Tracking Infrastructure

Advances in information technology over the past 30 years have created a foundation for improved manufacturing productivity that is often dubbed the Second Industrial Revolution. In the first revolution electricity was the underlying technology. But it was the application of this technology to a new manufacturing model... the assembly line... that created the productivity break-through. Today, information technology is serving as the foundation for another new model... the industry platform.

This is the second in a series of posts drawing from our vision statement for the future of infrastructure manufacturing. Today we discuss how manufacturers can provide a quantum leap in the value that they offer by using a customer-facing platform to provide seamless data sharing.

There is a lot written about technology and the role it will play in improving the productivity of the construction process. But how will technology improve the efficiency of the construction product supply chain?

This is the first in a series of posts dedicated to this topic and it draws from our recently published vision statement entitled: "The Infrastructure Supply Chain Platform". We start with a dive into how systems integration will help manufacturers realize improved productivity from systems they already have in place.

"Modular construction's time may have finally come." This is how McKinsey & Company summarized the findings of its June 2019 report Modular construction: From projects to products, a follow-up to its 2017 report about reinventing construction to produce $1.6 trillion of productivity improvements. The possibilities include accelerated timelines (estimated 20-50%) and cost reductions of 20%. McKinsey reports that the primary factor enabling these possibilities is the application of technology. All manufacturers, modular or not, will want to understand the technology landscape in order to compete effectively. We offer a profile here.

In our newsletter published this week, the article that received the most attention was titled 'Why Precast Should Pay Attention'. This was our title applied to an article that we circulated about a Cleveland, OH contractor's decision to offer integrated construction services. It obviously struck a chord, so we thought we would re-frame it as a question and respond with a deeper dive into how integrated construction is a threat to the precast industry.

In its 2017 report entitled Reinventing Construction: A Route to Higher Productivity, the McKinsey Global Institute revealed that the construction industry lags all other major industries in productivity. In fact, the construction industry experienced a productivity decline of almost 1.5% per year from 2005 through 2014. In this, our third in a series of blog posts drawn from our recent web report, The Promise of Smart Infrastructure, we discuss the ways in which development of smart infrastructure will induce the construction industry to become more productive.

The globe faces three major problems that impede the construction of adequate infrastructure over the next 20 years:

1. $94 trillion of investment is needed.
2. The construction industry is not presently equipped to address the need.
3. Government budgets are constricting investment and maintenance funding.

The construction of smart infrastructure will address these problems head on. It will also provide public benefit that will make 'dumb' infrastructure obsolete in the not-so-distant future.

We have heard (separately) from two precast manufacturers that it costs $25,000 to conduct an inventory count. If there is one process that immediately justifies automated data collection, this is it.  While the cost naturally depends on the size of the yard... they both have yards of about 40 acres... automating inventory counts for yards of any size will produce obvious savings. RFID tracking is the solution to this and, with a few kinks to work out, there are a few ways that this will happen.

There is a lot of talk about "smart" things, infrastructure included. But what does that really mean? We have recently released a new web report entitled The Promise of Smart Infrastructure. In it we answer this question and present the opportunity that smart infrastructure provides for addressing the investment gap that exists between current spending on global infrastructure and the (much greater) need for new investment over the next 20+ years. During the next few weeks we will offer a series of blog posts presenting sections of the report.

At the Smart Cities Connect conference in Denver last week there was discussion about how to make the most productive use of the enormous amounts of data that will be connected as cities implement smart city initiatives. Dell EMC's Chief Technology Officer, Rob Silverberg, said that cities should consider creating a singular data platform for collecting all data rather than  creating information silos that will ultimately need to share data. He suggested a "system of systems" strategy for creating a holistic smart transportation system rather than a series of individual initiatives... such as smart parking, smart lighting, etc.

This strategy is not unique to smart cities. With data collection and analysis becoming central to improved productivity, data centralization is critical to most industries these days. This includes the manufacturers that provide cities with their infrastructure.

Seattle just completed its SR 99 tunnel, a project that replaced the aging Alaskan Way Viaduct with a tunnel that runs under the city and offers substantially more protection to motorists against the effects of an earthquake. The Washington State Department of Transportation (WSDOT) bills the tunnel as "one of the smartest tunnels ever built".  It's no surprise, therefore, that WSDOT required that product data for the segments manufactured for each ring of the tunnel be captured and transmitted to the DOT in digital form.