The World is changing and so is construction: What does this mean for South Africa?

Take a drive through any South African city and you’ll see a familiar sight of potholes in the road, housing developments springing up, malls rising from empty plots and cranes dotting the skyline. The construction industry remains a powerful engine of growth. What happens when the world starts changing how it builds? What does that mean for us here at home in South Africa?

Globally, the construction industry is undergoing a revolution. It is no longer just about bricks and mortar anymore, it’s about smart technology, artificial intelligence, sustainability and new ways of thinking. For South Africa, this brings both exciting opportunities and real challenges.

How the World is Building Differently

Imagine walking onto a construction site and instead of the usual sounds of hammers and drills, you see drones surveying land, robots laying bricks or software predicting construction delays before they happen. It sounds futuristic but it is happening right now and it is revolutionising the construction industry in ways we never thought possible.

Globally, construction is becoming faster, smarter and greener:

• Digital Tools are leading the way: From BIM (Building Information Modelling) to drones, robotics and 3D printing, technology is streamlining processes, improving accuracy, reducing errors and enhancing collaboration. These innovations are transforming planning and execution across projects.
• Going Green - Sustainability is now essential: As climate change becomes harder to ignore, green building practices are gaining momentum. Energy-efficient designs, solar integration and eco-friendly materials are in demand for environmental reasons as it make financial sense.
• A Shift in Workforce Needs: The global shortage of traditional construction workers is coinciding with a growing demand for tech-savvy professionals. New roles are emerging, requiring digital literacy and knowledge of sustainable practices.

What This Means for South Africa

South Africa’s construction industry has been through some challenging times. Delayed projects, funding issues, corruption and high unemployment has hindered the county's advancement. However, global changes are opening new doors and if we are ready to walk through them, technology can level the playing field.

• Digital adoption is crucial: Many local construction companies, especially smaller ones still rely on old-school methods. While this is not inherently bad, it limits competitiveness, especially in securing international contracts. Adopting tools like BIM, AI-powered project planning and digital tracking will improve efficiency, safety and project delivery.
• Green building is a major opportunity: With Eskom’s ongoing challenges and rising energy prices, South Africa is well positioned to benefit from green building. From solar panel installations to water-saving systems, eco-friendly solutions can reduce costs and drive new demand, particularly in government and commercial projects.
• Material costs are a growing concern: Heavy reliance on imported materials such as steel and timber makes the industry vulnerable to global price increases, fuel hikes and supply chain issues. Local manufacturing, better planning and smart sourcing of alternative materials could help ease the burden.
• Bridging the Skills Gap: While global demand rises for digitally skilled builders, South Africa faces high youth unemployment. This gap presents an opportunity. By upskilling young people in construction technology, safety and sustainability, we can achieve industry needs while addressing joblessness.

Looking Ahead: Time to build smarter

The world is changing and South Africa’s construction industry is standing at a crossroad. We can continue doing things the traditional way and risk falling behind, or we can embrace change, invest in skill development, adopt new technologies and build for the future.

This transformation requires collaboration between government, private sector, and training institutions. It is not just about infrastructure, it is about building a resilient, future-ready industry that supports jobs, communities and the economy.

As South Africans, our creativity and resilience have carried us through many challenges. Now is the time to use those strengths to reimagine construction for the next generation.

Reetesh Balgobind | Head: Finance

References:

World Economic Forum. (2016) Shaping the Future of Construction: A Landscape in Transformation [PDF]. Cologny: World Economic Forum. Available at: https://www3.weforum.org/docs/WEF_Shaping_the_Future_of_Construction_full_report__.pdf (Accessed: 26 July 2025).

The Civil Studies. (n.d.). Drones and robotics: The future of construction technology. [online] Available at: https://thecivilstudies.com/drones-robotics-construction-technology-future/ [Accessed 27 Jul. 2025].

Majola, G. (2025, June 2). Navigating material shortages and price hikes: challenges for South Africa’s construction industry. Independent Online. Available at: https://iol.co.za/business/property/2025-06-02-navigating-material-shortages-and-price-hikes-challenges-for-south-africas-construction-industry/ [Accessed 27 Jul. 2025].