Both employers and employees are closely monitoring how the future of work is shaping up. For many industries, reading about the future of work conjures up an image of remote work and Zoom meetings. But that's not the case in construction: it's one of the industries where remote work isn't really possible. The construction industry has remained steadfast in the ways of yesteryear, with few process updates and adoption of new technologies.
That's not to say construction has completely rejected new ways of doing things. “Move fast and break things” may not be a phrase you want to associate with construction, but when an innovation brings many benefits and minimizes the negatives, it's hard to ignore. Even when a problem becomes too big to solve, the industry has shown a willingness to turn to cutting-edge technology to find a solution.
To create more context around this, we're taking a general look at the technology trends of construction to get a basic idea of where the industry is headed. We spoke to some construction technology founders, who shared their vision for the sector.
- Ritwik Pavan Founder and CEO, krava
- James Swanson Founder and CEO, Voyage Control
- Constantin Kauffman Co-founder and CEO, Eyeglasses
- Yosh Rozen Founder and CEO, PartRunner
Responses have been summarized for clarity.
Ritwik Pavan, founder and CEO of Krava
How different will the construction industry be in 2030? What nascent technology do you expect to be common by then?
By 2030, I believe that various aspects of the construction industry will be fully digitalized and automated. Technologies such as drones for site inspection, artificial intelligence for design optimization and robots for tasks such as masonry or cement pouring could become standard. Additionally, augmented reality could play a role in visualizing projects in real time, and advanced 3D printing could enable rapid prototyping and even large-scale production of construction components.
Aside from labor shortages in certain markets, what other aspects of construction do you think are ripe for disruption? What have you done to take advantage of it?
Beyond labor shortages, the construction industry's supply chain management and ordering processes, especially for custom materials and parts, await significant disruption. ADUs (Accessory Dwelling Units) present a unique opportunity, which Krava has strategically taken advantage of. By refining and creating standardized processes and leveraging technology, we can improve the efficiency, predictability and customization of the construction supply chain.
Given that construction can sometimes be reluctant to adopt new technologies, how easy has it been for you to advance in the market? What lessons have you learned from other players who may have struggled to make their mark?
Our initial focus on homeowners and the burgeoning ADU market has allowed us to overcome some of the hesitancy that traditional construction sectors show towards new technologies. By testing our technology and processes on a smaller scale, we are building a compelling case for larger developers. History shows that disruptive players often face resistance, but consistent results, adaptability, and understanding of market needs can pave the way for acceptance.
What do you think will be the biggest change in the way construction processes are executed in 2030? Will the industry have evolved significantly?
By 2030, I anticipate that a large majority of residential construction will shift to manufactured construction, primarily because we have no other choice. Current construction methods are simply not equipped to keep pace with the impending housing crisis and the speed at which homes will need to be built. Prefabricated construction, modular configurations and optimized supply chains will be critical to meeting housing demands efficiently. I believe the industry will not only evolve; will undergo a profound transformation, reshaping the way we perceive and engage with the very concept of construction.
James Swanston, founder and CEO of Voyage Control
How different will the construction industry be in 2030? What nascent technology do you expect to be common by then?
By 2030, my hope is that the integrity of data is better that now. The industry still needs to move from simply collecting data to properly analyzing it and making better decisions. Most tech companies are trying to help customers with this, and it's a big task!
Aside from labor shortages in certain markets, what other aspects of construction do you think are ripe for disruption? What have you done to take advantage of it?
There is a large macro trend around ESG criteria, whether through regulatory mechanisms such as the proposed FAR (Federal Acquisition Regulation) resolution in the US, or shareholder expectations and obligations. Ultimately, it will be those who finance and insure construction projects who will have the greatest impact. We are in a fortunate position to be able to work with many of our clients to help them think about how to better manage the supply chain, and ESG is a key part of this.
Given that construction can sometimes be reluctant to adopt new technologies, how easy has it been for you to advance in the market? What lessons have you learned from other players who may have struggled to make their mark?
Gaining credibility can take time and we have been fortunate to be able to find many innovators and pioneers around the world that we have been able to partner with. But fundamentally, it is about behavioral change, which is a long process. A great lesson is not to get too far ahead of the market situation so that clients can truly understand the return on investment (ROI) and grow in their sophistication to drive efficiency through technology.
