The AEC industry needs to modernise!

Has the Architecture, Engineering, and Construction Industry Lost Its Way?

I recently read an article by the Productivity Commission about the state of the AEC industry in Australia, which highlighted some unsurprising yet concerning productivity figures.  

The report notes that dwelling construction productivity has been declining for at least 30 years, primarily due to a 12% decline in labour productivity.  

Over-regulation, lack of innovation, workforce issues, and industry fragmentation are cited as key contributors to this decline. 

I can’t help but wonder if workforce issues and over-regulation have been exacerbated by the fact that left-wing political parties have governed for 22 of the past 30 years. 

These concerns have been on my mind throughout my career, particularly in recent years.  

Having spent the better part of the last decade in BIM management, I find it perplexing that Building Information Modelling (BIM) has not alleviated more site inefficiencies or facilitated greater modularization in construction. 

The BIM Paradox

I recall one particular project—a complicated 10-storey apartment building on a constrained site.  

I strongly recommended that the developers adopt a BIM process to enhance efficiency and reduce costs.

They consulted their engineers and returned with a decision:

“The engineer will charge $1,000 more for BIM, so we aren’t going to do it.”

To which I replied:

“That may be so, but you will save significantly more during construction.”

Despite my arguments, BIM was not implemented.

Unsurprisingly, the construction process was riddled with challenges due to the site constraints.

The developer ultimately spent far more than necessary just to get the building out of the ground.

The Problem

Software like Autodesk Revit dominates the AEC software market, yet many companies fail to utilize it as intended.

Instead of embracing true BIM workflows, they treat Revit as a mere replacement for AutoCAD—an expensive, glorified 2D drafting tool.

Time and again, I see companies attempting to shoehorn new technology into outdated workflows.

And as long as councils and building regulators require 2D documentation packages, this inefficiency will persist.

This is precisely why I founded FutureAEC—to promote education and awareness of emerging technologies in the hope of driving adoption.

However, no amount of innovation will succeed if information bottlenecks remain. High-bandwidth digital data is consistently distilled down into archaic, inefficient documentation formats.

Architects are essentially doing the work twice: once in 3D and then again in 2D.

The article I read suggests that hiring more staff to speed up regulatory approvals could be a solution.

But adding bureaucracy is never the answer.

Current government policies have contributed to excessive regulation, which has stifled industry innovation.

The Solution

The answer lies in deregulating the industry and fully embracing technology as it was intended to be used.

One major improvement would be for the government to adopt a digital workflow, integrating BIM models into a broader city-wide system for automated assessment.

This would significantly accelerate approvals while reducing bureaucracy.

Blockchain could be leveraged to ensure transparency and security in all transactions.

Architects would only need to model the building—eliminating the need for bloated 2D drawing packages.

The same logic applies to most building regulations, which could be assessed directly from the model.

AI has already demonstrated its ability to analyse complex data sets quickly and efficiently.

Soon, AI-driven assessment tools could automate compliance checks, making traditional drawing sets entirely obsolete.

Imagine a workflow where:

1. The architect creates a model and uploads it to an AI-powered platform.

2. The AI then integrates the model into a larger city model and conducts an assessment.

3. The architect receives an instant decision.

This streamlined process would dramatically increase efficiency in the early project phases. 

Revolutionizing Construction 

The benefits extend beyond planning and approvals.  

Architects, engineers, and subcontractors could collaborate within a unified digital model, leveraging automated clash detection and compliance verification. 

Builders could generate accurate cost estimates using quantity take-off directly from the model.  

Blockchain can also drastically improve the supply chains for products that are to be procured for the construction. 

As AI-driven robotics evolve, 2D drawings will become entirely obsolete, enabling 24/7 automated construction. 

With labour costs rising, contractors will face mounting pressure to develop robotic solutions—making innovation a necessity, not an option. 

The irony? Nearly all the required technology already exists.  

The only obstacle is the outdated approval process and matching robotics with AI. 

A Call for Change 

If we can modernize government workflows to match today’s technology, efficiency gains will be immense.

Shifting away from 2D documentation is a critical step in boosting industry productivity.  

To make this a reality, government agencies must prioritize digital transformation and remove bureaucratic barriers. 

Despite trade unions' influence over the industry, I see the construction sector inevitably moving toward automation.  

Private enterprise will always seek efficiency to maximize profit margins.  

The real challenge lies in pressuring government agencies to embrace modern workflows and facilitate industry-wide digital transformation. 

You can read the full Productivity Commission's report and explore these issues further here.