There is an enormous supply-demand imbalance in the construction industry.
In fiscal 2022, US construction spending surpassed $1.8 trillion, with global expenditures exceeding $13 trillion. But the demand far exceeded the ability of the industry to deliver. The global construction industry has been estimated to be undersized by $4 trillion to $6 trillion annually due to the inability of the supply of construction to meet the demand.
According to the American Institute of Architects, construction is the only non-farm industry that has gotten less productive over the past 50 years. Despite the increase of technological advancement in every other facet of our lives, the construction industry has worked more or less the same for decades, and it’s only falling further and further behind.
Computer-Aided Design (CAD) and computer engineering of buildings with Building Information Modeling (BIM) have advanced construction design technology to the cutting edge. But the actual construction and implementation of those detailed digital plans still use almost archaic analog methods.
While the construction industry continues to grow, the inventory of available homes for sale has slowed over the past decade. The aftermath of the 2008 housing crisis created an “underbuilding gap.” The National Association of Realtors says there is a need for 5.5 to 6.8 million additional housing units across the country. Construction slowdowns caused by the COVID-19 pandemic accelerated this housing shortage. The shortage of skilled construction workers further exacerbated the lack of supply.
As the baby boomers are aging out of the workforce, not enough young people are entering the construction industry to replace them. Not enough workers are available for all new construction projects coming online. This shortage threatens the economy, according to the New York Times:
Vandrax Technologies is addressing this supply / demand imbalance with our proprietary BIM implementation which makes a “digital twin” of the building in a 3D model. This 3D model is then coordinated by our BIM specialists and a sophisticated AI algorithm to be broken up into the fastest and most easily installable material combinations. Our other innovations include: the Vandrax Earthveyor for faster excavation; the XR Robot for automated installation on site, Vandrax Prebar pre-fabricated rebar components, and Vandrax Tiltforms for faster concrete installation. Together these innovations combine to form the Vandrax Construction System.