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Brian Potter

Brian Potter

@brian-potter · 43 positions · 1 change of mind · On ppll ↗

Structural engineer and writer, author of the Construction Physics newsletter, where he takes apart how large physical things — buildings, ships, semiconductor fabs, aeroplanes — actually get made, and why the cost of making them moves the way it does.

Brian Potter did not write this page.

We collected these quotes from things they published elsewhere, and every quote links to where it was said. They have no account here and have not endorsed this site. Quotes are word for word; the short line under each one is our own restatement, not their wording. Their own site. Is this you? Claim it or ask us to remove it. Or tell us what is wrong here.

The ideas Brian Potter's claims keep coming back to. The labels are ours; every quote is Brian Potter's own words.

Holds now (8)

How these views changed over time2021–2026
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2021 1 views
2022 +2 new · 1 quiet
2023 2 quiet
2024 +5 new · 1 back
2025 4 quiet
2026 1 quiet

Each column is a stretch of time in which the same views came up; a new column starts when one appears or goes quiet. Quiet means nothing on it in our sources for that stretch, which is not the same as a change of mind; Dropped means they said they no longer hold it; tap the card for which claim and when. Revised means the view carries on but one of its claims was dropped. Each row is one view, in the same place all the way along. The number is how many claims in that stretch; we hold 3 in 2021, 6 in 2022, 0 in 2023, 26 in 2024, 9 in 2025, 1 in 2026.

Construction resists new methods because whoever adopts one takes the risk and gets little of the reward

Our label. 3 claims in Brian Potter's own words.

The person who specifies a new building system carries all its risk and none of its reward, a reverse moral hazard that keeps construction innovation out.

Incentives

  1. Brian Potter Structural engineer and writer In many cases, the person specifying a new system won’t capture the upside from actually using it - they’ll be under a sort of reverse moral hazard, where the benefits accrue to the rest of the project team, but the risks will accrue only to them. Why It's Hard to Innovate in Constructionconstruction-physics.com · 30 Jun 2021All korrents from this piece
    In many cases, the person specifying a new system won’t capture the upside from actually using it - they’ll be under a sort of reverse moral hazard, where the benefits accrue to the rest of the project team, but the risks will accrue only to them.

A contractor's upside on a job is a single-digit margin and the downside is the whole company, and that asymmetry is why construction is conservative.

Margin of safety

  1. Brian Potter Structural engineer and writer The upside of any given project is usually a single-digit profit margin. But the downside is “whatever your company is worth” Why It's Hard to Innovate in Constructionconstruction-physics.com · 30 Jun 2021All korrents from this piece
    The upside of any given project is usually a single-digit profit margin. But the downside is “whatever your company is worth”

Builders reject new building systems rationally: a change to the process raises the odds of a catastrophic overrun by more than the innovation can save.

  1. Brian Potter Structural engineer and writer A new or innovative system that involves changes to the process thus incurs a significant risk penalty that would likely exceed the expected benefits of the innovation. Why It's Hard to Innovate in Constructionconstruction-physics.com · 30 Jun 2021All korrents from this piece
    A new or innovative system that involves changes to the process thus incurs a significant risk penalty that would likely exceed the expected benefits of the innovation.

Building has not got cheaper or more productive anywhere, and factory construction has not changed that

Our label. 5 claims in Brian Potter's own words.

It has virtually never got cheaper to build a house or an office: construction costs rise at or above general inflation, in every rich country and over a century of data.

  1. Brian Potter Structural engineer and writer Construction costs tend to rise at, or above, the level of overall inflation, and it rarely (if ever) gets cheaper to build houses, offices, or other buildings. Construction Costs Rarely Fallconstruction-physics.com · 23 Apr 2026All korrents from this piece
    Construction costs tend to rise at, or above, the level of overall inflation, and it rarely (if ever) gets cheaper to build houses, offices, or other buildings.

Stagnant construction productivity is not an American failure but a worldwide one, and most rich countries that once had it have lost it.

  1. Brian Potter Structural engineer and writer Overall, my take when looking at this data is that stagnant construction productivity is an extremely widespread problem. Stagnant Construction Productivity Is a Worldwide Problemconstruction-physics.com · 11 Dec 2025All korrents from this piece
    Overall, my take when looking at this data is that stagnant construction productivity is an extremely widespread problem.

Factory-built construction has not raised productivity: the countries that prefabricate most, Sweden and Japan, have had flat construction productivity for decades.

