50% Tarrifs are about to break construction - And That's Only The Beginning

In this episode of Bricks, Bucks & Bytes, our hosts dive deep into the chaos reshaping the construction industry and startup world. 

What we cover:

• The shocking 50% steel and aluminum tariffs that just doubled construction costs overnight

• Why rebar prices have exploded 26% and added $14,000 to every home

• How 68% of builders are now facing project delays due to supplier chaos

• The brutal truth about why VCs pushing "996" work culture are dead wrong

• ChatGPT's bombshell announcement that just killed $250M worth of AI startups

• Why construction tech companies are becoming consultancies (and if that's good or bad)

• The real reason behind tariffs that nobody talks about

• Forward deployed engineers - the new trend taking over AEC tech

• Why some founders are burning out while others thrive

"VCs pushing 9 to 6 are idiots. Most founders have no liquid capital and are actually struggling to make ends meet. You need to do whatever makes you most effective because it's not about hours you work, it's about output." - Dustin

From supply chain disasters to startup strategies, this episode unpacks the macro forces reshaping how we build - and who survives the chaos.

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Sponsors:

BuildVision - streamlining the construction supply chain with a unified platform - www.buildvision.io

4M Analytics - Instant, reliable utility data you can trust and verify - https://www.4manalytics.com/

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Chpaters

00:00 Introduction and Current Events

04:45 Impact of New Tariffs on Construction

07:48 Economic Implications of Tariffs

10:55 Labor Market Dynamics in Construction

13:52 Challenges in Project Management

16:57 Future of Construction Projects

19:52 Immigration and Labor Supply

22:51 Market Reactions and Predictions

25:47 Conclusion and Future Outlook

31:58 Infrastructure Investment and Economic Resilience

33:43 Restoration Business Dynamics

34:53 Market Optimism and Economic Trends

39:48 Technology in AEC: Forward Deployed Engineering

52:11 Software Stack Consolidation and Customization

58:09 Partnerships in Technology Solutions

01:05:24 The 996 Work Culture Debate

01:08:10 Personal Work Routines and Mental Health

01:11:01 Decision-Making in Business

01:16:24 The Role of Bias in Decision-Making

01:21:02 Expertise and Learning in Business

01:26:01 Hiring and Team Dynamics

01:31:27 The Future of AI Note-Taking

A $450 million AI startup just went bankrupt after lying about their revenue - and this might be just the beginning of the AI apocalypse.

In this episode of Bricks, Bucks & Bytes, Owen, Martin, Dustin, and Patrick dive deep into the shocking collapse of Builder AI and what it reveals about the entire AI industry. From fraudulent revenue claims to human workers disguised as AI, this cautionary tale exposes the dark side of Silicon Valley's latest obsession.

Key topics discussed:

• Builder AI's spectacular $450M bankruptcy and 25% revenue overstatement

• Why 90-95% of AI companies are headed for failure according to VCs

• OpenAI's questionable $6.5 billion acquisition of Johnny Ive's design firm

• How construction companies are getting fed up with AI promises

• The deadly mistakes founders make with venture debt

• Why hiring "missionaries" beats "mercenaries" every time

• The real cost of delayed hiring decisions on cash burn

• Why Ivy League credentials might actually hurt you in construction tech

• The truth about TAM calculations and industry sizing myths

"I talked to a VC yesterday, and we were guesstimating... 90% to 95% of AI companies are just going to go to zero." - Dustin DeVan

Tune in for unfiltered insights on AI hype, hiring secrets, and what really matters in construction tech.

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Chapters

00:00 Intro

01:13 Welcome Back and Conference Insights

04:12 AI in the AEC Industry: Challenges and Opportunities

07:11 Builder AI: A Case Study in Failure

10:15 The Impact of AI on Communication and Critical Thinking

13:21 Navigating Debt and Financial Stability in Startups

16:21 The Future of Software in Construction

19:08 The Role of Communication in a Tech-Driven World

33:39 Navigating Venture Debt and Equity Financing

39:18 Understanding Annual Recurring Revenue (ARR) and Its Implications

47:16 The AI Hype: Reality vs. Expectations

53:18 Evaluating the Impact of Emerging Technologies

01:05:30 The Role of Data in AI Development

01:12:23 The Future of AI and Its Limitations

01:18:19 Hiring Strategies in the AEC Tech World

01:21:59 Understanding Talent Acquisition and Onboarding

01:31:33 The Impact of Backgrounds on Hiring Success

01:38:54 Assessing the True TAM of the Construction Industry

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Sponsors:

BuildVision - streamlining the construction supply chain with a unified platform - www.buildvision.io

4M Analytics - Instant, reliable utility data you can trust and verify - https://www.4manalytics.com/

"Data centers might be overbuilding. When industries overshoot, they always crash back to reality." - Dustin DeVan on our latest episode

In today's episode of Bricks, Bucks and Bytes, we got to learn about the $500B "Stargate" project between OpenAI, SoftBank, and Oracle that's having trouble finding backers as data center costs rise.

