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3 Reasons Construction Companies Need to Digitally Transform Now

3 Reasons Construction Companies Need to Digitally Transform Now

FORConstructionPROS explains how 3 Reasons Construction Companies Need to Digitally Transform Now.

As the pandemic continues to change the way businesses run, construction companies have begun to realize the importance of going digital. It is by Tom Stemm of Ryvit.

The need for digitization in construction has been made clear by the pandemic and by other industries that have successfully overcome their operational challenges through the introduction of digital products and services.

Digital transformation has been a key area of investment for businesses over the past decade and is expected to only continue. Even with the pandemic wreaking havoc on business spending worldwide, overall digital transformation spending was still forecasted to increase by 10% in 2020.

The construction industry has lagged behind other industries in this respect, being notoriously reliant on outdated technology and operating in deeply entrenched business silos. Despite this, there is still progress. The pandemic forced companies to innovate, and construction businesses that introduced safety and communication technologies are highly likely to keep them once the pandemic is over. It’s clear technology will continue to play a major role in transforming safety, communications and operations. 

Covid 19 Changes Here To Stay ProcoreProcore

How the Pandemic Increased the Need for Efficiency

Prior to COVID-19, construction companies were experiencing high demand and increasing revenues, despite their slow adoption of new technologies and a lack of digital maturity. Once the pandemic hit, this changed rapidly. The construction industry lost a total of $60.9 billion in GDP in the U.S. alone, with an estimated reduction to 6.5 million jobs, down from 7.64 million since February 2020. 

Furthermore, inefficient on-site workflows that relied on paper trails and outdated communication methods became even more difficult to work with once social distancing measures were implemented. As a result, businesses have been forced to look for digital solutions that can unlock new operational efficiencies and enable service delivery with reduced manpower. 

Why are Construction Companies Struggling to Innovate?

The need for digitization in construction has been made clear by the pandemic and by other industries that have successfully overcome their operational challenges through the introduction of digital products and services. Construction companies, however, often work on projects with extremely different requirements. The processes and systems that are in place for one project have to be coordinated with a variety of contractors, subcontractors, suppliers, and business divisions. These projects are often one-offs and are rarely replicated. Consequently, business leaders who might be enthusiastic about digital transformation might be unsure how to go about achieving it. 

3 Reasons Construction Companies Need to Digitally Transform Now

The gap between field and office workers is growing 

Construction operations have always been broken down into individually operating business divisions, and slower collaboration between divisions has caused a significant increase in lead time. The enforced necessity of remote work has only made communication between teams a greater challenge. 

Between offices, remote workers, contractors and suppliers, any on-site observations made regarding material quality, for instance, have to go through several communication channels before new materials can be procured. This communication chain can cause great confusion, delay delivery time and create animosity between contractors and employees. 

The introduction of a unified communication channel allows construction teams to increase collaboration, aligning the different stakeholders on the requirements and schedules of each project. A digital solution also allows communication to occur in real time. Many on-site employees still use physical paper forms to take notes while inspecting the site and communicating the information on the form can take time. An integrated communications platform keeps everyone up to date and reduces the time it takes for key information to cross business divisions.

Productivity and effectiveness are key to delivering results

Construction businesses tend to be entrenched in outdated processes that limit productivity. McKinsey reported that productivity growth in the construction industry has increased a mere 1% a year over the last 20 years. This lags behind counterparts in other industries, who are increasing productivity at almost three times the rate. This inefficiency is estimated to cost the global economy $1.6 trillion a year. 

Construction Productivity Costs Mckinley

With the demand for construction services increasing rapidly and the construction workforce aging to a large extent, efficiency and improved productivity can be the difference between an overwhelmed workforce and a satisfied clientele. McKinsey found that firms that introduced digital systems for procurement, supply-chain management, better on-site operations and increased automation had improved productivity 50% over firms that relied on analog solutions. 

