It’s well known Australia’s construction sector needs to improve its productivity. Emerging tech such as building information modelling, AI, digital twins and unmanned aerial vehicles can cut costs, boost safety and close skills gaps – but urgent adoption is essential.
The construction industry is the fourth largest contributor to the Australian economy.¹ Despite this importance, its productivity has fallen by 1.6 per cent since 1990, while other industries have grown by 35.2 per cent.² This widening gap costs the nation around $47 billion every year.³
At the same time, vacancies for skilled workers have risen by 80 per cent since 2019, leaving the industry short by about 105,000 professionals.³⁻⁴ Building defects add another $6.2 billion to the economic burden⁶, and workplace injuries and illnesses linked to construction reduce national output by a further $28.6 billion annually.⁵
These challenges point to the urgent need for a new approach. The rapid digitisation of other industries after the COVID pandemic, coupled with the growing accessibility of artificial intelligence tools such as ChatGPT, has made clear the potential for technology to reshape construction.⁷⁻¹⁰ Industry 4.0 theory positions digital transformation as a requirement, not an option.⁷
This study examined how emerging technologies are being used in Australia’s construction sector, the barriers to wider adoption, and the steps needed to prepare the next generation of professionals.
Materials and methods
The research used a mixed-methods approach. Interviews with senior professionals provided qualitative insights, while surveys gathered quantitative data from Tier 1 and Tier 2 firms. Together, these inputs helped identify both current practices and future expectations. The study also developed an evaluation tool to help companies benchmark their progress with emerging technologies and to measure how well graduates understand these tools.
Cost controls
Globally, new technologies are changing construction. They offer improvements in cost control, safety, delivery timelines and overall quality. The most relevant to Australia include:
- Building information modelling (BIM) improves collaboration and reduces rework by integrating design and construction data.¹²
- AI helps predict risks, automate design optimisation and enhance safety monitoring.¹³
- Digital twins provide real-time simulations of assets, improving lifecycle management and reducing defects.¹⁴
- Virtual and augmented reality (VR/AR) support training, design visualisation and faster decision-making onsite.¹⁵
- Sensors and connected devices monitor structural health, environmental conditions and worker safety in real time.¹⁶
Unmanned aerial vehicles (UAVs) allow safer and more efficient site inspections, surveys and progress tracking.¹⁷
While global uptake is increasing, Australian adoption remains slow due to cultural conservatism, regulatory uncertainty and skills gaps.¹⁸⁻¹⁹
READ: Australian construction has a productivity problem
Current adoption
Among large contractors, BIM is already in wide use, but smaller firms are slower to adopt it. AI and digital twins are mostly in pilot phases. VR and AR tools are used for training and client presentations. UAVs and sensors are the most visible on-site tools, especially for inspections and monitoring.
Barriers
Survey participants identified five key challenges:
- High upfront costs for software, hardware and training
- Resistance to change in a conservative industry
- A shortage of graduates with relevant technical knowledge
- Regulatory uncertainty about digital standards
- Industry fragmentation that slows coordinated adoption
Anticipated adoption
Tier 1 firms expect to accelerate adoption of AI, digital twins and sensors over the next five years to remain internationally competitive. Tier 2 firms are more cautious, but see UAVs becoming routine because of their proven safety and efficiency benefits.
Graduate preparedness
A survey of recent graduates showed low awareness of emerging technologies, particularly AI and digital twins. This mismatch suggests that universities must update curricula if they are to prepare students for the expectations of industry.
Discussion
The findings reveal a paradox. The sector understands the potential of new technologies, but continues to delay implementation. Industry 4.0 provides the framework for transformation, but cultural and systemic barriers remain.⁷
The pandemic demonstrated how fast other industries could move when forced to digitise.⁸ In contrast, construction has been slower to act. Without change, the sector risks losing further ground as AI and automation reshape global practice. Skills shortages add urgency. Without graduates trained in tools like BIM, AI and digital twins, firms cannot realise the benefits of innovation.
The opportunities are clear. UAVs and sensors can make worksites safer. BIM and digital twins can reduce costly defects and overruns. VR and AR can help projects stay on time by aligning stakeholders early.
Achieving these benefits requires coordinated action from industry, academia and government. Incentives, training programs and clear regulatory standards are critical.
Recommendations
This study shows that emerging technologies can help solve Australia’s productivity, safety and cost challenges, but adoption is still in the early stages. The need for action is urgent.
Industry should invest in BIM, AI, digital twins and UAVs, and make them standard practice. Universities should align engineering and construction curricula with Industry 4.0 skills. Governments should provide funding, incentives and regulatory clarity to support transformation.
Adopting these measures could help close the $47 billion productivity gap, improve safety outcomes and position the Australian construction sector as a global leader.
This essay is a summary of the original article, ‘Integration of Emerging Technologies with Construction Practices in Australia’, Buildings, 2025, 15(3), 396. https://doi.org/10.3390/buildings15030396
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- Build Australia. Severe Shortage of Skilled Construction Workers Despite More Apprentices Than Ever. 2023. Available online: https://www.buildaustralia.com.au/news_article/severe-shortage-of-skilled-construction-workers-despite-more-apprentices-than-ever/ (accessed on 1 December 2024).
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