Technology and the Construction Industry:

1

• Technology and the Construction Industry
• Impacts on Efficiency, Communication and
  Processes
• Arol Wolford,
• President, CMD Group

2
Principles Addressed in the Construction
Information Industry
400 Billion
10, or 40 Billion is spent on educating
architects regarding product selection and
educating trade contractors to promote sales
opportunities
Trade Contractors
10, or 40 Billion is spent on Estimating and
Plan Dissemination
Building Product Manufacturers
80 Billion Industry Potential
3
Internet as a Magazine

• Internet is moving away from the magazine
  metaphor . . .
• - Articles/Editorial content
• - Photos
• - Not live
• - Not interactive

4
Internet as Television

• . . . Moving towards the television metaphor
• - Dynamic visuals
• - Streaming content
• - Interactive

5
Our Future

• Why Project Specific Websites dont work
  currently
• Real collaboration is not taking place
• Why it will work in the future
• Project Specific Websites Broadband Internet
• Visualization
• Interactivity
• Virtual job site
• 3-D Exchange of building product materials

6
Current Market Valuations
FY 1999 (in millions)
69.53

21,628
Total

5,100


3.8x
800


24.4x

Thomson
TMS
40.25


124.4


5,005


5,700


6.3x
500


71.7x
McGraw-Hill
MHP
64.8


194.9


12,630


4,000


2.9x
400


28.9x
Washington Post
WPO
601.00


9.461


5,686


2,200


2.2x
200


24.1x
Source MSN Investor
Share Prices as of 4/18/01
7
A New Economy Formula

• E m B b
• E E-business market data exchange
• including transactions
• m mobility number of units that have
• market data and transaction capability
• B Broadband 1.5 megabytes/second
• b business efficiency software

8
Broadband

• Shift will be enabled by broadband
• 28k 33k 56k T1 !!
• Dynamic - Faster download speed of more content
• Interactive - Faster two-way transfer of data

9
3-D Visualization

• Breakthrough in 3-D Visualization Technology
• Boeing 777 Twinjet
• Virtually designed
• Virtually built
• Virtually tested

10
New Design Paradigm

• New paradigm for the Design Industry
• Virtual Design/Build/Test
• Enabled by unlimited computing power
• Benefits
• Cost effective
• Parametric costing
• Architect and owner involved

11
3-D Design Today

• Today, more money is spent in the visual game
  industry than in the entire movie industry

12
Virtual Environments

• Moving from Service Economy to an Experiential
  Economy
• Virtual environments
• Re-creation of ancient
• Rome, Jerusalem
• Importance of experience

13
New Economy Applications

• Virtual environments will open new worlds to the
  masses
• Education
• Travel
• Gaming
• Work
• Design

14
New Design

• By 2005, more than 25 of architectural design
  dollars will be spent on virtual buildings