John Fish established Suffolk, Boston’s premier construction firm, by leveraging the efforts of laborers. Now, amidst an ongoing labor shortage, he envisions a future dominated by tech-equipped hard hats and AI supervisors.
By John Hyatt, Forbes Staff
On a chilly December morning, John Fish finds himself on the 33rd floor of the partially constructed South Station Tower in downtown Boston, overlooking a bustling scene. Clad in black leather loafers, blue slacks, a neon construction vest, safety goggles, and a hard hat, he points to a crimson crane below, discussing his automation plans.
Explaining the technology behind it, Fish mentions, “There’s a camera mounted on the crane that monitors its movements, ensuring safety and efficiency. We need to maximize productivity while prioritizing safety,” he emphasizes.
Amidst the noise of construction activity on the 14th floor, Fish elaborates on how robotics are reshaping their construction sites. Suffolk is implementing small, agile machines resembling miniature tanks that zip around, generating blueprints and layouts for workers, streamlining processes and minimizing errors. “This will be standard across all our projects,” he affirms.
A veteran of the construction industry at 63, Fish amassed a fortune erecting skyscrapers across the nation. With a net worth of \(2.3 billion, largely from his sole ownership of Suffolk—a \)6 billion revenue-generating construction giant based in Boston—Fish has left an indelible mark on the U.S. commercial real estate landscape, including significant contributions to Boston’s skyline and upscale properties in Los Angeles and Miami over the past two decades.
Now, he sets his sights on disrupting the $2.1 trillion construction sector that propelled his success. Through Suffolk Technologies, his firm is developing innovative construction-focused software solutions, some of which are being spun off into independent ventures. Additionally, Fish’s venture capital arm has invested in numerous ambitious construction technology startups, ranging from 3D-printed walls to eco-friendly portable power generators.
“Our industry has witnessed a decline in productivity over the last five decades, unlike any other sector,” Fish remarks during a tour of Suffolk’s cutting-edge headquarters in Roxbury, underscoring the urgency for change. Despite the industry’s slow adoption of robotics and AI, Fish remains resolute in his conviction that embracing technology is imperative to address labor shortages and cost challenges.
Embracing Automation
Globally, around 4 million robots are employed daily, performing diverse tasks beyond traditional manufacturing roles.
Robotic Innovations in Various Professions:
Bartender
- Name: Makr Shakr 3.0
- Manufacturer: Makr Shakr (introduced 2013)
- Cost: $115,000
- Average Human Bartender Salary: $34,490
Fry Cook
- Name: Flippy
- Manufacturer: Miso Robotics (2017)
- Cost: $48,000 per year
- Average Human Fry Cook Salary: $31,000
Priest (Funerals)
- Name: Pepper
- Manufacturer: SoftBank Robotics (2014); Nissei Eco
- Cost: $442
- Average Cost to Hire a Human Priest: Up to $2,000
Security Guard
- Name: Knightscope K5
- Manufacturer: Knightscope (2013)
- Cost: Less than $9 per hour
- Average Human Security Guard Salary: $16 per hour
The construction sector faces an unprecedented labor shortage, with 2022 recording the highest number of job vacancies in the 23-year history of the Associated Builders and Contractors (ABC). Moreover, escalating costs, including a 34% surge in construction wages since 2012 and nearly 40% spikes in input expenses like steel and cement since early 2020, underscore the urgency for innovative solutions. Fish believes that integrating robots into construction sites is paramount to addressing these challenges effectively.
Suffolk has honed its proprietary analytics over a decade, enabling real-time project tracking and cost management across its 100 active sites. To further enhance their capabilities, Suffolk Technologies continues to develop new tech products, with plans to launch Edge, a job site planning tool, this year, following the success of Ediphi, a cost-estimating software.
In parallel, Fish nurtures a robust portfolio of construction tech startups, investing over $50 million in 50+ companies, including Rugged Robotics, Canvas, Augmenta, and OpenSpace. By fostering collaboration between these startups and Suffolk’s operations, Fish aims to drive innovation and lead the industry’s technological evolution.
Recognizing the shifting dynamics in commercial real estate post-pandemic, Suffolk diversifies its project portfolio to include data centers, airports, hospitals, and government facilities. Leveraging technology, Fish aims to streamline operations, reduce costs, and expedite project completion, adapting to the evolving market demands effectively.
Fish’s journey in construction traces back to his upbringing, shadowing his father’s footsteps in the family business. Tasked with leading Suffolk, a nonunion labor-focused entity spun off from the family’s unionized construction firm, Fish navigated industry challenges, competing fiercely for projects and propelling Suffolk to national prominence.
Investment Outlook
By Jon D. Markman
The integration of robotics and AI software is reshaping industries, offering lucrative investment opportunities. One such prospect is PTC, a subscription-based software firm specializing in engineering tools for enhanced productivity. With a robust Industrial Internet of Things division leveraging AI to optimize factory operations, PTC presents significant growth potential. Anticipated revenue growth suggests a 40% increase in share value to $260 within 18 months.
Jon D. Markman, President of Markman Capital Insight and Fast Forward Investing Editor.
As Suffolk embarks on its robotics initiative, with plans to establish a state-of-the-art robotics center in Roxbury, Fish envisions a future where technology synergizes with human expertise to drive construction innovation. With a keen focus on efficiency and progress, Fish remains committed to steering Suffolk towards a tech-driven future, redefining the construction landscape for generations to come.