Through the use of technologies such as AI, IoT and VR, construction businesses can modernize each stage of their operations from planning to execution. This reduces the amount of time spent revising designs, seeking approvals and calculating the resources needed for any changes in the project. 

There is an increased focus on health and safety

The pandemic has caused many people to pay more attention to health and safety standards in all types of workplaces. For construction businesses, this focus on safety and health is not new. Despite its efforts, according to the U.S. Bureau of Labor Statistics, the construction industry has one of the highest fatality rates, with 9.5 fatalities per 100,000 full-time equivalent workers. Construction companies are under pressure to minimize construction accidents by improving on-site safety and protection guidelines, and provide improved support to workers who need it. 

The introduction of technologies such as exoskeletons, AR glasses and wearable monitoring devices has made achieving higher safety standards possible. When technology works in tandem with production, it can increase on-site safety standards by reducing human error and improving response in case of an adverse event. When this technology is integrated, business leaders also have a holistic view of their operation and can identify potential safety problems early. 

Businesses and industries that transformed themselves early have displayed the benefits of adopting modern applications and systems. Technology has made improving safety standards, appealing to a new generation of workers and increasing operational efficiency, more achievable than ever before. Construction companies must transform and now is the time. 

Reducing building operating emissions at scale with data analytics

Reducing building operating emissions at scale with data analytics

GreenBiz came up with these six tips for deploying data-driven energy management to drive meaningful emission reductions through reducing building operating emissions at scale with data analytics. So here is a much down to earth way to a certain decarbonisation strategy.

Reducing building operating emissions at scale with data analytics

By David Solsky

February 25, 2021

This article is sponsored by Envizi.

After a low-carbon target has been setGHG accounting baselines have been calculated and financial-grade GHG reporting has been established, the next chapter of decarbonization comes to the fore. What emission reduction strategies will be needed to reach your company’s target, and how should your team prioritize its efforts to plot the fastest, most cost-effective pathway for your business? 

Nearly 40 percent of global CO2 emissions come from the built environment — with 28 percent resulting from buildings in operation. Whether your organization owns, operates or occupies a building, data-driven energy management is key to reducing its GHG footprint and Scope 1 and 2 emissions.  

In the past, organizations have struggled to scale building operational energy improvement efforts for a variety of reasons. The most-cited reasons include organizational structures that fracture ownership of energy performance across disparate stakeholders, a lack of goal alignment and collaboration between landlords and occupiers, and the preponderance of legacy systems that make interoperability and data consolidation challenging.  

According to United Nations projections, carbon emissions from buildings are expected to double by 2050 if action at scale doesn’t occur. With more companies pledging to decarbonize their business, and investors increasingly scrutinizing ESG data, scalable energy management will be a critical step in the transition to a low-carbon economy.  

Today, we share six tips for deploying data-driven energy management at scale to drive meaningful emission reductions from your business. 

Reducing building operating emissions at scale with data analytics
Portfolio energy management software. Source: Envizi.

Collect meter-level energy consumption data where possible  

Identifying GHG reduction opportunities should be a data-driven, systematic process. Start by examining building-level energy meter profiles and understanding how usage patterns relate to changing occupancy and weather conditions. Meters, which typically generate one datapoint every 15 to 30 minutes, as opposed to one datapoint every month or quarter on a utility bill, provide rich data to better inform your organization’s decarbonization strategy. 

Tip: Leverage meter data, which provides real-time transparency of when and where energy is being used, to identify unexpected usage patterns and unlock higher-resolution benchmarking and analysis opportunities.  

Benchmark the energy intensity of your building portfolio 

Building-level energy management is powerful, but it never pays to operate in a vacuum. Understanding how a building performs compared to others provides context and can help your organization identify where to focus first. The approach to benchmarking depends on the type of buildings in your portfolio. 

For example, typical portfolios of small to medium buildings (buildings of 4,000 to 20,000 square feet or so) often include many buildings dispersed across a geography (such as convenience stores, bank branches and fast-food stores), while large shopping centers, hospitals and universities manage larger, but fewer, centralized complex buildings. 

