Housing has become increasingly unattainable for the middle class, particularly in areas with thriving job markets. According to McKinsey & Company, labor-productivity growth in construction has averaged a mere 1% annually over the past two decades. The construction industry has resisted industrialization, with methods remaining largely unchanged for over a century. As a result, housing, the world’s largest industry, has experienced minimal disruption and continues to rely on outdated techniques.
Traditional Construction is Not Environmentally Friendly
The construction industry is a significant contributor to environmental degradation and climate change. In 2018, the EPA estimated that 600 million tons of construction and demolition (C&D) debris were generated in the U.S. alone. This waste includes materials such as steel, wood products, drywall, plaster, brick, clay tile, asphalt shingles, and concrete. Construction sites produce a staggering amount of waste, with up to 30% of materials being discarded.
Traditional Construction has Long Lead Times
The construction industry is notorious for its lengthy project timelines, often leading to significant delays and budget overruns. Traditional construction methods require sequential stages of work, from designing, getting approvals, and site preparation to actual construction and finishing. Each stage depends on the successful completion of the preceding stage, causing delays when issues arise. Furthermore, variables such as adverse weather conditions, regulation changes, or supply chain disruptions can extend these timelines even further. As a result, traditional construction often fails to meet the timely needs of a rapidly evolving society.