From the outside, the construction industry appears to be ripe for technology innovation. The industry represents 6.3% of U.S. GDP. There are about 1 million general contractors (GCs) in the country, and there are 3 million to 5 million workers in the workplace every day anywhere. Meanwhile, there is a common (if somewhat fair) belief that construction companies are slow in adopting technology and behind the digital curve.
But not every construction company is a technology logger. While GCs are historically slow in adopting new technologies, this does not necessarily leave them behind. About 60% of construction companies have research and development departments for new technologies and the largest construction companies have substantial research and development budgets.
Yet according to JB Knowledge, 35.9% of employees are hesitant to try new technologies. One way to explain this is that there is a strong interest here and new construction-centric technologies need to be taken advantage of, but only if they are easy to use, easy to set up or access while in a workplace, and improve productivity almost immediately.
These factors have created application-building technology for investors, who have invested at least $3 billion in the sector. Is construction technology the “it” place right now? The way VC investors look attractive, is it appropriate for disruption? If this is true, then what is wrong with Katera? Is it fair for ProCor to lose $1 for every $ 4 in revenue?
And why is there so little investment in a workplace where CC money is made – or lost – compared to back-office activities? To date my experience has shown that construction differs from other sectors due to the significant differences between the projects due to the way in which the projects are funded, how the risks are managed and what drives the differences between the projects.
Compared to Fintech, the differences in construction through data processing cannot be easily reduced, for example, where all means are data-smooth in software processing. Addressing project variations is the key to success in construction technology outside the back office. Important points should be considered here.