Portfolios with larger commercial buildings can leverage third-party frameworks, such as Leadership in Energy and Environmental Design, Energy Star and NABERS, which compare energy intensity against an industry benchmark.

For portfolios of small to medium buildings that are dispersed, external benchmarks are harder to find. In this case, Envizi recommends internal benchmarking using meter data to make meaningful performance comparisons. Advanced normalization techniques can be applied to identify the poorest performers in the portfolio, which helps to inform a highly targeted strategy for improving efficiency and reducing emissions.  

Tip: Undertake energy benchmarking before making investment decisions — don’t make the mistake of focusing on areas where there are no material savings. Envizi’s software can combine meter data with other contextual data (floor area, weather, operating schedules, and production units) to enable performance comparisons on a normalized basis. 

Tune operational and behavioral efficiency 

Buildings can be complex, but not as complex as building operations: the interaction between a building, its operators and occupants, and flow-on effects to energy performance. 

Building services such as heating, ventilation and air conditioning (HVAC), which often account for almost 30 percent of annual emissions, are subject to continuous change and are often responsible for considerable “energy drift” over time due to poor operational practices. For this reason, technology that proactively informs and educates building operators is necessary to support time-poor operations teams to maintain optimum performance. 

Tip: Systems go out of tune when people manipulate equipment for comfort, which typically worsens over time. Sophisticated technology continuously automates and monitors the HVAC performance to flag human adjustment that renders systems wasteful and inefficient. 

Often, manual audits will not detect the inefficiencies, but Envizi’s software uses a combination of continuous equipment monitoring, building management systems data, equipment nameplate data, weather data and other metrics to provide transparency to HVAC system performance and uncover operational issues that are otherwise difficult to detect.  

Consider plant and equipment upgrades 

Investing in equipment to deliver emissions reductions is dependent on an organization’s scale, scope and asset type and may be relevant only to building owners. 

The appetite for plant and equipment upgrades may depend on how long the asset owner intends to hold the asset, the age of the building and the age of the equipment. Envizi recommends that building owners and operators engage their engineering consultants and specialist contractors to determine the feasibility of plant and equipment upgrades. 

Tip: Technology can assist in the pre- and post-analysis of reduction projects to measure effectiveness and return on investment (ROI). Envizi’s software uses the International Performance Measurement and Verification Protocol to ensure calculations will withstand audit and validation. 

Consider on-site and off-site renewables 

After implementing solutions for operational, behavioral and system efficiencies, many organizations seek renewable energy as a proactive solution to get ahead on the decarbonization journey. Decisions on whether to procure on-site or off-site renewables are complex, and Envizi recommends coordinating with your organization’s engineering consultant or specialist contractor to assess its options. 

Tip: Software platforms such as the one offered by Envizi can assist with monitoring the performance of solar assets, comparing the actual performance to promised performance and integrating the accounting of the renewable energy certificates to facilitate the most traceable reporting and auditing process.  

Engage stakeholders

Energy management is rarely the remit of one team, but rather involves multiple stakeholders across an organization. The success of any emissions-reduction effort will be affected by the organization’s ability to effectively engage a cross-collaborative stakeholder group.   

Typically, organizations with a strong culture of governance and executive ownership of the energy agenda can make the most impactful positive change. Often, inspirational leaders can make the difference with robust internal communication, empowerment through clear roles and responsibilities, and incentives for employees to take ownership of the energy reduction goals.  

Tip: Find a senior executive-level champion to shepherd the decarbonization journey while supporting the pursuit of their business goals, whether ROI, risk mitigation or otherwise. Leverage a single system of record to track emissions and energy management opportunities to better enable cross-functional collaboration between stakeholder groups.  

