This week:

- Construction demand exploding globally, creating multi-decade tailwinds

- Productivity paradox: construction worker output decreased 20% over 35 years

- Aging workforce crisis: 20-25% of US construction workers nearing retirement

- Global skills shortage: severe lack of skilled workers worldwide

- Industry vulnerabilities exposed, creating perfect storm for construction-tech adoption

In this episode, Shub and Patric dive deep into the factors driving the explosive demand for construction globally, including population growth, aging infrastructure, migration, and rising middle classes. They discuss the alarming productivity paradox in the industry, with construction worker output decreasing by 20% over the past 35 years, contributing to over 60% of inflation in Western markets. The aging workforce crisis is also explored, as 20-25% of the US construction workforce is nearing retirement, taking with them decades of experience and wisdom.

The conversation then shifts to the severe global skills shortage, with a lack of skilled workers in both developed and emerging markets. This shortage exposes the vulnerabilities of the construction industry, which relies heavily on a per-diem, project-based business model. With demand surging and qualified labor fleeing, the industry finds itself in a precarious position, creating a perfect storm for construction-tech adoption.

Shub and Patric explore the potential for AI and construction-tech to compensate for the fleeing qualified labor and boost stagnating productivity. They believe that the industry is at an inflection point, with technology emerging as a critical solution to the challenges faced. The episode concludes with a discussion on the generational opportunity for the AEC tech sector, as the construction industry stands at the dawn of a technological revolution that will reshape its future.

Chapters

(00:00 ) Introduction and Small Talk

(04:45 ) Chapter 1: Exploding Demand in the Construction Industry

(13:53 ) Chapter 2: Shrinking Productivity in Construction

(24:57 ) Chapter 3: Opportunities for Technology and Innovation in Construction

(36:14 ) The Potential of AI in the Construction Industry

(43:23 ) AEC Tech: Addressing Challenges and Capturing Demand