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A Brave New World: Who Will Survive and Who Will Thrive When Technology Reshapes the A/E/C Industry? Barry B. LePatner, Esq. LePatner & Associates LLP.

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Presentation on theme: "A Brave New World: Who Will Survive and Who Will Thrive When Technology Reshapes the A/E/C Industry? Barry B. LePatner, Esq. LePatner & Associates LLP."— Presentation transcript:

1 A Brave New World: Who Will Survive and Who Will Thrive When Technology Reshapes the A/E/C Industry? Barry B. LePatner, Esq. LePatner & Associates LLP

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3 Reducing Unwarranted Cost Overruns Increasing Labor Productivity Increasing Profitability While Reducing Risk Advanced Technologies Will Spur Advances Leading to:

4 Why Must the Design and Construction World Adopt New Technologies? 25 to 50% waste in coordinating labor on a project. Interoperability inefficiency costs owners between $15.6 and $36 billion per year. Rework by contractors, is estimated to add 2-20% of expenses to a contractor‘s bottom line. An estimated $4 billion to $12 billion per year is spent to resolve disputes and claims.

5 Productivity in manufacturing has nearly doubled, whereas in construction it has remained flat. Overview of productivity improvement over time Productivity (value added per worker), real, $ 2005 1.7x $ thousand per worker Source: Expert interviews; HIS Global Insight (Belgium, France, Germany, Italy, Spain, United Kingdom, United States); Input-Output Database Construction Non-Construction

6 The Root of the Problem: Incomplete and Uncoordinated Design Documents

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12 Labor-cost savings from adoption of advanced industrial robots (%, 2025) 40 30 20 10 0 South Korea Canada Taiwan Germany China 2 Global total Poland Switzerland Italy Sweden Spain India Brazil Japan United States United Kingdom Australia Czech Republic Thailand France Belgium Russia Netherlands Austria Mexico Indonesia 33 25 24 22 21 20 18 16 14 13 999 888 77 7 6 3 0 0 Average global labor-cost savings ~ 16% SOURCE: The Boston Consulting Group

13 Greater Use of Prefabrication, Preassembly and Off-Site Fabrication

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15 1,000,000+

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18 The Internet of Things

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20 Disruptive Technologies

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