The Jetsons vs. The Flintstones

While many industries are living in a Jetsons-like world of innovation and communication, here’s how Oldcastle Glass CEO Edwin Hathaway described the building products industry: “The Flintstones.”

“The building products industry is chronically underdeveloped,” he said. “There is so little technology being leveraged in our industry, no matter what the product.”

Hathaway was speaking during a panel discussion titled, “What the future holds: Major trends in the building and infrastructure industry,” in a room packed with mergers-and-acquisitions professionals.

Product liability issues, or the concern over potential liabilities, were described as having a chilling effect on new home product technologies. The case was brought up of mushrooms growing out of the side of houses with innovative exteriors.

“My builder told me that was the original green house,” replied the moderator.

But defective products are no laughing matter—as homeowners and builders contaminated with Chinese drywall can attest. And innovation is serious business everywhere, it seems, but in the home channel.

“Building Information Modeling is 20 years old in every other industry—digital engineering on a car, an airplane or factory is ubiquitous in many, many, different industries, and in the building and construction industry, it’s the latest new idea,” Hathaway said.

A couple of theories on why innovation is slow to develop came from Golden Gate Capital’s Kevin O’Meara, who is also the former COO of Builders FirstSource.

“The problem with building is homeowners and builders are not willing to pay any more for the product,” he said. “Even if it’s a much better product.” That leads to a reluctance to invest in new technologies.

“Builders will change where they buy or what they pay for $100 a house,” O’Meara added.