Shaping the Future of Construction

The report argues that the Infrastructure and Urban Development (IU) industry has lagged behind the Fourth Industrial Revolution, resulting in stagnating productivity. To prepare for an uncertain future, the World Economic Forum developed three plausible scenarios: 'Building in a virtual world' (AI and robotics dominance), 'Factories run the world' (prefabrication and modularization), and 'A green reboot' (circular economy and strict environmental regulations). Regardless of the scenario, the report identifies six 'no-regret' transformation imperatives: attracting new talent, integrating the value chain, adopting advanced technologies at scale, maximizing data/digital model usage, reviewing product portfolios, and enabling change management.

• The Infrastructure and Urban Development (IU) industry has failed to keep pace with the Fourth Industrial Revolution, relying on manual methods and traditional business models while other sectors have digitalized, leading to stagnating productivity.
• In the 'Building in a virtual world' scenario, AI and robotics replace most manual labour, shifting demand away from commercial and office assets toward residential, recreational, and passenger mobility infrastructure.
• The 'Factories run the world' scenario envisions a shift toward a product-based industry where prefabrication and modularization dominate, benefiting suppliers and vertically integrated companies while marginalizing standalone contractors.
• The 'A green reboot' scenario describes a future where strict global environmental regulations and a circular economy prioritize the refurbishment of existing assets over new construction, rewarding companies with expertise in sustainable materials.
• There is a critical talent gap in the IU industry, exacerbated by a negative public image; 74% of polled CEOs and ministers identified attracting new talent and building skills as a top transformation imperative.
• The industry's R&D investment is significantly lower than in other sectors, spending less than 1% of total revenue compared to 3% in manufacturing and up to 13% in pharmaceuticals.
• Digital models, specifically 7D BIM (incorporating 3D object data, scheduling, cost, sustainability, and O&M), are identified as the essential backbone for future automation and efficiency across the asset life cycle.
• To remain competitive, IU companies must move from a fragmented value chain toward greater integration, using joint ventures, M&A, or integrated contracts to control more of the asset life cycle.

APA

World Economic Forum (2018). Shaping the Future of Construction. http://www3.weforum.org/docs/Future_Scenarios_Implications_Industry_report_2018.pdf

Chicago

World Economic Forum. Shaping the Future of Construction. 2018. http://www3.weforum.org/docs/Future_Scenarios_Implications_Industry_report_2018.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Shaping the Future of Construction |date=March 2018 |url=http://www3.weforum.org/docs/Future_Scenarios_Implications_Industry_report_2018.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2018shaping, author = {{World Economic Forum}}, title = {{Shaping the Future of Construction}}, institution = {World Economic Forum}, year = {2018}, month = mar, url = {http://www3.weforum.org/docs/Future_Scenarios_Implications_Industry_report_2018.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }