Every building you’ve ever walked into was delivered by an industry that has gotten less productive over the last 25 years.
Since 2000, manufacturing improved 90%. The total economy improved 50%.
Construction improved 10% globally. In the US, it actually went backwards - it takes more people, more time, and more money to deliver a building today than it did in 2000. Steel tariffs just hit 50%. Aluminum is up 33% in a year. 45% of firms are reporting project delays from worker shortages. And the average contractor’s bid prices are rising slower than their input costs, meaning they’re losing margin on every job they win.
And nobody talks about it because the buildings still go up.
From "System of Record" to "System of Intelligence"
In the next decade, you want to own the system of intelligence that pulls from the system of record, becomes the user’s one-stop shop for gaining context and taking action, and turns the SoR into something that’s primarily consumed at the API layer.
The reasoning layer that sits above the database is where a new generation of companies is being built, and it’s where the majority of the next decade’s enterprise value of GTM software will end up.
Full piece from a16z's Gio Ahern, Steph Zhang, and Alex Immerman: https://t.co/2udG6l6SSx