Europe’s housing crisis is intensifying. High building costs, tight regulation, and labour shortages are choking the supply of affordable housing. The gap between supply and the demand of housing is increasing as cities grow with new arrivals, and construction workers retire in masse.
There have been endless solutions proposed. With mixed results, mass housing projects, re-working the planning system, modular building, prefabricated materials, rent control, and restrictions on corporate home acquisitions have all been explored. But the shortage of affordable homes has only increased.
He tells TNW that “it’s obvious” that we need to use some form of automation and robots to solve the problems. “There is almost no way around it.”
Al Khafaji, who will be speaking at the TNW Conference in Amsterdam on June 19-20, will share his tips for building a successful robotics business. He outlined his vision for the future of construction before his talk.
The reason why construction has stagnated.
Al Khafaji founded a visualisation startup, Silk, before launching Monumental 2021. When Silk was purchased by US analytics giant Palantir (19459046)
He began to think about his next venturein 2016. His plan was to focus his efforts on a major challenge facing the world.
He says, “I wanted solve a serious social problem.” “I became obsessed with infrastructure and construction.”
Al Khafaji, who was shocked to see the lack of technological progress in this industry. As a result, the built environment in which we live and work, as well as play, had been severely limited. His attention was drawn to a major problem: the collapse of productivity in construction.
He feared that labour shortages, strict regulations and high costs were aggravating the housing crisis. New developments were becoming astronomically expensive and painfully slow. They often lead to unpopular buildings.
Comparisons from the past are not flattering. The Empire State Building was completed in 1931, after only 410 days. In 1984, 432 Park Avenue was completed in 1,500 days. It became infamous because of leaks, malfunctions and a divisive style.
This problem goes beyond landmark buildings. Construction of standard houses has also slowed down. The average time to build a single family house has increased from 4.8 months, the earliest data year, to seven months today. Even after adjusting for the increase in the average size of the house, the process still takes longer today.
The cost of longer projects is also higher, with the majority of it being labour.
Al Khafaji says, “It is very labour intensive because we have barely automated anything.” His attempt to change the status quo is monumental.
Tackle the housing crisis.
Al Khafaji and SebastiaanVisser, the company’s CTO, founded Monumental in the year 2021.
The big idea was to automate on-site construction using robotics and software. They started by building a robotic crane prototype, which evolved into autonomous vehicles that transport building materials around construction sites.
Initially, the first system to leave the production line was a bricklaying system. It was a logical start.
Bricklaying requires a high level of skill, but is also physically demanding and dangerous. The workforce is rapidly shrinking. In 2022
Researchers found that bricklayers were in short supply in 19 European countries, making it the occupation with the greatest labour shortage. Construction projects are delayed and costlier as a result.
As the profession struggles to attract young talent the shortage of workers will only grow. In the UK, bricklayers have recently reached a 25-year-low, and one third are expected to retire in the next decade.
Monumental’s systems are designed to fill this gap and, in the end, increase the supply of affordable housing.
The electric bricklayer robots of the startup work autonomously alongside human workers. The machines use sensors, computer vision and small cranes to precisely lay bricks and cement in walls.
It also integrates into existing construction processes, which is a vital requirement in an industry not always open to new technology.
Al Khafaji compares robots with distributed computers. They are composed of modular components that are interconnected. They work like network devices.
The software of the startup models both the robots and the site to prepare them for construction jobs. The machine vision stack allows them to locate themselves in the construction zone. AI will coordinate their tasks while they are working. Al Khafaji:
We really think of it like an operating system for construction site. “We are trying to make construction software-defined.”
By 2023, the robots had completed their first large, 15-metre wall. Since then, machines have built Facades for houses
Canal retaining wallsand other structures are still standing in the Netherlands today. Investors are impressed by the progress. Monumental raised 25mn as seed funding last year to bring the concept to reality. But the company must still win over the construction sector.
The role of labour in the housing crisis.
On construction sites, many workers’ tasks have remained relatively unchanged over the past decades. Bricklayers continue to work in a similar way. Containerisation and automated pickers have transformed the jobs of shipyard workers. Al Khafaji, a construction worker, was shocked at the lack of innovation in the industry. “It feels like there isn’t enough time, talent, or money flowing there… This is the industry that has the most stagnation,” says Al Khafaji. “Construction works basically the same as it did a century ago.” Construction employs more than 100 million people, and accounts for 13% of the global GDP. Despite this, the sector is still unable to meet demand. Take the Netherlands. In 2020, the Dutch set a target to build 1 million new homes within a decade – with two-thirds being affordable. Since then, the Netherlands has consistently failed to meet its target.
Digital tools and automation could be a huge benefit to building projects. Construction firms have been historically reluctant to adopt these technologies.
The construction industry is usually cautious about new technologies, for logical reasons. Businesses are often governed by boom-and bust cycles. They prioritize financial reserves over long term investments in new ideas. Costs are high, project cycles are long, and margins are low, which encourages conservative and risk-averse approaches.
Al Khafaji states, “No one wants a bet.” “Imagine you were building your own home for your family… Would you bet on new materials that no one had ever tried or a process no one had ever done before?”
Monumental hopes that it can ease the concerns of the industry.
The robotic march towards construction sites
This company offers services that are familiar for construction projects. Quotes are given in terms that are familiar to the market, such as bricks or square metres. Standard materials are used and supply chains are standard. Clients are not asked to make CapEx investments. Monumental will build the project if the client tells them what bricks and mortar to use. They can also switch to human masons at any time.
Al Khafaji: “We’re selling them walls, not robots.” “We’re NOT selling them software licenses… we’re selling a wall.” The company intends to use robotics for a variety of building tasks.
Al Khafaji: “A brick is a simple building block.” “You can imagine the brick as different things – concrete blocks, window frames and door frames, roofing components. You can grab, hold, and move all these things.
According to estimates, these tasks account for about a third of construction site tasks. As technology advances, autonomous machines may be able to take on more construction jobs. Al Khafaji is a futurist with grand visions.
He says, “That’s a science fiction version of it, where everything is automatized.” “You could imagine electric robotics coming in and building beautiful structures in just a few days — with less pollution and more safety.”
Salar al Khafaji is one of the standout speakersatTNW Conferencewhich takes place in Amsterdam on June 19-20. Tickets for theare now availableat .
