Streamlining Construction Sites: ICT Construction Equipment as the Ace to Solve Labor Shortages

Introduction: The Deepening Labor Shortage in the Construction Industry

Japan’s construction industry is currently facing an unprecedented labor shortage. The number of construction workers, which was about 6.8 million in the late 1990s, has recently fallen to around 4.8 million, a significant decline of roughly 30% from the peak. While the workforce at sites is shrinking, construction demand—driven by infrastructure projects for national resilience and disaster recovery—continues to rise, and many firms are crying out that “there is work but not enough people.”

In addition, the aging of the workforce is a major issue. Looking at the age composition of skilled construction workers, those aged 55 and over account for nearly 40% of the total, while those 29 and under make up only about 10%. Over the next decade, a large number of skilled technicians are expected to reach retirement age, raising concerns about a breakdown in the transfer of technical skills. The double blow of chronic shortages of young workers and retiring veterans has forced sites to face construction delays and order restrictions, leading increasingly to cost increases and declining quality. In fact, one survey reported that about 60% of construction companies have experienced schedule extensions or order limitations due to labor shortages.

Faced with this situation, many construction firms are exploring the solution of “labor reduction” (streamlining). Since it is difficult to simply increase headcount, it is urgent to create systems that allow sites to operate with fewer people while improving productivity. The trump card attracting attention for that purpose is construction machinery equipped with ICT (ICT construction equipment). This article explains in detail what ICT construction equipment is, the effects it brings for streamlining, and its potential to alleviate labor shortages.

Shortage of Skilled Technicians and the Difficulty of Training Young Workers

Behind the labor shortage lies a structural problem of a lack of skilled technicians and difficulty training young workers. Work at construction sites has traditionally relied heavily on the experience and intuition of skilled craftsmen, and excellent veteran operators have supported on-site productivity and quality. However, as that veteran cohort reaches retirement en masse, the number of people with long-accumulated know-how is rapidly decreasing.

On the other hand, entry by young people is not progressing as expected. The construction industry still suffers from a entrenched image of “dirty, difficult, and dangerous (the 3Ks)”, and harsh working conditions and long hours make it harder to secure new workers compared with other industries. Even if young workers are hired, it takes many years and guidance from skilled workers to bring them up to full competence. But because the pool of instructors—the skilled workers themselves—is shrinking, the shortage of those who can pass on skills is becoming severe.

To break this vicious cycle, it is necessary to introduce systems that can achieve high productivity and quality without relying on traditional methods. That is precisely the use of digital technologies such as ICT construction equipment. If even inexperienced workers can perform near-skilled tasks with the help of machines, the gap in skills transfer can be narrowed, potentially easing the labor shortage.

What Is ICT Construction Equipment: Smartifying Construction Sites

ICT construction equipment refers to construction machinery equipped with “Information and Communication Technology.” Simply put, it denotes the latest heavy equipment and systems that incorporate digital technology into each stage of the construction process—surveying, design, construction, and management—to improve efficiency and reduce manpower. In Japan, the spread of ICT construction has been promoted under the Ministry of Land, Infrastructure, Transport and Tourism’s “i-Construction” policy. Especially in public works, there is an increasing trend whereby the client provides three-dimensional design data and the site uses it for construction, and the industry as a whole is shifting toward “smart civil engineering.”

What can ICT construction equipment actually do? One example gaining attention in recent years is three-dimensional surveying using drones and 3D scanners. Large-scale surveys that used to take days for on-site surveying can now obtain high-precision topographic data in a matter of hours by flying drones. By digitizing the terrain, subsequent design and construction planning can proceed more smoothly.

Next is the introduction of ICT technology directly into the construction machinery that is central to construction. Representative technologies are called machine control (MC) and machine guidance (MG), which equip bulldozers, excavators, and the like with GPS and sensors so the machines can automatically control blades and arms for excavation and grading. Even if the operator does not move the control levers, the machine can level land with millimeter-level precision (mm-level, 0.04 in) according to the built-in 3D design data. As a result, even inexperienced operators can carry out construction with stable quality. Because the machine supports precise work, the finish is less likely to differ between veterans and newcomers, creating a leveling effect.