We got to hear why Autodesk's God-themed ad campaign shows they don't understand their construction customers, despite having amazing 91% profit margins.

Also, we heard TestFit CEO Clifton Harness explain how their tools cut dirt costs from 30% to 20% on industrial projects through better site grading.

Tune in to find out about:

✅ Why smart capital is hesitant to invest in data center construction right now

✅ How Y Combinator takes 7% equity while giving little value to founders

✅ Why Safe Notes are becoming unpopular with serious investors

✅ The real reason construction permits are harder to get in the US vs Europe

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Timestamps

00:00:00 Intro

00:01:07 Introduction and Event Season Insights

00:04:09 Data Center Construction: Boom or Bust?

00:07:11 Stargate Project and AI Infrastructure Challenges

00:10:03 Market Dynamics and Overcapacity Concerns

00:12:59 Energy Consumption and Utility Challenges

00:16:07 Investment Hesitations in Data Center Technologies

00:19:04 Marketing Strategies and Autodesk's Controversial Campaign

00:40:42 Distraction Tactics in Business

00:42:05 Stock Valuations and Market Strategies

00:43:06 Analyzing Autodesk's Financial Performance

00:50:10 The Role of Boards in Corporate Governance

00:52:07 Civil Engineering Innovations and Controversies

00:59:11 Sales Strategies and Company Growth

01:08:47 Introduction to Bricks and Bytes

01:09:07 Understanding Market Segmentation

01:10:01 Debating Y Combinator's Impact

01:11:05 The Value of Mentorship in Startups

01:13:16 Critique of SAFE Notes

01:14:57 The Complexity of Infrastructure Costs

01:22:08 Comparing Planning Systems: Anglosphere vs Europe

"We got in trouble with our own partners for investing in technology that disrupted OUR business. Some were actually 'pissed' because it threatened our design revenue."

In today's episode of Bricks & Bytes, we had Robert Ioanna, Executive Principal of Syska Hennessy Group, sharing his innovative approach to construction tech investment and internal R&D.

Tune in to find out about:

✅ Their three-pronged innovation approach: external investments, internal R&D, and corporate ideation

✅ How they gamify innovation with an internal point system that engages 20% of their firm

✅ Why he believes MEP industry disruption will work backwards (from shop drawings to concept)

✅ The challenge of AI adoption in a code-driven, legally-rigid industry with PE stamp requirements

Listen now on Spotify to learn how this 700-person MEP firm is disrupting itself from within rather than waiting for outsiders to do it first.

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Chapters

00:00 Intro

02:52 Introduction to Cisco Hennessey and Roles

05:17 The Three-Pronged Approach to Innovation

09:03 Cisco Innovations: Internal Incubator or CVC?

11:41 Competitive Edge in the MEP Industry

12:05 Innovation Frameworks and Inspirations

17:06 Current Technologies in MEP Design

21:11 Measuring Innovation Success

22:15 Challenges in the MEP Space

35:10 Pain Points in MEP Design Consulting

38:57 The Future of AI in AEC

41:57 Navigating AI's Impact on MEP Engineering

45:15 Challenges in AI Adoption for Complex Projects

47:01 Understanding Market Dynamics in Construction Tech

55:20 The Evolution of Engineering Rates and Value

58:08 Lessons Learned from Tech Investments

01:00:17 Investor Perspectives on AEC Tech

01:04:31 Fostering Creativity in Innovation

01:09:22 Introducing DigiDux: A New Tool for Engineers

EXPOSED: How China is Building Nuclear Power for 90% Less While the West Falls Behind

"Every level that you move up the construction chain, you're saving 50 bips of interest. From capital provider to owner to GC to sub to supplier to manufacturer rep - seven, eight steps, 4%. That's why a million-dollar generator costs owners $1.7 million." - Mike Powers, BuildVision

In this episode of Bricks, Bucks & Bytes, our hosts dive into why China can build nuclear reactors at a fraction of Western costs while the US and Europe struggle with massive delays and budget overruns.

