This is a summary of the fourth episode of Fimpec’s “Kumppanit” podcast which discussed the possibilities of AI in construction site management. “Kumppanit” podcast is hosted by Maiju Hirvikallio, Fimpec’s Director of Communications & Marketing. The podcast is available for listening in Finnish on Spotify.

Artificial intelligence offers numerous possibilities for construction site management. It can contribute to improving safety, risk management, or streamlining operations, for example, by reducing unnecessary movements. These are just the few examples highlighted by Jukka Ala-Mutka, a pioneer in AI and a renowned thought leader, who oversees AI development as the Head of AI at Admicom Oyj.

“AI offers a vast array of applications in construction site management. One can approach it from the perspective of reducing the need for humans to remember and consider a multitude of things. Construction sites typically face coordination challenges where many elements need to align: the right workers must be in the right place at the right time, equipped with the correct tools and materials. If any of these elements are missing, problems arise, often cascading. AI can help with this,” Ala-Mutka emphasizes.

Alongside with Fimpec’s Engineering and Construction Manager Eelon Lappalainen and Director of Marketing and Communications Maiju Hirvikallio, Ala-Mutka provides practical examples of how AI can be utilized:

Image Utilization: AI can detect safety deficiencies in images that may go unnoticed by humans. It can interpret changes, determine the location of the image, and generate metadata. Similarly, AI can assist in creating work descriptions based solely on images and speech.

Speech-to-Text and Text-to-Speech: Reporting safety and other observations can be challenging on a construction site if it requires writing. AI could facilitate conveying observations by converting speech and refining it into a usable format. Technologies also exist to pinpoint the observer’s location and the project details. Conversely, the text-to-speech feature allows tasks like following instructions without needing to take out a phone, which can be impossible in certain situations.

Translation: On large construction sites, different languages are often spoken, and not everyone may have proficient English skills. AI enables the project manager, for example, to state instructions in their own language, which AI then translates for each team member.

Data Analysis and Presentation in Useful Formats: Construction sites are diverse environments with constant changes and countless details. This poses a challenge to human observational capacity, where AI can help anticipate and predict situations, whether related to job safety or schedule adherence.

AI is becoming ready for deployment on construction sites

Despite its significant potential, the utilization of AI in construction is still uncommon. According to Jukka Ala-Mutka, this is changing right now. Advances in AI, along with applications and tools introduced in the past year, make its implementation much easier.

“A couple of years ago, using AI in construction would have required a heavy and lengthy project involving collecting, cleaning, and teaching AI with data, lasting six months or even a year. That’s why it wasn’t pursued. Now, you don’t have to start from scratch; you have pre-trained models available ‘off the shelf.’ Their expertise can be complemented by teaching with your own data, or information can be retrieved from the necessary documents as needed. This significantly reduces the number of examples needed for training, allowing tools to be implemented in weeks rather than several months, as was the case before,” Ala-Mutka explains.

He believes that development will only accelerate in the future. Ala-Mutka estimates that more has happened in this field in the past year than in the previous 20 years, and he anticipates the introduction of new tools within the next 2–3 years that can be utilized in construction management.

Data collection as the bottleneck

The bottleneck in leveraging AI is no longer the AI itself but the collection of suitable data for teaching it. According to Ala-Mutka and Lappalainen, there is much work to be done in this regard.

“The complexity of construction poses a significant challenge, requiring a substantial amount of data to teach AI. Another issue is the poor quality of collected data from the AI’s perspective, or sometimes, no data is collected at all. Many things still rely on discussions or notebooks. Data needs to be collected in a form that AI can utilize. It’s crucial to be able to collect data more automatically, independent of humans or with minimal effort,” Ala-Mutka states.

“There is a vast amount of data generated in construction, and it is collected extensively, but an individual’s style plays a crucial role. This applies not only to notebooks but also to data entered into computers, each person inputting it in their way. Attention should certainly be paid to data collection to enable the utilization of AI,” Lappalainen adds.

» “Kumppanit” podcast page (in Finnish)

Raine Luomanen, appointed as the Lead Consultant for Fimpec’s hydrogen business in October 2023, brings extensive experience as a management consultant, with recent emphasis on P2X and hydrogen technology. He has been involved in strategic hydrogen technology projects for the EU, the Finnish government, and Gasgrid Finland. Luomanen expresses particular interest in Fimpec’s comprehensive projects, growth objectives, and staying at the forefront of new and relevant information. He emphasizes the Power-to-X services as a key factor in the company’s growth.

