In the construction industry, where the only constant is change, recent years have served as a stark reminder of the need for resilience. From global pandemics to geopolitical tensions, extreme weather events to technological disruptions, the sector has faced a barrage of challenges that have tested its adaptability. Yet, within these disruptions lie opportunities to learn, evolve, and build a more robust future. As we navigate an increasingly complex global economy, three critical areas emerge as key investments for the construction industry: partnerships, talent, and technology.
Partnerships: The Bedrock of Resilience
In today’s interconnected world, no single entity can operate in isolation. Even the most formidable construction firms face limits in expertise, reach, and infrastructure. As Roger Lam, Sedgwick’s director in Hong Kong, notes, “In today’s complicated global economy, no single organisation can do it all on their own.” Strategic partnerships have become the lifeblood of the industry, enabling companies to complement their internal capabilities, bridge gaps, and stay competitive.
In Asia, where relationships are paramount, companies seek partners who understand local values and market dynamics. “Companies here have high expectations for service and quality, and they seek out skilled partners they can trust to meet their standards for excellence when it matters most,” Lam explains. However, partnerships are not without risks. Entrusting part of your business to another entity means relinquishing a degree of control, which can expose you to reputational or operational issues if values or standards diverge. Early discovery and continuous nurturing of these relationships are essential to mitigate such risks.
Talent: The Human Factor
Amidst the volatility of the labor market, attracting, developing, and retaining skilled talent remains a pressing challenge for the construction industry. The sector is grappling with an aging workforce and a lack of young talent, with many viewing the industry as old-fashioned. “Today’s workforce is largely driven by growth and purpose,” says Eric Chiu, Sedgwick’s associate director of construction and engineering in Hong Kong. “Colleagues want to take on new challenges, contribute to something meaningful and advance their careers.”
To address this, companies must promote the value of working in construction and challenge misconceptions about the industry. Investing in talent development programs, such as Sedgwick’s Pathfinder program, can foster career mobility and reinforce commitment to colleague development. As Chiu emphasizes, “Attracting, developing and retaining talent today are essential for organisational success long into the future.”
Technology: The Catalyst for Change
Technological innovations have become indispensable in helping construction companies prepare for the unexpected. From artificial intelligence (AI) and data science to building information modeling (BIM), technology is redefining what’s possible in the industry. “With the latest technologies, we have endless opportunities to reimagine claims administration, elevate customer experiences and deliver outcomes that exceed expectations,” Chiu notes.
Automation and AI have streamlined many aspects of construction, enabling companies to respond faster and more efficiently. Innovations like drones and chatbots have simplified processes and reduced delays. Moreover, technology plays a vital role in risk mitigation and strategic planning. Through data analytics and machine learning, companies can identify patterns, track trends, and anticipate potential risks.
However, technology is not a panacea. It cannot replace the human touch that defines the construction industry. “Empowering insurance professionals with intelligent tools will enable them to focus on delivering care, clarity and confidence to customers,” Chiu asserts. The ideal balance lies in using technology to handle repetitive tasks while human resources provide personalized service, solve complex problems, and nurture meaningful relationships.
As the construction industry stands at the precipice of a new era, the convergence of strategic partnerships, skilled talent, and innovative technology offers a blueprint for resilience. By investing in these critical areas, companies can navigate the unexpected and prepare for the challenges and opportunities that lie ahead. The future of construction is not just about building structures; it’s about building a better, more resilient world.