Employers and employees alike are keeping a close eye on how the future of work is shaping up. For a lot of sectors, reading about the future of work evokes a picture of remote work and Zoom meetings. But that isn’t the case in construction: It’s one of the industries where remote work isn’t really possible. The construction industry has also remained steadfast in the ways of yore, with updates to processes and adoption of new tech being few and far between.
That’s not to say that construction has entirely shunned new ways of doing things. “Move fast and break things” may not be a phrase you want associated with construction, but when an innovation brings a lot of upside while minimizing the negatives, it’s hard to ignore. Even when a problem becomes too big to work around, the industry has shown a willingness to turn to bleeding-edge tech to find a solution.
We’ll be doing a deep dive into what the future of work in construction is going to look like in the coming days. To build more context around it, we’re taking a general look at construction tech trends to get a basic idea of where the industry is headed. We spoke to a few construction tech founders, who shared their vision on the sector.
Who we spoke to:
Ritwik Pavan, founder and CEO, Krava
James Swanston, founder and CEO, Voyage Control
Constantin Kauffmann, co-founder and CEO, Oculai
Yosh Rozen, founder and CEO, PartRunner
Answers have been edited for length and clarity.
Ritwik Pavan, founder and CEO, Krava
How different will the construction industry look in 2030? What nascent tech do you expect to be commonplace by then?
By 2030, I believe that several aspects of the construction industry will be fully digitized and automated. Technologies like drones for site surveying, AI for design optimization, and robots for tasks like bricklaying or concrete pouring might become standard. Additionally, augmented reality could play a role in real-time project visualization, and advanced 3D printing might allow for rapid prototyping and even full-scale building components production.
Aside from labor shortages in certain markets, what other aspects of construction do you feel are ripe for disruption? What have you done to capitalize on this?
Beyond labor shortages, the construction industry’s supply chain management and order processes, especially for custom materials and parts, await significant disruption. ADUs present a unique opportunity, which Krava has strategically tapped into. By refining and creating standardized processes and leveraging technology, we can enhance the efficiency, predictability and customization of the construction supply chain.
Given that construction can sometimes be reluctant to adopt new tech, how easy has it been for you to make headway in the market? What lessons have you taken from other players who may have struggled to really leave their mark?
Our initial focus on homeowners and the burgeoning ADU market has allowed us to navigate some of the hesitancy traditional construction sectors exhibit toward new technology. By proving our technology and processes on a smaller scale, we’re building a compelling case for larger developers. History shows that disruptive players often face resistance, but consistent results, adaptability and understanding market needs can pave the way for acceptance.
What do you think will be the major change in the way construction processes are run in 2030? Will the industry have evolved in a meaningful way?
By 2030, I anticipate that a vast majority of residential construction will transition to manufactured construction, primarily because we have no choice. Current construction methods simply aren’t equipped to keep pace with the looming housing crisis and the speed in which homes will need to be built. Manufactured construction, modular setups and streamlined supply chains will be pivotal in meeting housing demands efficiently. I believe that the industry will not just evolve; it will undergo a profound transformation, reshaping how we perceive and engage with the very concept of construction.
James Swanston, founder and CEO, Voyage Control
How different will the construction industry look in 2030? What nascent tech do you expect to be commonplace by then?
By 2030, my hope is that data integrity is better than it is right now. The industry still needs to transition from just 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 feel are ripe for disruption? What have you done to capitalize on this?
There is a big macro trend around ESG, whether it’s through regulatory mechanisms such as proposed FAR [Federal Acquisition Regulation] ruling in the U.S., or shareholder expectations and obligations. Ultimately, it will be those that fund and insure construction projects that 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 supply chain, and ESG is a key part of this.
Given that construction can sometimes be reluctant to adopt new tech, how easy has it been for you to make headway in the market? What lessons have you taken from other players who may have struggled to really leave their mark?
Gaining credibility can take time, and we have been fortunate to be able to find many innovators and early adopters around the world who we’ve been able to partner with. But fundamentally, this is all about behavior change, which is a long game. A big lesson is to not get too far ahead of where the market is so that customers can really understand ROI and grow in their sophistication of driving efficiency through technology.
