First, a fair warning. I'm a dirty boots, posthole digging, construction pro. I'm not against technology but it must make my life easier. An example of how simple I am is my general tech setup at home - I've got a basic TV and some DirecTV and some WIFI. That's it. For me anything more than that is just additional cost without a real ROI. Plus, in my way of thinking, I'd have to set it all up and troubleshoot any hiccups when I could simply be watching a football game, COVID permitting, of course. My work setup isn't anything to write home about either - a laptop docking station with two larger screens on either side. I could list some additional examples but the point is that I don't live in the stone age but don't grab every gidget and gadget as soon as they hit the market. On the job, I think more construction pros are like this than leading edge tech experts. I also think this is ok. The reason I think this is ok is:
Value matters more than valuation in construction
What does that mean? The reality is the bottom line of the current project and the P&L of this month, quarter or year matter more than the speculative value (valuation) or a project or company years into the future. Whether it's Con Tech or another tool, it doesn't matter what kind of profit it might bring us 2, 3 or even 5 years down the road. We are preoccupied with the profit of today.
Before I get labeled as a caveman, I am not saying that con tech has no value in our industry. I simply think that tech value is often overestimated and too speculative for short term implementation on projects. Valuation may be much higher than the current value to companies and project teams. The valuation of a tech could be several to many multiples higher than the current value to an active project.
I think this difference creates a bit of a disconnect. Tech evangelists and innovators see what a certain tool might do in the future but construction pros with dirty boots are concerned with what the tech can do for them now or before their project ends.
Getting around this disconnect requires effort on both sides. Con tech leaders aren't nerds who are completely out of touch with the jobsite and construction pros who do their work in the trailer and on the site aren't total luddites. Con tech needs to add more value today and construction pros need to be willing to work a bit differently now. They need to maintain required project deliverables and bottom line requirements while setting future projects up for greater success through greater industry experience and new con tech tools.
While investors help get new ideas to market, I think they (almost) do more harm than good in construction. Insane valuations that don't align with current realities create a somewhat combative tech and tool situation. The price or value tech investors and companies believe their product is worth often doesn't align with what construction pros are willing to pay and if they do pay, what they deliver is less than what construction teams pay for.
What can project teams or construction pros do to help? Adding a budget line item for buying and/or testing new tools and techs could help. If it's in the budget, it can be spent without negatively impacting the bottom line. While there are corporate budgets for this kind of investment, they don't usually exist on the project level. The trailer and the jobsite are the front lines so cash and effort on the front lines could sow benefits that could be reaped for several projects after.
Check out this blog for a simple explanation on the difference between value and valuation.
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