{"id":34969,"date":"2026-04-08T15:51:26","date_gmt":"2026-04-08T22:51:26","guid":{"rendered":"https:\/\/essential.construction\/news\/startups-are-everywhere-in-construction-builders-want-them-to-meet-the-moment\/"},"modified":"2026-04-08T15:51:26","modified_gmt":"2026-04-08T22:51:26","slug":"startups-are-everywhere-in-construction-builders-want-them-to-meet-the-moment","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/startups-are-everywhere-in-construction-builders-want-them-to-meet-the-moment\/","title":{"rendered":"Startups are everywhere in construction. Builders want them to meet the moment."},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<div class=\"text-to-speech\">\n    <button class=\"text-to-speech__button button\"><br \/>\n        <img decoding=\"async\" class=\"text-to-speech__button__icon\" src=\"https:\/\/www.constructiondive.com\/static\/img\/play.svg?313321260226\" alt=\"-\"><br \/>\n        Listen to the article<\/p>\n<p>            <span class=\"text-to-speech__button__audio-length\">8 min<\/span><\/p>\n<p>    <\/button><\/p>\n<div class=\"text-to-speech__controls\">\n        <audio controls=\"\" class=\"js-text-to-speech\" preload=\"none\"><source src=\"https:\/\/text-to-speech.divecdn.com\/newspost\/816966\/2026-04-08_12.56.27\/construction-startups-meet-moment-builders-adoption.wav\" type=\"audio\/mp3\"><\/source><\/audio><\/p>\n<div class=\"text-to-speech__controls__text\">\n            This audio is auto-generated. Please let us know if you have <a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/contact\/\" target=\"_blank\">feedback<\/a>.\n        <\/div>\n<\/p><\/div>\n<\/div>\n<p><span><span><span><span><span><span>Construction has a reputation as a Luddite industry.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>This label isn\u2019t without merit. Consider the <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.mckinsey.com\/capabilities\/operations\/our-insights\/reinventing-construction-through-a-productivity-revolution\" target=\"_blank\"><span><span><span><span><span><span><span><span>oft-cited 2017 productivity report<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> from consulting firm McKinsey, which revealed that labor-productivity growth in the construction industry was only 1% per year over the prior two decades, compared to 2.8% for the total world economy and 3.6% for manufacturing.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>This improvement gap remains an issue: A <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.mckinsey.com\/capabilities\/operations\/our-insights\/delivering-on-construction-productivity-is-no-longer-optional\" target=\"_blank\"><span><span><span><span><span><span><span><span>2024 follow-on report from McKinsey<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> showed that construction productivity improved by only 10%, or 0.4% annually, between 2000 and 2022. Again, these productivity gains lagged severely behind the total world economy and manufacturing, which posted 50% and 90% gains respectively.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>But the tide is turning as contractors across the country embrace new technologies to aid in tasks across the built lifecycle, such as <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/cork-howard-construction-ai-stampli\/718603\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>to speed up invoicing<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>, implement <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/granite-construction-autonomous-machinery-bluelight\/802367\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>autonomous machinery on jobsites<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> and <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/turner-clearstory-change-orders-technology\/805717\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>deal with change order management<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>, not to mention the advent of artificial intelligence and generative AI.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Builders themselves are taking advantage of this environment and these offerings via steps into the investment arena. These businesses, which handle multibillion-dollar projects, <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/construction-technology-funding-maturity-startup\/753108\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>partner with later-stage startups<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> to tailor a firm\u2019s product to its specific needs.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>All this is to say technology is far more common on jobsites than it once was. As builders become more technologically literate and comfortable, the onus that once existed on these construction pros to adapt may be flipping back to the startups themselves, which experts say are struggling to meet the demands that construction firms actually have.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>Contech products need to innovate<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>In construction, a solution doesn\u2019t just need to work \u2014 it needs to be 10 times better than something that already exists, Jim Barrett, chief innovation officer for New York City-based Turner Construction, told Construction Dive.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<figure class=\"image-right inside_story\">\n<div class=\"figure_content\">\n<div><img decoding=\"async\" alt=\"A headshot of Jim Barrett\" data-imagemodel=\"196242\" src=\"https:\/\/imgproxy.divecdn.com\/uae1IxOFPLhGX73ZoWUYL4VYOKlknXvky4PPVqk3lzw\/g:nowe:205:75\/c:835:1044\/rs:fit:0:860\/Z3M6Ly9kaXZlc2l0ZS1zdG9yYWdlL2RpdmVpbWFnZS9KYW1lc19CYXJyZXR0LmpwZw==.webp\"\/><\/div>\n<\/div><figcaption class=\"inside_story_caption\">\n<p>Jim Barrett<\/p>\n<p>Permission granted by Turner Construction<\/p>\n<p>\u00a0<\/p>\n<\/figcaption><\/figure>\n<p><span><span><span><span><span><span>\u201cIt&#8217;s got to be significantly better to make us want to spend the time to think about either changing out an existing solution or trying to spend the time integrating it into our organization,\u201d Barrett said.