RFID in construction industry

Given how vast the construction industry is, efficient asset management stands as a crucial factor for project success. Using Radio-Frequency Identification (RFID) technology emerges as a transformative solution, revolutionising traditional asset-tracking methods.

RFID in construction industry offers real-time visibility, enhanced data accuracy and streamlined inventory management all along the construction lifecycle. So, let’s learn about the impact of RFID in the construction sector. We will see its multifaceted role in optimising asset management practices for heightened efficiency and productivity. 

Role of RFID in Construction Industry

The RFID readers and RFID tags work together to ensure quality checks and prevent theft. Here is how- the RFID readers at any location can “identify” various assets.

Once the items have the tags, RFID readers after identifying them can send the data back to the company’s main software. This can be an automated process occurring at predefined intervals or on-demand. 

Companies and manufacturers can fix RFID readers at various locations and checkpoints. By doing so, they can easily track the movement of any asset. Handheld RFID readers can also be of use when it comes to on-demand asset tracking or locating quantities of materials.

RFID for “Point Solutions” Versus Extensible Infrastructure Needs

The use of RFID in construction industry sectors to enhance productivity and efficiency leads to time and money savings. When considering RFID, it is best to begin with a solution that addresses a specific business problem- a so-called point solution.

Any such point solution, however, should also be intelligently designed so that users can leverage and expand it later to cover a wider range of business needs. As they address a pressing challenge while keeping in mind a comprehensive infrastructure solution, you can later leverage your RFID in construction industry to cover additional applications like asset tracking, inventory and more.

There are quite a few RFID tool tracking construction benefits. Let’s have a look at them in detail. 

6 Benefits of Using RFID in Construction Industry Systems

The RFID construction equipment tracking technology helps key players in the supply chain industry to stay updated regarding all shipments. Not only does it help in tracking and assembling inventory, but it also helps to recover lost or misplaced items. 

Here are all the advantages that come with using RFID:

1. Automation Reduces Cost and Labour Time 

The use of RFID for tracking assets, whether it is in transit or warehouses, gives the businesses power to automatically monitor the movement of goods. 

But it is not just that tracking that has automation. The data collection process is also under automation tools. This allows businesses to receive accurate updates in real-time directly from the asset-tracking system. From here, asset managers can monitor stock levels, track the supply chain and even identify costly delays in operations.

Such a function eliminates the need for manual tracking methods like spreadsheets, which effectively reduce employee labour time and human intervention. 

2. Provides a Good Return on Investment

The relatively cheap set of tools that you need to deploy an effective RFID asset tracking system allows access to businesses of varied revenues. This enables not only enterprises with multiple sites and warehouses but also small and medium-sized businesses (SMEs) to install RFID.

In comparison to other forms of asset tracking, RFID is a long-lasting and cost-efficient tracking solution. So much so, that the cheap running costs have made it possible for businesses in industries like manufacturing, logistics, and retail sectors to achieve an ROI of up to 200%.

Pair this up with the durability of a plastic tag that companies can use again and again. The advantages and possibilities of such technology of RFID in construction management are endless.

3. Reduces Loss and Theft of Assets With a Real-Time Locating System (RTLS)

Using RFID in construction industry also reduces meaningless and extra expenditure. Here’s how. 

The cost of replacing assets that have either been lost, misplaced or stolen can prove to be damaging to any business on the whole. This is a common expense across most asset-heavy industries. For instance, the American Auto industry replaces lost reusable packaging for $750 million a year. On the other hand, job site theft costs construction companies $1 billion annually

Not to mention the 24 million articles of luggage that were lost in 2016 due to poor location tracking.

So, what is the solution?

By implementing multiple RFID readers and antennas, businesses can triangulate the exact whereabouts of their packages and assets. 

This results in real-time and accurate location data.

It also reduces replacement costs and does not waste as many hours. One glaring example is the healthcare industry. Nurses spend an average of 6000 hours per month searching for equipment. Therefore, the healthcare industry is becoming a leading adopter in the asset tracking market. 

4. Improving Safety

Ensures the safety of the workers. One method to install the readers around potential hazards is guardrails. When a worker wearing a tag approaches a potential hazard, the reader activates the alarm to alert them of danger. 

RFID readers can also help to create barriers that would alert project managers when workers enter the areas they do not have any authorisation for. There is also a safety equipment manufacturer of fall protection equipment that uses RFID technology.

The system allows the safety personnel to track the location, inspection and maintenance of the various fall protection systems they are using on the job site. 

5. Managing Building Materials and Supplies

Keeping track of building materials and supplies is important to keeping a project on track. With RFID in construction industry, manufacturers can keep track of what materials they have onsite at the beginning of each day. This would help to quantify the materials used.

It can help to schedule deliveries from off-site storage or suppliers. Never again do you have to stop mid-work because you have run out of materials. Using RFID is a great way to identify and track waste of supplies and materials.

6. Building Maintenance and Inspection

Upon completing construction, RFID tags have many uses. You can use maintenance and inspection logs on HVAC machines. 

You can pair networked RFID tags with sensors to control temperature and lighting systems as well as monitor building occupancy.

RFID also uses buried infrastructure such as water/sewer pipes, telecom cables and electric cables to locate them easily when they need repair or replacement. 

Before implementing RFID in construction industry, know how you can use it.

Best Practices for Implementing RFID Tracking

Here is how you can implement this technology:

1. Choose the Right RFID Tags

This is a critical step. Various factors like read range, frequency and durability need your consideration. The selected tags must be compatible with existing systems and capable of withstanding environmental conditions. Make sure that the tags are in the right orientation at optimal locations of the assets.

2. Select the Correct RFID Hardware

Make sure you have the correct RFID readers along with the appropriate antenna. It usually depends on the use case. For instance, if RFID tags register on a rapidly moving conveyor belt, the reader just has high-speed detection technology.

2. Pilot Testing

Pilot testing plays a pivotal role during implementation, enabling organisations to gauge technology effectiveness, pinpoint potential challenges, and refine systems before full-scale deployment. This process ensures seamless integration with existing operations.

3. Scalability

While RFID is in construction industry, it is vital to plan scalability from the outset. RFID systems will grow with your business. Therefore, it is essential to ensure that the technology aligns with your long-term goals.

RFID tracking is now a transformative technology, redefining asset management across various industries. Companies using it have the advantages of accuracy, real-time updates, automation and enhanced security. By understanding its applications and choosing the best practices during implementation, businesses can significantly enhance their asset management process.

FAQs: Using RFID in Construction Industry: Role in Asset Management 

How can RFID technology enhance asset management in the construction industry?

You can enhance asset management with RFID as it provides real-time tracking of construction materials and equipment. It streamlines inventory control, reduces theft and improves overall efficiency.

What specific challenges does RFID address within construction asset management?

With RFID you can address challenges such as inventory inaccuracies, time-consuming manual tracking, loss of equipment, and difficulty in locating materials across large construction sites.

What steps are involved in implementing RFID for asset management in construction projects?

Companies need to assess asset management needs, select appropriate RFID tags and readers and integrate RFID systems with existing software. They also need to train their staff on RFID usage and maintenance protocols.


RFID in construction industry represents a pivotal advancement in this industry. It helps with many functions, especially asset management. Its real-time tracking capabilities, streamlined inventory control and enhanced efficiency address critical challenges in the sector. 

By following best practices such as tag selection, pilot testing, scalability and more businesses can optimise asset management processes and unlock significant benefits. Head over to Qodenext for more.

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