Conclusion

The transition to a low-carbon economy will require organizations to drastically increase the energy efficiency of buildings in operation. The following data-driven tactics can help your organization identify and achieve meaningful emission reductions: 

  • Collect meter data where possible to understand granular energy consumption.
  • Benchmark the energy performance of the buildings by size/cohort in your organization’s portfolio to identify poor performers. 
  • Use technology to monitor how HVAC systems are configured, to detect energy waste and optimization opportunities. 
  • Before implementing equipment retrofits, solar photovoltaics or energy projects, engage a specialist to understand your organization’s options, and use data to establish a baseline against which to measure improvements.
  • Nominate a senior executive to champion your organization’s emissions-reduction program. A single system of record for emissions and energy can help enable cross-functional collaboration. 

If you’d like to learn more about using data and technology to streamline and accelerate decarbonization, read “Pathway to Low-Carbon Guide.”

New Frontiers in Data Center Sustainability

New Frontiers in Data Center Sustainability

Rich Miller writes in DATACENTERFrontier that Beyond Green Power: New Frontiers in Data Center Sustainability can easily be envisioned as these are increasingly populating planet earth.

Above picture is of Large pipes sporting Google’s logo colors move water throughout the cooling plant at the Google’ data center in Douglas County, Georgia. (Photo: Google)

February 3, 2021

New Frontiers in Data Center Sustainability
Get the full report.

Sustainable Construction Strategies

More data center projects will integrate sustainability into design and construction, with early collaboration between teams to minimize the environmental impact of the construction process and create a building with low operational carbon impact, enabling more effective and cost-efficient offset strategies. Design collaboration is essential in seeking to integrate cleaner technologies into the power chain and cooling systems.

Several data center providers are working with CarbonCure, which makes a low-carbon “greener” concrete material for the tile-up walls that frame data centers. Concrete’s durability and strength are ideal for industrial construction, but the production of cement requires the use of massive kilns, which require large amounts of energy, and the actual chemical process emits staggeringly high levels of CO2. CarbonCure takes CO2 produced by large emitters like refineries and chemically mineralizes it during the concrete manufacturing process to make greener and stronger concrete. The process reduces the volume of cement required in the mixing of concrete, while also permanently removing CO2 from the atmosphere.

Waste Stream Accountability and the ‘Circular Economy’

A key priority is tracking the environmental impact of construction components, including a “reverse logistics” process to track the waste stream and disposition of debris. Asset recovery and recycling specialists will become key partners, and the most successful projects will communicate goals and best practices across the contractors and trades participating in each project. The goal is a “circular economy” that reuses and repurposes materials.

Managing packaging for equipment that is shipped to a data center facility is an important and often underlooked facet of waste stream accountability. There are also opportunities in reuse of components and equipment that that can still be productive (although this must be closely managed in a mission-critical environment).

The ability to document a net-zero waste stream impact has the potential to emerge as an additional metric for data center service providers, as customers consider the entirety of their supplier’s sustainability programs.

Green Certifications

As customers ask tougher questions about a providers’ environmental practices and corporate social responsibility policies, certifications may emerge as another avenue for service providers to differentiate themselves.

Several ISO certifications, including ISO 50001 and ISO 14001, which Iron Mountain is certified for across its global data center portfolio, focus on energy management and provide frameworks that can assure stakeholders that the provider is considering energy impact and environmental goals in audits, communications, labeling and equipment life cycle analysis.

Water Conservation and Management

Amid changing weather patterns, many areas of the world are facing drought conditions and water is becoming a scarcer and more valuable resource. Data center operators are stepping up their efforts to reduce their reliance on potable water supplies.

Sustainable water strategies include both sourcing and design. On the sourcing front, several Google facilities include water treatment plants that allow it to cool its servers using local bodies of water or waste water from municipal water systems. Data center districts in Ashburn (Va.), Quincy (Washington) and San Antonio offer “grey water” feeds that provide recycled waste water to industrial customers.

On the design front, more providers are choosing cooling systems with minimal need for water, while others are incorporating rainwater recovery strategies that capture rain from huge roofs or parking lots and store it on site, reducing potential burden on local water systems.

