Rapid developments in technology have caused ripple effects in nearly all aspects of society: education, manufacturing, medicine, and even construction. Automation and increasing reliance on AI have transformed various industries, but with the changing nature of technology, it can be difficult to keep up with recent trends. As a GP or other commercial real estate professional, it’s imperative that you stay up-to-date with the latest technological innovations in construction to understand their impact bottom lines.
The construction industry has seen its fair share of changes in recent years. Sustainability has become a major focus, and the industry is also facing a labor shortage as the population ages. One of the most influential changes it has experienced is the adoption of new technologies, like robots, automation, and digital software. Here, we will take a closer look at high-tech innovations in construction and learn how GPs can capitalize on these new opportunities.
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3 Rising Construction Tech Trends to Watch
As we look ahead to the coming year, it’s clear that the construction industry is seeing an uptick in activity. This is due in large part to improving economic conditions, like the gradual decrease of short-term interest rates and declining mortgage rates, which has led to a boost in demand for both commercial and residential real estate. Let’s dive into the top three innovations in construction that GPs need to know about when considering important investment factors, like budget and timeline.
3D Printing
Relatively new in the construction world, 3D printing can be used to replace manual labor. 3D printers are used to construct structures layer by layer. The printer works in conjunction with a software program to receive specific dimensions which are then built using materials like concrete or plastics.
There are various types of 3D printing that are useful in construction. The robotic arm extruder method is also known as contour crafting and is used for smaller construction projects. Builders can also combine 3D printing with other technology, such as welding.
3D printing provides many advantages in construction. It reduces labor costs and time spent on the project, and also has lower overall greenhouse gas emissions. 3D printing can reduce material consumption by about 30% to 60% when compared to other construction methods. Those are clear-cut advantages to capitalize on when considering the nature of their investment, its associated costs, and overall project timelines.
However, it’s important to utilize technology in order to capitalize on these obvious advantages. GPs should ensure they are using a platform that helps them to streamline the construction process. A comprehensive technology platform can help them manage construction timelines and communicate updates with investors and other parties. Using a thorough platform will ensure that all stakeholders are aware of the valuable time saved using innovations like 3D printing.
Modular Construction
Another emerging industry trend is modular construction, which is expected to increase from nearly $22 billion to nearly $35 billion by 2030. This rising demand can be attributed to technological advancements, the need for more cost-effective and fast construction solutions, and the desire for more sustainable building practices.
Modular construction involves prefabricating specific construction components off-site, typically in a factory or manufacturing facility. This is advantageous because it allows for work to be done simultaneously on-site while these prefabricated materials are being constructed off-site, ultimately reducing project timelines by 30% to 50% when compared to traditional construction methods. This, in turn, reduces overhead expenses. Modular construction is also cost-effective because it utilizes materials more efficiently and reduces overall labor costs, so it’s essential that GPs are aware of these obvious advantages when considering the costs of development.
Popular in the residential sphere, modular construction is used for fast, cost-effective modular homes. The commercial sector also uses modular construction for office buildings, retail buildings, healthcare facilities, and hotels. Since these modular buildings can be constructed off-site, it ensures minimal disruption to on-site activity, making it ideal for current businesses that want to continue daily operations.
It is important to take into account the amount of work that must go into the design process in order to ensure proper assembly. You must also consider transportation costs when shipping modular components to the construction site. Nevertheless, this is another innovation in construction that is here to stay.
Are you looking for more alternative classes for your investments? Explore our free guide, Redefining Real Estate: 8 Emerging Commercial Asset Classes to Consider.
Drones
Our last construction innovation is the increasing reliance on drone technology. Drones are capable of capturing incredibly accurate 3D images of worksites, a much more precise and safe process than construction surveys or inspections. Drones are also fast and can cover entire site areas in a matter of hours, and can provide more accurate data.
Construction companies utilize drones for a variety of purposes. They can be useful for preplanning and design, as well as monitoring construction progress as the build begins. Drones are also helpful for maintenance and site inspection.
GPs should know that drones are quick and cost-effective, speeding up the surveying process and moving the construction process forward. The global market for drones in construction is expected to reach almost $12 million by 2027, demonstrating that the industry is growing increasingly reliant on the efficiency and cost-savings that drones afford.
While drones are incredibly useful for speeding along your construction timeline, you’re still going to need a system for centralizing that information and keeping investors informed. It’s essential that you find a platform that can help you manage important documents and communicate with LPs so that you’re able to share key information with investors for new construction projects.
Covercy Can Help You Take Advantage of These Innovations in Construction
If you’re a GP looking to capitalize on the new opportunities these technological innovations bring in the construction sphere, turn to Covercy to help you streamline your operations. With our state-of-the-art investment management platform, Covercy can give you the tools you need to organize and optimize your investment.
With Covercy, you can expect a high-tech investor portal that enables automated messaging and real-time data in order to keep your investors informed and engaged throughout the transaction. You can also automate complex distribution payments accurately and routinely, ensuring your LPs receive the payments they need exactly when they need them. Our platform utilizes embedded banking features so that you can easily make payments and earn interest, optimizing your total investment.
Covercy can streamline your commercial real estate operations so you can focus on your next investment project. With these exciting innovations in construction, Covercy can ensure you are well-equipped to take the CRE world by storm.
Learn more by booking a free demo with Covercy today.
CRE Investing Resources
- The Newest Healthcare Real Estate Opportunities You Need to Know
- Hospitality Real Estate Outlook: What You Need to Know to Enhance Your Investments
- Building the Future: What GPs Need to Know About Innovations in Construction
- How Much Does Property Management Cost In CRE?
- Capital Reserves Real Estate
- How to Invest in Commercial Real Estate
- Automated Waterfall Distributions in Commercial Real Estate
- What to know about NOI and GPR for Commercial Real Estate Investing
- Understanding The Risks of Commercial Real Estate Investing