Broad Group CEO explains why technological innovation in construction is stagnant

The construction and infrastructure industry is antiquated and out of date. Most work is still performed manually and on site, which is costly and time consuming. For example, today a skyscraper can take five years or more to complete. When the Empire State Building was constructed, it only took about 13 months.

Why technological innovation is stagnant in construction

1. Rapid urbanization in China is driving significant investments in infrastructure development. At the same time, innovative financing and investment products are also pouring money into the industry. When demand is strong and the market is good, people do not have much enthusiasm for new technology. They are not motivated to innovate because the profits are [already] there.

2. Excessive regulation of the industry and its supply chain can hinder innovation. In China, there are so many regulations that they do not encourage innovative technology or even thinking. For instance, in construction design, regulations can be so detailed that they specify which types of materials to use and what standard of thickness the materials should be. So, in China the industry falls back on what they call “standard.” Because regulations emphasize standard, builders pursue it at the expense of creativity, efficiency, safety, and ultimately responsibility. As long as a builder does not violate standard, he or she does not bear responsibility for any issues.

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