ICT is also being applied to site management. Using tablets and the cloud to share construction status and material delivery information in real time, or centrally managing finished-shape photos taken with GPS-equipped digital cameras in the cloud, can greatly eliminate the traditional inefficiency of supervisors returning to the office to sort through massive numbers of photos and prepare reports. These digitalizations have rapidly advanced the visualization of the site, allowing progress and quality to be monitored from remote locations.

Furthermore, initiatives to strengthen information linkage between design and construction by utilizing 3D data such as BIM/CIM (Building/Construction Information Modeling) from the design stage are spreading. This has been shown to greatly reduce rework when design changes occur, and is expected to cut waste across the entire project.

In this way, ICT construction equipment and ICT construction aim to spark a productivity revolution at construction sites by leveraging digital technology across surveying, construction, management, and responses to design changes.

Benefits of Labor Reduction Brought by ICT Construction Equipment

So what specific labor reduction effects can be achieved by introducing ICT construction equipment? Here are some of the main benefits.

Realizing Site Operations with Fewer Workers

The greatest benefit of ICT construction equipment is that site operations can be run with fewer personnel thanks to improved efficiency. For example, earthworks (embankment and excavation) that previously required 10 people have been completed with about 6 people by utilizing ICT-equipped heavy machinery. Simple arithmetic shows this corresponds to about a 40% reduction in manpower, which can be a major boon to sites struggling with labor shortages.

Survey work streamlining should not be overlooked. Where many people were once needed for surveying on large development sites, the introduction of drone surveying and GPS positioning technology has enabled survey teams requiring 10 people to be handled by 2–3 people in some cases. There are examples where the work time itself was reduced to less than half, and shortening the preliminary stages from surveying to design has led to overall schedule reductions.

Being able to run sites with fewer people not only directly addresses labor shortages, but also has positive effects on workstyle reform such as securing days off and reducing overtime. In fact, some construction companies that promoted ICT and streamlining have managed to implement two days off per week while maintaining or improving productivity. This is important as a response to the overtime work cap regulations applied to small and medium construction firms from 2024 (the so-called 2024 issue), and it is highly significant that efficiency can reduce working hours even if headcount cannot be increased.

Stable Construction Quality and Reduced Rework

Introducing ICT construction equipment leads to a dramatic improvement in construction precision. Because machines operate under automatic control based on 3D data, variability due to human error is reduced and high precision can be maintained consistently. As a result, occurrences of rework are suppressed, reducing wasted labor and time. One report found that the use of digital technologies such as BIM/CIM reduced rework associated with design changes by 80%. If high-quality work can be achieved on the first pass, there is no need to allocate additional personnel for corrections, which contributes to labor reduction.

Moreover, the fact that machines assist the skills of veteran operators helps to level out skill variability. If newcomers and young workers can achieve near-veteran accuracy by relying on ICT construction equipment, the site no longer needs to be entirely dependent on specific skilled personnel. This is a major advantage for maintaining stable construction capability amid labor shortages.

Improved Safety and Better Working Conditions

The effects of labor reduction are not limited to cutting headcount; they also manifest in improved site safety. With automation and remote operation of heavy machinery enabled by ICT construction equipment, opportunities for people to enter hazardous work areas are reduced, contributing to lower workplace accident risk. For example, slope shaping that was previously performed with a human guide can be done automatically by an ICT-equipped bulldozer, eliminating not only the need for a guide but also the risk of contact accidents. Achieving both labor shortage countermeasures and safety measures simultaneously is a major strength of ICT introduction.

Additionally, ICT construction relaxes physically demanding and long-hour work, improving the working environment. Automation reduces physical burdens and increased efficiency reduces overtime, lowering fatigue and stress for workers. This may make it easier for younger generations and women to enter the construction industry. In practice, sites that have adopted the latest technologies and become smarter report that they have dispelled the “civil engineering = 3Ks” image and improved retention rates of young talent. Realizing a comfortable workplace alongside labor reduction will, in the long term, help secure personnel and create a virtuous cycle to solve labor shortages.

