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Building Smarter: How Prefab, AI and Intelligent Supply Chains Are Reshaping Construction

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21 November 2025

Building Smarter: How Prefab, AI and Intelligent Supply Chains Are Reshaping Construction

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A new PwC insight explores how the engineering and construction sector is being transformed by prefab and modularisation, AI, robotics, and data-driven supply chains – and why workforce reskilling and integrated delivery models are now critical to meeting booming demand for infrastructure and industrial projects.

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  • Transition Pathway Strategic Areas

    • Building block 3: Enabling framework

    • Building block 4: Research, Innovation, Technology

    • Building block 5: Funding

    • Building block 6: Towards a fair and safe built environment

    • Building block 1: Competitiveness

    • Building block 2: Skills and talent

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The article describes how the engineering and construction (E&C) industry is facing strong demand for new infrastructure, from data centres to renewable energy projects, while at the same time dealing with scarce skilled labour, volatile material costs and lengthy permitting processes. This mismatch is presented as a driver for rethinking how capital projects are delivered. 

Prefab and modular construction are highlighted as key responses, shifting work from open sites to factory environments to gain speed, safety and predictability, compress schedules and reduce rework. Examples include data centres, alternative energy projects such as small modular reactors and modular battery storage, and large capital projects supported by recent industrial policy, with modular solutions associated with faster delivery and greater certainty on cost, schedule and quality. 

The insight also points to four trends that reinforce this shift: the use of AI, robotics and automation to support planning and execution; smarter, data-driven supply chains; workforce transformation through reskilling; and an ongoing focus on sustainability. Together, these elements are described as shaping a more integrated and industrialised model for the future of construction.

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