Katerra Promises to Boost Housing Productivity More Than 80%
Thursday, June 28, 2018
By Jennifer Castenson
Many companies and industries are using technology to disrupt age-old products and services. Amazon recreated the commerce of books. Netflix, movies; Uber, ridesharing; Napster, Apple iTunes, Pandora, all converted music; and Keurig changed coffee.
These are all examples that John Murphy, senior consultant at FMI Corporation uses to convey true industry disruption, because these companies provided more than 10 times improvements in cost, quality, function, awareness, and/or availability by using technology.
Murphy has his sights on how Katerra is using that same disruptive mentality to change the housing industry. “(Katerra is) leveraging improvements made in manufacturing and applying them to the construction industry,” he says.
Katerra Promises to Cut Inefficiency by More Than 80%
Katerrra is banking on experience from other industries to bring new perspective, and to put the right people in the right place. The company’s efforts are bringing jaw-dropping efficiencies to the entire design and development process.
For instance, Trevor Schick, president of Katerra Materials, points out that the number one cost on a building is waste, adding up to 15% of the project. Katerra’s technology and innovative processes are able to cut it down to about 2 to 3%, eliminating the money waste due to inefficiency. Katerra has been the beneficiary of some massive fund-raising campaigns, now upwards of $865 million.
“Although AI and its impact on design, robotics, and 3D printing are all interesting, I believe the most exciting aspect is the attraction of new money that will fund the convergence and holistic application of all technology to the industry,” Murphy says.