“I am very excited! Developing hydrogen business is more of a marathon than a sprint. I get to explore new directions with clients and utilize creative approaches. Creativity is definitely one of my super skills,” he says.

“I feel that at Fimpec, I can leverage my expertise and contribute to the sustainable development of the business, commercially as well,” Luomanen continues.

“Raine brings interdisciplinary expertise to our engineering-focused team. From our first meeting, his passion for the hydrogen and Power-to-X industry was evident. He actively educates himself, absorbs information on the subject, and networks at industry events. With his expertise, we ensure that we always have the latest information on new projects, stakeholders, legislation, and other industry-related matters,” mentions Jussi-Pekka Kuivala, Director of Energy Consulting at Fimpec Consulting.

Raine Luomanen holds a Master’s degree in Economics and Business Administration from Hanken and has completed hydrogen technology studies at Tampere University.

Fimpec’s new and experienced team leader, Dennis Karlsson, works as a technical project manager focused on industry. He arrived there very recently after two years at Afry. It was both the opportunity to be part of a new journey in a smaller organization with some new ideas that attracted coupled with a hefty dose of persuasion. As a Västerås resident, he has worked a lot with various railway projects, most recently sent out to help the Kiruna mine and its ore-transporting railway.

During a long working life with various construction projects, reflections and thoughts, he has created a number of winning concepts to make the project management workflow. Here, he shares his sometimes hard-earned seven ingredients in a successful project.

1. Without the right priorities right from the start, it’s easy to get lost

Many projects fail due to the ambiguity of the contracts that govern the project. The more uncertain or unclear areas and ambiguity of what is to be done, what is included and what is not, the more squeaks in the machinery and the risk of bad energy with all that this entails in the form of delays, poorer quality and general dissatisfaction.

“Communication is always needed here, with clients, subcontractors and employees. The sooner the better. Then we know right away if it is something we interpret in different ways and so we can pass that obstacle in a smooth way. It is important that we are clear and that we have the same view of what needs to be done and what priorities we need to make”, comments Dennis.

Everyone should know their responsibilities and know that they have to speak up immediately if something doesn’t work as intended.

“No euphemisms that can be misinterpreted. You always get that back. If there are problems, we will solve them as soon as possible with the customer.”

2. Team spirit overcomes many obstacles

The whole team should feel that they are involved in the project, and everyone should feel that they are pulling in the same direction. The project managers should regularly leave their desks and go to the place where it happens, be involved and take part in how things are going, if something is chafing or if unexpected problems have arisen. Because problems always pop up.

“When you are out on a construction site, you should have the appropriate clothing so that you can dig in if necessary. Don’t stand on the sidelines in ties and dress shoes, it just creates distance and doesn’t build the team. Because a well-functioning team always completes tasks faster and with higher quality.”

3. Work with what you do best

Sometimes it can be good if the tasks in the team change. It’s just like a football or hockey team where everyone needs to find the task they are best at. In some cases, someone may have little experience of a new task, but with support and trust, it can often be solved. This, of course, requires that the project manager has a presence at the workplace and sees, can help solve and support the group.

4. Project owners and management should take responsibility

The person who leads the project, together with the management, should take responsibility for what happens. No one likes people who shift the blame, least of all the clients. It ruins everything. If someone can’t handle their task, keep up or if something goes wrong, it’s because the project manager and management didn’t take this into account.

It should also be communicated to everyone involved as soon as possible. Everyone can accept that mistakes and problems occur as long as the management takes responsibility and starts to put things right.

5. Everyone needs to know the project model

Clarity with what is expected for everyone in the team until the different dates. Everyone in the project needs to understand what to do. It is extremely important that everyone is involved and pulling in the same direction. Constant contact and communication are the order of the day. So that there is a loyalty to the project.

“Then it also becomes important to have feedback from the group. Of course, in a team, you don’t want someone who constantly complains, but if it occurs, follow up on what is the basis for the whining so that everyone feels that they are being listened to and ask them to suggest changes. Everyone should feel responsible for the solutions, not just the problem formulations.”

