From IT to Construction
Our guest today, Moritz Lönhoff, studied civil engineering and is self-employed in his own engineering office. He is primarily concerned with the dynamics of structures; that is, the seismic resistance. He also has his own podcast, where he talks about innovations and especially start-ups in the construction industry.
He tells us that after graduating from high school, he studied computer science for four semesters before switching to civil engineering. He simply lacked the hands-on experience, and, at any rate, the construction business just runs in the family. He is particularly fascinated by the fact that you can always create something new with a lot of variety.
Passion for Start-ups
Moritz has his own podcast, "Build-up", inspired by "StartUp", but in the field of construction. He tells us that this idea came up while he was a student. Even back then, the construction industry got on his nerves a little. As a technology enthusiast, he was fascinated by innovations from an early age and – as we know – there is not much of that in the construction industry.
Therefore, he dealt a lot with start-ups, especially during his doctorate. Since most engineering companies tend to work conservatively, the decision was quickly made: He would set up his own office where he could work using the latest tools and methods. But the passion for start-ups remained.
- "I had absolutely no idea about the start-up culture in the construction industry. Is there such a thing at all?"
It is more familiar from the technology sector: new apps, helpful software tools. But start-ups in the construction industry from the hands of engineers? There are hardly any. In the construction industry, start-ups tend to focus more on software. Moritz tells us that most start-ups in the construction industry can be found in the fields of construction site documentation and organization, with new apps and new software. When it comes to new construction processes or construction products, however, there is little to nothing.
There was no real platform for start-up innovations from the construction industry, so Moritz decided to create a podcast for it. And where is the best place to find contacts with start-ups? On LinkedIn. Searching for podcast guests was relatively easy and straightforward. The first participants agreed quite quickly and were happy to pass on contacts – the advantages of a B2B network.
Obstacles for Start-ups in Construction
But why are there so few, if any, start-ups in the construction industry, particularly in the field of construction products or practical processes? Moritz raises some considerations for this.
In other areas, such as the technology industry, start-ups are relatively easy to implement. If a new app is to be developed, two or three people may find themselves together with relatively little capital. You need a programmer, or you can even do it yourself.
In the case of a new construction product, for example, this is all much more difficult. First of all, such a project requires significantly more financial resources, especially in terms of development. But testing and final approval is a very long, complicated process in the construction. Money, time, and bureaucracy thus play a very important role, especially for a start-up in the construction industry. Only a few can really cope with that.
Formation of Start-ups in Construction
Of course, we wonder how start-ups in the construction industry come about when there are so many hurdles to overcome. Here, Moritz explains that, based on his experience, most start-up founders are involved in the construction industry. But not as an engineer; as an electrical engineer, for example.
Many people think that the processes on the construction site are not running smoothly or they have ideas for improvements, so they implement them. In addition to their actual work, they tinker with solutions to problems that they encounter in their everyday work. In this way, an app or software is initially developed for their company, for example.
At some point, they realize that other companies are probably struggling with the same problems. There is no general solution yet, so the decision is made to generalize your own app or software and make it available to others. This is how start-ups are usually created in the construction industry.
This is what Moritz noticed in particular when talking to his guests: There are hardly any investors like you know from the start-up scene. Why?
- "They saw in their work that there is a problem that still has no solution. So they developed a solution for it."
As a result, you probably already had customers during development, because it was finally clear: there is definitely a need for it. Here, you do not start from an idea for a product and then search for the need via studies, but vice versa. Investors are rarely necessary at all.
Start-ups as Future of Construction
Now, the question arises, of course, whether start-ups in the construction industry have a future. Moritz goes one step further:
- "Are start-ups the future? Definitely!"
After all, real innovations tend to come from smaller start-ups rather than large, established companies. This is the case in most industries, and the construction industry is no exception. Unfortunately, the construction industry is very conservative in this regard. Simply bringing a new construction product to market that could replace conventional, established reinforced concrete would be almost unthinkable. There is still a long way to go for us and, of course, for innovative solutions that still fail due to lack of development and standards.
Moritz sees great potentiality in AI and big data. In all industries, great innovations happen where large amounts of information converge. This is difficult in the construction industry. Every civil engineer and company collects data for themselves, but there is often no exchange.
Can you dare to build a structure like this? Perhaps another office has tried and failed, but has gathered helpful information that could be developed further. Maybe even together.
However, since knowledge is usually not shared this way, we cannot learn from the mistakes of others. Anyway, that is precisely what would move us forward much faster. This is where Moritz talks about the great potential of AI of possible apps or construction documentation that could help with just such things.
He mentions, in particular, the possibilities of AI-controlled construction documentation. This could make it much easier for everyone involved to work together on the construction site. He gives us a simple example:
- "A mistake comes up and then – who is to blame?"
Something like this has often led to problems on a construction site. With detailed AI-controlled construction documentation, such questions do not arise in the first place. It is precisely documented who does what and when, and thus the question of culpability answers itself. He also thinks that robotics and automation as well as modular design are very interesting for the future, and in the end, sustainability is also an issue, of course.
Due to the Coronavirus crisis, digitization has also found its way more or less inevitably into the construction industry. This sets the course for the future. We are excited to see what innovations the construction industry can expect in the future. Start-ups will certainly not have a small share in this.
Moritz, what is your favorite building?
At the end of our episode, we also ask Moritz our mandatory final question: What is your favorite structure? He tells us that he and his family have always visited interesting monuments on vacation. After all, they have construction in their genes. He was particularly impressed by the Sagrada Familia Cathedral in Barcelona.
Today, even with a structural analysis program, nobody would dare to build something like this again. A very complicated structure, but all the more beautiful. Thank you for visiting us!
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