Globally, these sectors play a significant role in carbon emissions, contributing to approximately 39% of global carbon emissions
THE construction and manufacturing industries are at a crossroads globally and locally, as they grapple with the transformative forces of climate change, urbanisation and digitalisation. Globally, these sectors play a significant role in carbon emissions, contributing to approximately 39% of global carbon emissions.
This underscores the urgent imperative for a transition towards sustainable practices to counter environmental impacts. Furthermore, the escalating trend of urbanisation emphasises the critical need for smart infrastructure to accommodate the burgeoning urban populations worldwide.
In Malaysia, the GDP from construction in 2023 amounted to around RM56.66 billion, an increase from RM53.43 billion in the previous year, which showcases its economic importance and potential for growth.
With over 79% of the population residing in urban areas, the focus on sustainable urban development is paramount. This commitment not only tackles present environmental issues but also lays the groundwork for enduring economic resilience and social well-being within Malaysia’s changing landscape.
Industry Megatrends Shaping the Future
Climate Change
The impact of climate change on construction and manufacturing practices is undeniable, prompting a shift towards reducing greenhouse gas emissions and embracing sustainable methodologies.
In Malaysia, the construction sector saw significant transformations in 2023, marked by completed projects totalling RM54.71 billion between January and October.
The advent of green building materials, such as low-carbon concrete and recyclable components, is aiding this transition. Moreover, the integration of renewable energy sources like solar and wind power is now vital in manufacturing operations, reducing reliance on traditional fossil fuels.
This sustainability drive is critical, especially considering the 8.1% year-on-year growth experienced by the construction sector in the second quarter of 2023. This growth was propelled by substantial civil engineering projects and advancements in residential and commercial structures in key regions like Selangor and Johor.
Urbanisation
The rapid urbanisation trend drives the demand for intelligent infrastructure solutions, emphasising the importance of smart urban planning and the integration of cutting-edge technologies in creating sustainable cities.
This necessitates the adoption of modular construction methods and smart building systems to enhance operational efficiency and reduce waste, while also addressing the increasing need for affordable housing, sustainable transportation and reliable public utilities.
The construction industry responds to these demands through continuous innovation, offering advanced concrete admixtures and waterproofing solutions that bolster urban infrastructure’s durability, sustainability, cost-effectiveness and longevity in dynamic urban landscapes.
Digitalisation
The era of digitalisation, encapsulated by the rise of Industry 4.0, is reshaping production processes by enhancing precision through real-time data utilisation. Internet of Things devices are empowering predictive maintenance practices, slashing downtime and augmenting operational effectiveness.
The integration of digital technologies is streamlining supply chain management and optimising project execution, ushering in a new era of operational strategies within these industries.
Automation and digital solutions stand as prime examples of how digitalisation can boost production efficiency and quality control, aligning seamlessly with the core tenets of Industry 4.0 principles.
Challenges and Opportunities
Resource Scarcity and Sustainability
Resource scarcity is a critical challenge, driving the need for alternative materials and more efficient production methods.
Companies are exploring the use of recycled and sustainable materials, which not only conserve resources but also reduce environmental impact.
This trend fosters a culture of sustainability and innovation within the industry, exemplified by sustainable materials such as recyclable waterproofing membranes and low-emission adhesives.
Regulatory Changes
New regulatory standards aimed at environmental protection and worker safety are pushing companies to innovate and develop compliant solutions. While compliance can increase operational costs, it also drives innovation and enhances industry standards.
Companies that proactively address these regulatory changes strengthen their market positions and improve operational efficiencies.
Economic Uncertainty
Fluctuations in the global economy, changes in trade policies, and varying market demands pose significant challenges. Industries must adopt flexible strategies to mitigate these risks and ensure business continuity.
Despite these challenges, there are numerous opportunities for innovation and growth, particularly in developing sustainable products and technologies. Initiatives such as energy-efficient technologies like reflective roof coatings showcase how companies can navigate these economic uncertainties by enhancing building sustainability and reducing operational costs.
Practical Applications and Industry Impact
Sika Malaysia’s role in driving innovation and sustainability in the construction and manufacturing sectors is evident through its involvement in notable projects. For instance, in the Malaysia International Trade and Exhibition Centre project, Sika provided advanced concrete admixtures and waterproofing solutions to enhance durability and sustainability, supporting the urbanisation megatrend by developing efficient and resilient urban infrastructure.
Similarly, Sika’s specialised concrete repair systems and waterproofing products were crucial in the Ulu Jelai hydropower plant, addressing climate change and resource scarcity megatrends by promoting sustainable energy solutions through reliable construction materials.
The refurbishment of the Penang Bridge utilised Sika’s high-performance concrete repair systems and protective coatings, integrating modern repair technologies that enhance infrastructure efficiency and durability, in line with the digitalisation megatrend.
Embracing a Collaborative Future
The future of construction and manufacturing lies in the strategic integration of global megatrends, ensuring businesses remain resilient and competitive. By understanding and leveraging these megatrends, companies can improve operational efficiencies, strengthen market positions, and contribute to a more sustainable and prosperous future.
Stakeholders are encouraged to participate in dialogue and collaborative efforts to tackle global megatrends and propel the industry towards advancement. Cooperation within the sector can lead to enhanced sustainability, efficiency and resilience, enabling the industry to overcome challenges and seize opportunities.
Continuous innovation and adherence to industry standards set a positive example for future advancements, highlighting the significance of blending industry insights with practical solutions.
- Francisco Retondo is the GM of Sika Malaysia.
- This article first appeared in The Malaysian Reserve weekly print edition
