Joshua Feinberg and Benjamin Myers discuss the impending commoditization pressure on general contractors (GCs) in the data center industry.
Ben highlights that GCs focused solely on financial gains will face significant challenges, while those providing value to end users will thrive.
Joshua notes that the construction industry is slow to adopt digital transformation, with operators and technology companies leading.
They also discuss the importance of integrating technology into large-scale construction to meet demand and stay on budget, citing examples like the semiconductor manufacturing boom in response to federal initiatives.
Ben emphasizes becoming a supply chain expert in this evolving landscape.
This video is excerpted from the podcast Ep. #56 Benjamin Myers, National Accounts Sales Executive of DH Pace Company | Data Center Go-to-Market Podcast.
Action Items
- Investigate the impact of the chip factories being built in Phoenix on the data center industry.
- Explore ways to infuse more technology into the construction industry.
- Become a supply chain expert to provide more value to the data center industry.
Outline
Pressure on General Contractors (GCs) Due to Commoditization
- Joshua Feinberg discusses the impending pressure on GCs due to commoditization and the need for reinvention.
- Benjamin Myers emphasizes that GCs focused solely on financial gains will face significant challenges.
- Ben highlights that GCs providing value to end users, such as owners and operators, will not face similar issues.
- The conversation suggests that the construction industry is slow to change, but the data center space may transform more rapidly.
Digital Transformation in the Construction Industry
- Joshua Feinberg notes that operators, technology companies, and facilities companies are more advanced in digital transformation.
- Construction and real estate sectors are lagging behind in adopting new sales and marketing strategies.
- Ben agrees, stating that the construction industry has historically resisted change.
- Joshua mentions the interest in infusing construction with technology, citing a program at Florida International University.
Impact of Technology on Industrial Real Estate
- Joshua discusses the movement to integrate technology into large-scale construction projects.
- The conversation touches on the potential impact of this technology on industrial real estate.
- Ben points out that the construction industry must proactively reinvent itself or risk being bypassed by new solutions.
- Joshua highlights the significant financial impact of delays in large-scale projects, emphasizing the need for efficiency.
Demand-Supply Dynamics in the Data Center Space
- Ben notes that the demand for data centers is far outpacing the supply, necessitating changes in the industry.
- Joshua compares this to the semiconductor manufacturing boom in response to post-pandemic initiatives.
- The discussion includes the strategic reasons for returning semiconductor manufacturing to the US.
- Ben emphasizes the importance of being a supply chain expert in the current market conditions.
Resources
Watch the full podcast Ep. #56 Benjamin Myers, National Accounts Sales Executive of DH Pace Company | Data Center Go-to-Market Podcast
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