  1. Brian Potter Structural engineer and writer Sweden, for instance, is often praised for its high adoption of prefabricated construction, but since the 1990s Sweden has had roughly flat construction labor productivity, even as it has made more extensive use of prefabrication. Stagnant Construction Productivity Is a Worldwide Problemconstruction-physics.com · 11 Dec 2025All korrents from this piece
    Sweden, for instance, is often praised for its high adoption of prefabricated construction, but since the 1990s Sweden has had roughly flat construction labor productivity, even as it has made more extensive use of prefabrication.

America can copy other countries to reach the frontier of what building already costs elsewhere; nobody knows how to push that frontier forward.

  1. Brian Potter Structural engineer and writer The US has a lot to learn from other countries for how to catch up to the efficient frontier, especially for certain types of construction (ie: transit) and in certain places in the country (ie: expensive coastal metros). Stagnant Construction Productivity Is a Worldwide Problemconstruction-physics.com · 11 Dec 2025All korrents from this piece
    The US has a lot to learn from other countries for how to catch up to the efficient frontier, especially for certain types of construction (ie: transit) and in certain places in the country (ie: expensive coastal metros).

A house is built by trades that barely coordinate with each other, which is what makes housing cheap to design and almost impossible to redesign.

  1. Brian Potter Structural engineer and writer What is different about construction is the level of coordination that takes place: whereas in a car everything is carefully designed to tightly integrate together, in housing construction the work can be done (and often is) with surprisingly little coordination between the various trades. What Makes Housing So Expensive?construction-physics.com · 2 Apr 2024All korrents from this piece
    What is different about construction is the level of coordination that takes place: whereas in a car everything is carefully designed to tightly integrate together, in housing construction the work can be done (and often is) with surprisingly little coordination between the various trades.

Outside dense cities a home's cost is the building; land is dear only where rules limit what can be built

Our label. 4 claims in Brian Potter's own words.

For most American housing the largest cost is putting up the physical building, not the land it sits on or the rules attached to that land.

  1. Brian Potter Structural engineer and writer Discussions of housing policy often focus on issues of zoning, regulation, and other supply restrictions which manifest as increased land prices, but for most American housing, the largest cost comes from building the physical structure itself. What Makes Housing So Expensive?construction-physics.com · 2 Apr 2024All korrents from this piece
    Discussions of housing policy often focus on issues of zoning, regulation, and other supply restrictions which manifest as increased land prices, but for most American housing, the largest cost comes from building the physical structure itself.

It is only in dense cities that land dominates the price of a home, and there the land is expensive because of the rules limiting what can be built on it.

  1. Brian Potter Structural engineer and writer It’s only in dense urban areas that the cost of land begins to dominate the cost of new housing, driven by regulatory and zoning restrictions that limit how much housing can be built in a given area. What Makes Housing So Expensive?construction-physics.com · 2 Apr 2024All korrents from this piece
    It’s only in dense urban areas that the cost of land begins to dominate the cost of new housing, driven by regulatory and zoning restrictions that limit how much housing can be built in a given area.

Building materials are already about as cheap as civilisation knows how to make them, so cheaper materials are not where housing savings will come from.

  1. Brian Potter Structural engineer and writer Bulk building materials are already mass-produced in factories, and are among the cheapest materials civilization is capable of producing. What Makes Housing So Expensive?construction-physics.com · 2 Apr 2024All korrents from this piece
    Bulk building materials are already mass-produced in factories, and are among the cheapest materials civilization is capable of producing.

The tighter a metro's restrictions on land use, the higher its rents; this is the strongest relationship anyone has found in the housing data.

  1. Brian Potter Structural engineer and writer The more restrictions on land use, the higher rents you see. Is There a Housing Shortage or Not?construction-physics.com · 11 May 2022All korrents from this piece
    The more restrictions on land use, the higher rents you see.

Housing shortages and rent trends cannot be read off simple counts of homes built or people added

Our label. 5 claims in Brian Potter's own words.

You cannot infer a housing shortage from how much a country is building, because how much it needs to build changes with its demography.

  1. Brian Potter Structural engineer and writer If there’s one thing to take away from this essay, it's that you can’t infer a housing shortage by looking at housing construction rates in isolation. Is There a Housing Shortage or Not?construction-physics.com · 11 May 2022All korrents from this piece
    If there’s one thing to take away from this essay, it's that you can’t infer a housing shortage by looking at housing construction rates in isolation.

The United States really is short several million homes, and the shortage shows up as a historically low vacancy rate rather than as too few homes per person.

  1. Brian Potter Structural engineer and writer So, historical evidence suggests that the US is short at least several million housing units. Is There a Housing Shortage or Not?construction-physics.com · 11 May 2022All korrents from this piece
    So, historical evidence suggests that the US is short at least several million housing units.