Matching Workloads to Renewable Energy

Google has been a leader in the use of artificial intelligence and sophisticated energy provisioning to match its operations to carbon-free energy sources. The company recently said it will power its entire global information empire entirely with carbon-free energy by 2030, matching every hour of its data center operations to carbon-free energy sources. This marks an ambitious step forward in using technology to create exceptional sustainability.

Google can currently account for all its operations with energy purchases. But the intermittent nature of renewable energy creates challenges in matching green power to IT operations around the clock. Solar power is only available during daylight hours. Wind energy can be used at night, but not when the wind dies down. Google created a “carbon-intelligent computing platform” that optimizes for green energy by rescheduling workloads that are not time-sensitive, matching workloads to solar power during the day, and wind energy in the evening, for example. The company also hopes to move workloads between data centers to boost its use of renewables, a strategy that offers even greater potential gains by shifting data center capacity to locations where green energy is more plentiful, routing around utilities that are slow to adopt renewables.

Google has pledged to share its advances with the broader data center industry, providing others with the tools to reduce carbon impact. Continued instrumentation of older data centers is a key step in this direction.

Eliminating Diesel Generators

New Frontiers in Data Center Sustainability
A backup generator at a Microsoft data center in Virginia. (Photo: Rich Miller)

Microsoft recently announced plans to eliminate its reliance on diesel fuel by the year 2030, which has major implications for the company’s data centers, many of which use diesel-powered generators for emergency backup power. With its new deadline, Microsoft sets in motion a push to either replace its generators with cleaner technologies, or perhaps eliminate them altogether by managing resiliency through software.

Eliminating expensive generators and UPS systems has been a goal for some hyperscale providers. Facebook chose Lulea, Sweden for a data center because the robust local power grid allowed it to operate with fewer generators. In the U.S., providers have experimented with “data stations” that operate with no generators on highly-reliable locations on the power grid.

There are four primary options companies have pursued as alternatives to generators — fuel cells, lithium-ion batteries, shifting capacity to smaller edge data centers that can more easily run on batteries, and shifting to cloud-based resiliency.

Fuel Cells and On-Site Power

Microsoft has successfully tested the use of hydrogen fuel cells to power its data center servers. The company called the test “a worldwide first that could jump-start a long-forecast clean energy economy built around the most abundant element in the universe.”

Microsoft said it recently ran a row of 10 racks of Microsoft Azure cloud servers for 48 hours using a 250-kilowatt hydrogen-powered fuel cell system at a facility near Salt Lake City, Utah. Since most data center power outages last less than 48 hours, the test offered a strong case that fuel cells could be used in place of diesel generators to keep a data center operating through a utility outage.

Some companies, like Equinix and eBay, have deployed Bloom Energy fuel cells to improve reliability and cut energy costs, but have powered them with natural gas. The use of biofuels looms as another potential avenue to pair fuel cells with renewable sourcing.

Energy Storage

New Frontiers in Data Center Sustainability
An illustration of the Tesla Megapack, which provides 3 megawatts of energy storage capacity. (Image: Tesla)

Utility-scale energy storage has long been the missing link in the data center industry’s effort to power the cloud with renewable energy. Energy storage could overcome the intermittent generation patterns of leading renewable sources. Solar panels only generate power when the sun is shining, and wind turbines are idle in calm weather. Energy storage could address that gap, allowing renewable power to be stored for use overnight and on windless days.

A new project in Nevada will showcase a potential solution from Tesla, the electric car company led by tech visionary Elon Musk. Data center technology company Switch will use new large-scale energy storage technology from Tesla to boost its use of solar energy for its massive data center campuses in Las Vegas and Reno. It is a promising project in pioneering a holistic integration of renewable power, energy storage and Internet-scale data centers.

Talking Sustainability With Experts

Don’t miss the last installment of this series that features a conversation on the future of sustainable data centers. Data Center Frontier Editor Rich Miller discusses the topic with Kevin Hagen, Director, Corporate Responsibility at Iron Mountain, and Alex Sharp, Global Head of Design & Construction — Data Centers at Iron Mountain.

