Leveraging Industry 4.0 for a post- Covid-19 recovery

The cidb, in conjunction with the University of Johannesburg’s cidb Centre of Excellence, hosted its first annual State of the South African Construction Industry Seminar in October 2021. Robust presentations from local and international thought leaders explored the challenges and opportunities.

By Alastair Currie

The world as we know it has always faced challenges, and history shows that few, if any, are insurmountable. This is underscored by innovators born out of the first Industrial Revolution that emerged in the mid-18th century with inventions like the steam engine. Racing forward in time, we now live in the so-called Fourth Industrial phase, or Industry 4.0, which is another leap forward in terms of technological evolution. The goal for society is to balance the motive for profit with that of common good.

Bongani Dladla, Acting CEO for the cidb, said, “The purpose of this seminar is to unpack the complexities and to leverage the opportunities in construction, using innovation as a driving force to advance transformation.”

Dladla stressed that new opportunities and skills need to be created within the context of Industry 4.0. “We also need to ensure that we have the capacity to retain existing expertise, which is essential for mentorship and skills transfer.”

Ethics defines us

Across the board, South African presenters acknowledged that corruption remains endemic, undermining transformation and progress. The appointment of contractors that are not qualified to do the work also has a major impact on quality, cost overruns and wasteful expenditure. The point made is that transitioning aspirants into registered cidb contractors has to come with recognised industry qualifications, training and accreditation.

An analysis

‘Planning the flight and flying the plan’ is standard practice within the aviation sector. Within the South African construction sector, however, too few projects of significant value have gotten off the ground on a significant scale to alleviate the current fortunes of local construction. This is despite a promising pipeline of projects unveiled at landmark events like the recent Sustainable Infrastructure Development Symposium 2021 in October.

Presenting at the seminar, Professor John Smallwood, Department of Construction Management at Nelson Mandela University, provided a synopsis from his most recent State of the South African Construction Industry survey. Smallwood was part of the cidb 2004 Status Report research team.

The survey included the rating of 76 aspects/ parameters, with public and private sector respondents scoring on a scale of very poor to very good, plus an opt-out for those who were unsure. Some 53.3% had an honours degree or higher, and the mean for years of experience and the age of respondents was 23.9 and 50.6, respectively. In turn, 16.4% were women, and the balance men.

Revealingly, 68.4% of the aspects’/ parameters’ mean scores (MSs) were > 2.60 and ≤ 3.40, which indicates a rating between poor to average. “The results show that our construction economy is not healthy and has been in decline for years. However, the arrival of Covid-19 almost broke the industry’s back,” said Smallwood.

Highlights from the survey summary reveal the following MS results per aspect/parameter. In general, MSs < 3.00 indicate the rating is poor, as opposed to good: - Skills development: 2.54 - Mitigating corruption: 1.94 - Research and development: 2.51 - Retention of people: 2.46 - Mental health: 2.38 - Promptness of payment: 2.30 - Sustainability of businesses: 2.29 - Digitalisation/Industry 4.0 implementation: 2.27. “Essentially, what the survey shows is that the construction industry has been captured, and work is going to unqualified companies masquerading as contractors. That must stop immediately, along with rampant corruption, which, left unchecked, will kill the industry,” said Smallwood.

State of the Global Construction Industry

Nothing functions in isolation. This was the thrust of Professor Roger Flanagan’s presentation, speaking virtually from the University of Reading. Flanagan has been involved on projects and initiatives across the developing and developed world, including South Africa.

He underscored the importance of flexibility in the ‘race to the future’ and that staying the

distance and winning required a whole new set of tactics. Covid-19 is a key inflection point, but he highlighted many others in the present, like climate change. Geopolitical conflicts are also intensifying, with an increasing blurring of the boundaries between the cyber and the physical world.

Flanagan stressed that, in order for construction contractors to survive, it can no longer be about winning at the lowest bid. That’s not sustainable. He also pointed out that present contractual formats needed to shift with the times, harnessing the latest design, manufacturing, and supply chain technologies to maximise value and function for all parties.

He acknowledged the balance between embracing technology and sustaining jobs, especially in the context of the Covid-19 economic slump. Plus, Flanagan underscored the importance of technology collaboration locally and internationally to optimise fit-forpurpose solutions. As he stated, “The old competitive models don’t fit anymore. For this reason, future policy decisions must be informed by research and what works best in practice.”

Relevance and resilience

This is a view shared by Brian Bruce, former CEO of Murray & Roberts who has been retired since June 2011. His presentation was entitled ‘Our relevance in a new society post Covid-19’. Bruce is one of the pioneering champions that led to the formation of the cidb, based on his exposure to an existing model implemented in Malaysia. As an internationally renowned former captain of industry, Bruce pointed out that it’s essential for leaders to respond to the reality of constant change. “Essentially, the world is increasingly becoming an overpopulated high-tech global village with huge complexity, and South Africa needs to catch up,” he said. “Responding to infrastructure demands depends on an accurate determination of current and future demographic trends, and a comprehensive understanding of urban dynamics. That way, governments will have a far more accurate forecast of the anticipated demand for future construction services and the available resources,” he said.

Technology tools

Speaking about ‘The illusion of control in an automated construction industry’, Professor David Edwards from Birmingham City University noted that Industry 4.0 will influence future work. However, technological trends will need buy-in from the construction sector.

“Machine intelligence is a tool to harness, but machines cannot make reasoned choices,” said Edwards. “And any new technology will need to be based on its inherent value.”

Air pollution and health

Since sustainability needs to factor in people, the economy and the environment, there will be a mix between older and Industry 4.0 interventions.

Dr Obuks Ejohwomu from the University of Manchester presented on the topic ‘Air pollution and health burden: unmasking plant and equipment emissions in the built environment’, which showed that construction machines account for more than 50% of emissions from construction operations. These emissions are also responsible for a high number of global deaths annually related to poor air quality. Diesel engines are also greenhouse gas emitters. The key takeaway was that, while hazards like dust and other airborne emissions can be mitigated, earthmoving machines will be diesel powered for the foreseeable future. (A ‘lives versus livelihoods’ scenario.) However, over time and as battery-powered solutions develop, this may well change, plus there are alternative fuel sources in the pipeline, like green hydrogen.

The purpose of this seminar is to unpack the complexities and to leverage the opportunities in construction, using innovation as a driving force to advance transformation.”

Industry 4.0 versus the world of work

Technology helps to make the world more connected and responsive. But the bottom line is that people come first, and they need sustainable employment.

Closing out the seminar, Gregory Mofokeng, representing the Black Business Council in the Built Environment, pointed out that the lack of sufficient work threatened the financial viability of many smaller tier contractors (cidb grades 7 and below) and consulting engineers. It also made the industry’s transformation goals much harder to achieve.

Key inhibiting factors include a lack of access to finance, delayed payments from public and private clients, delay or the cancellation of advertised projects, and pervasive corruption.

“We must improve engineering and construction management capacity within government – especially local government. Achieving this depends on a strict recruitment policy where only qualified and experienced personnel can be appointed. That’s the only way true sustainability and transformation can take place,” he added.

To conclude with a quote from Professor Smallwood, “Construction is a science, art, craft and profession.” It’s also the foundation for society, and Industry 4.0 provides new tools in terms of its current and future implementation.

www.cidb.org.za