The construction industry is the largest industry in the global economy with a share of 13% of global GDP. Estimated at around US$12 trillion, it is the largest consumer of raw materials and has been in steady growth at a rate of 6% since. While the industry suffered some decline due to COVID-19 crisis, but is expected to growth reach US$15.5 trillion in 2023.
The construction industry in MENA has the fastest growth rate at more than 7% and expected to reach a size of US$565 billion in 2023, forming almost 3.6% of the total global construction market. In Jordan, a small country with a GDP less than US$44 billion, the construction sector amounts for 3% of the GDP, with a value of US$1.3 billion which is a significant part of the local economy, and it is the sixth largest employer in the nation at 5.5%. While residential building construction accounts for almost 38% of global construction activity, in Jordan it accounts for more than 85% of total construction activity, which amounts to almost US$1 billion.
The industry has been in decline in Jordan since 2018 due to economic conditions (28% in 2020, 35% in 2019, and 21% in 2018,) and the COVID-19 crisis will force the continuation of this decline for the rest of 2020 and possibly the first half of 2021. Housing suffered a smaller share of the decline (19% in 2020, 33% in 2019, 25% in 2018), however, the general economic down has negatively affected the purchase power of citizens.
On the other hand, annual productivity growth in the construction industry in the last 20 years has been only a third of total economy averages. Digitization is lower than any other industry, while 90% of projects are not delivered on time or within budget.
Therefore, the industry is being pushed towards fundamental transformation, which will be accelerated by the COVID-19 crisis.
It is therefore envisioned that the construction ecosystem of the future will be radically different, and will transform from siloed linear processes and operations into a more integrated value driven and client centric structure. Where buildings will be more of products, selected and developed from a library of modular components, that are designed and produced in consolidated manner and aligned through marketplaces and digital platform technologies. Construction will be off-site and lean, and data will be generated throughout the lifecycle of the building to fuel improvement and future iterations. This clearly shows a need and an opportunity to move into modular and offsite design and construction, with a focus on housing and affordable solutions.
Konn is a construction solution that provides affordable housing through responsible sourcing for various income segments. It uses offsite and modular construction methods, in a distributed manufacturing system that creates synergies between local suppliers and manufacturers and aligns them to deliver to an underserved market segment.
Konn is a tech-enabled system that consists of pre-designed housing schemes, based on the specific needs and typology requirements of communities starting with Jordan. These schemes are designed for manufacturing and assembly (DfMA), through digital tools and platforms, and then translated into modular components that are sourced from a group of local suppliers and manufacturers and delivered to the site for assembly by local certified assemblers and contractors.
Konn employs lean construction practices, which lower the costs of building by adopting industrial techniques such as prefabricating components offsite and assembling them onsite, and standardizing major operations like structural design and finishing elements.
Konn’s vision is to create a seamless journey to home ownership through technology. It provides sustainable, smart, healthy and independent living experiences that aim to achieve better living for its clients. In order to achieve that, Konn acts as a one-stop-shop platform, that provides customers with comprehensive living solutions that turns the complexity and challenges of home ownership into a simple delightful experience.
Through the integration of technology throughout its processes, Konn transforms home construction and ownership into a value generating realm where the customer, the environment, and the supply chain align to create positive change.