‘For the people who were mentioning the fear from Silicon Valley. I am Silicon Valley. Get over the fear. Silicon Valley has already stepped into construction, and I am part of it.’
AEC technophile Rohit Arora—who joined the design-build startup Katerra in April as a Product Excellence engineer—put his thoughts on AEC tech innovation quite bluntly at BD+C’s Accelerate Live! conference this past May. But it needed to be said.
Talk after talk at the event referenced the AEC market’s ongoing angst about a tech-industry takeover of AEC, with traditional companies getting squeezed out by hotshot VC-backed startups and enterprising design and construction firms. Arora’s advice for the traditionalists: “Embrace technology. Do not fear. You can shape it.”
I don’t need to tell you about the profound impacts that technological advancements are having on architecture, engineering, and construction. However, I suggest that the pace of innovation and the rate of tech adoption by AEC firms have taken on a Moore’s law-like stride.
This past April, while attending an industry event targeted at GCs and subcontractors, I sat in on a two-hour breakout session focused solely on disruptive construction technologies (yes, 120 minutes!). The speaker, a well-known AEC technology expert, flipped through slide after slide—well more than 60 slides in all—each with a specific technology tool or application, and how construction firms are utilizing the innovation. Labor tracking, BIM/VDC optimization, multi-user VR coordination, indoor drones, rules-based clash detection, exoskeletons, smart tools, 360 cameras for creating detailed 3D models, and AI for everything from construction scheduling to language translation on the jobsite. The applications went on and on, and that talk was just for construction companies. The speaker could easily put together a two-hour talk on emerging tech for architects. And one for engineers. And one for building owners and facilities professionals.
And based on the amount of venture capital funding that is flooding into the commercial construction field, two hours may no longer be enough to cover emerging technologies. JLL, in a new report, found that VC firms invested a record $1.05 billion in construction technology startup companies during the first half of 2018. That is nearly 30% more VC funding than during the same period in 2017, and it adds to the more than $3 billion in funding since 2009, across 478 construction technology deals.
In my nearly two decades covering commercial construction, there has never been a more compelling time to report on this $500 billion industry. On one hand, it’s exhilarating to see the incredible opportunities that lie ahead for enterprising firms. On the other hand, I empathize with firms that are struggling to keep up.
Related Stories
| Jan 9, 2015
Santiago Calatrava talks with BBC about St. Nicholas Church on Ground Zero
Calatrava reveals that he wanted to retain the “tiny home” feel of the original church building that was destroyed with the twin towers on 9/11.
Smart Buildings | Jan 7, 2015
NIBS report: Small commercial buildings offer huge energy efficiency retrofit opportunities
The report identifies several barriers to investment in such retrofits, such as the costs and complexity associated with relatively small loan sizes, and issues many small-building owners have in understanding and trusting predicted retrofit outcomes.
| Jan 7, 2015
University of Chicago releases proposed sites for Obama library bid
There are two proposed sites for the plan, both owned by the Chicago Park District in Chicago’s South Side, near the university’s campus in Hyde Park, according to the Chicago Sun-Times.
| Jan 7, 2015
4 audacious projects that could transform Houston
Converting the Astrodome to an urban farm and public park is one of the proposals on the table in Houston, according to news site Houston CultureMap.
| Jan 6, 2015
Snøhetta unveils design proposal of the Barack Obama Presidential Center Library for the University of Hawaii
The plan by Snøhetta and WCIT Architecture features a building that appears square from the outside, but opens at one corner into a rounded courtyard with a pool, Dezeen reports.
| Jan 2, 2015
S&ME to acquire Littlejohn
Companies plan to join forces, combining their strengths to create a leading engineering, design, planning, environmental and construction services firm.
| Dec 19, 2014
Zaha Hadid unveils dune-shaped HQ for Emirati environmental management company
Zaha Hadid Architects released designs for the new headquarters of Emirati environmental management company Bee’ah, revealing a structure that references the shape and motion of a sand dune.
| Dec 18, 2014
International Parking Institute and Green Parking Council collaborate with GBCI
The new collaboration recognizes importance of sustainable parking facility design and management to the built environment.
| Dec 17, 2014
USGBC announces 2014 Best of Green Schools honorees
Houston's Monarch School was named the K-12 school of the year, and Western Michigan University was honored as the top higher-ed institution, based on environmental programs and education efforts.
| Dec 17, 2014
ULI report looks at growing appeal of micro unit apartments
New research from the Urban Land Institute suggests that micro units have staying power as a housing type that appeals to urban dwellers in high-cost markets who are willing to trade space for improved affordability and proximity to downtown neighborhoods.
