How IoT Enhances Business Operations in the Construction Industry

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How IoT Enhances Business Operations in the Construction Industry

The construction industry is facing business productivity issues from various angles. When compared with other vibrant sectors, the growth rate is very slow in the construction segment. There are lots of reasons which contribute to productivity loss in the building sector. So what causes yield rate reduction in the construction industry?

1. Complexity in the nature of the project

2. Legal issues

3. Cyclical nature of public investment

4. Inefficient design and engineering processes

5. Geographically dispersed sites

6. Inadequate project management

7. Poor execution capabilities

8. Shortage of experienced workers

9. Underinvestment in modern technology and digitization processes

How the Internet of Things (IoT) enhances business productivity in the construction sector?

Internet of Things is a digital-based technology of the modern era. IoT is used in various industries including manufacturing, healthcare, logistics, and others. It provides a futuristic solution for most of the complex issues faced in the construction site.

Track assets, resources and monitor equipment:

IoT technology provides powerful monitoring tools and visualization elements. It is very helpful in tracking your construction assets, ensuring that they never get lost or stolen, which can be a problem on large-scale building sites, causing delays and dampening productivity. Apart from the equipment monitoring functionality, you can detect and communicate the maintenance requirements, send automated alerts for preventive actions, maintain the usage data, and improve efficiency by monitoring the consumption of fuel remotely. Building management staffs can control the resources from a centralized location.

Labor productivity growth:

When compared with the other sectors, the construction industry lags behind in labor productivity growth. In the near future, IoT will play a key role in improving the labor productivity, ensuring construction firms have accessibility to real-time information that can improve machine performance, undertake preventative maintenance, reduce downtime and repair costs. IoT ensures that the business operations are both productive and future-proofed.

Mckinsey - Global productivity growth trends

Image source: Mckinsey

Environmental-friendly construction:

Powerful sensors are available in the IoT modules. Reduce the construction wastage by estimating the required quantity of building materials, controlling the electrical consumption and tracking the idle time of machinery.

Enhanced safety measures:

The construction sector reports the maximum of accidents and injuries. IoT supports wearable technology and radio frequency identification. Site managers can easily control all the workers from a centralized location. Monitor the physical location, give cautionary guidance and take action at the right time.

Fully-connected environment:

With the Internet of Things technology, you can connect your engineers, managers, surveyors, and construction workers easily.

Effective management of projects and documents:

Smartphone devices are widely used in the construction sector. IoT enabled smartphones can handle a wide range of project management tasks. This includes project viewing and tracking functionalities. Connect the mobile device with other safety equipment such as road barriers, PPE wearables, and more. Document scanning feature allows you to create data backups, which would also make it for business managers to easily access and acquire the required information.

Intelligent ERP in the construction segment:

The intelligent ERP / iERP comes with a mix of AI tools, machine learning capabilities, enhanced user experience, cloud platform, and IoT. Intelligent ERP system benefits the construction industry in many ways such as autonomous decisions, enable human-machine interaction, handle massive data sets and so on.


When we look at the construction industry, the Internet of Things technology has a major role in improving the overall business productivity. It will play a futuristic role in construction process handling, fuel consumption, GPS tracking, machine-hours calculation, preventive measures, project management, decision-making, and other operational parameters.

Thinking about integrating construction ERP software? At CEM, we have over 16 years of experience and are a certified partner to Microsoft. Get a quote today!

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