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Investing in Construction in 2020

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The construction industry is more than just a person with a hard hat hammering away at a nail. It’s more than just painting the walls or flooring a house. There are many complex components and companies involved in the industry as a whole. The industry encompasses everything from the stage of planning the build to the completion of it. 

The construction industry is one of the least technologically advanced business sectors. It is experiencing challenges with its current technology and fragmented behavior of project completion. Its developments have a barrier to innovation and new advancements. And it is challenging to distribute alternative solutions across construction sites and multiple sectors due to its delivery channels. 

Despite these obstacles, the industry is not stagnant, and it is currently, on the path to deviating in a new direction. Major companies in the industry have already started developing innovative software and hardware alternative solutions – such as AI drones,  VR tools, and project management software, to cater to the industry’s major challenges. 

Technology will be a key component in the advancement of the construction sector. It has the potential to unlock the unknown value and increase the inefficient use of existing resources. There is a great investment potential within it because there is a massive space for startup tech companies to develop advancements that will streamline processes, planning, and execution of the project. 
Because of the immense room for growth and advancement in the construction industry, if you are an investor and you are considering investing, then there is no better time to do that than now. 

But where can you invest?
The companies involved with the innovation or advancement of the construction industry is broad, as it has a lot of sub-sectors. The two largest divisions or categories are companies that deal with the innovation of the actual construction and operational productivity or project management platforms.
An example of a company that deals with the advancement of the planning phase for the actual on-site construction is SenSat. It uses geospatial technology with the combination of artificial intelligence to create a representation of a virtual space of real-world locations for the creation of the infrastructure. This technology would enable companies to develop a better workflow, process well-informed decisions based on real-world data, and improve their safety environments for their workers.

Other technologies that are being invested in are robotics, such as – self-driving machines, automation of labor-intensive tasks, onsite robots, and drones. 
Project management platforms are also popular with investors, with 29% of companies developing software for these areas. While other investors prefer to invest in environmental technological solutions, such as Airlite – a paint technology that can purify the air and lower the cooling cost of a building by 30%.

Should you invest?
The main risk of investing in the construction industry is that the construction market is cyclical. So, before you go and infuse your money into any company in this industry you need to know where the industry is in its current cycle and ask yourself the following questions;

Is it a solution for all job sites? 

  • In this current environment, all job sites are different and unique, and so any solution to daily challenges must be able to perform across all construction sites. 

Is it set for your success?

  • Technological advancements for the construction industry should be set up to engage the end-user and to make sure that the solution is met with its corresponding requirements. Otherwise, the potential of the technology dies with its complexity and inability to be used by the end-user.

Is it aligned with your goals?

  • The advancements are integrated into your business processes and structure, so you should ask yourself if it is aligned with your end goals. Will it ensure the development of your business and grow with you?

Does it make decision-making more efficient?

  • The information that is collected needs to be in real-time and it needs to be easily accessible and actionable for you to make well-informed decisions based on real-time facts. 

Is there support?

  • Any new technology needs a well-made implementation plan which should include the training, onboarding, troubleshooting, and support features. 

With the current trend that the construction industry is on, there is a big opportunity for innovators and investors alike. So, before you delve into investing in any construction tech advancements, ask yourself those questions and make sure that the product or service solves an actual problem, it’s scalable and easy to comprehend. Also, take into consideration the timing, especially with the industry trend, and don’t be scared to collaborate with other investors or decision-makers in the industry. 

Shivendra helps construction companies and contractors win more projects and grow profitably. Regarded as a master of practical implementation, Shivendra has guided organizations such as Downer and Siemens as well as smaller contractors to achieve double-digit improvements to their bottom line. Underpinning his extensive industry experience are qualifications in engineering and a Ph.D. focused on rapid cost improvement techniques. He is the author of two books, The Competitive Contractor and From Paper to Profit, host of the Competetive Contractor podcast, and the founder of Shivendra & Co and The Constructors Network. You can find more about Shivendra & Co on