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>One such example would be Turner\u2019s implementation of change order management tech Clearstory for all of its project teams. The contractor <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/turner-clearstory-change-orders-technology\/805717\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>announced an agreement<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> with the firm in October.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cClearstory layers onto a high-touch workflow that impacts hundreds, if not thousands, of people on our projects and makes it simpler and faster in a way that raises the bar for outcomes,\u201d said Maria Pantelaros, director of innovation for Turner, in the announcement. \u201cThat\u2019s the kind of innovation we embrace.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Barrett added that there\u2019s only so much time and energy that a company can give to startups, particularly to companies that present unproven solutions.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cThe effort it takes to bring a new solution into our organization is significant,\u201d Barrett explained.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>This is compounded for firms that deal with AI offerings. Turner recently revealed a <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/turner-partnership-openai-startups-tech\/804765\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>partnership with OpenAI<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> that has led Barrett to question the value of farming out the development of AI agents. He questions whether paying an organization to build an AI tool is worth it when a Turner employee could create it in-house, likely with more insight on the desired functionality to address existing needs.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Such circumstances can put a builder at odds with a startup that wants to prove that its product works. Startups can\u2019t rely on a single contractor to prove products are a general solution for the industry, said Henning Roedel, the founder of startup Hardhat Robotics and the former robotics lead at DPR Construction.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Rather, startups need to prove their products can work for the whole industry.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cIt&#8217;s really important that you get a high touch and a lot of reps as a startup founder,\u201d Roedel told Construction Dive. \u201cWhen I was at DPR, I tried to optimize for speed for these startups.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<section class=\"storylines-carousel-wrapper hide-small show-large\" id=\"desktop-carousel\"\/>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>What builders need from startups<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>Market fit is key to selling any product. If it doesn\u2019t fit a consumer, from retail to robotics, then it\u2019s not going to make money.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<figure class=\"image-right inside_story\">\n<div class=\"figure_content\">\n<div><img decoding=\"async\" alt=\"A headshot of Aaron McClellan.\" data-imagemodel=\"187428\" src=\"https:\/\/imgproxy.divecdn.com\/bP0O9FFdpbrxsapcN5nNVakd9NLOQw3xAQ9YyWeh5pc\/g:nowe:195:9\/c:708:885\/rs:fit:0:860\/Z3M6Ly9kaXZlc2l0ZS1zdG9yYWdlL2RpdmVpbWFnZS9BYXJvbl9oZWFkc2hvdF8xLmpwZw==.webp\"\/><\/div>\n<\/div><figcaption class=\"inside_story_caption\">\n<p>Aaron McClellan<\/p>\n<p>Permission granted by Granite Construction<\/p>\n<p>\u00a0<\/p>\n<\/figcaption><\/figure>\n<p><span><span><span><span><span><span>That\u2019s a problem that Aaron McClellan, construction technology manager for infrastructure builder Granite Construction, has run into in his work. Tech can often be geared toward vertical construction, he said, rather than to the horizontal infrastructure his firm builds.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cI think there&#8217;s definitely a trend in the tech to be more focused on the vertical construction side,\u201d McClellan told Construction Dive.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>McClellan said Granite networks with venture capital firms, startups and attends tech conferences to help make the differences between vertical and horizontal construction clear, but the trend remains nonetheless.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>McClellan said that products can also be tailored to a financial backer, which can lead to a situation where the rest of the industry is left to figure out what to do with the solution.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>This can be especially true when a startup founder has a lack of experience with the construction industry. Given construction\u2019s productivity gains gap, the industry has been an enticing target for disrupters who want to change the status quo. But as these entrepreneurs try to solve \u201cproblems\u201d they see in the industry, they may find themselves surprised by the sector\u2019s numerous quirks.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Nowhere was this more apparent than the fantastic flameout of the once <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/what-does-katerras-demise-mean-for-the-contech-and-modular-industries\/608037\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>high-flying modular juggernaut Katerra<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>. By trying to bring all trades inhouse and cut out industry go-betweens in the name of efficiency, the builder alienated those accustomed to the relationship-first nature of the industry, an aspect that contributed to its downfall.