It’s a preview of the upcoming webinar  where these experts will discuss sustainability strategies for greener data centers.

And catch up on the first entry here, followed by an exploration of the power of the “negawatt.” 

Download the full report, Green Data Centers and The Sustainability Imperative, courtesy of Iron Mountain, to explore how climate change and a greening of data centers is changing the industry.

Digital Transformation And Its Implications On Brands And Consumers

Digital Transformation And Its Implications On Brands And Consumers

It is confirmed here in The Brand Berries.com OPINIONS that Digital Transformation and its Implications on Brands and Consumers in The Middle East by Imad Sarrouf, Head of Publishers at DMS ( Member of the Choueiri Group) is as valid a statement as can be these days.

12 November 2020 

Digital Transformation And Its Implications On Brands And Consumers

The Middle East is showing the promise to scale to unprecedented levels apropos of its digital transformation market is no news. In 2016, along with Africa, this market was valued at USD 1,1 Billion and was estimated to achieve an implausible growth by 2024.

Major powers in the Middle East including UAE, Bahrain, and Saudi Arabia have shown impressive strides towards the goal, with their Governments setting precedents by integrating digital transformation in the public sector. The growth that these regions have achieved in terms of tech-savvy infrastructure has made some of the most powerful heads turn in the Gulf direction. 

Clearly, the private sector and the public in themselves have taken the cue and are leaving no stone unturned in embracing the digital revolution. As more and more middle eastern companies pave the way for digital, such transformation is going to shape up the future of brands and consumers in this region.

The State Of Digitization Of Brands and Companies In The Middle East

At large, a territory’s adoption and adaptation to the digital era are measured with reference to the population’s access to smartphones, engagement with social media platforms, and availability of high-end digital technologies. While the Middle East has been making headlines for rising up these ladders, the scope of the implementation of digital transformation goes far beyond just that.

The digital transformation market in the middle east is basically divided into 2 regions; the GCC countries and other Arab countries. According to a survey report by Strategy And, hardly about 7.5% of the brands and companies in the GCC region understand the potential of digital transformation as a means to realize efficiencies. 

Considering that building a digital strategy for future upscaling is the fundamental step for a company towards transformation, only about 37% of the major brands in the Middle East had teams working on one. The major employable channels across a vast range of sectors for brands include big data and analytics, IoT, Cloud Computing, Cyber physics, and technologies of similar likes. Popular frontrunners leading the race of transformation include Microsoft, Google Inc, SAP, Protiviti, Ixtel, Oracle among others.

Gulf Brands Go Smart: How The Middle East Is Accelerating The Digital Revolution

Closer technical analysis of the major Gulf countries like Saudi Arabia and UAE shows that digital initiatives have taken the front seat among leading brand growth agendas. These agendas have been presenting, and are expected to continuingly present themselves under three major brackets;

Adoption Of Smarter Projects And Initiatives

These comprise the entire smart market — right from smart homes, smart healthcare, smart hospitality, and tourism, to smart transportation, entertainment, business, and shopping. Some of the most successful digital initiatives include health monitoring wristwatches, virtual assistants as tour guides, IoT based interconnected home system, among others. While the scope of AR, VR, and advanced AI is still being explored and systematically implemented, work in progress projects in this area include AR/ VR enabled cars in the mobility segment, and some medical testing procedures in the healthcare sector.

Implementation Of Smarter Payment Gateways 

The world is always in the need of a better and safer way to pay, and we have all been a witness to this when people furiously shifted to digital mode of payments as soon as they were introduced. With cryptocurrency in the picture, the only challenge is the lack of exposure and education in this area. However, several middle eastern companies are coming forward to give this option to consumers. In fact, in 2017, Dubai’s residential real estate project, Aston Plaza was the first in the world to allow full payment in the form of bitcoins. 

