The Economic Potential of Technology-Connected Plants in the UK Construction Sector

Economic Boost from Technology-Connected Plants in UK Construction

A recent study by Costain has revealed that increased integration of technology in the construction sector could significantly bolster the UK economy, with potential gains estimated at £417 billion over the next 25 years. The research highlights the advantages of connected and autonomous plant (CAP) technology, predicting that its broader application could generate approximately £356 billion in benefits by 2050. Furthermore, expanding the production and export of CAP could add an extra £61 billion to the economy.

Plant Construction Site

Costain, the UK’s 16th largest construction contractor, conducted the study on behalf of the Department for Transport. Jonathan Willcock, managing director for transportation at Costain, noted that CAP has the capacity to dramatically enhance construction productivity, thereby contributing substantially to economic growth in the coming decades.

 

While CAP technology is already being deployed in various projects across the country, Willcock emphasised the need for a cultural shift within the industry to fully realise its benefits. He stated, “In order to scale up and achieve the benefits faster, there needs to be a shift in thinking to embrace this technology and drive positive change.”
Currently, it is estimated that around 20% of construction plant equipment in use incorporates some form of connectivity and autonomy, including machinery such as compactors, excavators, and bulldozers.

Construction Plant

The widespread adoption of CAP is projected to result in a net increase of over 50,000 high-skilled jobs by 2050. Although the introduction of CAP could reduce the overall workforce by approximately 25,400 due to increased efficiency, the shift is expected to create 54,800 higher-paying roles, elevating average sector wages by 12%, from £49,000 to £54,900.

 

Applications for CAP technology are diverse, ranging from automated material transportation using GPS to 3D printing in construction. Costain’s analysis suggests that these innovations could help tackle pressing industry challenges, such as an ageing workforce and the need for increased diversity, while also enhancing worker safety and well-being.

 

Moreover, the report indicates that CAP adoption could significantly improve safety on construction sites, potentially decreasing accidents by 28,000 and saving 31 lives by 2050. This improvement could lead to a £6 billion reduction in costs related to injuries.

Construction Plant Worker

In terms of environmental impact, Costain asserts that implementing CAP could aid the UK in its net-zero emissions goal by 2050. The technology’s efficiencies are expected to cut fuel consumption, with the plant sector currently responsible for around 5% of emissions on road projects. By 2050, CAP could reduce carbon dioxide emissions from rail and road projects by an estimated 19,300 kilotons.

 

Despite these promising projections, Costain has identified several obstacles hindering the growth of CAP technology. These include insufficient government support for technological advancements, a lack of regulatory frameworks mandating CAP usage, and a general unawareness among decision-makers in the industry about the advantages of these technologies. The existing procurement model also discourages innovation, as there are no mandates for clients or contractors to adopt CAP, and the associated costs remain a barrier within the supply chain.

Construction Plant Manager

As the UK strives towards achieving net zero by 2050, the construction sector, which accounts for a quarter of the country’s greenhouse gas emissions, is under increasing pressure to mitigate its environmental impact. Beginning next year, contractors in London will be required to reduce the emissions produced by their plant machinery, further emphasising the urgent need for technological advancement in the industry.

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