Construction has always evolved but not gradually. We moved from muscle power to land to machines to skills. Now, we’re entering a new phase where data becomes the real source of power. For decades, construction modernized physically but information remained manual, chaotic, and slow. Equipment improved and software appeared. But decision-making, coordination, and site data largely stayed the same. The pain has become too high to bear.
In this article, I reflect on how success factors for contractors have shifted over time, and why digital transformation, platforms, and data-driven decision-making are no longer optional. This isn’t bad news; it is evolution. And with every evolution, new opportunities emerge.
From Muscle to Machines
In the past, human survival and progress depended primarily on muscle power. Industries such as farming and fishing relied almost entirely on physical strength to meet basic needs. Dominance during this era was exercised through the ownership of land and natural resources. By the late 1800s, countries began invading others to seize resources. Construction was no different. While early machinery began to appear, contractor success was still largely determined by the amount of physical assets and resources they owned.
Following World War II, particularly in the 1950s, the global focus shifted toward mass production and scale. Quantity mattered more than anything else. Dominance was now exercised through machines. In construction, contractors who owned more equipment, better machinery, and advanced electrical tools gained a competitive advantage. Success was tied directly to mechanical power and capital-intensive assets.
From Machine to Skills
By the early 2000s, equipment became expected not special. At the same time, societies began shifting from quantitative growth to qualitative development, focusing on higher-value services such as education, healthcare, and infrastructure. This shift forced both societies and contractors to rely more heavily on information that is manifested in better design tools, computers, and concepts to meet rising expectations.
The economy thrived, and with it came the rise of the knowledge worker. More engineers use standard software tools (e.g., P6 and AutoCAD) and use the same set of skills in any company or country to offer their services. Consulting companies can also transfer their knowledge in scale.
Urbanization accelerated. We needed to build more and faster high-rises, financial hubs, and commercial centers, and at a higher quality in order to support economic demand. During this phase, contractors with more skilled engineers began to outperform others. This change also reshaped individual behavior. Young engineers with savings are now more likely to invest in education and skill development than in land ownership, unlike previous generations.
Skills Became Abundant, Assets Became a Burden
Today, engineers can improve their skills more easily and effectively than ever before. Books, universities, and online resources are abundant and accessible.
Contractors no longer need significant capital to recruit engineers internationally. Talent can be sourced quickly and cost-effectively. Similarly, equipment ownership is no longer exclusive because all contractors can own or rent fleets at competitive rates due to advances in manufacturing and increased competition. Moreover, all contractors can make better procurement deals with suppliers on the other side of the globe very easily.
As a result, physical assets can become a burden if organizations lack the ability to utilize them efficiently.
Evolution Happens in Bursts
History shows that evolution does not happen gradually but happens in bursts, followed by periods of stability. However, the lifespan of each phase is becoming shorter. In 2007, the iPhone was introduced. Shortly after, companies like Nokia collapsed. Netflix introduced streaming and disrupted traditional DVD rental businesses. Online stores multiplied, supported by increasingly sophisticated delivery systems, and impacted traditional brick-and-mortar stores.
All of this occurred within roughly 20 years.
From Skills to Data
Today, I see the success factor for contractors shifting again – this time from skills and technical knowledge to data and the ability to use it.
This shift is enabled through digital transformation, which allows companies to:
· Deploy applications for site and office teams
· Generate analytics
· Enable faster, better-informed decision-making
There are no trusted sources that clearly show which contractors are thriving and which are struggling but many of us have already observed it. Companies that once dominated project awards and profitability are now struggling. At the same time, relatively new companies are evolving rapidly and thriving. These newer organizations are typically more agile. They carry fewer physical assets and less idle capital, reducing operational burden. As you might have realized, this transformation has happened within just the past few years.
The good news
This shift should not be viewed dramatically. It is, in fact, good news. When older jobs and traditional methods disappear, new roles and opportunities are created. This is a natural part of evolution. Contractors have relied on the same methods for decades. While the introduction of computers felt like progress, it was not true evolution. The difference between paper-based daily reports and Excel spreadsheets is still incremental but the work remains manual. This is fundamentally different from the radical shift from postal mail to email.
What Didn’t Change?
Despite modernization on the physical side, the information side remained largely unchanged:
· Information still lives on paper
· Decision-making is slow
· Coordination relies on meetings, emails, phone calls, and endless WhatsApp messages
· Site data is manual and delayed
· Problems are discovered after they occurred
In short, the physical side modernized; the information side did not.
The Next Burst Is Already Here
Since the 2000s, the industry has used fragmented digital tools to support work. However, construction is now forced to change. Projects are larger and more complex, driven by modern societal demands. Site teams are increasingly frustrated by operational chaos. Disputes are more frequent and more costly. Projects experience significant delays and cost overruns. The pain has become too high to ignore. The next evolutionary burst will push contractors toward data-driven platforms and emerging AI.
To succeed, contractors must leverage the abundance of modern resources:
· Cloud computing
· Big data
· Artificial intelligence
· Internet of Things (IoT)