Customization Of Production and Operational Convenience

The way the manufacturing sector has been catching up with digital opportunities is magnanimous. The drastic shift from mass production to customized production is one of the most obvious demonstrations of the same that runs alongside the heavy reliance on light mobile apps. These apps ensure higher accuracy, operational convenience, and shipment tracking; some of the features that have become manufacturing prerequisites in an ideal digital world.

For companies that can afford a drastic change, the digital initiatives in this sector also include transforming the entire ecosystem to be more optimized, increasingly sustainable, and minimally invasive. 

In a capsule, the digital transformation scene in the companies of the Middle East is seen tracing three major models — digital business model, digital consumer model, and the digital operations model — of which the consumer model is observed to be spearheading the growth. Let’s now understand how this consumer model is being implemented despite regional limitations including the slowdowns due to the recent pandemic instituted lockdowns.

Digital Transformation Driving Middle Eastern Consumer Experience

Middle eastern companies’ digital strategies are highly driven by keeping consumer experience enhancement at the forefront. This includes micro-target marketing to improve customer engagement and channelizing customer feedback. 

Some of the most dynamic and successful initiatives include:

O2O Commerce

Online to Offline Commerce is replacing traditional retail shopping hard and fast. Retail stores are being improvised to act as mere distribution centers while more and more investments are being concentrated towards online initiatives. The lucrative combination of browsing through hundreds of options on the screen, without having to move an inch, getting discount codes and coupons by shopping online, yet getting the look and feel of shopping by personally trying and collecting as per convenience has proved to be an instant hit in this region.

Chatbots and virtual assistants

This technology has proved to be such a huge success that it has become fairly common to find chatbots on every other website or app we use. What companies in the middle east are also empowering are pharma, healthcare, and hospitality sectors through this technology. You can know the right medicine to take for mild symptoms and problems, you can schedule and monitor your family’s health checkups and reports, and coordinate your entire stay with an expert assistant. These applications have particularly received widespread recognition because of its social-distancing friendly nature. 

Middle Eastern Challenges To A Rapid Digital Adaptation

For any company, digital transformation is a major shift, that more than anything else will require capital and man-power investment. The most natural challenges that companies in the middle east are facing is the broad skill gap in the existing organizations, change in operating model to an agile one, and starting off on the right footing to make the transformation a profitable success. 

Keeping skill-building, awareness, and education at the core, however, can be a unanimous way out of the hindrances posed by these challenges. As companies find access to greater resources; human and otherwise; proficient in the field, brands will gain more confidence to take the digital leap of faith.

Read more in:


Imad Sarrouf (in feature picture above) is a digital expert with over 15 years of experience in the digital media industry working across a large portfolio of publishers and ad technology platforms in the middle east. In his position, he leads digital innovation and transformation – responsible for the ad tech solutions business and process automation to drive business growth.

E-Waste in the MENA region

E-Waste in the MENA region

UNEarthmag with Assia Tej’s article on E-Waste in the Middle East and North Africa can be summarised as being relevant to all parts of the region. In effect, E-Waste in the MENA region with disparities between parts of it regardless of socio-economic strata could limit perhaps expectancies of theories based on Western countries cannot be copied to the MENA despite that countries are aligning to EU values. Not all values though as per Assia Tej.

While E-Waste has the potential to become a profitable enterprise, it remains under-utilized and marginalized in the Middle East and North Africa.

E-Waste in the MENA region
Image by Wamda

We buy them, use them, break or replace them, and finally throw them away. This is the cycle of electronic devices, the revolutionary gadgets that made our life easier and the recycling process harder. It is an undeniable fact that nowadays the waste from electronic devices, known as “e-waste,” has reached unparalleled levels and presents increasing new obstacles to recycling. 

We buy them, use them, break or replace them, and finally throw them away. This is the cycle of electronic devices, the revolutionary gadgets that made our life easier and the recycling process harder.

Statistically, only 15 to 20 percent of e-waste ends up being recycled globally. In the Middle East & North Africa (MENA) region, this is significantly lower, approaching only 5 percent. The rest of the waste is dumped into landfills or thrown in scrap yards and warehouses. 

