I’m a construction exec who voted for Harris. But I see silver linings for our industry under Trump.


This audio is auto-generated. Please let us know if you have feedback.

Patrick E. Murphy is a former Florida congressman, current CIO at Coastal Construction and CEO of Togal.ai, both headquartered in Miami. Opinions are the author’s own.

As a Democrat and former congressman, I wasn’t thrilled with the outcome of the presidential election. But as a leader in construction, I see real potential in how the Trump administration could support builders and stimulate the economy. 

Some unexpected silver linings are emerging.

Headshot of Patrick Murphy

Patrick E. Murphy

Permission granted by Patrick Murphy

 

For instance, last week’s announcement that Elon Musk and Vivek Ramaswamy will lead a new Department of Government Efficiency could be promising news for an industry riddled with red tape. Their aim to cut bureaucracy and streamline regulatory processes could bring meaningful improvements, especially in speeding up compliance checks and offering grants to help localities invest in technology to fast-track permitting. 

The reality is stark: 81% of developers report delays due to slow permitting approvals, a bottleneck that directly impacts the housing market. If excessive regulations and backlogged permits prevent new construction, we simply cannot address the housing shortage.

With the nation in need of 4.5 million additional homes, it’s time for the building industry and government agencies to innovate and accelerate the path to breaking ground.

Incentivizing new construction

One of the biggest challenges in construction is navigating local and state zoning rules, which are often outdated and no longer serve the needs of the community. Initiatives by leaders like Musk and Ramaswamy could help incentivize local and state governments to update zoning rules and approve more building plans. 

The Trump administration could incentivize cities with funding in exchange for pro-growth policies, such as easing zoning restrictions, permitting taller and more dense buildings, and pushing back against NIMBY opposition.

We’ve seen one example of these policies in action in Florida: The “Live Local Act” allows developers who include affordable apartments in their projects to build more than zoning laws allow. It’s prompting a rush of applications for more density. This successful policy could serve as a model nationally to address the housing crisis.

Add all that up — in concert with more liquidity, growth in crypto and lower corporate taxes — and we could see banks lending more freely to developers, creating new opportunities to address the affordable housing crisis.

A push for innovation

With Musk’s experience in tech, I’m hopeful he will unleash the power of artificial intelligence on government functions that can be completed more quickly and better with technology.

AI could help automate building code, fire and life safety and extensive environmental review approvals, allowing governments and contractors to shorten construction timelines. It could also help spot design issues early, reducing costly rework. Rework costs U.S. firms over $177 billion annually and can account for up to 20% of a project’s total cost. 

I don’t know if we want to live in a world without any AI guardrails, but if Musk takes most of the shackles off, innovation and efficiencies will flourish.

This will also require buy-in from construction companies as well, so the success of any Musk/Ramaswamy initiatives will also depend on their ability to get our notoriously stubborn industry to embrace technology.

Fewer than 4% of U.S. construction companies currently use AI, but it represents the best opportunity for us to address our bottlenecks and unlock faster, more efficient project completions. 

Leadership that understands construction

While Musk has certainly become a controversial figure, he understands the labor shortages, delays and obstacles we face in building major projects. 

His track record with Tesla, Starlink and The Boring Co. demonstrates an understanding for large-scale projects and innovation. I’m hopeful he will push the construction industry to innovate as well, to overcome challenges like talent shortages and jobsite safety.



Source link

Scroll to Top