

Onsite drone technology can monitor real-time conditions and data, which can help companies detect issues and mitigate potential hazards.

In addition, automation can be coupled with robotics to assume tasks that would otherwise expose workers to risks, reducing the frequency of injuries.

Beyond physical safety, data analytics and digital tools can help enhance risk assessment throughout the project life cycle, enabling more informed decisions and the deployment of effective mitigation strategies.²

Gaining a Competitive Edge & Securing Market Leadership

Setting yourself apart is imperative in the construction industry, and innovation provides a clear path to differentiation.

Companies that employ change and innovative technologies may stand out from their peers. To that end, innovation can make or break talent retention, contract wins, vendor relationships, and more.

This perspective may attract clients seeking companies that embrace change as well as the next generation of skilled workers (Generation Z and Generation Alpha), who are unique in how they adapt to new technologies while using massive amounts of data and information.³

Ultimately, innovation can bring about cost savings, boost productivity, enhance efficiency, help mitigate risk, and set up a company for sustained growth and market leadership.

With so much at stake, let’s dive into these changes and explore three practical steps for construction companies to create, construct, and cultivate a culture of innovation.

Step One: Create

A company’s core foundation should include a culture of innovation that fosters a goal-oriented environment. This involves:

• Challenging current workflows and encouraging experimentation
• Creating comfortable conditions for employees to propose and test new ideas
• Breaking down traditional department silos and actively promoting collaboration among cross-functional teams

These actions are crucial to harnessing different perspectives and promoting collective problem-solving that considers the organization’s needs beyond functional areas or individual roles.

Building a Culture of Innovation

A company’s culture starts with a top-down commitment from leadership that flows down to employees at all levels. This integrative approach emphasizes workforce learning through training and development, helping team members stay current with emerging technologies and industry best practices.

From there, recognizing and rewarding innovative contributions reinforces the value placed on ingenuity and can motivate further engagement.

This ingenuity can solve real business problems and prioritize innovation that drives results. It’s crucial to allocate dedicated resources (budget, personnel, and time), encourage cross-functional collaboration, and support practical tools that can deliver tangible value.