6. Understand what’s important to the customer

It is the customer who pays the bills in the end, and it is the customer who must be satisfied. Everyone knows that. But a dialogue with the customer is also needed. So that the client and project manager also have a common understanding of what needs to be done.

“In fact, it happens quite often that you think that a customer is just looking to get a good price because there are a lot of price discussions. But my experience is that it’s often easy to go wrong here. A conversation with the client can often make it clear that quality is a much higher priority than first thought and that the assignment must be carried out in a special way. If something does not fit within the existing contract, it must be communicated as soon as it is discovered. Otherwise, it will be difficult later on. There are also few things that customers appreciate as much as proactive improvement suggestions. It shows responsibility for the project. And that is almost always appreciated.”

7. The goal is the right quality at the right time

In summary, it is important to arrive at the right quality at the right time. Pretty obvious but important to keep in mind.

“Anyone who has been around for a while knows that you always need to take into account the problems and the unexpected events that always occur. Should they not, it’s a pure bonus. I have had many hard-earned experiences that way. That’s why it’s important to have project managers who understand the technology and know where things can go wrong.”

Finally, Dennis wants to emphasize that in addition to the importance of fast and accurate information, it is good to shift the responsibility for the technology to the sub-project managers while the main project manager keeps track of the totality. But what builds the successful projects is a good team pulling in the same direction.

“That’s probably the most important thing I’ve learned in all these years.”

This is a summary of the third episode of Fimpec’s “Kumppanit” podcast which discussed the possibilities of hydrogen economy in Finland. “Kumppanit” podcast is hosted by Maiju Hirvikallio, Fimpec’s Director of Communications & Marketing. The podcast is available for listening in Finnish on Spotify.

“Hydrogen economy could bring tens of billions in investments to Finland and create even hundreds of thousands of jobs in the long run. It could become the new economic cornerstone of our country,” says Herkko Plit, who is an expert of the hydrogen economy and is currently building Finland’s first industrial-scale green hydrogen and synthetic methane production facility in Harjavalta, Finland through his company, P2X Solutions.

Currently, the hydrogen economy is primarily about potential, as investment decisions have not been made extensively in Finland, although there are many investment intentions. Plit, however, is convinced that the hydrogen economy is inevitably coming. Hydrogen’s strengths lie in its environmental friendliness and versatility, with applications ranging from industry to transportation and from fertilizers to food preparation.

“We do not yet have a green hydrogen market in Finland. It is still being created, along with the demand for green hydrogen products and value-added products that are essential to the hydrogen economy. It is crucial for everyone to understand that the hydrogen economy is important and necessary. Without the widespread adoption of hydrogen, we cannot achieve the requited goals to stop global warming. Through this, hydrogen will play a significant role. The hydrogen economy will emerge, and the only question is how long it will take to emerge on a larger scale.”

“I see that the hydrogen economy offers immense potential and that it is one of the significant ways to make our society more sustainable in Finland. Now, everyone needs to believe in this change and start working on it. That’s how we will make it succeed,” Plit states.

Desire for hydrogen economy is strong in both Finland and the EU

Plit is not alone in his view. The desire to promote the hydrogen economy exists at both EU and Finnish level. Kreetta Manninen, Head of Green Transition & Sustainability at Fimpec Consulting, reminds us that the EU’s goal is to have one-fifth of final energy consumption in hydrogen derivatives or hydrogen-related products by 2050, and even higher estimates have been put forward. Finland, on the other hand, has expressed its desire to produce over 10 percent of European hydrogen production, which is an important signal, according to Plit, and pushes forward fossil-free investments. He says that the interest is high among businesses as well.

“There are more than 80 companies in the hydrogen cluster, and Finnish companies have widely recognized that the hydrogen economy is a critical factor to be involved in. The cold fact is that there are very few investments at the moment. Now we are waiting for decisions to push the investment intention forward and turn it into an investment boom.”

Getting investments started with the right regulation

Plit emphasizes that this is a crucial time if we want to harness the potential of the hydrogen economy in Finland. To initiate investments and accelerate development, government measures and the right regulations are needed.

“Political decision-makers must ensure that there are conditions for market growth. There has been much discussion about how the state should support the hydrogen economy and how much support should be given to investments. In this respect, we are behind the rest of the world. In the United States, the Inflation Reduction Act allows support. On the other hand, the EU has responded by relaxing national support policies, leading to countries like Germany and France providing billions in support for their projects.”

