Construex Team
Construex
Latin America has substantial infrastructure gaps in key sectors like energy, sanitation, communication, logistics, and housing. To meet the UN’s Sustainable Development Goals by 2030, the continent needs to invest over $2.2 trillion in infrastructure. However, the construction sector has faced huge challenges due to a lack of coordination and transparency over supply chains, which has impacted the efficiency, capabilities, and cost of building across the region.
In 2019, Roberto Arroyo, CEO and founder of Construex, set out to revolutionize the industry by digitizing construction in Latin America, where 96% of construction companies are not digital. He launched Construex as a bootstrapped company but scaled with rocket-like speed to become the biggest marketplace for construction across Latin America. The platform now boasts one million digitized sellers and has a significant presence in Mexico, Guatemala, Chile, Bolivia, Argentina, and Ecuador.
Construex offers SaaS solutions, visibility and data for construction buyers and sellers, connecting them and providing a business intelligence platform. With extensive data on prices, availability, and quality of construction sellers, buyers make better purchasing decisions, improving efficiency and reducing costs.
Limited access to information had been one of the biggest problems for business in Latin America, Arroyo explains that “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.
“Before Construex, construction companies and buyers had to physically search around cities to find the right suppliers, which was time-consuming, inefficient, and CO2 intensive. Construex has now digitized this entire process, providing access to a comprehensive network of suppliers and data. This means that companies can now manage their supply chain online with full visibility over their options, and make better-informed choices.”
“The next step,” he adds, “will be implementing purchase intelligence tools to optimize decision-making even further, but for now, Construex provides the foundation for efficient, digital supply chain management in construction.”
The platform’s skyrocketing growth was achieved by harnessing a powerful network effect and providing strong incentives for platform sign-ups: Construex offers free SaaS tools for both sellers and buyers.
After a successful strategic investment, Construex is preparing to expand into Brazil by leveraging partnerships with major regional players. The company is venture backed having previously raised $4.6m from venture capital firms Zacua Ventures and Fifth Wall.
Beyond Latin America, Construex acts as a strategic bridge between North and South America, enabling greater collaboration, trade, and market access.
Cutler Knupp, VP Strategy & Investments at Haskell CVC, explains that as a top US contractor doing work abroad, they have been established in LTAM for over 30 years and have seen the challenges and lack of transparency in the local supply chains: “as more of our clients continue to nearshore manufacturing facilities to Mexico and nearby LTAM countries, Construex is assisting in providing visibility across the supply chain at a critical moment. The insights and data Construex aggregates in their marketplace are imperative for the future of efficient design and construction in Latin America.”
The construction of the Esplanada dos Ministerios on the Monumental Axis in Brasilia, Brazil, with … [+] the Cathedral of Brasilia on the right, and the Palacio do Congresso Nacional or Palacio Nereu Ramos, home to the Brazilian Parliament, and Paranoa Lake, in the background, circa 1959. (Photo by Harvey Meston/Archive Photos/Getty Images)
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Digitization boost efficiency and cuts costs across all phases of projects. Construex estimates it shortens timelines by up to 30% through better scheduling, reduces procurement costs by 5-15% via accurate forecasting, and provides stronger supply chain resilience, helping prevent costly delays. Additionally, data analytics enhance decision-making, improve on-site safety, and support sustainable practices that align with ESG priorities.
The construction industry is a significant part of the GDP in Latin America, with 14% of the GDP in the region. However, many construction companies are family-owned SMEs that often struggle with daily operational challenges. These are challenges that Arroyo deeply understands. He grew up in a family construction business working in the industry from the age of 15: “I spent a lot of time working closely with labourers on-site, which I enjoyed. Over time, I took on more responsibility in the family business, moving into real estate sales and overseeing the entire supply chain.
“As a purchase manager, it was very difficult to find suppliers. I had to rely on legacy commerce and I realized there was a big price disparity of the same products among different suppliers, which increased overall costs significantly. When I founded Construex I had this problem in mind. After studying in France, I returned home and launched the platform,” says Arroyo.
By empowering these family-run businesses, the platform is uplifting the sector, impacting profitability and growth: “Michelle del Pozo, General Manager at Puruhá, a 30-year old builders merchant in Ecuador, says: “Construex has helped to position our brand for highly specialized products in search engines. We receive high quality leads from clients who are truly interested in our products and services. Thanks to Construex I have managed to close several interesting deals and increase sales. Construex has also helped me to obtain clients who have kept working with me for several years. Lately, the demand for solar panels through Construex has increased substantially.”
The region’s infrastructure and economies are facing huge hurdles as geohazards are exacerbated by climate change, leading to increased project costs and delays. South America is experiencing unprecedented droughts that have caused wildfires, power cuts and water rationing across multiple cities. The Amazon river is drying up, but despite the alarming decline, Latin American countries and consumers still rely heavily on fossil fuels, increasing carbon emissions.
As the largest construction marketplace in Latin America, Construex is helping to tackle the electricity shortage crisis, by making renewable energy products available to buyers. These consumers may otherwise have had difficulties finding or even considering them as alternatives: “It hasn’t rained in Brazil, Ecuador, Peru, Colombia, for a long time, and we have been very focused on promoting renewable energy products in our platform,” says Arroyo. “I believe that we have a very big responsibility to think about the future because right now we have a lot of SMBs looking for solutions to the electricity shortage in the region. They’re looking for solutions for gas generators, and we are driving them to find renewable energy solutions, like solar systems.”
As Construex continues to expand across Latin America, the platform is harnessing technology to drive meaningful change in an often underserved sector that has wide implications for uplifting economies and building a bridge to a brighter future. “The construction industry drives much of the region’s economy,” Arroyo says, “by making this sector more efficient, we can improve the quality of life for millions of people.”
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Publish date : 2024-10-30 01:35:00
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