This week, Adam Zobler visits Patric and Shub to speak about nothing at all in US Construction-Tech:
Is vertical search for building materials in the US a thing ?
what about cross-border sourcing for construction between US and LatAm ?
Is it fair to say US economy is more innovative than Europe ?
And of course what about generative-AI for construction ?
Bullish on Vertical AI for Construction Marketplaces
Adam discusses his bullishness on vertical AI solutions tailored for construction materials marketplaces, feeling there is a big opportunity for AI-powered sales assistants and product discovery tools. He sees major potential value creation from AI helping match buyers and suppliers for the complex products in this industry, short-circuiting manual offline product discovery. Adam says: "I think there's a lot of value being created there or will be created there in the coming years."
Supply Chain Issues Spark Interest in Latin American Trade
Adam and Patric highlight supply chain issues in construction, with shortages and volatility of pricing and availability. This is driving investor interest in companies establishing new trade routes with Latin American suppliers not traditionally accessed by the US/Europe, opening up new sources of cost-effective materials. Patric says: "The US is certainly taking notice of that and increasing more and more business and cross-border economy with a southern neighbor."
Labor Shortage Highlights Skilling Solutions Opportunity
Adam focuses on the labor shortage in construction trades as a major issue, and sees opportunity in solutions focused on upskilling new labor pools to fill the gap from retiring workers. He highlights solutions for both blue collar trades and white collar AEC roles. Adam states: "We're going to be building those complex buildings with the least experienced individuals."
Open Database Launched to Track AEC Tech Investors
Adam and Patric discuss the launch of a new open database called The Wallhack that objectively tracks VC and investor activity in the AEC tech space. It provides data like number of AEC deals done by investors in recent years to help founders identify the most active investors. Adam calls it: "an extra-ordinary value...for founders."
Investors Skeptical on Massive AI Funding Hype
Adam and Patric voice skepticism on some of the massive funding rounds for general horizontal AI startups, feeling most value will come from vertical applications. They see the big rounds as investors feeling pressure to show activity in the AI hype cycle. Adam says: "I think funds are getting a little itchy...to stack those fees."
Geo-politics Influence AI Differences Between US and Europe
In discussing AI adoption differences between the US and Europe, Adam and Patric point to factors like regulation, with Europe more sensitive about data privacy. They also note differences like scientific research commercialization. Overall they feel it has been hard for US tech startups to win Europe. Adam says: "Regulation plays a big role as well."
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Keywords: construction technology, AEC tech investing, AI for construction, construction labor shortage, construction materials marketplaces, Latin America trade routes, construction supply chain issues