Winning at admin’ing (Construction Economics & Efficiencies):
The global construction industry has weathered relentless shocks over the past three years, from the disruptive waves of Covid to labour and material supply shortages, interest rate fluctuations, and the unfortunate closure of numerous reputable companies. As we brace for over 40 major elections globally, impacting more than 3 billion people, including pivotal events like Taiwan's in January and those in the UK and US, the industry is poised for a challenging 2024.
We anticipate a temporary industry slowdown persisting until early Q4. However, with no additional economic shocks, inflation is expected to stabilise, and the early signs of new projects will emerge. The true victors in this tumultuous climate will be those who streamlined their businesses and construction techniques, demonstrating resilience amid adversity.
Not all AI that flies is made of gold (Construction Tech):
In the realm of construction tech, we're witnessing the early demise of several startups, a trend expected to escalate throughout 2024. Whether due to an unsustainable product, succumbing to the downturn, or clients realizing that not all glitters is gold in terms of promised efficiencies, it's shaping up to be a challenging year for the Contech sector's reputation. Notably, 2023 saw technology founders facing legal consequences for misleading claims, underscoring the importance of skepticism towards magic AI solutions.
The winners in this domain will likely be the companies that prioritise practical, unglamorous tech that is too often overlooked . Instead of chasing after the allure of futuristic promises, embracing technology rooted in open data standards, is human centric and drives genuine industry value will be the key to triumph.
Rebuild and Build Right (Regulatory Environment):
As the industry grapples with building and structure collapses, RAAC issues in the UK, and the imperative to rebuild cities due to ongoing conflicts, a paradigm shift towards more efficient building and maintenance practices is imminent. The escalating regulatory demands are a direct response to historical lapses in construction techniques and recordkeeping.
Despite the prevalent trend of developers focusing on greenwashing and touting questionable carbon footprint numbers, the real emphasis should be on engineering assurance and meticulous record-keeping rather than superficial gestures like vegan leather trims. The winners in this scenario will be the digital-first adopters and the legal professionals representing those who failed to adapt, highlighting the growing importance of compliance and accountability in the construction landscape.
