The latest Engineers Journal Insights Survey, 'Engineering Talent to make Project Ireland 2040 a reality' – in association with BAM Ireland – was completed recently.
For more than 60 years, BAM has been at the centre of shaping Ireland’s built environment, helping public and private sector clients reduce carbon emissions and enhance sustainability over the lifecycle of their buildings and infrastructure.
We are all seeing the effects of climate change and now, more than ever, the construction industry and the engineering community have a critical role in delivering a resilient built environment by collaborating to design, create, explore, and innovate to solve the climate and biodiversity challenges facing society.
A total of 59.39% of survey replies came from the civil and building sector; 15.33% of replies were from within the mechanical and manufacturing sector; and 13.79% were from the electrical and electronic sectors.
Survey revelations
Q How prepared is your organisation to move into the digital era? Very prepared: 34.1%; reasonably well prepared: 57.42% and not prepared at all: 8.48%.
Q Is your organisation actively investing in digital technology as a strategic enabler? A total of 80.46% replied ‘Yes’, with 19.54% answering ‘No’.
Q Do you see your current business model being disrupted by technology in the next 10 years? A total of 60.35% replied ‘Yes’, while 39.65% said ‘No’.
Regarding the importance of ranking priorities in the workplace and career, 86.9% said ‘Achieving the right work/life balance’ was very important; 69.94% said the same for ‘Compensation and benefits’; 65.45% placed high importance on ‘Career progression’; with 46.07% for being sustainably focused.
Paul Brennan, digital project solutions director, BAM UK & Ireland, discussing the survey results, says: "As an industry, we are seeing many external pressures that require a quick response such as carbon use, labour shortage, material shortage, inflation, etc. We have seen these issues coming for some years but have not prepared enough.
“The best chance we now have to overcome these challenges is to leverage material innovation, assembly innovation, and technology. We can no longer keep one foot in the digital era while the other remains in the industrial era. It is time we make the conscious decision to use digital technology and collaborative contracts to make our industry efficient, sustainable, good for the planet and performing for society.
Industry's readiness to embrace digital transformation
“Overall, these initial observations from the survey results demonstrate the industry's readiness to embrace digital transformation, prioritise work-life balance, navigate technological disruption, and invest in professional development. They provide valuable insights into the prevailing trends and priorities within the construction sector, shaping the way organisations and professionals approach their strategies and initiatives.”
Engineers Journal (EJ): Asked about the question, How prepared is your organisation to move into the digital era? A little more than a third (34%) said they were 'very prepared' while 57% said they were reasonably prepared. Can you discuss this, what it tells you and why.
BAM Ireland: “The responses suggest that a sizeable portion of organisations in the industry recognise the importance of digital transformation and have taken steps towards embracing it. However, it also indicates that there is room for improvement, as a higher percentage of businesses being 'very well prepared' would be more reassuring.
“To increase the percentage of organisations that are 'very well prepared', it is essential that they prioritise digital transformation as a strategic imperative. This may involve investing in advanced digital technologies, fostering a culture of innovation, talent acquisition, employee training programmes, and establishing partnerships with technology providers. By doing so, organisations can enhance their competitive advantage, adapt to changing market dynamics, and effectively navigate the challenges and opportunities presented by the digital era.
“At BAM Ireland, we have developed a comprehensive digital strategy aligned with our business goals and objectives and which allows us to be agile and respond to the current dynamic digital landscape of the construction industry. Expressing preparedness for the digital era is notable, a higher proportion being 'very well prepared' would be desirable; this emphasises the importance of ongoing efforts to enhance digital readiness and highlights the potential for organisations to further capitalise on the benefits of digital transformation.”
EJ: Regarding the question, 'Is your organisation actively investing in digital technology as a strategic enabler'? About 80% answered in the affirmative, with the remainder answering ‘No’. Would you agree that the figure of one in five organisations not investing is a bit worrying in these times? Why do you think this is? What would you advise/say about raising this figure to closer to 90% affirmative.
