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.

Here is a good follow-up to yesterday’s post about Ian Schrager and Edition Hotels. It’s a short post by Seth Godin that I’m going to reblog here in full:

The gulf between “risky” and “feels risky” is huge. And it’s getting bigger.

It turns out that value creation lives in this gap. The things that most people won’t do (because it feels risky) that are in fact not risky at all.

If your compass for forward motion involves avoiding things that feel risky, it pays to get significantly better informed about what actually is risky.

I like this distinction, a lot.

I’m traveling for work right now, which is why you may be noticing shorter than usual posts. But stay tuned because I’ll be making a big announcement later this week on the blog.

Marketing guru Seth Godin recently published this value triangle on his blog:

No matter what business you’re in, it’s worth giving some thought to this. What do you offer?

At the bottom of the triangle is function. A hotel room functions as a place to sleep. A smartphone functions as a device to make calls, send text messages, and download some apps. A condominium functions as a place to live, eat, sleep, have sex, and so on. But all functions being equal, most of us will buy whatever product is the cheapest.

That is until there’s an emotional connection. I love the way Seth frames it: “Where do people like me do things like this?” It is about defining who you are. Am I the kind of person who buys A or am I the kind of person who buys B? If I care deeply about the environment and B promises to respect that, I am likely to buy B.

But then, moving even further up the triangle, if two items offer the same function and the same emotional connection, many of us will go for the one that appears sexier, shinier (the new iPhone 7 is very shiny), and more stylish. It just deepens the connection.

Finally, at the very top of the triangle is now. This is about scarcity. What’s hot right now? Think of that new restaurant that just opened downtown that you haven’t been able to get a table at. It’s now and you want to Instagram the food so badly so that you can show everyone you were there. You want to be now.

The point of all of this is that we consume things for reasons that go well beyond simple function. That’s just the start of it all. One could argue that all of this is simply smoke and mirrors, but that’s a topic for another blog post. This is our reality.

To relate this topic back to architecture and real estate, I am curious how many of you have made a housing decision that you believe went beyond function. How much of it was based on connection and style?

Not surprisingly, for me, architecture and design matter a great deal.

Earlier this summer I was driving around the city with my father and he was pointing out to me all of the new build single family homes that were sprouting up. He then asked me what I thought of them. I responded: “They’re shit.”

What I was really saying with that glib remark was that those homes – no matter how expensive – didn’t reflect my own belief system about the world. Sure they served their function, but they didn’t offer the connection and style that “people like me” like to praise. To borrow once again from Seth: we are all part of a certain tribe.

What tribe do you belong to? And does your housing choice reflect that?