Last Week in ConTech - 2 June 2025
China’s Growing Dominance in Electric Construction Machinery
Deep Insight: China’s Growing Dominance in Electric Construction Machinery
As government’s around the world continue to impose tariffs on Chinese made electric vehicles, a new industrial flashpoint is emerging: electric construction machinery.
This market is expected to grow at 21% annually up to 2044 reaching a market size of $126 billion. It’s driven by the spread of low emission zones across global cities with older diesel vehicles increasingly restricted on the roads of major cities such as London, Paris, and Madrid.
China is well-positioned to lead this transition, thanks to its dominance in battery development. Today, Chinese companies produce nearly two-thirds of all electric bucket loader models on the market.
And now they are increasingly selling internationally.
With China’s domestic property sector in decline, local construction machinery manufacturers are turning outward. In 2020, for example, Sany Heavy Industry Co derived 83% of its business from domestic developers. Today, overseas markets account for 60% of its revenue.
In response, governments are increasing their tariff regime:
The EU imposed duties of up to 66.7% on Chinese machines that lift construction workers.
The UK levied duties exceeding 30% on excavators from Sany, Liugong, and XCMG.
In India, a Tata-Hitachi joint venture urged the government to raise levies, citing that Chinese brands already hold 22% market share.
Yet despite these measures, there’s still plenty of work. Construction is booming in the Middle East, Southeast Asia and Africa. Selling to these regions offer the economies of scale needed to further accelerate China's electrification leadership.
In the United States, the Trump administration has relaxed heavy vehicle emissions standards, reducing incentives for domestic innovation in electric machinery. That divergence in policy risks leaving U.S. manufacturers behind.
As the global construction industry moves toward a more electrified and regulated future, China’s head start may prove decisive.
However, Nordic countries are emerging as serious challengers. With increasing mandates for net-zero construction, they are building deep technical expertise and intellectual property that could soon be exported globally.
Read more: Chinese EV Trucks Will Build the Cities of the Future, Bloomberg
In this issue there are:
13 Startup Fundings
15 Policy and Regulatory Changes
6 New National Infrastructure Projects & Priorities
0 New investment funds
1 Acquisitions
6 News articles
19 new jobs posted - view here
Reading time: 15 min
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Startup Funding
AI
Neuron Factory, a Californian startup, raised $6m in Seed funding. They are developing an AI coworker platform for the construction industry which provides personal digital AI CoWorkers. It is powered by a proprietary enterprise task graph which maps tasks, roles and knowledge across an organization enabling AI agents to operate intelligently. More here.
Procurement
Alrik, a Swedish startup, raised €7m in total funding. They are developing a construction logistics platform which connects all stakeholders such as merchants, suppliers, carriers, truck drivers, and construction sites in a centralized digital ecosystem to reduce costs and provide automated environment reporting. More here.
Notes:
The founder describes Alrik as a ‘DoorDash for building material merchants.’
Toolmart, an Iraq startup, raised a Seed round (undisclosed). They are developing a procurement solution for institutional buyers operating a scalable, inventory light platform (marketplace) finding traction in the oil & gas and construction sectors. More here.
Notes:
The marketplace provides solutions required for running a construction project such as power tools, generators, lifting equipment and PPE.
They have validated their business model works in a complex, high demand market (Iraq) and will use the funding to scale across the Middle East.
CutStruct, a Nigerian startup, raised $1.5m in Seed funding. They are developing a marketplace for sourcing construction materials from verified vendors offering integrated services such as transportation, insurance and trade credit allowing companies to manage procurement and logistics in one place. More here.
Monitoring
Adventum Tech, a Latvian startup, received €250k in investment. They provide a real time monitoring solution for the concrete curing and operation process, developing sensors which provide real time data such as temperature, vibration, load-bearing etc to identify issues (e.g excessive shrinkage) early. More here.
Reality Capture / Quality
Contineu, an Indian startup, raised $1.2m in Seed funding. They use helmet mounted 360° cameras and 3D computer vision to capture on site imagery into structured insights to automate quality monitoring, compliance checking and documentation. More here.
Buildots, an Israeli startup, raised $45m in Series D funding. They offer a platform to track construction progress by processing images captured from 360-degree cameras mounted on managers’ hard hats. It also provides a chatbot allowing users to ask questions about a project’s status and a predictive tool to alert them of potential delays. More here.
