8 technologies that will shape A&E firms in 2024
Over the past few years, architecture and engineering (A&E) firms have faced a flurry of changes, from tax laws to workforce trends. Luckily, they’ve had strong cash positions to help them weather the storm.
Record backlog increased revenue for most firms and helped them return to pre-pandemic profitability highs. Soaring demand and federal contracts attracted interest from private equity firms, and higher valuations enticed suitors for mergers and acquisitions. Pending tax changes added urgency to potential deals and drove a higher pace of transactions.
But it’s not been all sunshine and smooth roads. Inflation triggered adjustments in contracts, sales and supplier relationships — and there’s only so much cost-containment firms can do. Firms need access to proportional lines of credit to support growth, and they need strong forecasting skills to manage resources and inflation across long-term, multiyear contracts.
Aging ownership is another looming concern. By some estimates, about 80% of A&E equity is owned by folks who are over 55. To deliver on big backlogs, A&E firms need talent who can do the work. Before leaders retire, diverse young talent needs to be wooed into the field.
As A&E firms head into 2024, technology may hold some of the industry’s answers. New tools are revolutionizing architectural design and engineering services — and A&Es need to embrace them to stay competitive, if not afloat.
8 technologies that will shape A&E in 2024
These are the eight most promising and influential technologies for A&E firms:
1. Artificial intelligence (AI)
Projects are being rescheduled or delayed for two reasons: rising costs and a lack of workers. AI has been deemed a salve for both.
Companies are using AI to become as efficient as possible. AI can help perform redundant and repetitive tasks like data entry that are time consuming for human operators. AI also has the power to process massive amounts of data, optimize staffing levels, manage inventory and minimize other inefficiencies.
2. Virtual reality (VR) and augmented reality (AR)
Soon, VR will become the default method for assessing hazardous situations on the job site and for training. With VI, firms can perform walk-throughs in a controlled and safe environment, which lowers the risk to workers and reduces injury-related costs.
VR/AR wearables allow clients to explore rendered designs before they’re built. This technology informs decision-making, which reduces expensive redesign requests that come in after construction has begun.
VR/AR technology also helps stakeholders monitor work sites remotely, which reduces the need to travel on site. VR/AR saves time and money and reduces the carbon footprint of construction activities. The technology also promotes collaboration by allowing diverse teams to work remotely.
3. Robotic process automation (RPA)
RPA is moving into middle-market companies as adoption becomes more affordable. Like AI, it can supplement manual labor and minimize tedious tasks. A&E firms that use RPA often see happier workers, higher employee retention, increased productivity and lower costs.
4. 3D modeling
3D models and “digital twins” can be fully immersive and realistic — which helps architects explore dream designs and provide limitless solutions and prototypes for customers, tailored to meet various scheduling and budget requirements.
3D models also reduce the need to make changes after construction begins. Real-time remote access to digital models helps clients visualize material variations, change orders and other modifications. And they help keep project management and stakeholders aligned across a project.
5. Cybersecurity
As companies transition to digital tools and workflows, they can become vulnerable to cyberattacks. Ransomware attacks cost companies an average of $4.24 million. A&E professionals are more than twice as likely to be the target of ransomware attacks compared to other industries.
To mitigate risk, A&E firms need to teach employees to recognize potential threats and invest in advanced cybersecurity tools to help detect and prevent attacks. It’s also important for firms to self-audit and test their IT management practices.
6. Laser scanning
Laser scanning services capture high-quality images of work sites to measure and survey areas with incredible accuracy. Laser scanning is more convenient than traditional methods of manual data collection, and it’s faster and safer than traveling to a work site.
Laser scans can support 3D model creation for as-built models, which provides crucial information on the existing conditions of a facility or job site prior to starting any work. Laser scanning can also be used to calculate the volume of building materials that are needed for a project to guarantee that supplies are ordered in accurate quantities and on time.
VR/AR technologies can be used with laser scans to view immersive, 360-degree models.
7. Drones
Drones can be used to track job safety, job progress, costs and other data. Most commonly, drones are used to capture site images and aerial survey data. This data can be used to create 3D models, monitor material waste, track progress and inspect sites for maintenance issues, especially for structures in hazardous conditions.
Since drones are small, they can access hard-to-reach places and map projects accurately in a fraction of the time it would take a human operator. Drones can capture 4k video in real time, which is more precise than previous methods that relied on months-old satellite imagery. Drones can also zoom in to see details that drastically reduce revisions and mistakes.
Drones currently exist in a legislative gray area, but the United States is updating its Federal Aviation Administration guidelines to allow drones in commercial and consumer sectors. In the meantime, A&E firms can apply for permits to use drones on a case-by-case basis.
8. Green technology
The A&E industry accounts for 36% of global final energy use.
AI is being enlisted to lower the field’s environmental impact, namely by optimizing sustainable energy solutions and reducing emissions and material waste. According to McKinsey, companies that use AI have reported a 15% reduction in waste and an 11% improvement in power efficiency.
VR, AR, cloud data management, AI and drone technologies enable remote work, which supports sustainability initiatives by reducing the need for teams and clients to travel to sites to monitor progress — thereby reducing their carbon footprint.
Client demand and increasing environmental regulations are also driving the need for more green buildings.
How Wipfli can help
We help A&E firms select, customize and deploy technology solutions that give them an edge. We have deep experience in the A&E industry and digital solutions — and put them both to work for you. Together, we can design and build a technology strategy to lower costs and maximize profits. Contact us today to learn more.
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