Construction Innovation is Near the Tipping Point

Academic studies of innovation processes recognise that there’s typically a tipping point. This is the stage when adoption accelerates and the innovative approach rapidly and irreversibly becomes the mainstream. There’s every chance that construction innovation and MMC are at this critical stage.

Innovation tipping points tend to be obvious in hindsight but not so clear in the here and now. There are a variety of reasons for this. Inertia is the most obvious – There’s no obvious disadvantage in sticking with what you know if the innovative alternative is confined to a few early adopters.

In other cases, businesses focus on the technical maturity (or lack of it) rather than the opportunity. Maybe the biggest factor is the fear of diverting sales revenue from existing business units or products. Kodak famously failed to embrace digital cameras for fear of cannibalising their existing business.

Pre-tipping point, the costs of not innovating are marginal. Construction innovation could have delivered the project faster, at a controllable cost and to a higher quality standard. But most of the competition is trundling on as before.

Missing the Innovation Tipping Point can be Catastrophic

Post-tipping point, not embracing innovation can be catastrophic. The world is moving on rapidly around you and you’re either a helpless spectator or scrambling to catch up.

Adoption of innovation tends to follow a classic bell curve. Sometimes it’s just a question of reaching a critical mass of users that tips the scales. Sometimes tipping points are externally-fuelled. Accelerated adoption of video conferencing during lockdown would be a good example.

With construction innovation, both factors are relevant. The application of MMC is no longer seen as strange or risky – it’s become a mature option. Osborne was an early adopter – even creating our own offsite business over 15 years ago. We’ve seen first-hand how clients, developers and procurement teams have become steadily more familiar and comfortable with specifying new methods.

At the same time, there are powerful external drivers from rising fuel costs, net zero and long-term shortages of skilled labour. It seems like a classic tipping point. And history tells us what happens when organisations are slow to recognise when this is about to happen.

For more information about how Osborne is approaching the new age of construction contact Richard King ([email protected]).