America’s infrastructure and construction industry are collectively at a pivotal crossroads. Both the industry and our country’s built environment are confronting significant challenges. Given constrains in time, manpower, and supply chain reliance, leveraging technology and prefabrication will be vital to overcoming the domestic challenges facing our infrastructure and construction industry.
Our nation’s built environment faces serious issues—deteriorating transportation infrastructure and public services, a nationwide housing shortage, inadequate grid capacity, and an urgent need for natural disaster protection and recovery. While innovation in the construction sector has been slow in past decades, renewed attention in recent years is poised to address the backlog. Fortunately, an unprecedented amount of public and private money and support is flowing into the industry to solve these problems and build the required infrastructure for the future.
The Architecture, Engineer and Construction (AEC) industry is rising to the challenge but is facing obstacles of its own; rising labor costs, a shortage of qualified workers, soaring material prices, and an increasingly risky market. Now more than ever, the industry’s ingenuity is crucial. Fortunately, emerging technologies in construction and manufacturing offer practical solutions to these pressing issues. Leveraging technology and advancing prefabricated construction are critical to national success.
Recent AEC technology breakthroughs, especially in software, have streamlined operations throughout the construction process. Tools like Procore have improved document control and team communication, while BIM and 3D modeling have enhanced coordination and planning. However, industry-wide adoption is slow—only 24 percent of Associated General Contractors of America members report mature software use. Still, growing interest in digital literacy and innovation is promising and essential for overcoming future challenges.
To date, construction innovation has mainly focused on software—an easier target for solving inefficiencies. However, construction’s hands-on nature demands tangible solutions. The most significant advancements will come from improved equipment, hardware, and offsite construction practices.
In the next wave of construction innovation improvements to equipment, hardware and construction manufacturing practices will play an outsized role. Promising developments in construction robotics, like Boston Dynamics’ robotic dog Spot or TyBot from Advanced Construction Robotics, aim to assist workers with material handling, safety, and routine tasks as well as automating certain dangerous or time-intensive tasks.
On-site 3D concrete printing has shown potential, with Walmart’s Tennessee expansion as a recent example. Yet, these technologies still face scalability challenges, including high labor costs, weather risks, and insurance concerns. More immediate solutions include Hilti’s exoskeletons and tool balancers, which reduce physical strain on workers—an essential innovation amid labor shortages. Similarly, CAT and other manufacturers have introduced GPS-guided and remote-controlled machinery, allowing operators to work from anywhere, improving safety without sacrificing efficiency. California firefighters have even used these technologies to combat wildfires more safely.
Beyond innovative technology, the next leap in efficiency is likely to come from off-site preparation and precise job planning. Prefabricated construction and alternative materials are poised to accelerate industry growth, creating new jobs and improving the efficiency of infrastructure building and maintenance. Prefabricated components have transformed how we build everything from bridges to multifamily housing. For example, prefabricated wall panels now clad 30-story NYC residential buildings, offering cost-effective alternatives to glass and masonry facades while cutting labor costs and construction time. Faster, cheaper builds will encourage more housing investment nationwide. Prefabricated bridge trusses are already succeeding across the country. Manufacturing offers the advantage of controlling countless variables that plague construction projects and can help our industry deliver complex projects quicker, cheaper, and more reliably.
Manufacturing offers the benefits of repetition and economy of scale saving project costs. Constructing vital components offsite means that construction activities can be done simultaneously, greatly crashing project schedules. Similarly, working in a manufacturing plant provides a controlled environment resulting in heightened quality, reduced labor safety risk, and elimination of weather as a variable, while potentially being in alignment with new federal administration goals and seeing favorable policy treatment.
Last but not least, moving construction activities to manufacturing plants will result in more consistent work forces in consistent locations reducing the staffing strain that construction teams often feel in ever-moving job sites across regions and the country. This in turn can alleviate traffic, congestion, and road issues including driver risk and environmental impacts. Overall, strengthening the connection between construction and domestic manufacturing is essential to revitalizing U.S. infrastructure.
The industry’s advancements are just the beginning. As we face unprecedented infrastructure challenges, further investment and implementation of these innovations are vital. America’s legacy of ambitious construction—from early 20th-century railroads to interstate highways—must evolve in the 21st century. We must push our infrastructure forward through innovation and technology.
Written by Aaron Shavel, Policy Fellow
The Alliance for Innovation and Infrastructure (Aii) is an independent, national research and educational organization working to advance innovation across industry and public policy. The only nationwide public policy think tank dedicated to infrastructure, Aii explores the intersection of economics, law, and public policy in the areas of climate, damage prevention, eminent domain, energy, infrastructure, innovation, technology, and transportation.