Latin America stands at a critical juncture, grappling with stark infrastructure gaps across energy, sanitation, communication, logistics, and housing. The region needs to pour over $2.2 trillion into infrastructure investments to meet the United Nations’ Sustainable Development Goals by 2030. Yet, the construction sector, which plays a pivotal role in this endeavor, is mired in inefficiencies stemming from poor coordination and a lack of transparency within supply chains. This has not only hampered productivity but has also inflated costs, leaving many businesses scrambling.
Enter Roberto Arroyo, a visionary who recognized the need for a digital revolution in an industry where a staggering 96% of construction companies still operate without digital tools. In 2019, he founded Construex with a mission to transform the construction landscape in Latin America. Starting as a bootstrapped initiative, Construex has rapidly ascended to become the largest construction marketplace in the region, boasting a network of one million digitized sellers across countries like Mexico, Guatemala, and Argentina.
The platform is a game-changer, offering Software as a Service (SaaS) solutions that provide visibility and data for buyers and sellers alike. By connecting these two groups, Construex enables more informed purchasing decisions, which in turn enhances efficiency and cuts costs. Arroyo highlights a critical issue: “Only a select few in high positions have full access to critical information, while the vast majority of people lack the information they need to make well-informed decisions.” This lack of transparency has historically forced companies to scour cities for suppliers, wasting time and resources. Now, with Construex, businesses can manage their supply chains online, gaining comprehensive visibility that empowers them to make smarter choices.
The platform’s rapid growth can be attributed to a powerful network effect and attractive incentives for users. By providing free SaaS tools, Construex has encouraged widespread sign-ups, creating a vibrant marketplace. With a recent strategic investment under its belt, the company is eyeing expansion into Brazil, leveraging partnerships with major regional players. As Cutler Knupp from Haskell CVC points out, the insights and data aggregated by Construex are essential for the future of efficient design and construction in Latin America, especially as more US companies nearshore manufacturing to the region.
Construex’s digital transformation isn’t just about efficiency; it’s about resilience. The platform estimates that it can shorten project timelines by up to 30%, reduce procurement costs by 5-15%, and bolster supply chain resilience. This is crucial in a region where climate change is exacerbating geohazards and leading to increased project costs and delays. With droughts and water rationing becoming the norm, Construex is stepping up to tackle the energy crisis by making renewable energy products more accessible. Arroyo emphasizes the company’s responsibility to promote sustainable solutions, stating, “We have a very big responsibility to think about the future.”
As Construex continues its mission, it stands as a beacon of hope for family-owned SMEs that dominate the construction sector. These businesses often face operational challenges, but through digital empowerment, Construex is uplifting the entire industry. Michelle del Pozo, General Manager at Puruhá, an Ecuadorian builders merchant, attests to this, noting that Construex has helped her company secure high-quality leads and close significant deals.
The stakes couldn’t be higher. Latin America’s construction industry accounts for 14% of the region’s GDP, and by making it more efficient, Construex is not just improving individual businesses; it’s enhancing the quality of life for millions. As Arroyo succinctly puts it, “By making this sector more efficient, we can improve the quality of life for millions of people.” The future of construction in Latin America is digital, and Construex is leading the charge.