The world of construction continues to change, and new business models are emerging. The way companies operate is shifting – it’s much different today than it was just a few years ago.
Companies in the AEC industry used to make money where risk and waste existed. As public demand escalates for elimination of waste and risk, business income will need to come from somewhere else. The new ways of doing business are focused on reducing the risk that existed in the past and will inevitably change the way companies make money.
Eliminating the large volume of waste on a jobsite needs to begin at the beginning, with cleaner digital workflows. Digital waste leads to physical waste and monetary waste.
Productization is an example of the way companies can reduce waste and risk and remain competitive into the future.
As part of the transition to productization, more and varied companies are interested in industrialized, modular and prefabrication processes. An increasing number of companies are no longer simply MEP subcontractors or only architects. Company lines are blurring in response to market demands. There are now architects and general contractors that own fabrication shops. There are MEP contractors partnering with owners to productize kits of parts. They are all taking advantage of new ways of doing business.
Challenge yourself on what you can do to make the expected experience of construction better. One challenge is envisioning how productization can coexist with the perceived custom experience that customers have become accustomed to and expect.
Some of the first steps in a transition involve getting commitments from builders, customers, tech organizations, influencers, and other partners. A transition can become complicated when management envisions one way of doing business, and something different actually takes place.
A transition to productization involves a business model transformation – foundational skills, tools, technology, and culture.
If you want your company to change, you need to be purposeful about that change. You will need to seek it, plan it and determine whether your company has the necessary skillsets to accomplish it.
To assess your readiness for the change you envision, you will need to take stock of where your company stands at present and the strengths you currently have. It is important to perform an honest assessment of your core competencies and shortcomings. It is important to back up your assessment with data so you have an objective measurement. One thing that will be revealed is whether you do or do not have the needed skillsets within your organization.
You can bridge the gap between what you have and what you need by hiring new talent, partnering or looking to a third party for the skills your company needs. You may need to expand your horizons. If that’s the case, get creative when reaching out to new audiences for recruitment into the industry – people who would make good additions to the AEC industry.
Tune in to the special interview of Amy Marks for Bridging the Gap Podcast episode 185, recorded during Advancing Prefab 2023. Hear more about what Amy has to say on the subject of productization.