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Construction Tech Review | Sunday, October 02, 2022
Global investment into energy, infrastructure, mining, and real-estate-related projects is accelerating
FREMONT, CA: Global investment in energy, infrastructure, mining, and real estate projects is increasing. By 2030, the investment may reach USD 13 trillion. The following trends are influencing the project business sector.
Adaptation of AI and Automation Tools
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Thousands of data points, including smart (IoT) devices, industrial equipment, RFID tags, QR codes, pictures, sensors, and smart readers, can be present on large, complicated project sites nowadays. Traditional approaches are ineffective for processing these new data volumes and speeds. Project managers can end up with a tonne of data that lacks context if AI and automation tools aren't used. AI and automation tools are essential for assisting project managers in making better decisions more quickly.
Increased Project Costs
Increased pressure on energy-intensive construction projects is being brought on by rising gas, oil, and power prices. Prices for materials, including cement, wood, and steel, are also at an all-time high, with several manufacturers offering price increases of five to ten per cent. Price hikes of up to 20 per cent have been observed for many energy-intensive products. A combination of production problems brought on by the pandemic, increased demand, port closures, and expensive logistics are to blame for the price surge. Projects going over budget are something we anticipate happening more frequently. Project business in Europe will also be significantly more difficult to execute in terms of project expenses and feasibility assessments.
Rising Interest in Energy Projects in Europe
Ninety per cent of the gas used in the EU is imported. Around 45 per cent of the gas, 25 per cent of the oil, and 45 per cent of the coal that Europe imports come from Russia. The European Commission outlined a plan to wean Europe off of Russian fossil fuels well before 2030 on March 8th, 2022. The plan begins with gas and aims to diversify gas sources while accelerating the introduction of renewable gases. As a result of this plan, a rise in the demand for new gas and energy projects in the EU and its member states.
Use of Siloed Project Management Platforms
The lack of information continuity is one of international investment ventures' main problems today. Different project functions, such as engineering, cost estimation, and scheduling, are often managed in separate tools that are not at all connected. As a result, project functions are now managed in separate silos where information is not effectively shared between teams and project processes are not coordinated. The same pattern emerges with pulp and paper project managers, oil and gas, and energy investment projects. Project managers want to manage as much information as possible on a single platform. Additionally, open interfaces, integrations, and automatic data transfer between existing technologies are becoming more and more in demand.
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