How much a metro builds relative to its population growth does not predict its rents; across the hundred largest US metros the correlation is essentially zero.

  1. Brian Potter Structural engineer and writer There is essentially zero correlation - the metros with the largest rent increases had added population / added housing ratios no different than metros with smaller rent increases. Is There a Housing Shortage or Not?construction-physics.com · 11 May 2022All korrents from this piece
    There is essentially zero correlation - the metros with the largest rent increases had added population / added housing ratios no different than metros with smaller rent increases.

Rents adjust to match what a region earns, which is why cities with flat or falling populations still get more expensive.

  1. Brian Potter Structural engineer and writer There’s a reasonable amount of evidence that housing prices tend to adjust to match regional incomes. Is There a Housing Shortage or Not?construction-physics.com · 11 May 2022All korrents from this piece
    There’s a reasonable amount of evidence that housing prices tend to adjust to match regional incomes.

Chip fabs get dearer with every process node, and most of what they cost is the tools inside

Our label. 6 claims in Brian Potter's own words.

The same law that made chips cheaper made the factories that produce them enormously more expensive.

  1. Brian Potter Structural engineer and writer These enormous costs are ultimately due to the same factor that has steadily driven down the cost of semiconductors: Moore’s Law, the observation that the number of components on an integrated circuit tends to double every two years. How to Build a $20 Billion Semiconductor Fabconstruction-physics.com · 3 May 2024All korrents from this piece
    These enormous costs are ultimately due to the same factor that has steadily driven down the cost of semiconductors: Moore’s Law, the observation that the number of components on an integrated circuit tends to double every two years.

A semiconductor fab costs what it costs because it is a mass-production factory that has to hold atomic precision around the clock.

  1. Brian Potter Structural engineer and writer The second is that producing semiconductors requires almost unfathomable levels of precision. How to Build a $20 Billion Semiconductor Fabconstruction-physics.com · 3 May 2024All korrents from this piece
    The second is that producing semiconductors requires almost unfathomable levels of precision.

The chip industry split into fabless designers and a handful of foundries because fabs got too expensive to own, not because anyone chose that structure.

  1. Brian Potter Structural engineer and writer But as fab costs increased, it became more and more burdensome for manufacturers to operate cutting edge manufacturing facilities due to the high costs, and fewer manufacturers had the production volume to spread those costs over. How to Build a $20 Billion Semiconductor Fabconstruction-physics.com · 3 May 2024All korrents from this piece
    But as fab costs increased, it became more and more burdensome for manufacturers to operate cutting edge manufacturing facilities due to the high costs, and fewer manufacturers had the production volume to spread those costs over.

Lithography machines alone cost about as much as the entire building put up to house them.

  1. Brian Potter Structural engineer and writer The cost of lithography machines is often estimated as 20% of the cost of a new fab, which means that lithography tools can cost as much as the entire fab facility itself. How to Build a $20 Billion Semiconductor Fabconstruction-physics.com · 3 May 2024All korrents from this piece
    The cost of lithography machines is often estimated as 20% of the cost of a new fab, which means that lithography tools can cost as much as the entire fab facility itself.

Every new process node makes a fab about 30 per cent more expensive to build than the one before it.

  1. Brian Potter Structural engineer and writer For modern semiconductor fabs, each new process node increases fab cost by about 30%. How to Build a $20 Billion Semiconductor Fabconstruction-physics.com · 3 May 2024All korrents from this piece
    For modern semiconductor fabs, each new process node increases fab cost by about 30%.

A semiconductor fab is mostly its tools; the building around them is the cheap part.

  1. Brian Potter Structural engineer and writer Roughly 70-80% of the cost of a new fab will be the process tools that go in it. How to Build a $20 Billion Semiconductor Fabconstruction-physics.com · 3 May 2024All korrents from this piece
    Roughly 70-80% of the cost of a new fab will be the process tools that go in it.

Power, not land or capital, now limits data centres, and efficiency gains will no longer absorb the demand

Our label. 5 claims in Brian Potter's own words.

Available power, not land or capital, is what now limits how many data centres get built.

Bottlenecks

  1. Brian Potter Structural engineer and writer In particular, operating a data center requires large amounts of electricity, and available power is fast becoming the binding constraint on data center construction. How to Build an AI Data Centerconstruction-physics.com · 10 Jun 2024All korrents from this piece
    In particular, operating a data center requires large amounts of electricity, and available power is fast becoming the binding constraint on data center construction.

Data centres and the grid that feeds them run on incompatible clocks: one is a two-year project, the other a multi-decade investment.

