Even though construction remains one of the oldest industries in the world, it is one of the few sectors that are still growth-receptive. Over the years, technology has influenced the construction process, which has resulted in sustained growth for both leaders and newcomers. For instance, the adoption of advanced techniques such as modular construction and 3D printing, significantly improves efficiency and reduces costs. According to Carlos Guerrero, the future appears even brighter as technology takes a turn for the better with the rise of Artificial Intelligence (AI) and commitment to a green and safe environment, creating an opportunity for the industry to explore its unlimited growth potential.
Carlos Guerrero, a renowned figure in construction and the driving force behind Cutting Edge Innovative, a high-end custom home development and commercial construction company, foresees a steady 5% growth rate annually for the next five years. However, despite this growth, the industry is currently facing several difficulties.
Problems Affecting the Construction Industry
- Increase in cost of materials: In the past year, the price of materials has shot up by almost 20%, mostly as a result of the global economic downturn. Construction is one of the worst-hit.
- Scarcity of skilled Labor: The scarcity of heavy machine operators, builders, and skilled handymen, is a significant challenge. Since labor is a crucial component of every construction project, the lack of skilled professionals has significantly hampered the industry’s progress.
- Fear of technology: Another challenge identified in construction is the workforce’s fear of technology. The fear that technology would take their jobs rather than enhance their efficiency has slowed the total adoption of technology as a growth enabler.
Strategies to Enhance the Growth in the Construction Sector
Guerrero is leading the charge towards sustaining the growth in construction while simultaneously solving the problems. This is where technologies like AI, Robotics have a role to play, as proven through Cutting Edge’s track record.
- Artificial Intelligence (AI): Even with the challenges affecting construction, Carlos Guerrero perceives them as opportunities to leverage efficient solutions like AI, especially in building information modeling, pricing, timelines, and “having an extra pair of eyes that never get tired.” Contrary to beliefs that AI is out to take people’s jobs or cut the workforce, it has been proven by Guerrero and his team that, with AI, construction becomes easier, timing and delivery are managed more efficiently, and, more importantly, it reduces cost.
- Sustainability and net-zero emissions: In addition, as the world leans towards sustainability and net-zero carbon emissions, Cutting Edge positions as a leader committed to sustainable practices like renewable energy integration, net-zero building and smart homes, thus taking a sizable stake in the expanding green market. Even though the green market is expected to hit over $364 billion at some point in the future, the team at Cutting Edge Innovative is staying ahead of the competition by building smarter homes with strict adherence to net-zero requirements and pulling in higher incomes.
As we step into the future of AI and other transformational technologies, it is important for construction players to push the boundaries, demonstrate technical know-how and market readiness if they want to keep up and compete, with even more opportunity for growth and expansion. “By learning to take in green innovations, we can make our business more competitive and market-ready” and “lead the industry,” Guerrero summed up.