Key topics include:

• Why China can build nuclear reactors for $2.7B while Western projects balloon to $40B+

• The efficiency secrets behind China's massive infrastructure projects

• Small Modular Reactors (SMRs) as a potential solution to nuclear's problems

• Germany's trillion-dollar infrastructure investment plan

• How robotics is revolutionizing solar panel installation

• Why industry events might be useful for startups but painful for everyone else

"Nuclear is a cash machine when you operate it, but it ruins you when you build it, when you have to maintain it, when you have to repair it, and it completely ruins you once you have to decommission it." - Patric

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Chapters:

00:00 Introduction to Nuclear Energy and Global Context

06:06 Cost Disparities in Nuclear Energy Projects

12:02 China's Nuclear Ambitions and Infrastructure Efficiency

19:54 Understanding the Economics of Nuclear Energy

31:46 The Future of Small Modular Reactors (SMRs)

36:31 Energy Independence and Nuclear Power

39:44 Germany's Political Landscape and Infrastructure Spending

48:55 AI in Construction: Ownership of Workflows

54:23 Streamlining Construction Financing and Working Capital

01:08:52 Market Dynamics and Demand Aggregation

01:10:46 Introduction of James Emerick and Cosmic Robotics

01:11:52 Innovations in Construction Robotics

01:14:42 Expanding Robotics Applications Beyond Solar

01:18:05 Global Competition in Robotics and Solar Installation

01:19:50 Future Projections for Solar Demand

01:21:24 Business Models in Robotics

01:23:10 Path to Becoming a Robotics Engineer

01:24:20 The Role of Events in Networking and Business

01:31:52 Event Experiences and Startup Strategies

Is Construction Headed for a Slowdown, or a Full-Blown Crash?
This week on Bricks, Bucks & Bytes, things get spicy.

We dig into the 0.3% drop in US GDP—and why it might just be the beginning for the construction sector. But tariffs and rate hikes are only half the story. The real drama? AI hype cycles, Autodesk vs. Procore, and why most “AI for construction” startups are just faucets with no bathtub.

Inside this episode:

• Why the US economy is wobbling—and how it's already hitting construction
• The real reason projects are stalling (hint: it’s not just input costs)
• The “bathtub vs. faucet” theory of AI—and how it exposes weak GTM strategies
• Autodesk: overpriced legacy? Or sleeping giant ready to crush Procore?
• The top 20 construction tech failures—modular startups dominate the list

Plus:

• What BuildingConnected could have become (and why Autodesk isn’t using it)
• Why not having pricing certainty is killing deals
• The Katerra excuse that made everyone on the show wince

Key Quote:
"You're not solving the problem. You're just identifying the problem for someone else to win." - Dustin DeVan

If you’re in AEC and want to see the next wave coming before it hits... this one’s required listening.

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Chapters

00:00 Intro

01:35 Introduction and Welcome

02:43 US Economy Contraction and Recession Concerns

08:38 Impact of Tariffs on Construction Costs

13:37 Short-term vs Long-term Economic Perspectives

19:40 Global Supply Chain and Trade Dynamics

25:34 AI's Role in Construction and Economic Resilience

31:35 Business Strategies in a Volatile Market

38:25 Innovative Content Formats in AI and Supply Chains

40:06 The Role of AI in Construction Economics

42:57 AI as a Commodity: The Bathtub Metaphor

49:26 Disrupting the Authoring Space: Challenges and Opportunities

56:44 Investing in Autodesk: A Critical Analysis

01:11:11 Procore's Challenges and Market Dynamics

01:13:44 Marketing Strategies in Construction Tech

01:15:55 Potential Disruptors: Google and Microsoft

01:20:15 Mergers and Acquisitions in Construction Tech

01:21:47 Top Construction Tech Failures: A Game

01:27:00 Lessons from Construction Tech Failures

"Venture capital in PropTech increased 82X from $200M to $15B in just 15 years - but is VC money right for construction tech founders right now?"

In today's episode of Bricks, Bucks and Bytes, we got to learn about J.P. Bowgen's journey from AlphaSites to Macy's corporate innovation team to becoming a partner at Camber Creek.

We got to learn about how Camber Creek de-risks investments by testing startups with their 300+ real estate and construction LP network before investing.

Also, we learned about J.P.'s hot take that PropTech and ConTech might not actually be mature enough for venture capital money right now - with only 1 in 4 companies spending more than 1% of revenue on digitization.

Tune in to find out about:

✅ How Camber Creek operates as an "outsourced R&D department" for real estate companies 

✅ Why construction tech is 5-7 years behind PropTech but might soon leapfrog it

✅ The shift in ConTech companies selling upstream to owners instead of just GCs

✅ The importance of personal brand building for VCs

Listen now on Spotify to hear the full conversation with J.P. Bowgen.

