As Best Supply has published insights about new construction technologies over the past few years, it’s been hard to overlook that many of these innovations are being adopted more quickly overseas than in the United States.
From 3D-printed structures to sustainable new materials to construction robotics, the best examples of new technology in action usually seem to come from Europe, Asia and even Australia.
Meanwhile, American contractors—especially small and mid-sized firms—are still largely working with familiar stick-built methods and labor-intensive site practices.
It’s not that the United States is lacking in innovation; it’s a global leader in software for the construction industry, and many promising construction technologies are being developed by – or at least in partnership with – U.S.-based companies. So what’s going on?
6 Reasons For Lagging Tech Adoption
Here are six systemic reasons for America’s slower adoption of advanced materials and technologies:
Fragmented industry structure: The U.S. market is dominated by small and mid-sized firms. As of March 2025, according to the U.S. Bureau of Labor Statistics, 82.6% of the nation’s construction businesses had fewer than 10 employees, while only 1.1% had 100 employees or more. Unlike state-backed or vertically integrated builders overseas, most American companies don’t have the capital to pilot unproven technologies, or the leverage to specify them in projects.
Regulatory environment: Building codes vary from state to state and city to city. A method approved in one jurisdiction may face rejection or long bureaucratic delays in another.
Labor dynamics: Robotic technologies – even those like heavy-lift assist devices, which work alongside humans – are frequently viewed as a threat to jobs. In places like Japan or Australia, severe labor shortages have forced rapid adoption of construction robotics. While the U.S. construction industry also faces a chronic labor shortage, the capital cost to implement construction robotics is often out of reach for the largest percentage of construction businesses.
Meanwhile, less expensive technologies are, in fact, being quickly accepted here. They include drones for site surveys and safety inspections, wearables to monitor worker health and safety, robotic layout tools that speed up floor marking and – increasingly – the use of prefabricated wall panels and ready-to-install mechanical, electrical and plumbing (MEP) systems.
Conservative financing practices: Banks, insurers and project owners are wary of resale value, warranty concerns and the potential long-term cost of untested systems. As a result, project planners who do try to specify innovative new materials, systems or construction methods may have a harder time putting together financial packages.
Cultural expectations: U.S. buyers still prefer traditional stick-built homes, while overseas consumers are more receptive to modular or prefabricated designs, according to multiple sources. In a 2025 report, James Schmitz Jr., senior research economist at the Federal Reserve Bank of Minneapolis, acknowledges the stigma and zoning codes hostile to manufactured homes of all kinds, saying, “We will never, ever have affordable housing unless we have factory production—and at a big level.”
Limited policy incentives: Overseas governments require the use of certain new technologies. As an example, Building Information Modeling (BIM), a software-driven approach to minimizing costs on large projects, is mandated for public construction projects in Denmark, Norway, the United Kingdom and Italy, to name a few, according to BIMObject global construction marketplace.
This and other mandates, such as carbon reduction, put pressure on builders and project planners to innovate—just as U.S. emission and mileage standards for the auto industry have driven innovation among carmakers. In the construction field, the federal government has largely resisted such broad mandates, but the logjam is starting to break; the General Services Administration, Department of Defense and U.S. Army Corps of Engineers all have directives to use BIM in certain kinds of projects as a way to manage costs.
As contractors acquire BIM capabilities to meet these mandates, they will also inevitably begin getting their smaller subcontractors involved and applying BIM to commercial projects.
Are We Near a Tipping Point?
Construction productivity in the U.S. has lagged behind other industries for decades. McKinsey & Co. has reported that global construction labor productivity has grown just 1% annually for 20 years, compared to 3-4% in manufacturing. In countries where robotics, modular methods and advanced materials are embraced, projects often finish faster, with less waste and fewer labor hours.
But the domestic construction industry’s labor shortage – an estimated 439,000 net new workers in 2025 – is only expected to get worse, notes the Associated Building Contractors trade group, and that may eventually force the issue of technology adoption.
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