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Archive for August 5th, 2022

Specialty contractors become virtual makers

Friday, August 5th, 2022

Today, specialty contractors capture value only after they have installed the physical product. This arrangement subjects these subcontractors to the same potential financial sinkholes around budget and timeline faced by general contractors.

With the adoption of productization, specialty contractors will see their business model evolve as they embrace new roles and revenue streams by shifting to so-called “virtual makers.” Virtual makers contribute to the virtual twin by applying trade-specific knowhow in the upstream design and simulation phases. They collaborate on a single model of a construction project in a virtual environment along with fellow specialty and general contractors — and are compensated accordingly for their time, expertise and continuous access to their virtual creations and intellectual property.

It’s important to note that as the productization transformation unfolds, specialty contractors have the opportunity to continue to offer existing trade-based services at the off-site manufacturing and assembly phases. The newfound virtual maker role will be a second function to perform as industry-wide change progresses in the coming years. Over time, the physical installation work will take a backseat to the virtual work.

Virtual makers are positioned to collaborate more strategically with owners and GCs and to contribute to a more successful construction outcome. An experiencebased understanding of trades is incredibly valuable and contractors can be compensated proportionately for contributing this knowledge upstream. With the rules of a trade virtualized and integrated into a virtual twin of construction, specialized skills can scale.
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