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Chapters

00:00 Introduction and Personal Updates

01:10 Journey into Venture Capital

05:30 Transition from Macy's to Camber Creek

14:51 Establishing a Presence in Europe

16:23 Camber Creek's Investment Thesis and Origins

18:29 The Digital Transformation of Real Estate

19:55 De-risking Investments through Strategic Engagement

21:21 The Role of Strategic Investors in Venture Capital

23:41 Navigating the Landscape of Venture Capital

26:26 The Importance of Media in Deal Flow

30:29 Building a Personal Brand in Venture Capital

33:41 Opportunistic Investing in PropTech and Construction Tech

37:30 The Shift in Technology Adoption in Construction

39:36 Debunking Misconceptions about Venture Capital

"Windows and doors constitute about 8% of a home's value, but the ratio actually skews upward as the value of the home goes up." - A fascinating insight into why this category commands such high margins globally.

In today's episode of Bricks, Bucks and Bytes, we got to learn about Green Fortune's $4.5M funding from Fundamental, bringing cloud manufacturing to the windows and doors industry in India.

We got to learn about India's evolving investment landscape, with Western funds increasingly launching India-specific strategies rather than treating it as just another "emerging market."

Also, we learnt about the "Dolphin Founder" philosophy that investors value - founders who "come up for air" by proving EBITDA profitability before a funding round.

Tune in to find out about:

✅ Why windows are one of the most touched points in your home and critical to energy efficiency

✅ How Green Fortune is filling the "missing middle" between luxury and substandard options

✅ Why building materials companies perform exceptionally well in Indian public markets

✅ The upcoming IPOs of construction tech companies in India for 2025

Listen to the full episode on Spotify to hear more insights on construction tech investments across global markets.

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Chapters

00:00 Introduction and Guest Welcome

01:39 Investment in Green Fortune: Overview and Rationale

06:30 Cloud Manufacturing in the Building Materials Sector

10:04 Market Dynamics: Customization and Standardization in India

13:21 The Importance of Windows in Construction

15:06 Green Fortune's Unique Selling Proposition

18:58 Utilization of Investment Funds

26:38 Business Model and Revenue Generation

26:44 Exploring Green Fortune's Sales Channels

29:01 Profitability and Business Model Insights

31:19 Innovations in Manufacturing and Supply Chain

34:01 Investment Landscape in India

39:45 Challenges and Opportunities for Startups

46:55 The IPO Market in India

"The US VC market is the worst performing of all VC markets across the world in terms of financial performance." 

In today's episode of Bricks, Bucks and Bytes, we got to learn about BuildOps securing $127 million in Series C funding and achieving unicorn status with a $1B valuation.

We also explored the structural differences between US and European contractor software markets, where European contractors are typically smaller and 5-10 years behind in software adoption compared to their US counterparts.

Additionally, we gained insight into how fund size impacts investment strategy, with smaller VC funds avoiding obvious competitive spaces that larger funds eagerly pursue.

Tune in to find out about:

✅ Why BuildOps and Service Titan succeed with modular software for contractors

✅ How SaaS business models justify higher valuations than traditional services

✅ Why European construction software is following a roll-up strategy

✅ The difference between investing in "the business" versus "the share price"

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Chapters

00:00 Introduction and Recent Developments

04:50 BuildOps: A New Unicorn in Construction Tech

19:06 Comparing BuildOps and ServiceTitan

27:49 Valuation Insights and Market Dynamics

"Is it possible to get from concept to fully constructible building designs in hours? "

In today's episode of Bricks, Bucks and Bytes, we got to learn about Augmenta's $10 million seed funding for their AI-powered design platform that aims to automate electrical designs for buildings.

We also learned about the ongoing debate between automated design platforms versus improved authoring tools, and which approach might ultimately capture more value in the MEP/S design space.

Patric shared his investor's perspective that data infrastructure, authoring tools, and systems of record may be better investment targets than pure AI solutions, as they're likely to embed AI capabilities and control workflows long-term.

Tune in to find out about:

✅ The challenge of creating "fully constructible" designs through automation

✅ Why minimum feature sets in building design software are exceptionally high

✅ The reality that vectorial AI systems will always need human refinement

✅ How the MEP design workflow might evolve with AI assistance

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Chapters

00:00 Intro

03:40 Augmenta's Seed Funding and Automation in Design

07:02 Challenges of Constructible Designs

11:35 The Importance of Minimum Feature Sets

15:01 Marketing vs. Reality in Construction Tech

18:19 Competition in the Automation Space

20:16 Navigating the Complexities of MEP Design

24:11 The Future of Automated Building Design

30:11 The Role of AI in Design Automation

34:26 The Intersection of Authoring Tools and Automation

39:00 The Evolving Landscape of AI in Construction