What would happen if robots were to move heavy construction materials at construction sites? Samsung C&T and Hyundai E&C, which are competing for the top two spots in the domestic market, have collaborated for two years to create a 'material transportation robot.' If the robot is commercialized, it is expected to resolve a significant number of accidents on site, which have become a social issue. Although there will be initial investment expenses, it seems that the soaring labor costs will also be alleviated to some extent.
According to the construction industry on the 19th, Samsung C&T, ranked first in construction capability assessment (as of this year), and Hyundai E&C, ranked second, held a demonstration on the 3rd of last month to unveil the 'material transportation robot' they had jointly developed over two years. This robot can automatically recognize materials, map the surrounding environment, and move them to desired locations. The two construction companies expect it to be effective for moving high-weight materials that are repetitive but pose a high risk of accidents. In the future, they plan to develop additional technologies, including vertical transportation and complex route response.
However, the two construction companies did not disclose the production expenses or the timeline for the robot's introduction on site.
Recently, as safety issues at construction sites have come to the fore, there is a rising voice from certain sectors of the construction industry urging the practical use of material transportation robots. This is because a series of worker fatalities have occurred at construction sites managed by companies like POSCO E&C, Hyundai Engineering, and DL Construction, leading to significant repercussions such as executive turnover and work stoppages.
Korea's construction industry has a significantly high mortality rate compared to other countries. According to the Korea Construction Industry Institute, Korea's construction accident death rate per 10,000 workers was 1.59 in 2023, the highest among the top 10 OECD economies. This means that 1.6 out of every 10,000 construction workers die in accidents annually.
A site manager working at a construction site in Seoul noted, "The effectiveness in terms of safety will be determined by whether the robot collides with materials and surrounding personnel during transportation," adding, "If the robot's functionality is at a certain level or higher, it could reduce the possibilities of accidents and related work stoppages."
If the production of 'material transportation robots' becomes smoother, construction companies may respond more easily to labor costs. Worker wages in the construction industry have risen by about 20% over the past five years. According to the Statistics Korea's individual job wage standards, the wage for skilled carpenters, as of the first half of 2020, was 215,964 won, which has risen to 272,831 won in the first half of this year, an increase of 26.3% (56,867 won). The wage for rebar workers also increased from 219,392 won to 264,104 won, an increase of 20.4% (44,712 won) in the same period.
The rise in labor costs, coupled with the increase in raw material prices, has led to soaring construction expenses. According to the Korea Institute of Civil Engineering and Building Technology (KICT), the construction cost index as of June this year stands at 131.06, which represents an increase of more than 30% compared to the reference year of 2020 (100). This far exceeds the cumulative increase rate (about 15%) from 2015 to 2020.
Japan, which has already introduced robots to construction sites ahead of us, is seeing notable benefits. The Obayashi Construction Group in Japan developed a concrete automatic casting robot in 2023 and applied it to dam construction in Mie Prefecture. They are utilizing advanced technologies such as autonomous dump trucks, remote-controlled excavators, and drone surveying systems at construction sites. With the introduction of robots on site, they have managed night and weekend work without issues, and deploying robots in hazardous areas has reduced accidents.
Kim Min-hyung, a visiting professor at Chung-Ang University Graduate School of Construction, said, "Considering the decline in the youth population responsible for construction skilled labor, we should pay close attention to Japan's case," adding, "In the long term, the introduction of robots will become an inevitable choice to maintain productivity in the construction industry while ensuring work-life balance."
However, there are also indications that it is difficult to simply welcome the 'material transportation robot' when considering the proportion of the construction industry in Korea's overall employment market. The construction industry creates 10.8 jobs per 1 billion won of production, which is a higher employment-generating effect compared to the manufacturing industry average of 6.5 jobs. It is no exaggeration to say that the employment market in the construction industry has currently frozen due to the impact of high interest rates and high inflation. According to Statistics Korea, the number of employed in the construction industry in the first half of this year was 1,939,000, a decrease of 146,000 from a year ago, marking the largest decline since the first half of 1999 (-274,000). This drop is greater than during the COVID-19 and financial crisis periods.
A representative from a major construction company stated, "From a cost perspective, the expenses incurred in operating robots seem important," adding, "The key issue will be to what extent we can replace tasks that human labor and forklifts can perform."
A representative from Samsung C&T noted, "In an environment where the digital transformation of the construction industry is accelerating, the emergence of robots will lay the groundwork for future automation," stating, "We plan to gradually secure our own technological capability for the development and operation of data-driven robots."