Funding for construction technology startups is on the rise, with those startups raising $10 billion in investments from 2011 through early 2017, according to McKinsey & Company.
Most of that technology focuses on the construction phase, including enterprise resource planning (ERP) systems and document management tools. While roughly 1,000 companies were found to make products for construction, less than 200 developed solutions for design, preconstruction or operations.
Investment activity is concentrated on field productivity and performance management, which McKinsey previously found in need of improvement. The latest report notes that engineering and construction companies can use new technology to catch up to productivity gains in other industries, yielding a $1.6 trillion boost in yearly output.
With today's construction activity at 2007 levels and with 100,000 fewer skilled workers industry-wide, more construction teams on and off the job site are turning to technology for productivity solutions. Telematics is one solution that is gaining steam in the industry, with major companies like Komatsu, Caterpillar and John Deere making investments in such technology.