Industry 5.0: We are now entering the era where technology and human skill will collaborate, not compete

by | Nov 17, 2025

Digitalisation is no longer a future ambition, it’s the present force transforming Ireland’s construction sector.

Across every discipline, technology is helping us work smarter, deliver faster, and build better. It’s turning the dial on productivity, which is essential if we are to meet Ireland’s housing targets and close its infrastructure gap.

Just one year ago, the BIM Mandate on Public Works Contracts had been rolled out only on the design side. Since January this year, however, BIM has been implemented on the contractor side for projects over €100million.

And as of July, the mandate now applies to projects over €20million on the construction side and €10million on the design side. The widening of this net represents more than a regulatory shift, it’s a cultural one.

Each new threshold draws more of the industry into the digital ecosystem. But as adoption grows, so too does the need for resources and support, particularly for the SME sector.

Smaller firms are the backbone of our industry, yet they face unique challenges: limited staff, time pressures, and the complexity of compliance. The CIF continues to advocate strongly for this group, ensuring that digital transformation remains an opportunity, not an obstacle.

A new industrial age: Human and machine in collaboration

We are now entering the era of Industry 5.0, where technology and human skill no longer compete but collaborate. Artificial intelligence (AI) and automation are not replacing people, they are enhancing what people can do. From project planning to predictive maintenance, AI is becoming an everyday tool for problem-solving and productivity.

Of course, with these advances come new risks, especially around cybersecurity. As data becomes more central to how we design, build, and operate, protecting that information is critical. These are issues that must remain high on our collective agenda.

Offsite manufacturing: Quietly leading in Europe

Ireland is already a European leader in Modern Methods of Construction (MMC). Around 60 per cent of low-rise housing schemes are built using timberframe 2D panels, and another 10 per cent or more use light-gauge steel. In other words, roughly 70 per cent of Ireland’s scheme housing already employs panelised systems, a remarkable achievement that positions us well ahead of some of our European peers.

Our mechanical, electrical, and main contracting sectors have also built an international reputation through their work on data centres, pharmaceutical plants, and medtech facilities across Europe. These projects showcase Irish expertise in offsite and modular methods, proof that when it comes to digital construction and MMC, Irish companies are not followers but leaders.

However, a key challenge remains: the pipeline for 3D volumetric manufacturing.

This segment of the industry lacks the steady volume of projects it needs to achieve economies of scale. At present, most rely heavily on a single framework, the Department of Education’s Provision of MMC Pre- Manufactured Modular 3D Volumetric Educational Accommodation.

To sustain and grow Ireland’s offsite capability, we need dedicated frameworks for 3D manufacturing where it makes sense for the taxpayer. This is where government leadership can make a real difference, by enabling the long-term visibility and certainty that manufacturers need to invest, innovate, and scale.

Progress and purpose: The CIF digitalisation journey

When it comes to digitalising the industry, change is rarely immediate, it’s incremental. It takes not just new systems, but new mindsets.  Change is as much about hearts as it i about minds. Since last year’s conference, I’ve seen that change happening.

Within CIF’s Construction 4.0 Committee, we’ve experienced a renewed sense of purpose. This committee drives CIF’s digitalisation policy and develops resources for members.

I’ve been genuinely inspired by the energy, collaboration, and commitment of these individuals, especially from larger companies who want to lift the entire industry including but not limited to their own supply chains.

AI, certification and collaboration

Artificial Intelligence has gone from theory to trial. Last year, most companies were in the ‘discovery phase’, exploring what AI could do. This year, many have already implemented generative AI tools or are testing them.

By next year, we expect to see agentic AI, systems that can take proactive action, becoming part of our workflows. To support this transition, CIF will continue to expand resources through the Contracting Resource and Innovation Hub, helping members to navigate and adopt emerging technologies safely and effectively.

In offsite manufacturing, progress is equally tangible. Members of the Smart Offsite Association (SosA), a CIF constituent body, are now close to achieving an increased number of Agrément certification particularly for their 3D systems in conjunction with NSAI. This has been a complex journey, but the industry’s determination is paying off.

Embracing change together

Ireland’s construction industry has long been a pillar of our economy, culture, and community. Today, that same industry is embracing a new identity and for many this is one defined by technology, collaboration, and innovation.

CPAS

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