The construction industry is a vital pillar of the United States economy, contributing significantly to the nation's GDP and employment. In 2023, the industry accounted for 4% of the total GDP, equating to $2.1 trillion. The sector employs 8 million people, making it one of the largest job providers in the country. The industry's impact extends beyond its direct contributions, as it has a multiplier effect on other sectors such as manufacturing, transportation and professional services.
Construction is going through massive change driven by the advance of technology and a changing workforce. The construction industry will need to attract 500,000 additional workers on top of the normal pace of hiring in 2024 to meet the demand for labor, according to a proprietary model developed by Associated Builders and Contractors. The shortage of skilled workers is a problem growing into a crisis. This gap is only expected to grow in coming years as the existing population of skilled construction workers retires.
Pressures in the construction industry
The industry has been slow to adopt new technology as highlighted in a recent report by McKinsey, noting construction is the second slowest industry when it comes to new technology adoption (ahead of agriculture/hunting). This presents enormous opportunity in construction technology. The ability to impact project outcomes is just now colliding with an appetite for change.
In addition to technological advancement, the construction industry is driven by the constant pressure to deliver projects on time and within budget. Clients increasingly demand faster turnarounds and higher quality, pushing contractors to optimize their operations. This drive for increased performance necessitates the adoption of lean construction principles, value engineering and innovative project delivery methods like design-build and integrated project delivery.
Safety remains a critical concern in the construction industry, with the sector consistently ranking among the most dangerous professions. In 2022, the industry recorded 50% of the most violated standards resulting in fatalities in the United States. Accidents and injuries not only lead to human suffering but also result in significant financial losses due to project delays, legal costs and increased insurance premiums. Consequently, construction firms are under immense pressure to prioritize safety and develop robust safety management systems.
St. Louis: A tech innovation hub in the construction sector
St. Louis has emerged as the epicenter of technology innovation in the construction industry. It is home to some of the leading firms in this industry including Clayco, Alberici, McCarthy, PARIC, Korte, Tarlton, Holland and many more. St. Louis-headquartered companies manage over $30 billion of construction projects each year — far above the per-capita average for the country.*
The city's thriving ecosystem of construction technology startups, coupled with a supportive network of investors, academia and industry partners, has fostered an environment conducive to groundbreaking advancements. Companies like Ryvit, a data integration solution for construction software, have chosen St. Louis as their home base, leveraging the city's unique resources and talent pool. As a result, St. Louis is setting the pace for the industry's digital transformation and reshaping the future of construction.
Last month this opportunity was on display at the Technology Conference organized by the Associated General Contractors of Missouri, as dozens of startup companies and hundreds of participants in the construction tech community gathered to share ideas. Whistle Rewards, a presenter at the conference, is a great example of this opportunity as a tech startup in St. Louis that has partnered with many local contractors.
Whistle Rewards offers solutions to top construction concerns
Whistle Rewards has emerged as a game-changing solution, addressing the industry's needs for technology adoption, performance optimization and safety improvement. The platform incentivizes workers to embrace new technologies and adhere to safety protocols through an innovative rewards system. Whistle is replacing gift cards and unwieldy rewards catalogs by gamifying performance and safety. Whistle Rewards creates an engaging and motivating environment that drives positive behaviors and outcomes.
The results speak for themselves. Korte Construction, for example, an early adopter of Whistle Rewards, helped pilot a new integration with Procore (one of the largest software platforms in the industry) resulting in 50% increased safety compliance in less than 30 days. This in turn led to other companies adopting Whistle Rewards that produced even better outcomes, which recently helped Whistle Rewards create a partnership with Procore. Last month the company was awarded the prestigious BuiltWorld’s 2024 Project Software 50 award.
As the construction industry continues to evolve and face new challenges, innovative solutions like Whistle Rewards will be crucial in driving progress and ensuring the sector's continued growth and success. By embracing technology, prioritizing safety and optimizing performance, construction firms can position themselves for long-term success and contribute to the strength and resilience of the United States economy. With St. Louis leading the charge in construction technology innovation, the industry is poised for a bright and transformative future.
Founded in 2021, Whistle Rewards started working with many companies around the U.S. in industries spanning health care to manufacturing to construction. Industrial companies like construction have caused massive growth as Whistle’s unique capabilities are well suited for the distributed workforce and the growing interest in adopting technology that improves job-site safety and productivity. Whistle is fortunate to be founded in St. Louis. This has allowed the company to establish cluster of general contractors, subcontractors and suppliers creating the critical mass to address the nationwide industry.
Whistle is excited to be part of the growing construction tech industry in St. Louis and honored by the recent recognition by Arch Grants, announced as one of the first startups in its new Fellows program.
*According to data from Whistle Systems