\u00a0\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<section class=\"storylines-carousel-wrapper show-small hide-large\" id=\"mobile-carousel\"\/>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>Solving the bigger problems for builders <\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>Turner\u2019s Barrett flagged a different problem: founders who show up with an unproven hypothesis for a construction-specific issue. In the past, the company would\u2019ve made itself more available in these cases. But because of bandwidth limitations, this is no longer the case.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<figure class=\"image-right inside_story\">\n<div class=\"figure_content\">\n<div><img decoding=\"async\" alt=\"A headshot of Henning Roedel\" data-imagemodel=\"196244\" src=\"https:\/\/imgproxy.divecdn.com\/RTZHcAi-kSXYnV41GJykFHJZtjwNnqvOmfGFxtWxdF8\/g:nowe:432:500\/c:1404:1756\/rs:fit:0:860\/Z3M6Ly9kaXZlc2l0ZS1zdG9yYWdlL2RpdmVpbWFnZS9IZW5uaW5nX0hlYWRzaG90X2dsYXNzZXNfZ2xhcmVfcmVkdWNlZC5qcGc=.webp\"\/><\/div>\n<\/div><figcaption class=\"inside_story_caption\">\n<p>Henning Roedel<\/p>\n<p>Permission granted by Henning Roedel<\/p>\n<p>\u00a0<\/p>\n<\/figcaption><\/figure>\n<p><span><span><span><span><span><span>\u201cIf you&#8217;re not sure of the problem you&#8217;re solving and who you&#8217;re solving it for, then honestly, we&#8217;re telling people to come back in six months when you figure that out,\u201d Barrett said.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Roedel added that many startup founders today are looking for easy problems to solve. On the contrary, he noted, construction has a lot of hard problems, which can yield better opportunities.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cMy advice to anyone is, if you&#8217;re tackling something for construction, tackle a hard problem. The industry will reward you for it,\u201d Roedel said.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>What startups can do next<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>So, without bandwidth from contractors, how can startups show their value and improve their products for the construction industry?<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>The answer may be programs geared toward construction startups, such as <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/suffolktech.com\/boost\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>Suffolk Technologies\u2019 BOOST program<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>, an annual tech accelerator that helps these businesses find their niches. The eight-week initiative helps startups gain access to jobsites and tailor their products for the industry.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Indeed, the perceived lack of founder and construction industry knowledge from startups may be changing, said Parker Mundt, partner and head of platform at Suffolk Technologies, the investment arm of Boston-based Suffolk Construction.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<figure class=\"image-right inside_story\">\n<div class=\"figure_content\">\n<div><img decoding=\"async\" alt=\"A headshot of Parker Mundt\" data-imagemodel=\"196253\" src=\"https:\/\/imgproxy.divecdn.com\/P7qB_BbaFjcMpwOBJRSuqZtswxSV1Y3dXj4GAkPvjR8\/g:nowe:572:344\/c:1094:1368\/rs:fit:0:860\/Z3M6Ly9kaXZlc2l0ZS1zdG9yYWdlL2RpdmVpbWFnZS9NdW5kdF9QYXJrZXJfb3JpZ2luYWwuanBn.webp\"\/><\/div>\n<\/div><figcaption class=\"inside_story_caption\">\n<p>Parker Mundt<\/p>\n<p>Permission granted by Suffolk Technologies<\/p>\n<p>\u00a0<\/p>\n<\/figcaption><\/figure>\n<p><span><span><span><span><span><span>\u201cHistorically in the past, maybe the interactions between the stakeholders themselves, and where most of the value of these tools is actually recognized, I think, was muted for the first wave of construction tech,\u201d Mundt told Construction Dive.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Now, forthcoming startups may be helmed by serial entrepreneurs, or people with experience in construction. The products and founders in this wave \u2014 which Mundt said began after the COVID-19 pandemic \u2014 are more informed.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Now, if a founder can get out in the field and see what\u2019s not working, it\u2019s a good start. It\u2019s really the only way startups can see what\u2019s out there to fix.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cGet out, be with the operations, understand the skepticism, understand the needs, the wants, face to face.\u201d Granite\u2019s McClellan said. \u201cIf you&#8217;re not building rapport with the people, you&#8217;re making a lot of assumptions. I think that we have to clean up those assumptions, get feedback, and actually start building together.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/www.constructiondive.com\/news\/construction-startups-meet-moment-builders-adoption\/816966\/\" rel=\"nofollow noopener\" target=\"_blank\">This article was originally posted at Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] Listen to the article 8 min This audio is auto-generated. Please let us know if you have feedback. Construction &#8230; <a title=\"Startups are everywhere in construction. Builders want them to meet the moment.\" class=\"read-more\" href=\"https:\/\/essential.construction\/news\/startups-are-everywhere-in-construction-builders-want-them-to-meet-the-moment\/\" aria-label=\"Read more about Startups are everywhere in construction. Builders want them to meet the moment.\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[457],"tags":[],"class_list":["post-34969","post","type-post","status-publish","format-standard","hentry","category-construction-dive","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/34969","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/comments?post=34969"}],"version-history":[{"count":0,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/34969\/revisions"}],"wp:attachment":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/media?parent=34969"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/categories?post=34969"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/tags?post=34969"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}