While this already might feel like the most exciting time to be in construction, the industry at large is headed for a true paradigm shift. Technology has significantly transformed nearly every other major industry, and construction is at the beginning of this wave of disruption.
Three major factors serve as the catalysts:
1) An influx of $25 billion invested in construction technology over the last five years, including $17 billion from M&A activity or private equity investment;
2) Increased tech adoption among commercial contractors of all types and sizes; and
3) A necessity to innovate in the face of major challenges such as labor shortages, rising materials costs and a global pandemic.
Looking ahead, the industry needs to ensure that the small to mid-sized contractors that comprise 97% of the industry continue to innovate. While larger companies have the means to spend both money and time testing, reviewing and implementing new technologies, smaller firms must focus on safety and profitability.
Some best practices for small contractors include:
1) Assigning a technology champion, such as a project manager, who is responsible for rallying the team’s support for innovation and advancements;
2) Starting small by testing a technology on one or two projects;
3) Getting company-wide buy-in; and
4) Applying new approaches, such as dual education, in which the younger generation teaches veteran workers about technology while veterans teach the younger generation about the trades.
With these concerns in mind, Associated Builders and Contractors has produced its inaugural technology report—the first of its kind to focus on small and mid-sized contractors. Download a free copy at abc.org/techreport.
In addition, in collaboration with Construction Executive, ABC’s Tech Alliance seeks to provide solutions and thought leadership by responding to technology topics and challenges in this new department, The Upgrade—part of a multipronged approach to assisting those in the construction industry with the Pandora’s Box that is the modern-day technology sector.
We’re excited to offer this added value to CE readers by putting a focus on topics that will educate, inform and help contractors take their businesses to the next level.
