Utilities Face Engineering Capacity Constraints as Capital Expenditure Investments Grow
Utility capital expenditure investments are increasing, but engineering headcount is not keeping pace, leading to throughput bottlenecks in transmission and distribution projects.
The utility industry is experiencing unprecedented growth in capital expenditure investments, with investor-owned utilities expected to spend at least $1.4 trillion on CapEx projects over the next five years. However, engineering headcount is not increasing at the same rate, resulting in significant bottlenecks in transmission and distribution projects.
## Disconnected Workflows and Bottlenecks Much of the constraint can be attributed to disconnected workflows, where Computer-Aided Design (CAD), Geographic Information Systems (GIS), and Bill of Materials (BOM) data are scattered across different systems rather than tied to a single source of truth. This leads to manual workarounds, errors, and costly rework, ultimately slowing down the entire process.
## The Need for Connected Workflows The solution lies in adopting a more connected way of working, where teams spend less time managing internal processes and more time advancing projects. This can be achieved by unifying CAD, GIS, and BOM data, automating and validating standards, and providing utilities with the throughput to grow capital programs without increasing headcount.
## Benefits of Automation Automation can help reduce cycle times, improve productivity, and increase efficiency. By connecting and automating steps in the traditional engineering process, utilities can free up engineering teams to focus on more complex issues. Additionally, automation can help build an audit trail, creating a record of exactly which standards were applied and validated, and providing a stronger foundation for rate cases and prudency reviews.
The benefits of automation are evident in the numbers, with utilities using connected, automated design workflows reporting: | Metric | Reported Reduction | | --- | --- | | Labor savings on design time | 75% to 80% | | Rework reductions | 60% to 75% | | Training program costs | up to 80% | | Construction costs | 5% or more, up to 17% |
For utilities facing a shrinking engineering workforce and a growing capital backlog, adopting connected, automated design workflows can be a transformational solution, enabling them to accelerate cycle times, reduce errors, and improve efficiency.