Finland may not be able to do the same, but according to Plit, we can take actions that create demand. This means creating regulations that compel the use of hydrogen or synthetic fuels. For example, he mentions mechanisms like fuel distribution obligations or procurement support for hydrogen vehicles in transportation.

“In that regard, policymakers have a chance to prove themselves. We have four wild cards in Finland that support the hydrogen economy, namely cheap wind electricity in Europe, a lot of biobased carbon dioxide needed for making synthetic fuels, pure water, and a stable electricity grid.”

“If we don’t mess up this starting point, but get investments moving forward, we could have hydrogen production of six to ten gigawatts by 2030. That would mean investments of several tens of billions of euros and, if not exactly 100,000 jobs, then close to such a number. It would certainly play a significant role in turning around Finland’s debt and challenging economic situation. In a way, the hydrogen economy could be the new economic cornerstone in Finland.”

Plit also brings up one more thing that government should pay attention to, which is permitting processes that need to be done sensibly.

“The process needs to be more straightforward. Fortunately, the current government has taken a stance on this issue, aiming for one-stop permitting and speeding it up. This is a key factor. These things have come up concretely when pioneering the Harjavalta factory project.”

Now is the time to jump onboard with hydrogen economy

Plit believes that in the case of green hydrogen, supply will create demand, as long as the conditions are in place. Regulation plays a crucial role here because, initially, clean energy products for the green transition are more expensive than their fossil counterparts.

“In my view, it’s not about paying extra, but I see that companies that join the hydrogen economy now will be the winners of the future. Regulation will evolve in a way that limits the possibilities of using fossil products and even completely excludes them. This means that at some point, demand will surge to the point where it exceeds supply. Then, those who have entered this early business are the winners.

The desire to create a Finnish hydrogen market made Plit a hydrogen pioneer in Finland

Herkko Plit, who has held various positions at TVO, Fortum, the Ministry of Economic Affairs and Employment, the European Commission, and Baltic Connector Ltd., also reveals what motivated him to clear the way for the hydrogen economy in Finland.

“Pioneers are always needed. My background was that I wanted to create a Finnish hydrogen market. And there is no market if there is no production. We are solving that chicken-and-egg problem in our own way at P2X,” he says.

» “Kumppanit” podcast page (in Finnish)

The social acceptability of wind power investments is a crucial and current issue with multiple dimensions. While the general acceptance of wind power is high, it may face more local challenges, and occasionally wind power projects encounter opposition. Heidi Paalatie, the Operational Director of the Finnish Wind Power Association, emphasizes in that industry stakeholders continually need to work on local acceptance.

She reminds that local acceptance of wind power is vital and essential, given that municipalities have a monopoly on zoning. If a municipality decides not to zone wind power areas, there’s no way around it. She notes that obtaining social approval is a broader issue.

“Even if wind turbines are built, there can be issues later on if the project hasn’t started on the right foot and its impacts are felt throughout its lifecycle. I would say it’s crucial for wind power to be a good corporate citizen and for the project to be carried out from the very beginning in a way that makes us good neighbors,” Paalatie states.

She further emphasizes that obtaining social approval includes questioning, opposition, and criticism. She says that gaining social approval doesn’t necessarily mean that everyone agrees or that the project faces no opposition. Instead, it means making well-reasoned, thoughtful choices and decisions.

“The more general the discussion, the easier it is to justify projects with facts, such as combating climate change, creating jobs, and generating tax revenue. But as we get closer to someone’s personal mushroom-picking forest or summer cottage shoreline, the emotional aspect becomes more pronounced. This is understandable but also poses a challenge,” adds Panu Rahikka, the Managing Director of Fimpec Consulting.

Importance of Research and Interaction

In seeking social approval, Paalatie discusses two key aspects brought up in the podcast that the Finnish Wind Power Association continuously works on. The first is disseminating research-based information, and the second is providing support for interactions with local residents.

“Sharing information based on researched facts and explaining the findings is crucial. Misinformation often causes unfounded fears, and we believe that scientific knowledge is the solution to this. Equally important is how people are approached and how trust is built. It’s a personal level, as in the end, it’s about one person in the municipal office or at the landowner’s place explaining and negotiating about the project,” Paalatie says.