Missed opportunity
BAM Ireland: "In today's rapidly evolving digital landscape, the construction industry is realising the transformative power of technology and its potential to drive growth, innovation, and competitiveness. Therefore, the figure of 20% of organisations not investing in digital technology is worrying because it suggests a missed opportunity to leverage the benefits of digital transformation.
"Several factors might contribute to this situation: first, some businesses may face financial constraints or limited resources, making it challenging to allocate sufficient budget for digital investments.
"Second, there could be a lack of awareness or understanding about the potential advantages of digital technology and its impact on operations and competitiveness. Additionally, culture fostering resistance to change, and a lack of digital literacy among key decision makers could also impede the decision to invest in digital technology.
Recommendations
"To raise the percentage closer to 90% affirmative, it is crucial to address these challenges and foster a culture of digital innovation. Here are a few recommendations based on our experiences in BAM:
- Increase awareness and education: BAM actively promotes the benefits of digital technology and its potential to drive value across the business;
- Develop a clear digital strategy: BAM has developed a comprehensive digital strategy aligned with its business goals and objectives and governance that supports its implementation;
- Allocate resources and budget: It is essential to allocate sufficient resources and budget to support digital initiatives;
- Provide leadership and guidance: BAM’s senior leadership team champion digital transformation and communicate its strategic importance across the business. They lead by example, embrace digital technologies themselves, and provide the necessary support and guidance to ensure successful implementation.
"By addressing these recommendations, organisations can overcome barriers and increase the percentage of those investing in digital technology. This can help them realise the full potential of digital transformation, remain competitive, and discover new opportunities for growth and innovation.”
EJ: Do you see your current business model being disrupted by technology in the next 10 years? The survey answers came out as 60/40 Yes/No. What comments would you make about that … should it not be nearer to 90/10 or 80/20 even? Also, the disruption could be seen as a challenge and an opportunity, would you agree?
BAM Ireland: "While a higher percentage indicate disruption might be expected, the current split suggests that organisations have varying levels of awareness and preparedness for technological changes.
A challenge and an opportunity
"Disruption can indeed be viewed as both a challenge and an opportunity. Embracing technological advancements allows businesses to stay competitive, improve efficiency, and explore new business prospects. Those who see disruption as an opportunity can proactively adapt their strategies and leverage technology to gain a competitive edge.
"However, the varying perspectives on disruption may stem from factors such as industry dynamics, organisational size, or leadership vision. It is crucial for companies to continually assess their digital readiness, invest in technology, and foster a culture that embraces innovation to effectively navigate the ever-evolving landscape of the construction industry."
EJ: Regarding ranking in terms of their importance to you and your career, the top answer was ‘achieving the right work/life balance’ followed by ‘compensation and benefits’, with ‘career progression’ being next in order of priority. In some respects, this was the most interesting answer and shows how the workplace has evolved over the years (as well as being possibly linked to the ‘Covid effect’?). What would you say about this? It is a healthy development for both an organisation and its people, is it not? And it shows, also, that regardless of their placing, the three factors of ‘balance’, ‘compensation’ and ‘career progression’ are all hugely important to staff?
BAM Ireland: "People are the foundation of our strategy – 'Building a sustainable tomorrow'. We want to remain the employer of choice, leading with, an open and diverse culture where we care for our environment and the communities we work in – both today and tomorrow.
Suzanne Kavanagh, HR director, BAM Ireland, says: “If the pandemic has shown us anything when it comes to work, it is that our employees are resilient and that creative thinking around new ways of working holds fantastic opportunity for our business. Work/life balance is an important part of personal well-being along with employees feeling rewarded for their input and that meaningful career progression discussions happen.
Flexible working policy
"This year we launched our flexible working policy to enable this, we are also embedding our ‘Perform and Develop’ programme to ensure that career progression is actively discussed at every level, and we are reviewing our benefits to ensure that we are an employer that people choose to work for.”