Cost Reduction and Improved Management Efficiency

Rising labor costs and increased spending on temporary staff and subcontracting due to labor shortages are major management issues for construction companies. If ICT construction equipment can increase the workload per person, required staffing levels can be reduced, helping to contain total labor costs. Shortening work time and reducing quality defects can realize shorter schedules and cost reductions. If schedules are shortened compared to plans, site management and temporary installation costs can be cut, improving profit margins.

Furthermore, data-driven efficient construction helps reduce material waste and optimize machine operating hours. Reduced unnecessary heavy-equipment idling lowers fuel costs and contributes to reduced environmental impact. Thus, labor reduction through ICT is not merely about “reducing people”; it delivers comprehensive benefits of improved productivity and waste reduction that enhance management efficiency.

Hurdles to ICT Adoption and Future Prospects

ICT construction equipment can be a trump card to solve labor shortages, but there are challenges in adoption. First is the initial investment cost. Replacing heavy machinery and introducing new technologies require considerable capital, which can be especially burdensome for small and medium enterprises. However, in recent years, subsidies and grant schemes from national and local governments have become more robust, and support measures such as subsidizing up to two-thirds of ICT construction equipment and related software introduction costs have emerged. Utilizing these schemes should significantly lower the financial hurdle.

Next, in-house human resource development is also crucial. Even if ICT equipment is introduced, it is wasted unless there are personnel who can operate it effectively. Some veteran site workers may feel uneasy about digital devices, but this needs to be overcome by planned education and collaboration with younger staff. Fortunately, many recent ICT tools and applications are designed for intuitive operation, and older workers can learn them by getting hands-on with the equipment. For the digital-native younger employees, acquiring such IT skills is likely to be a strength. Creating a system in which generations within the company share wisdom and cooperate to leverage new technologies is essential.

Looking at the industry as a whole, the shift to ICT construction is already irreversible. The Ministry of Land, Infrastructure, Transport and Tourism has stated that ICT construction will be made the norm in public works from fiscal 2025, and the use of ICT technology is becoming not just an initiative for a few advanced companies but a new normal required of all construction firms. Going forward, ICT construction equipment and digital tools will continue to evolve, and further labor-saving and automation through linkage with AI and IoT will progress.

Conclusion: Toward a Future of Streamlined Labor

For an industry facing severe labor shortages, the use of ICT construction equipment is a powerful ally that can achieve both productivity improvement and labor reduction. Even as the number of skilled personnel declines, incorporating the latest technology into sites can create operations that run without relying solely on people. However, building a truly sustainable future for construction sites requires the fusion of technology and people. ICT is a tool, and people are those who master it. What matters is cultivating a hybrid on-site capability that makes the most of site wisdom and experience alongside ICT.

Fortunately, if ICT construction equipment improves workstyles and enhances site attractiveness, it will be easier to attract new personnel. To create a virtuous cycle of labor reduction and talent acquisition and to overcome these challenging times, now is the time to actively make use of ICT construction equipment as the ace.

Use of LRTK for Streamlining Site Surveying

Finally, as an example of the latest technologies that support labor reduction, here is a tool that dramatically streamlines surveying work on site. A recently introduced solution called LRTK enables anyone to perform simple high-precision surveying by attaching a compact high-precision GNSS receiver to a smartphone. Traditionally, surveying control points and finished-shape verification required specialized instruments such as total stations and skilled surveyors, but with LRTK it becomes possible to achieve positioning with centimeter-level accuracy (cm level accuracy, half-inch accuracy) using just a smartphone. For example, a single worker can walk around a site and instantly acquire coordinates for each point and calculate required distances and areas on the spot—tasks that even someone without special technical training can intuitively perform.

By using smartphone surveying with LRTK, the personnel required for surveying processes can be drastically reduced, and tasks that used to require multiple people for stakeout installation and finished-shape verification can potentially be handled by a single person. Combined with automation of construction by ICT construction equipment, digitizing and streamlining the entire flow from surveying to construction can dramatically improve productivity at construction sites. Business owners and site managers struggling with labor shortages should consider adopting such cutting-edge technologies and take on the challenge of creating smart sites that can operate with small teams.