There's hardly an industry as inefficient as construction. But artificial intelligence and 3D printers are paving the way to go about the business in a new fashion. That's how the industry has to move forward, says Anton Affentranger in an essay for finews.first.

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Only three or four years ago, I wouldn’t even have dreamed of approving a budget for the purchase of drones one day – but that’s exactly what I did recently. Our building site in Dagmarsellen, in the canton of Lucerne, is a good example for why «my» company should engage tools that at first sight don’t seem to have much to do with the construction industry.

At this site, Implenia managed to increase its efficiency by more than 30 percent with the help of drones. The pictures taken at daytime were analyzed the same night using a software. The next day, the team was able to continue its work on the basis of a plan that had been revised based on the findings of the previous day. It was of utmost importance to demonstrate to the workers the advantages of this procedure.

«Where the thinking used to be two-dimensional, we now have to consider five dimensions»

It isn’t trite to say this – the construction industry is at a crossroads. Dagmarsellen is but one concrete example for the changes that the business is undergoing. Where the thinking used to be two-dimensional, we now have to consider five dimensions. It isn’t enough to hire a digital expert. We also have to convince the staff of the need to fundamentally adjust the construction procedures.

There’s hardly an industry as inefficient as construction. This can be demonstrated with the help of a couple of pictures. One shows a group of workers sweeping a building site with the help of a broom. Another depicts a fully automated assembly line of a carmaker.

«There's no surprise that I found the new head of our technical center at Porsche»

I’m convinced there’s no way around lean management for the construction industry. It has already proved its worth in car-making. There’s no surprise then that I found the new head of our technical center, who will be optimizing our operating procedures, at Porsche.

It is not constructing as such that has to change in our industry, but the procedures. Artificial intelligence and 3D printing open up perspectives for new business models.

To this day, some 95 percent of all Swiss building sites are being planned on paper – even as 3D-, 4D- and 5D-models (three dimensions plus time and money) allow changes to be demonstrated in real time or close to real time. It is also possible to make apparent differences between model and reality and thus minimize violations of budget and deadline.

«To make things happen requires passion»

In this context, I recall a construction office in California, which had more in common with a trading floor or a cockpit, where experts from different fields worked on or with the model. The need for adjustments can also be demonstrated by the example of Norway where you aren’t even able to fill in the forms for participating in a tender without 5D equipment.

It is obvious that procedures and technology have to change, but we also need a rethink. It is crucial to detect «black swans» and to be flexible enough to make the necessary adjustments.

But that still won’t be enough. We are able to analyze and imagine almost anything with the help of our intellect. But to make things happen requires passion. Only with passion you have the necessary drive to implement change in reality. In other words, employees have to become major pillars of change, instead of preventing it. Today, there are company-wide seminars and contests to help staff internalize the new approaches.

«In Switzerland, half of all bridges and tunnels need refurbishing»

Change is taking place in a context where urbanization and infrastructure projects present us with countless opportunities. There are the more complex construction projects, such as the planned tunnel stretching the length of 123 kilometers in China, which makes the construction of the Gotthard tunnel look almost like child’s play. On the other hand, there are the urgent renovations, for instance in Germany, where a third of all railway bridges are more than 100 years old, or in Switzerland, where half of all bridges and tunnels need refurbishing.

The Swiss market for infrastructure projects in 2017 amounts to 14.7 billion Swiss francs, 15.6 billion in 2018 and as much as 16.3 billion in 2019. If the public sector is to follow through with all its projects, I’m convinced the industry has to rethink its procedures and business models.

  • The text is based on a speech Anton Affentranger held on April 5, 2017 at a «5 à 7 de la finance», an event sponsored by Banque Cantonale Vaudoise (BCV) hielt.

Anton Affentranger was born and brought up in South America. The citizen of Switzerland studied economics and political science at University of Geneva and aquired a Masters degree. He started his business career at UBS in 1981, where he initially was responsible for project financing in New York. He was then made branch officer in Hong Kong and later Geneva. In 1996, he was appointed to the executive board of Switzerland's biggest lender.

Affentranger was managing director and CEO of Lombard Odier & Cie from 1998 through 2000, before joining drugmaker Roche as chief financial officer. Since 2011, he is known to the public as CEO of Implenia, the biggest construction company of Switzerland. He also manages his own firm, Affentranger Associates, and is a member of the boards of Dartfish, Selfrag and Forteq.

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