Design
Endra, a Swedish startup, raised €3m in Pre-Seed funding. They are building a generative, AI platform for MEP design which automates time-intensive tasks such as documentation, system layout, and code compliance while maintaining engineers in the loop for final design validation. More here.
CalcTree, an Australian startup, raised $3.8m in Pre-Seed funding from investors including Foundamental and Suffolk Technologies. They are developing a platform which enables engineers to manage complex calculations which are typically performed in a spreadsheet, into templates and workflows that live in a cloud environment. More here.
Notes:
Engineers often create complex spreadsheets for calculations such as structural checks, where an input like loading automatically generates design outputs.
These spreadsheets are typically shared via email or local copies, making version control difficult.
For example, when I started I received a pavement design template which would allow me to input the design traffic and automatically calculate the concrete strength required.
The challenge is that if a bug is discovered or updates are made, there’s no reliable way to sync changes across all distributed copies.
Additionally, many engineers make copies of these spreadsheets and take them from company to company to avoid starting from scratch.
A centralized platform helps manage these tools, ensuring consistency, traceability, and reduced engineering risk.
Additional note:
Standards Australia, the primary non-government standards development body in Australia which defines engineering and construction standards, invested in CalcTree.
This was completed via Kungari, their commercial investment arm and marks their first investment in a startup.
Scanning
NavLive, a UK startup, raised £3.3m in Seed funding. They have developed a handheld LiDAR scanning tool which allows architects and construction professionals to scan buildings and generate precise site drawings in real time. More here.
Financing
Blips, a Brazilian startup, raised $8.8m in funding. They are developing a financing platform which assess customers and offer equipment financing and rental to micro and small businesses across sectors including civil construction. More here.
Residential
Litehaus, a Portugues startup, raised €1.46m in Pre-Seed funding. They are developing a platform which connects landowners and property developers with contractors such as architects, engineers and interior designers to streamline the fragmented home building process. It provides software to track costs, coordinate schedules and track progress. More here.
Notes:
The company describes itself as the ‘Uber of construction.’
They are initially focusing on the modular construction sector.
Other
Unleash live, an Australian startup, raised $17m in Series B funding. They have developed a cloud based platform where customers can connect existing visual monitoring such as CCTV, cameras and drones for AI analysis gaining traction in the transportation and utilities sector. More here.
Notes:
The solution enables companies to easily integrate visual data and extract actionable insights.
It is particularly useful for smart city applications like monitoring traffic flow or tracking public transport passenger volumes.
These insights inform both design decisions (e.g. whether to add a highway lane) and maintenance planning (e.g. if usage exceeds design expectations).
These tasks were traditionally handled manually by a junior engineer who may have to sit at a train station and count the number of people on a railway carriage (it’s almost a rite of passage for the new graduate to do these tasks).
Policy and Regulatory Changes
US
Federal court blocks Trump from imposing sweeping tariffs under emergency powers law
A federal court blocked President Donald Trump from imposing sweeping tariffs on imports under an emergency-powers law.
Trump has repeatedly said the tariffs would force manufacturers to bring back factory jobs to the U.S. and generate enough revenue to reduce federal budget deficits.
While tariffs must typically be approved by Congress, Trump has said he has the power to act to address the trade deficits he calls a national emergency.
The administration swiftly filed notice of appeal and the Supreme Court will almost certainly be called upon to lend a final answer.
Supreme Court scales back a key environmental law in a ruling that could speed development projects
The Supreme Court narrowed the scope of environmental reviews required for major infrastructure projects.
The decision follows an appeal to the high court from backers of a multibillion-dollar oil railroad expansion project in Utah.
Environmental groups and a Colorado county had argued that regulators must consider a broad range of potential impacts when they consider new development.
This includes impacts such as increased wildfire risk, the effect of additional crude oil production from the area and increased refining in Gulf Coast states.
The justices, though, found that regulators were right to consider the direct effects of the project, rather than the wider upstream and downstream impacts.
Notes:
This could have an impact on other major infrastructure projects and their environmental review process.
According to the American Clean Power Association the average timeline for a project to obtain necessary National Environmental Policy Act (NEPA) reviews is 4.5 years.
Governor Signs Washington’s First-in-the-Nation Shared Streets Law
In Washington State it is illegal for a city to set a speed limit lower than 20 miles per hour.
