How a sharing economy could redefine construction

The construction industry, for all its advancements, has a reputation for being slow to adapt, but change is on the horizon, stimulated by the disruptive potential of a sharing economy. It is an idea, built on collaboration and resource optimisation – and if we fast forward a few years – then it could reshape the way construction projects are planned, executed and managed, writes John Ridgeway.

Sharing, a concept first mooted some 15 years ago, but still to be widely adopted, could cover a wide range of resources - everything from heavy equipment to skilled labour, access to the right finance to the best architectural designs and more. The most obvious area, of course, is the use of plant, which although covered in many ways by a myriad of hire companies that specialise in short term lease arrangements, still fall a little short when it comes to the big stuff.

This is why many companies still invest in a vast array of machinery – cranes, excavators, bulldozers – that may only be used for a fraction of the year and this approach leads to several significant drawbacks.

Acquiring and maintaining a diverse equipment fleet can be a substantial financial burden. Smaller companies, especially those specialising in niche areas, may struggle to compete due to these upfront costs. Such equipment often sits idle between projects, depreciating in value while generating no income - representing a significant waste of resources. Furthermore, owning such equipment restricts a company's ability to adapt to changing project demands, especially for one that might require a specialised piece of machinery.

The sharing economy offers a compelling alternative to such an ownership-centric model and here is how it's reshaping the construction industry. We are now seeing online resource sharing platforms which connect construction companies with each other, enabling them to rent idle equipment. This allows smaller companies in particular to access specialised equipment without the burden of ownership, while larger companies can generate additional revenue by renting out underutilised assets.

Sharing platforms facilitate efficient resource allocation where equipment can be located and rented based on precise project needs, eliminating underutilisation and wasted resources.

This optimisation benefits both renters and lenders, leading to lower costs and increased profitability.

Sharing platforms can also extend to highly skilled tradespeople, who can connect with projects on a freelance or contract basis. This approach provides construction companies with access to specialised expertise without the need for full-time employees, while offering skilled workers greater flexibility and diverse project opportunities.

Sharing the talent pool

This is happening because the construction industry faces a persistent challenge – in trying to attract and retain skilled labour. The sharing economy offers solutions by connecting construction companies with a wider pool of skilled workers, including experienced professionals seeking project-based work or those entering the workforce. This flexibility fills temporary staffing needs and provides skilled workers with diverse project experiences.

The added advantage is that sharing platforms can connect construction companies with skilled workers in geographically distant locations. This bridges the skills gap in areas where local talent may be limited, ensuring access to the best expertise regardless of location.

The sharing economy can also extend to encompass the very essence of project design and planning. We could soon see a platform where architects and engineers collaborate and compete for construction projects. This approach could connect smaller firms with high-quality design expertise from a global pool of talent, fostering innovation and cost-effective design solutions.

Sharing platforms can further facilitate collaborative project planning, allowing different stakeholders – architects, engineers, contractors – to contribute expertise and ideas throughout the process. This fosters transparency, reduces errors and leads to more efficient project execution.

In time, sharing platforms could be used for construction plans, techniques and best practices. This open-source approach could accelerate innovation, particularly in developing nations where access to specialised expertise might be limited.

The sharing economy principles can extend beyond individual projects, shaping the very fabric of construction ecosystems. Let’s for the moment, imagine the concept of "maker cities". These are cities that could invest in shared workshops, fabrication labs and even 3D printing facilities. These resources would be available to construction companies, architects, and engineers on a rental basis. This approach would optimise resource allocation, eliminate redundancy and foster innovation as different players collaborate and share ideas.

Shared facilities could promote the use of recycled or salvaged materials in construction projects. This approach would reduce construction waste and promote sustainable building practices within the maker city.

Navigating a new landscape

The sharing economy in construction offers immense potential, but many challenges still need to be addressed. Sharing platforms need robust mechanisms to ensure the safety and quality of shared equipment and skilled labour. This might involve standardised certification processes and user reviews to maintain high standards.

Sharing platforms would also need to handle sensitive data – project plans, financial information, worker credentials. Robust cybersecurity measures are crucial to protect this data from unauthorised access or breaches.

The sharing economy would also need to operate across geographical boundaries, which means standardised regulations and industry best practices would be needed to ensure smooth operation and fair competition within the sharing economy model.

All this represents a major shift for the construction industry. By embracing collaboration, resource optimisation and transparency, construction companies could build a more efficient, sustainable and connected future that would ultimately translate into a lower environmental footprint for the construction sector.

The sharing economy would also foster better collaboration and knowledge sharing, accelerating innovation within the industry, allowing new technologies and construction techniques to emerge from this collaborative environment.

It’s a shift that offers significant benefits – increased efficiency, reduced waste and a more dynamic workforce. As the construction industry embraces the sharing economy, we can expect to see a future of faster, more sustainable and more collaborative construction projects – but when it happens and at what speed – is anyone’s guess.