What do you think will be the major change in the way construction processes are run in 2030? Will the industry have evolved in a meaningful way?
I can’t see the supply of manual labor being able to keep up with demand, which will therefore push technology and the use of robotics more and more, and this will also see a focus on reducing inefficient and time-consuming processes. The other major change will be a focus on supply chain, whether as a result of operational needs or ESG imperatives.
Constantin Kauffmann, co-founder and CEO, Oculai
How different will the construction industry look in 2030? What nascent tech do you expect to be commonplace by then?
We will not see many changes on-site except a higher degree of prefabrication until 2030. However, the digitization of site management and planning will proceed further. An upcoming trend is the utilization of AI methods in construction such as computer vision (e.g., progress and process tracking) or language processing (e.g., scanning and interpreting delivery bills).
I hope that excel or paper as tools for documentation will be replaced by 2030.
Aside from labor shortages in certain markets, what other aspects of construction do you feel are ripe for disruption? What have you done to capitalize on this?
For many construction companies (especially in Germany), there are no standards defined that apply for all projects within the company. In such cases, project managers use their own set of tools, suppliers, subcontractors and gain their own set of experiences and data. By defining standards, data and knowledge can be exchanged and its value on-site is maximized.
The value of the collected data maximizes the more projects have been tracked. We incentivize our users to increase the size of their database to generate comparable reference values for following projects in order to measure their efficiency more precisely.
Given that construction can sometimes be reluctant to adopt new tech, how easy has it been for you to make headway in the market? What lessons have you taken from other players who may have struggled to really leave their mark?
One challenge contech startups face is the project-based business. At many construction companies, each project works as its own company, and standards are barely established over the whole company. Due to the decentralized business, there is no centralized structure. We learned that implementing solutions over all construction sites takes time and needs the approval from both the users and leaders.
Another challenge is the establishment of new processes around a new source of information. We learned that data alone will not be used and converted to actions without support during the implementation. We learned that we need to stay in close contact with the users and show them how to use the data to gain measurable benefits.
What do you think will be the major change in the way construction processes are run in 2030? Will the industry have evolved in a meaningful way?
I think the construction processes are run pretty much the same as they are now with an increasing degree of prefabrication. I think the industry, especially the 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 huge potential in construction.
Yosh Rozen, founder and CEO, PartRunner
How different will the construction industry look in 2030? What nascent tech do you expect to be commonplace by then?
Tech that makes the construction world more efficient:
- Sustainability: Materials, transportation, construction, carbon footprint, etc.
- Digital transformation: Operations “working as” data models that use ML and AI to make processes more efficient.
- IOT: Smart devices that collect data in vehicles, equipment, tools, etc., and improvement on life span and maintenance of products, materials, equipment, etc.
- Logistics: Speed, quality, reliability and cost.
Given that construction can sometimes be reluctant to adopt new tech, how easy has it been for you to make headway in the market? What lessons have you taken from other players who may have struggled to really leave their mark?
We have worked very close [with] decision makers at all levels, from companies that are small to large enterprises. Understanding their needs [and] challenges, and supporting solutions that create “value” for their internal way of doing things brings direct value to their customers:
- Increases bottom line.
- Decreases cost.
Lessons:
- Need to have a consultative approach toward building pilots, understanding needs, testing assumptions and reviewing metrics and feedback constantly.
- Embracing culture of innovation that is conformed from internal innovation (literally building an internal innovation team) and external innovation (through startups and new technology).
Challenges:
- Change management.
- Changing mindset.
- Learning curve.
- Risk-adversity from “not knowing.”
- Legacy processes and systems.
What do you think will be the major change in the way construction processes are run in 2030? Will the industry have evolved in a meaningful way?
Technology is advancing faster than ever, and it’s exponential.
Through AI, ML, robots, IoT, marketplaces, 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 will have to address it at some point; you just have to start learning how to surf and ride the wave when it comes.
The best companies out there are the ones that embrace this change, remain adaptable, and do the necessary changes company-wide to embrace innovation.