From July 27th this will change as under Senate Bill 5595, cities will be able to create a new type of street that features much lower speed limits and puts pedestrians first.
A shared street, as defined by the bill, has a speed limit of 10 miles per hour and allows pedestrians to walk in the center of the street.
Cars are allowed but pedestrians have the right of way.
Notes:
This bill allows city streets to be returned to pedestrians.
This is a feature of European cities but less common in the US.
Trump considers redirecting $3 billion in Harvard grants to US trade schools
U.S. President Donald Trump said he is considering taking $3 billion of previously awarded grant money for scientific and engineering research away from Harvard University and giving it to trade schools.
It was not clear whether Trump was referring to Harvard grants his administration has already frozen.
Air Traffic Overhaul Is Top Infrastructure Need, Duffy Says
US Transportation Secretary Sean Duffy said building a new air traffic control system is the country’s most pressing infrastructure need.
Disruptions caused by technology outages at Newark Liberty International Airport focused attention on the aging US system.
He declined to say how much funding the effort will need, though he has said tens of billions of dollars would be required.
The article examines the recent ruling in Berkley Insurance Company v. Suffolk Construction Company, issued by the United States District Court for the Southern District of Florida.
This has lessons for subcontractors, general contractors (GCs), and construction managers (CMs), navigating construction delays and lost productivity disputes.
It includes:
Project Coordination Accountability: GCs and CMs are contractually obligated to ensure timely planning and scheduling and coordinate all trade work.
Project Communication: GCs and CMs should proactively communicate with all trades to facilitate planning and scheduling and prevent the occurrence of and subsequent liability for project disruption and delays.
Defined Project Schedules: The contract project schedule is binding, and any changes must be communicated in writing and agreed upon by all parties.
Diligent Record-Keeping: Subcontractors must proactively document all delays, trade stacking issues, rework, and scheduling conflicts, to support potential claims.
Expert-Driven Claims: Courts are placing increasing weight on expert testimony utilizing forensic schedule and lost productivity analyses in determining entitlement and damages.
Dallas Just Made It Easier to Build the Housing It Desperately Needs
The Dallas City Council unanimously approved an update to the city’s residential development ordinance.
It allows buildings with up to eight dwelling units to be built under the simpler, less costly residential code.
Buildings covered by the residential code can include up to eight units, reach three stories in height, and be up to 7,500 square feet in total.
Previously anyone who wanted to build a triplex, fourplex, or courtyard apartment followed the same building standards as massive high-rise complexes.
Cities sue Colorado over housing reform laws
Six cities outside Denver sued the state of Colorado to block a pair of laws forcing communities to reform local land-use restrictions to allow for more housing construction.
They claim the legislation violates their home rule rights.
It follows an executive order signed by Colorado Gov.which ties the distribution of more than $100 million in state funding for cities and towns to whether they complied with laws passed during the 2024 and 2025 legislative sessions to address the statewide housing shortage.
NuScale secures NRC approval for second small reactor design
Under pressure to act more quickly on advanced reactors, the Nuclear Regulatory Commission completed its technical review of NuScale’s 77-megawatt US460 SMR in just under two years.
They formally authorized the company’s 77-megawatt reactor design.
NuScale won similar approval in 2020 for a smaller, 60-megawatt version of the reactor, a first for the industry.
Florida bill could block communities from rebuilding stronger after hurricanes
Senate Bill 180 includes some provisions like a streamlined permitting system for rebuilding homes after a hurricane.
But it also would weaken local efforts to build stronger structures after hurricanes freezing any tougher rules for at least two years.
This could allow developers to rebuild homes under the same codes that had failed to protect property.
UK
Solar panels to be fitted on all new-build homes in England by 2027
Under the plans, housebuilders will be legally required to install solar panels on the roofs of new properties by 2027.
The policy is estimated to add between £3,000 and £4,000 to building a home but homeowners would save more than £1,000 on their annual energy bills.
Labour has set a target of building 1.5m homes by the end of the parliament.
Government backs SME builders to get Britain building
Minor developments of up to nine homes will benefit from streamlined planning and eased Biodiversity Net Gain (BNG) requirements.
Sites between ten to 49 homes will face simpler rules and fewer costs including a proposed exemption from the Building Safety Levy and simplified BNG rules.
Homes England will release more of its land exclusively to SMEs.