Regarding the importance of CPD: “CPD is hugely important not just for the individual’s personal development but also for what it can bring to the organisation generating innovative solutions and best-in-class processes; at BAM we encourage continuous professional development in all roles and offer financial support to enable employees to achieve this.”
In terms of being a Chartered Engineer: “Overall, the high number of respondents working towards or achieving Chartered Engineer status demonstrates the commitment to professional development and the recognition of the value it brings to both individuals and organisations in our industry.
“BAM strives to cultivate a culture of excellence and continuous growth, which includes supporting our employees in their pursuit of professional recognition. We value the importance of Chartered Engineers and their expertise in delivering high-quality engineering projects. Therefore, we encourage and provide resources for our employees to pursue and attain their Chartered Engineer status.”
Rent crisis
Regarding the use of outsourcing, Kavanagh says: “I think it’s reflective of the challenges all employers are facing right now. This is due to many factors including economic issues such as inflation, and the current rent crisis, which makes it challenging to attract and retain people in Ireland.
"Many of the challenges employers face will not be solved overnight, but we need to look at the positives: Ireland has the EU’s highest level of STEM graduates per 1,000 of population aged 20-29, so we have lots of opportunities, but we need to create a strong pipeline of candidates and graduate opportunities.”
EJ: In terms of Sustainability, more than 70% answer that ‘Environmental considerations play a significant role in our business decisions’ – a strong, healthy number, and, again, something that is no doubt mirrored in BAM Ireland?
BAM Ireland: Around the country, our highly skilled team uses digital construction and industrialised construction methods to help ensure energy-efficient operations. We also work with expert industry partners, academic researchers, the government, our highly valued supply chain, and our customers and end users to embed a circular approach to the way we design, construct and operate buildings and infrastructure.
Alasdair Henderson, executive director, BAM Ireland, says: "As a purpose-led business, we aim to create a sustainable infrastructure that meets the needs of society while ensuring that we leave a lasting legacy. The continuously increasing loss of biodiversity and the climate crisis is a serious threat to our planet and our industry can play a key role in reversing their effects."
Green Construction Winner Award 2023
As verified by our leadership position on the CDP A-List, IGBC membership, and our recent Green Construction Winner Award 2023, an integral part of our sustainable strategy is to have an overall positive impact on biodiversity and climate. This strategy clearly sets out a plan of action to achieve our ambitious targets for 2030 based on the following six themes:
- Decarbonisation – Our ambitious carbon target – to become net zero in our direct operations by 2026 – puts us at the forefront of the UK and Ireland construction sector.
- Climate adaptation – By 2030 we’ll integrate climate adaptive measures into all our projects.
- Biodiversity – We have set a target to have a positive biodiversity impact by 2030.
- Safety, health and inclusion – We foster safe, healthy and inclusive working and living environments for everybody.
- Social value – By 2026 we’ve committed to delivering a minimum of 35% social value added, across all projects of more than €10m.
- Circularity – We’re striving for zero waste by delivering circular products. By 2030 we will reduce our waste by 75% compared to 2015.
Conclusion
In conclusion, the survey results provide valuable insights into various aspects of the construction industry and highlight important trends and priorities, said BAM.
It is encouraging to see a significant focus on digital transformation, with a majority of businesses expressing preparedness or reasonable readiness to embrace digital transformation. This indicates a recognition of the evolving landscape and the need to adapt to technological advancements.
Additionally, the survey reveals the significance of sustainability and environmental considerations in business decisions, as well as the commitment of many organisations to incorporate sustainable practices. This aligns with the global shift towards sustainable development and highlights the industry's dedication to minimising environmental impact.
Overall, the survey provides valuable insights into the current state of the engineering industry and reinforces the importance of embracing digital technologies, prioritising employee needs, and promoting sustainability. These findings can serve as a guide for us to adapt, innovate, and create a thriving and future-proof engineering sector.