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Demond says that it feels like the rate of technology change is greater than ever before

How long you have been in your role and what are some of the things that you do on a day to day basis?

I have been with Hexagon for almost 20 years now. For the last four years, I have been President of AGTEK, part of Hexagon, and Vice President of our Architecture, Engineering, Construction, and Operations (AECO) software portfolios.

Our software solutions are designed so that construction generalists can win more work and complete that work profitably. AGTEK provides specialised software solutions for the construction industry, particularly focusing on earthwork and site preparation, for example takeoff software for quantity estimation and material calculation and modelling software to create 3D site models for visualization and analysis. Our tools are designed to help contractors, estimators, and project managers throughout the construction process, from bidding to project completion.

My day-to-day work has two main focuses. I am looking at new technology and R&D to make sure we are always staying ahead of the curve. Then, I am also working internally with our customer success and marketing teams to make sure users are getting the most from their investments and we are spreading the word about how our solutions can solve major construction challenges.

How have you seen construction technology develop over the last few years?

Right now, it feels like the rate of technology change is greater than ever before. New solutions and capabilities are coming to market every day, from high-precision laser scanners and drones that can create rapid digital twins, to BIM data for design collaboration and, of course, AI.

However, there is a gap when it comes to how these technologies are optimised to solve construction specific problems. We are acutely aware of this at AGTEK, and so we are focused on adapting technology specifically to the needs of the construction worker. For example, our Gradework software uses CAD or PDF files to create a 3D model of the site that precisely calculates volume measurements for earthwork excavations. This is essential when putting forward accurate bids and ensuring efficient planning. All of our software can be integrated to create one easy to use workflow, from material management, underground mapping, progress tracking and machine control. If technology is not tailored to specific construction problems like this, and isn’t intuitive to use, it leaves an adoption gap.

How much more prevalent and accepted is technology now in construction?

Matthew Desmond, President of AGTEK, part of Hexagon, and Vice President of Architecture, Engineering, Construction and Operations (AECO) at Hexagon

Construction has traditionally been perceived as being slow to adopt technology and stuck in its ways. But I don’t necessarily agree with that.

Construction was one of the first industries to use computers for drafting and designing work. Now, we are using drones and autonomous robots to capture digital twins. Despite these technological advancements, the way the construction industry talks about itself doesn’t reflect this progress – focusing on the low-tech aspects of the work has led to an outdated public perception of the sector.

Last year, Hexagon conducted the Autonomous Construction Tech Outlook survey. This found that of over 1,000 contractors surveyed, 83% had already implemented autonomous technologies in their operations.

In this context, companies that do not adopt and learn how to leverage new technology risk becoming less profitable and suffer. 60% of leaders surveyed believe technology solutions will have a significant impact on sustainability, profitability and market competitiveness. The study also found that ‘reduced waste’ was the top benefit felt by those companies that had already implemented autonomous technology. Firms that embrace autonomy in their workflows are 58% more likely to experience enhanced sustainability and waste reduction.

Choosing solutions that solve a real problem, having champions within the business to foster its implementation, as well as working with partners who can help with implementation, are critical if you want to get the most out of any new technology. Technology is not a silver bullet. It needs to be combined with people and processes to ensure success.

Is trying to reach ‘net zero’ potentially harmful in that it is such a big ask. Would it be more beneficial to focus on reducing emissions, rather than targeting net zero?

Construction is responsible for creating up to 40% of global greenhouse gas emissions

When looking at the big picture, understanding the goal and the need to get to net zero is absolutely important for us as an industry and for society overall. But I also believe talking about net zero or even talking about reducing emissions isn’t the correct starting point.

As an industry, we consume about a third of the world’s energy, create up to 40% of global greenhouse gas emissions, and in the process generate a third of the world’s waste. These are shocking numbers. But they also highlight the pressing need and huge potential to do things better.

If we are to significantly reduce construction’s environmental impact, then businesses need to be shown that overcoming wasteful practices and being profitable aren’t mutually exclusive. Every ounce of waste can be directly related to a loss in profit. The message needs to recentre on profitability in order to achieve net zero targets. How do we minimise waste and enable construction companies to become more profitable in the process? This then would create a win-win-win for construction companies, owners and the planet.

Technology offers a solution to this. Our survey also found that ‘reduced waste’ was the top benefit felt by those companies that had already implemented autonomous technology. Firms that embrace autonomy in their workflows are 58% more likely to experience enhanced sustainability and waste reduction.

This mirrors how the manufacturing industry has been transformed with lean manufacturing and minimising waste in 8 key areas: defects, over/under production, waiting, not utilizing talent, transportation, inventory, motion, and extra processing. These can all be easily mapped to inefficiencies in construction which account for lost profits and increased emissions.

There are also additional opportunities being created for construction companies in delivering renewable energy projects like wind and solar farms and pumped hydro electricity plants. Accelerating the deployment of these projects will help contractors offset some of the emissions and provide revenue generating opportunities.

I would like to see the message turn from ‘getting to net zero’ to minimising waste and saving the planet, while at the same time increasing profits.

What are some of the most effective ways that technology can reduce emissions in the construction industry?

Opportunities to improve efficiency and reduce waste do not stop at the end of the physical construction process

When looking at minimising waste – including unnecessary emissions – we need to focus on planning the project correctly, executing construction efficiently and ensuring the ongoing maintenance of the asset is effective over its lifetime.

Before construction, creating a digital replica of the existing conditions and modelling the most effective construction process is vital to ensure successful progress of a project. Preparation is key, and so creating value engineering tools, such as cost-benefit analysis and life-cycle cost analysis, and simulations, like BIM software and cost estimation forecasting tools, to model different construction scenarios help ensure a less wasteful outcome.

During each stage of construction, technology can help reduce waste while also making companies more profitable. For example, machine control and material tracking ensures material is only moved once, to the right location and at the right time. Optimising haulage routes and vehicle movement through mass haul analysis and equipment telematics reduces emissions, while creating digital twins with drones and laser scanners ensures a project is to schedule and minimises rework. Most of our customers report a 25-30% increase in efficiency after implementing machine control into their operations. One AGTEK customer who uses machine control and modelling technology to streamline earthwork takeoffs reported it helped take costs down from a dollar per square yard to just 15 cents.

But opportunities to improve efficiency and reduce waste do not stop at the end of the physical construction process. The handover to the asset owner is also important to ensure efficient future operation. Technologies like Enterprise Asset Management (EAM) and Asset Performance Management (APM) are changing the ways assets are operated to minimise the waste in maintenance while extending the life of assets.

Where would you like to see emissions in the construction industry in, say, three years time?

I would like to see some of the industry statistics come down significantly. Even with just a 5-10% improvement, we would be in a much better place. To put this into scale, a 1% improvement in fuel efficiency has a direct reduction of 1.2 billion metric tonnes of CO2 a year. But I think the path to getting here must involve discussions around how adopting technologies will help companies reduce waste and, importantly, increase their profit margins.