What do you think will be the biggest change in the way construction processes are executed in 2030? Will the industry have evolved significantly?
I do not see that the supply of labor can keep up with the demand, which, therefore, will increasingly push technology and the use of robotics, and this will also involve a focus on reducing inefficient and time-consuming processes. The other major shift will be to focus on the supply chain, whether as a result of operational needs or ESG imperatives.
Constantin Kauffmann, co-founder and CEO of Oculai
How different will the construction industry be in 2030? What nascent technology do you expect to be common by then?
We will not see many changes in the sector, except a greater degree of prefabrication, until 2030. However, the digitalization of management and planning will continue. An upcoming trend is the use of methods of Artificial Intelligence in construction, such as computer vision (e.g., progress and process tracking) or language processing (e.g., scanning and interpreting delivery invoices).
I expect Excel or paper as documentation tools to be replaced by 2030.
Aside from labor shortages in certain markets, what other aspects of construction do you think are ripe for disruption? What have you done to take advantage of it?
For many construction companies (especially in Germany) there are no defined standards that apply to all projects within the company. In such cases, project managers use their own set of tools, suppliers, subcontractors and obtain their own set of experiences and data. By defining standards, data and knowledge can be exchanged and their value maximized in situ.
The value of the data collected is maximized the more projects that have been tracked. We encourage our users to increase the size of their database to generate comparable benchmarks for subsequent projects to measure their efficiency more accurately.
Given that construction can sometimes be reluctant to adopt new technologies, how easy has it been for you to advance in the market? What lessons have you learned from other players who may have struggled to make their mark?
One challenge facing technology startups is project-based business. In many construction companies, each project operates as its own company and standards are hardly established for the entire company. Because it is traditionally a decentralized business, there is no matrix structure. We learned that implementing solutions across construction sites takes time and needs approval from both users and leaders.
Another challenge is establishing new processes around a new source of information. We learned that data alone will not be used or converted into actions without support during implementation. We learned that we must stay in close contact with users and show them how to use data for measurable benefits.
What do you think will be the biggest change in the way construction processes are executed in 2030? Will the industry have evolved significantly?
I think construction processes are carried out more or less the same as now, with an increasing degree of prefabrication. I think the industry, especially project management, will rely more on data and less on feelings. We have seen that process data has been the key driver for process improvement and decision making in the manufacturing industry and can unlock enormous potential in construction.
Yosh Rozen, founder and CEO of PartRunner
How different will the construction industry be in 2030? What nascent technology do you expect to be common by then?
Technology that makes the world of construction more efficient:
- Sustainability: Materials, transportation, construction, carbon footprint, etc.
- Digital transformation: Operations that “work like” data models that use ML and AI to make processes more efficient.
- IoT: Intelligent devices that collect data on vehicles, equipment, tools, etc., and improve the useful life and maintenance of products, materials, equipment, etc.
- Logistics: Speed, quality, reliability and cost.
Given that construction can sometimes be reluctant to adopt new technologies, how easy has it been for you to advance in the market? What lessons have you learned from other players who may have struggled to make their mark?
We have worked very closely with decision makers at all levels, from small to large companies. Understanding your needs and challenges to support solutions that create “value” for your internal way of doing things brings direct value to your customers:
- Increase the final result.
- Reduces the cost.
Lessons:
- You need to have a consultative approach to creating pilots, understanding needs, testing assumptions, and constantly reviewing metrics and feedback.
- Embrace a culture of innovation that is shaped by internal innovation (literally building an internal innovation team) and external innovation (through startups and new technologies).
Challenges:
- Change management.
- Mentality change.
- Learning curve.
- Risk-adversity due to “not knowing”.
- Legacy processes and systems.
What do you think will be the biggest change in the way construction processes are executed in 2030? Will the industry have evolved significantly?
Technology is advancing faster than ever and it is exponential.
Through AI, machine learning, robots, IoT, marketplaces and fintech solutions, we will see a huge transformation in the coming years. It's like a tidal wave: you know it's coming, you know you'll have to deal with it at some point; You just have to start learning to surf and ride the wave when it comes.
The best companies out there are those that embrace this change, remain adaptable, and make the necessary changes across the company to embrace the innovation.
