Throughout COVID-19, we have seen technical experts collaborate across multiple professions to drive significant impacts for society through avenues we once thought impossible. Vaccines were developed in record time, companies shifted to working virtually in a matter of weeks, and we re-tooled our health systems to cope with the pandemic.

By matching computational power, data analysis, and machine learning with shared interdisciplinary resources, policymakers, planners, and engineers will begin to anticipate future problems and reimagine the digital future ahead of time – rather than waiting until issues of congestion, waste management and climate change impacts become acute.

As Australia begins to open, it will be paramount to adapt to the new normal and tackle new sets of challenges. It’s hard to imagine, but this will be the country’s next crisis, as the infrastructure sector is expected to play a pivotal role in rebuilding the national economy.

Australian infrastructure is facing unparalleled labour and supply shortages, bringing digital transformation front of mind for today’s leaders. Without action and digital transformation, this can cost the economy billions and stagnate financial recovery. However, as we have learnt over the last few years, Australia is resilient with a history of finding innovative solutions.

Demand will substantially exceed capacity

Over the next five years, investment in major public infrastructure in Australia will surpass $218 billion. This spike in growth, combined with border closures, disruptions of the supply chain, and deficiencies in skills, is the root cause of the imminent mass shortage.

The latest Infrastructure Australia Market Capacity report found demand for plant, labour, equipment and materials will be two-thirds higher, which will cause:

• A shortage of up to 163,000 workers by early 2023
• 120 percent average growth in demand for materials
• 125 percent growth in demand for equipment
• 140 percent growth in demand for plant
• Project delays and budget blowouts until 2028
• Reduced industry confidence in delivering growth over 18 percent.

Failure to provide the required resources means that the infrastructure-led post-pandemic economic recovery is at risk of collapsing.

A ‘digital by default’ reform supported by key industry players

Responding to the crisis, the 2021 Australian Infrastructure Plan outlines a pathway for harnessing revolutionary technologies that will drive improvements in efficiency across the whole sector.

Aligned with Infrastructure Australia, GHD Digital recognises the need for the industry to transition to a digitised model. By leveraging the capabilities of Industry 4.0, we will create a commercially sustainable infrastructure industry, this will become the heartbeat of Australia’s social and economic wellbeing.

The benefits of this emerging evolution are limitless and have already created success for companies in previously inconceivable ways:

• We recently helped Urban Utilities achieve significant efficiencies by developing machine learning tools to extract information from datasets for asset register inputs. By moving away from interval-based maintenance to a risk-driven strategy, we generated $1.6 million in annual savings and reduced annual maintenance task costs by 53 percent.
• We worked with a water infrastructure services company whose aging asset base increased operations and maintenance costs. To counter this, we used advanced statistical digital modelling to demonstrate a cost difference of $60 million for the final procurement and development of the site for the client.
• We also helped a major east coast port unlock significant capacity (up to 30 percent) in existing infrastructure through advanced dynamic simulation techniques and developed a clear timeline for infrastructure upgrades required.

To be successful, we must move away from a ‘digital by exception’ mindset where the technology and data are used on an ‘ad hoc’ basis. Instead, we must adopt a ‘digital by default’ mentality that places cutting-edge technology and relevant data at the centre of everything we do, and actively embraces a new way of thinking about the users, stakeholders, solutions, processes, and workflows.

We support this view by participating in various national working groups including: IoTAA, GRESB, Ports Australia, Australian Railway Association and Intelligent Transport Systems Australia.

Closing the supply gap with digital transformation

One key takeaway from COVID-19 was how quickly infrastructure adapted to Australians’ health, education, and lifestyle needs. Throughout the pandemic, digital innovation provided cost-effective and impactful services to the community.

We can expect to see the same as we navigate the infrastructure sector’s challenges. Embedding digital practices will mitigate the fallout posed by labour and supply issues, manifesting a consistent and scalable approach. We believe this can be achieved through the following strategies:

• Streamlining project conception, design and front-end engineering
• Increasing collaboration to manage/develop both capacity and capability while connecting local supply chains
• Virtual modelling to identify preventable roadblocks early
• Enabling a greater use of pre-assembled, modular construction methods
• Digitising asset management to see automated monitoring and on-demand response to failures, resource shortages (reordering when low on materials), and maintenance requirements
• Using data and technology to make operations leaner and greener
• Digital portfolio and pipeline management to augment project pipelines and lessen the risk of resource constraints
• Creating better service models — 2020 saw a shift from physical to virtual services at a rate previously thought impossible. Capitalising on this shift will optimise functionality and stakeholder engagement.

By incorporating digital deeper into the project design process, infrastructure delivery is more productive and efficient, leading to a reimagining of best industry practices.

Steve Lennon is the Australian Digital Leader at GHD Digital, which engineers state-of-the-art digital solutions to overcome highly complex issues across a variety of industries. He leads the strategic growth and development of a thriving business in his executive role. Steve is a senior strategy and technology advisor to Boards and C-Level executives, experienced audit and risk committee member and company director. He originally qualified as a Chartered Accountant and has served as managing director, Australia of the global creative agency Imagination; principal, management consulting with Arup, the design and engineering firm and in consulting leadership roles at several global IT services firms including DXC, SMS Management and Technology, Fujitsu, CGI and Cognizant. You can contact him at Steve.Lennon@ghd.com or +61 2 9462 4395.