This raises interesting considerations regarding whether offering local people the opportunity to become shareholders in the wind power company would enhance acceptability, making the project even more of a community endeavor. Examples of such practices can be found in the Netherlands, Denmark, and Germany.

Paalatie welcomes such solutions but points out that in Finland, the benefits of wind power investments are already widespread in the local surroundings. Property owner compensations are paid to parties beyond just the landowner at the turbine site, and property taxes contribute to the broader community.

“Property taxes have increased the motivation of municipalities to engage in zoning. This way, the benefits from the wind power park also spread through the democratic processes of the municipality, which is a positive development,” she says.

The Wind Power Boom Continues

Over the last few years, new wind power capacity has been rapidly installed in Finland, and Paalatie and Rahikka foresee this trend continuing. Finland is an attractive global market for wind power, drawing investors due to its sparsely populated areas, long coastline offering opportunities, stable environment, and transparent regulation.

“Jukka Ruusunen, the retiring CEO of Fingrid, mentioned a few years ago that the new normal is 1,000 MW of new wind power capacity per year. We have even exceeded that at times recently, but I believe that at least this level of development will continue throughout this decade. While there has been a quiet period in terms of new investment decisions recently, there is a lot of development happening beneath the surface. Therefore, I believe that there will be continued construction,” Paalatie states.

“Now, we are taking a breather and searching for new demand in the final market. However, the trend is moving towards increased consumption. This is not solely about the much-discussed electrification of transportation but also about the electrification of energy production, industry, and the breakthrough of the hydrogen economy, which will increase the demand for electricity in the future,” Rahikka explains.

This is a summary of the second episode of Fimpec’s “Kumppanit” podcast which discussed the social acceptability of wind power investments in Finland. “Kumppanit” podcast is hosted by Maiju Hirvikallio, Fimpec’s Director of Communications & Marketing. The podcast is available for listening in Finnish on Spotify.

» “Kumppanit” podcast page (in Finnish)

Originally from the manufacturing industry and based on lean thinking, takt production is one of the growing trends in the construction industry that construction companies have increasingly started to utilize, especially in the interior finishing phase of building construction. However, in industrial construction projects, takt production is still a rarity.

Does takt production apply to industrial construction, and how should the production model be implemented? There is no obstacle to using takt production methods in industrial construction projects, according to the pioneer of takt production, Aleksi Heinonen from Vision and Eelon Lappalainen, the Engineering and Construction Manager of Fimpec. On the contrary, they state that it would offer many advantages, and there are already capabilities in place, as the planning and execution of shutdowns currently rely on very similar practices.

“In takt production, the idea is to plan in more detail and create smaller packages, aiming for standardization in their design and, through the standardization of work packages, to provide better situational awareness to all involved. It involves better planning and higher-frequency management and control. As a result, better quality can be achieved in a shorter time with the same or fewer resources, along with improved job satisfaction,” Heinonen explains.

“Few innovations in the construction industry have gained such strong momentum in the last 30 years. We have even tested it within our own team in an industrial project, and it can be considered a very promising production model. The major difference from the traditional model is that takt production involves the participation of personnel lower in the hierarchy who actually have knowledge of the production pace,” Lappalainen adds.

Why hasn’t takt production found its way into industrial construction?

According to Aleksi Heinonen, it’s primarily a marketing issue.

“The challenge in bringing takt production into industrial construction lies in aligning customer needs and benefits, operational authority, expertise, and concept development. In that sense, it’s more of a marketing problem than an operational development issue. It’s important to find an entity willing to invest some money in developing solutions,” he states.

“The particular feature of industrial investment projects is that they are often carried out by large, powerful players, with significant involvement from major equipment suppliers. Both typically have well-established operating procedures that are not easily changed. In my opinion, this is perhaps the biggest challenge in introducing takt production into industrial construction projects,” Lappalainen assesses.

He believes that the easiest approach might be to start with new industrial players who don’t have such entrenched ways of operating. Such entities can be found, for example, in the currently prevalent green transition projects, often backed by new players.

“It’s essential to build a concept early on that instils confidence in the idea that this approach can save the customer’s time and improve quality. When working with takt production, it’s advisable to get involved at a very early stage. I would say that the production system should be conceptualized even before selecting the main contractor,” Heinonen suggests.