The global situation is overtly alarming, and the lack of information or media attention on the subject is only exacerbating the matter. The problem is exceedingly apparent when it comes to sorting. Despite the fact that E-waste is just as environmentally devastating and pollutive as plastic, it is not included in primary recycling systems. As many countries in the MENA region have no centrally established waste-sorting systems, any hope for short-term improvement in their dealing with e-waste seems futile. 

“E-waste management in the Arab region is in its startinE phase,” says the Centre of Environment and Development for the Arab region and Europe, a Cairo-based NGO. 

In countries where recycling is not yet a habit and where environmental concerns are far behind, the question remains as to how this new type of pollution will be handled by governments?

E-waste as a new profitable business

Recycling stations for electronic devices does not yet exist in the MENA region for the simple reason that it requires expensive and specialised equipment. However, the establishment of such stations would not only create a much-needed breather from increasing pollution, but it would also generate new opportunities for employment. The road to improvement would require significant financial support, which to this date has been absent from any government plans. Any attempts to recycle e-waste manually would present a huge health risk, as it may be submerged in toxic acids. 

But what if recycling started to benefit the economy? Many electronic devices, such as computers and phones, contain quantities of precious metal such as gold, silver and platinum, that could be extracted in special stations and be given another life. 

Investment in recycling is hindered by the inability of some governments to cover the costs. According to Global Recycling, “cost recovery is partially implemented in Algeria, Egypt, Syria, Jordan, Lebanon (Zahlé only) and the Palestinian Territory; in Morocco, Tunisia, Yemen and Mauritania costs cannot be recovered by the services. In Egypt and in Jordan, cost recovery arrangements are made through the electricity bills.” But what if recycling started to benefit the economy? Many electronic devices, such as computers and phones, contain quantities of precious metal such as gold, silver and platinum, that could be extracted in special stations and be given another life. 

Unfortunately, this new type of pollution is largely being disregarded by populations and no further action is taken by citizens to demand and ensure the restriction of e-waste. Meanwhile, old electronics are laying neglected in unsuitable locations, as their potential continues to be overlooked. 

In the UK and Europe, companies like Apple offer financial compensation for the return of their old electronics. Discounts up to 500£ have been issued on new products in exchange for the recovery of older models. This initiative encourages people not to dump their old devices and allows companies to benefit from the reuse of worn ones. In the end, this process creates a new kind of business while being careful of environmental matters. 

Insufficient initiative? 

Some initiatives have been undertaken by governments, but there is a still a long road towards the establishment of a more complete recycling infrastructure and legislation. In Morocco, civil society played a significant role in demanding efficient e-waste solutions although overall, in the MENA region, the driving force comes from the private sector and cooperation with national and local governments.

With the assistance of the private sector, governments of various countries, such as Egypt, have addressed the need for recycling and “recycling programs” for end-of-life products, most of which are multinational companies such as Nokia or Dell. 

However, national legislation is still very poor regarding e-waste. An important legislative measure is the passage of a law on the recycling of mobile phones in the UAE. Morocco has been looking into embarking on a national e-waste management strategy, although the present legal and recycling infrastructure is not yet adequate for it. Qatar’s telecom operator, Qtel, is in the process of drafting a law on e-waste management, which is supposed to be completed by the end of 2010. Further initiatives have been noted but nothing very determinative has emerged. 

There is still a lack of a comprehensive regional e-waste strategy, and much work remains to be done at the national level. The national level requires a more extensive and process-oriented e-waste management policy, strategy. and implementation plan than what is provided by individual initiatives. E-waste recycling is a high-tech industry and will require more investment and management processes than are currently available.

This sector is a den of treasures capable of making a huge change all over the globe so investment is worth the try.  

In the end, what is needed is a global mediatization of the phenomenon that is strong enough to push governments to review their policies regarding e-waste. This sector is a den of treasures capable of making a huge change all over the globe so the investment is worth the try.  

Article by Assia Tej

Image via Wamda

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