The construction tech graveyard keeps growing - and it's time we examined why. Our latest Bricks, Bucks & Bytes episode delivered some uncomfortable truths about our industry. 🚨🚨BUT FIRST - We are delighted to welcome our new host Dustin DeVan 🚨🚨 Dustin will be joining us weekly to shoot the sh*t on industry news. Back to it... Here's what we covered: • US economy contracts by 0.3% - first decline since 2022 • How tariffs are creating supply chain chaos across construction • Why AI in construction needs to solve real problems, not just add features • The top 20 construction tech failures (Katerra leads with $2B+ in losses) Key insights from our panel: 💡 Market uncertainty demands focus on controllable factors, not predictions 💡 Successful AI implementation requires understanding actual customer problems 💡 7 of the top 10 failed construction tech companies were in modular/prefab 💡 Building comprehensive solutions ("bathtubs") beats creating features ("taps") Notable perspectives: "When money's free and everyone's doing well, it's really easy to slap yourself on the back and say, I'm a rock star. In '22, I got freaking smashed." - Dustin "Every software company today needs to be an AI company the same way that every software company in 2000 had to be an internet company." - Patric Hellermann Want to hear why one founder of Katerra claims they failed because they didn't raise ENOUGH money? 🤯 🎧 Listen to the full episode - link in comments!
Either good times or bad times, the best “Startup subcontractors” solving real problems will not do much without GC and OR leadership that is adequately aligned with today's tech, tomorrow’s AI, and future industry vision. Construction needs leaders (GC and OR) to think, build, and act the same way as contech startups, delivering outcomes as a service, not taking % for just a title. Always fantastic insides from Bricks & Bytes and Foundamental
Lots here... Yes, I'd agree that 90% of AI startups are worthless. Putting "AI" into a company name or a prospectus does not equate to any profitability. And to me it is no surprise that most of the contech failures are from modular/prefab companies. I have been following that for 15+ years. Just because something can be done, physically/logistically, does not mean that it will be successful or profitable. And most of the modular companies have proven that- it seems.