Construction is an essential sector of the economy, responsible for building and maintaining the physical infrastructure that underpins our society. However, it's no secret that construction productivity lags behind other sectors of the economy, such as manufacturing and information technology. So why is this the case?
One of the main reasons for the productivity gap is the unique nature of the construction industry. Unlike other sectors, construction projects are often one-off, bespoke endeavors, making it challenging to achieve the economies of scale that are typical of manufacturing or technology. Each project requires a different set of skills, tools, and materials, which can be costly and time-consuming to source and manage. This leads to a lack of standardization and efficiency, which can hinder productivity.
Another factor that contributes to low productivity in construction is the reliance on manual labor. Despite the increasing use of technology and automation, much of the work in construction still relies on physical labor, which is subject to human limitations and the potential for errors. This can result in delays, rework, and additional costs, all of which impact productivity.
Moreover, the construction industry faces challenges in terms of supply chain management and workforce development. The industry relies heavily on a complex network of suppliers, subcontractors, and laborers, all of whom must be coordinated and managed effectively. This can be difficult, particularly in light of the current labor shortage and skills gap in the industry.
To address these challenges, the construction industry needs to embrace innovation and new technologies to improve efficiency, standardize processes, and reduce waste. There is also a need to invest in workforce development and training to upskill the existing workforce and attract new talent to the industry.
In conclusion, the construction industry faces unique challenges that make it challenging to achieve the productivity gains that are typical of other sectors. However, with the right investments in technology, training, and process improvement, the industry can overcome these challenges and continue to build the infrastructure that our society relies on.
Maybe you didn't notice. But if the above doesn't sound like me and my writing, it's because today's blog post is brought to you by ChatGPT (AI). The prompt I used was, "write a short blog post about why construction productivity lags other sectors of the economy."
On some level, it's unsettling that AI can now, almost instantaneously, spit out a blog post like this. It would now be pretty easy to set up a daily blog, like this one here, and use ChatGPT to populate it each day.
But of course, while that might be interesting initially, it would quickly become a banal baseline. Anyone and everyone could copy what you're doing. AI is going to change a lot. But our jobs remain the same: find new ways to create value and be remarkable.


Koto Design, which I have written about before on the blog, has just announced both a partnership with Plant Prefab and two new home designs. Koto is based in the UK and is a designer of small and energy neutral homes and cabins. Plant Prefab is based in the US and is, according to Koto, the first prefabrication company entirely dedicated to sustainable building practices. This partnership -- called Koto LivingHomes -- now means that Koto's designs are available for delivery in the US.
The smaller of the two new designs is the Yksi House. It consists of two stacked volumes (pictured above) and is about 1,000 square feet. The ground floor has two bedrooms and the second floor houses the main living area. This allows the exposed roof areas of the lower volume to serve as outdoor spaces. You also naturally get better views from up top, which is one of the reasons why this configuration is so common across many vernaculars.
If you'd like to play around with the Yksi House in 3D (directly in your browser), you can do that over here. It's a wonderfully simple design. I know that the building industry has been talking about and experimenting with prefabrication for many generations (and it has never stuck), but I can't help but think that as beautiful products like these become far more accessible and affordable, we might finally make it happen.
Image: Koto Design


Johnathon Little (husband) and Zoe Little (wife) recently launched a new housing concept out of the UK called Koto, which is supposedly Finnish for “cozy at home.”
(Before Koto, Johnathon worked for Snohetta in Oslo.)
The goal of the company is to create beautiful, small, and prefabricated houses and cabins that allow people to connect with nature.
It is inspired by the Nordic concept Friluftsliv. The literal translation is “open air living” but, more specifically, it is about the benefits of nature on our mental and personal wellbeing.

Their small cabin has a footprint of 15 square meters and their large cabin has a footprint of 40 square meters. Base prices run from about £33,500 to £63,500. A bathroom is optional.
The most obvious use case for me is that of a bunkie. For more on Koto, check out their website and Instagram.
Photos: Koto