As 2020 comes to an end, the stakeholders of the construction and infrastructure segment have risen up to the challenges to ensure its business as usual.

As we ring out the old and ring in the new year, the year 2020 will remain embellished in the mind of the consumers and businessmen alike. It will not be wrong to say that this year has been an exception for many and exceptional for few. Changes had to be introduced in workflows globally and there were challenges to be met. “Every challenge gives us an opportunity for self-introspection and improvement,” says Kuldip Grover, Project Director, Turner India, “The recent setbacks of diminished demand in the construction sector compounded by Covid-19 disruption are also no different. The biggest challenge the industry faces today pertains to the credibility to deliver. The industry needs to introspect and find a collective strategy to gain investor and buyer confidence through consistency in timely deliveries of the project with enhanced quality benchmark standards. Efficiency is the ‘fundamental mantra’ with improvement in cost and productivity for higher returns in terms of value delivery to the customer for any organization looking at improving its bottom-line performance. Poor performance, shortage of skilled manpower and sustainability issues are challenges requiring attention for resolution. Issues of cash crunch and liquidity, access to alternative cheap credit lines, taxation relief from government, and disposal of existing inventory are the other major issues concerning the construction segment that need to be collectively addressed.” 

The government on its part has tried to inoculate the construction and infrastructure sector by the way of numerous projects and initiatives “The revival of the industry is in place, the government is announcing the commencement of new projects to speed up the sector,” says Sandeep Mathur, India CE – Brand Leader, Case India “According to a research by Off highway equipments, assuming Covid-19 pandemic comes under control by the year-end, robust recovery is expected in 2021. Sales should increase by 25 per cent to 76,375 units in 2021 and a further 16 per cent to 88,700 units in 2022. However, businesses can’t solely depend on government initiatives, organisations will have to adjust to the circumstances and remain in sync with the times to stay afloat.”

It will not be wrong to say that to stay afloat digitization has become the key in a way the pandemic has mandated digitization of workflows and construction equipment. The acceptance of digitization and too if industry leaders are to be believed has been phenomenal. Sanjay Karkala, Joint General Manager – Construction Equipment Business, Larsen & Toubro Limited, gives his view on whether Indian project developers and fleet owners are ready for the digitalization in the CE industry and says, “If you look at the journey of digitalization in the Indian context, only 10 years back, we were using dial pad mobile phones and now every person has a smart phone. So, technology adaptation has been quite phenomenal in that aspect. The CE industry faced a lot of challenges due to the Covid-19 pandemic but it has also opened a lot of opportunities for customers with respect to digitalization and technology and how they can leverage these technologies at the site. There is always a challenge of maintaining cost vs benefit ratio in machines but with digitization, types of equipment are becoming smart, efficient and it will lead to superior output. India’s growth has been quite steady except for a few years, where the growth has decreased but India is poised to grow and for that to happen, things have to happen at a fast pace. Indian customers value durability, higher productivity, reliability and peace of mind makes a huge difference to them while executing their project.”

Though digitization has become necessary the adaptation of these technologies do pose a challenge as well. Sunil D Kalamdani, Head-Application Engineering & Technical Services, Trelleborg India Pvt Ltd, points out “We have come across issues from the equipment fleet owners when it comes to efficient use of the processed data and it has helped us to take the technology to the next level with the help of AI and IoT based solutions. We take the information from the machines and then feed it to the operator but the most important thing in this operation is the analysis of the data and its effective use. Our in-house R&D team is consistently working on this subject to come up with apt solutions. The data that is being collected is quite secure and stays with the owner so, there is no third-party interference.”

Apart from helping the construction industry to address their workflows amidst the pandemic in a safe and secure way digitization has keyed in a factor of accountability, which is always desired to improve efficiency of the existing and new workflows. Says Pankaj Parate, Head of Quality & R&D, Sany India, offers his view on the cost-saving aspect of CE fleets and the impact of digitization. 

“Telematics enabled by digitization has ensured that the ownership of the machine in terms of efficiency shifts from the operator to the site manager, workshop manager as also the customer. The customer now has the liberty to check the productive information and usage of the machine and at the same time, he can also monitor the activity of the operator. This technology is a double-edged sword for the customers and operators and those operators who can’t adapt to this technology are becoming redundant. At the end of the day, cost leadership and product differentiation matter and the telematics is offering both these advantages to customers.” 

So as the industry opens up for more business in 2021, one thing is certain, smart technologies driven by digitization is all set to redefine the way the construction equipment are utilized on site. Likewise it has also encouraged the entire construction and infrastructure sector to embrace digitization and rise up to the challenges of the “new” normal and survive.