India
Delhi mandates construction projects to register for dust control in fight against air pollution
The Municipal Corporation of Delhi (MCD) has enforced a policy requiring all construction and demolition projects to register on their portal before obtaining building plan approvals.
The aim is to integrate environmental safeguards into the approval process, ensuring compliance with dust control measures.
Projects exceeding 500 square metres must upload a self-declaration every fortnight, implement 360-degree video surveillance, and install low-cost Particulate Matter sensors.
Violations may lead to project permission denial or cancellation.
Delhi govt mandates anti-smog guns for all high-rise buildings to combat pollution
The Delhi government has made it mandatory for all high-rise commercial, institutional, and hospitality buildings to install anti-smog guns to combat pollution levels.
At least three anti-smog guns are required for buildings with a built-up area of less than 10,000 square metres.
The number increases progressively, with one additional gun required for every 5,000 square metres beyond 25,000 square metres.
New Zealand
Granny flats bill passes first reading
The bill, if passed, will exempt granny flats of up to 70 square metres from needing a building consent if it’s a simple design, meets the Building Code and built by authorised building professionals.
The consent exemption is expected to deliver about 13,000 more granny flats over the next 10 years.
National Infrastructure Projects & Priorities
US
Commonwealth Fusion files formal zoning request for power plant in Chesterfield
Commonwealth Fusion Systems recently filed for a conditional-use permit needed for the multibillion-dollar power plant.
The goal is for the Chesterfield project to be the first commercial nuclear fusion plant in the world.
In addition to a conditional-use permit from Chesterfield, the project also needs state and federal approvals.
Trump admin approves its first fast-tracked mining project: A uranium mine in Utah
This is the first project approved under a new 14-day environmental review process.
The mine produced 400,000 tons of uranium ore between 1979 and 1984, according to the company, before it shut down.
DOE orders 1.6-GW coal-fired power plant to delay shutdown over MISO outage concerns
In an emergency order, the U.S. Department of Energy directed Consumers Energy to delay, by about three months, shutting down a 1,560-MW, coal-fired power plant.
The reason was the Midcontinent region faces possible power outages this summer.
China
China Preps $70 Billion in New Capital to Supercharge Investment
China plans to allocate 500 billion yuan ($70 billion) of capital that could be leveraged up to fast track new infrastructure projects.
This as authorities seek to cushion the economy from US tariffs.
Under the so-called ‘new financing policy tool,’ the nation’s three policy banks will raise funds and buy stakes in projects.
Middle East
High-Speed Railway Will Connect Saudi and Egypt
Officials have now confirmed plans for a railway connecting the two nations.
It aims to physically link Egypt to Saudi Arabia via either a bridge or a tunnel.
This high-speed railway is part of Egypt’s broader rail expansion with seven new transport axes in development.
Qatar
Ashghal launches QAR 81 billion, five-year plan to transform Qatar’s infrastructure
The projects include developing lands with integrated infrastructure and building government facilities for key sectors like health, education, sports, and culture.
Acquisitions
Monterro, B2B software investor, has acquired a majority stake in Projektportalen, a Swedish project management tool for the construction and installation industry. More here.
News
Everyone wants to invest in robotics (Gabriele Tinelli, Foundamental)
Chinese EV Trucks Will Build the Cities of the Future
Chinese construction machinery giants are looking for overseas markets due to a domestic property downturn.
Electric construction equipment sales will grow at 21% annually up to 2044, when they’ll hit $126 billion.
In response, the European Union last month set tariffs as high as 67% on Chinese construction machinery, while the UK has more recently imposed duties of more than 30% on excavators made by Sany, Liugong and XCMG.
How circularity can make the built environment more sustainable (McKinsey)
Our Source of Truth on B2B Secondhand Industrials Marketplaces (FJ Labs)
Industrial sectors have some of the largest and most complex supply chains.
They have recently focused secondhand procurement.
Traditional supply chains face growing volatility from tariff pressures and geopolitical division, while secondhand offers businesses a more resilient, cost-stable supply alternative.
Understanding the Nuclear Fuel Value Chain
Khosla Ventures among VCs experimenting with AI-infused roll-ups of mature companies
Rather than funding startups, some VCs are acquiring mature businesses such as call centers, accounting firms, and other professional service firms and optimizing them with artificial intelligence to serve more customers through automation.
General Catalyst, touting this as a new asset class, has already backed seven such companies.
If I missed anything this week, please reply and let me know! I’ll make sure to include it next week.