Takt production in industrial construction was discussed in Fimpec’s “Kumppanit” podcast hosted by Maiju Hirvikallio, Fimpec’s Director of Communications & Marketing. The podcast is available for listening in Finnish on Spotify.

» “Kumppanit” podcast page (in Finnish)

Kreetta Manninen, who began her role as the Head of the Green Transition & Sustainability division at Fimpec Consulting on September 4, 2023, expresses her interest in Fimpec’s growth goals and strong focus on industry and the green transition in energy. She shares her eagerness to contribute to the growth of this business as part of the Fimpec Consulting team.

“I am very excited to get to know the people at Fimpec, collaborate with them, and take on the challenges our clients present to us, ultimately building a new consulting business,” she says.

“Manninen brings in-depth industry knowledge, an extensive network, and an innovative perspective on the challenges and opportunities presented by the green transition. I firmly believe that under her leadership, our Green Transition & Sustainability services will provide significant value to our clients towards a more sustainable future,” says Panu Rahikka, CEO of Fimpec Consulting.

Kreetta Manninen graduated as a Master of Science in Energy Technology from LUT University (Lappeenranta-Lahti University of Technology) in 2017, with a major in energy technology and a minor in renewable energy production. She also studied physics at the University of Jyväskylä.

For the past seven and a half years, Manninen has worked at Ramboll in various expert and managerial roles, primarily focused on smart energy services and business. She transitioned to Fimpec from her position as the Head of Smart Energy Energy Transition.

Fimpec Consulting is committed to promoting sustainable development and environmentally friendly solutions, offering executive consulting to its clients.

In the picture from left to right, there are Director Pekka Salomaa and CEO Jukka Nieminen from Fimpec, EU Commissioner Jutta Urpilainen, and Business Unit Director Jorma Paananen from Fimpec.

EU Commissioner Jutta Urpilainen listened attentively as CEO Jukka Nieminen, Director Pekka Salomaa, and Business Unit Director Jorma Paananen explained the 50-year history of Fimpec’s operations. Environmentally friendly methods of producing energy took center stage, as Fimpec’s expertise enables the realization of green investments in the industrial and energy sectors.

“On an international level, we enable the implementation of Finnish clean technology export projects and strengthen the knowledge base in the consulting sector by recruiting international professionals to work on Fimpec’s projects in Finland and around the world,” Nieminen said.

For Urpilainen, energy issues, challenges in developing countries, and working in an international environment are familiar topics. She is responsible for a total of 126 countries in Africa, Latin America, Asia, the Caribbean, and the Pacific Islands.

Urpilainen was particularly interested in the local experts that Fimpec has managed to involve in Latin American projects. Salomaa noted that Fimpec’s implementation model has proven its effectiveness not only in Finland but also in international projects.

“There have been challenges, of course, but well-distributed delivery and contracting packages have enabled the participation of local small and medium-sized enterprises in the projects,” Salomaa stated.

“The EU’s goal is to invest in education in developing countries. In many countries, the challenge is that young people lack vocational training after basic education. One possibility is to tailor vocational training in cooperation with companies to ensure that they have access to local skilled labor for their projects,” Urpilainen pondered.

“It’s great that Fimpec is exporting Finnish expertise.”

Urpilainen commends Fimpec for boldly entering industrial projects in Latin America.

“For a long time, companies from Central and Southern European countries have been building industrial infrastructure in South America. It’s great that Finnish expertise has been included. I believe that Fimpec can further strengthen its international position with its service concepts.”

Urpilainen sees significant potential for Finnish expertise in Africa. Currently, the continent has 1.2 billion inhabitants, and this number is expected to double by the 2050s.

“Africa requires expertise in various fields to improve living conditions. There is demand, for example, for companies working in the energy sector, waste management, and water purification technology. The EU’s goal in Africa is to support the development of societies on multiple levels, increasing local value creation. Of course, Europe has its own interest in Africa’s natural resources for a clean transition. Locally, this approach has generated interest.”

According to Urpilainen, the EU’s Global Gateway strategy aims to initiate €300 billion in global investments by 2027 to promote social development and advance the clean transition.

“Public funds are not sufficient for everything, which is why key EU entities leverage private investments with guarantees,” Urpilainen explained.