  1. Brian Potter Structural engineer and writer Utility companies see major electrical infrastructure as a long-term investment to be built in response to sustained demand growth. How to Build an AI Data Centerconstruction-physics.com · 10 Jun 2024All korrents from this piece
    Utility companies see major electrical infrastructure as a long-term investment to be built in response to sustained demand growth.

Data-centre electricity consumption will rise substantially even after allowing for every efficiency gain now in sight.

  1. Brian Potter Structural engineer and writer But there's also reason to believe that data center power consumption will nevertheless rise substantially. How to Build an AI Data Centerconstruction-physics.com · 10 Jun 2024All korrents from this piece
    But there's also reason to believe that data center power consumption will nevertheless rise substantially.

The efficiency gains that kept data-centre electricity use flat for a decade are largely spent, so new demand now arrives as new power demand.

S-curves and diminishing returns

  1. Brian Potter Structural engineer and writer But many of these gains have already been achieved: the best data centers already use just 10% of their electricity for cooling and other non-IT equipment. How to Build an AI Data Centerconstruction-physics.com · 10 Jun 2024All korrents from this piece
    But many of these gains have already been achieved: the best data centers already use just 10% of their electricity for cooling and other non-IT equipment.

Air cooling has run out of headroom for AI racks, so liquid cooling is now a requirement rather than an upgrade.

  1. Brian Potter Structural engineer and writer Conventional air cooling is likely limited to around 20 to 30 kilowatt racks, perhaps 50 kilowatts if rear heat exchangers are used. How to Build an AI Data Centerconstruction-physics.com · 10 Jun 2024All korrents from this piece
    Conventional air cooling is likely limited to around 20 to 30 kilowatt racks, perhaps 50 kilowatts if rear heat exchangers are used.
  2. Austin Vernon Engineer and investor who writes quantitative posts… AI servers bring new challenges because many require liquid cooling. How to Make Off Grid Data Centers Affordableaustinvernon.site · 18 Apr 2024All korrents from this piece
    AI servers bring new challenges because many require liquid cooling.
  3. Doug O'Laughlin Semiconductor analyst, author of the Fabricated Knowledge… The critical change that makes this all possible is liquid cooling. The Data Center is the New Compute Unit: Nvidia's Vision for System-Level Scalingfabricatedknowledge.com · 4 Apr 2024All korrents from this piece
    The critical change that makes this all possible is liquid cooling.

American shipbuilding has been uncompetitive for a century: costly inputs, and shelter instead of competition

Our label. 8 claims in Brian Potter's own words.

American shipbuilding capacity has collapsed to a rounding error beside China's.

  1. Brian Potter Structural engineer and writer The U.S. Navy estimates that China’s shipbuilding capacity is 232 times our own. Why Can't the U.S. Build Ships?construction-physics.com · 5 Sept 2024All korrents from this piece
    The U.S. Navy estimates that China’s shipbuilding capacity is 232 times our own.
  2. Dan Wang Writer and analyst of Chinese technology and industry China built half of the world’s ships (by gross tonnage) in 2022, while the US had 0.2 percent of capacity: in practice, this meant that while China builds hundreds of new ships a year, the US builds three to five. 2023 letterdanwang.co · 23 Jan 2024All korrents from this piece
    China built half of the world’s ships (by gross tonnage) in 2022, while the US had 0.2 percent of capacity: in practice, this meant that while China builds hundreds of new ships a year, the US builds three to five.

Wartime shipbuilding surges have never left America with a commercial shipbuilding industry afterwards.

  1. Brian Potter Structural engineer and writer But the U.S. again failed to transform its enormous shipbuilding effort into a successful commercial shipbuilding industry. Why Can't the U.S. Build Ships?construction-physics.com · 5 Sept 2024All korrents from this piece
    But the U.S. again failed to transform its enormous shipbuilding effort into a successful commercial shipbuilding industry.

Whether a country builds ships well comes down to whether it actually wants to compete internationally, and America never has.

  1. Brian Potter Structural engineer and writer The U.S., on the other hand, never appears to have been strongly motivated to make its shipbuilding industry an international success. Why Can't the U.S. Build Ships?construction-physics.com · 5 Sept 2024All korrents from this piece
    The U.S., on the other hand, never appears to have been strongly motivated to make its shipbuilding industry an international success.

Sheltering an industry from competition is not the same as making it competitive, and American maritime policy has only ever done the first.

  1. Brian Potter Structural engineer and writer Shipbuilding policies have long been much more focused on sheltering the industry from competition rather than driving to make it successful. Why Can't the U.S. Build Ships?construction-physics.com · 5 Sept 2024All korrents from this piece
    Shipbuilding policies have long been much more focused on sheltering the industry from competition rather than driving to make it successful.

Inventing a manufacturing technology and building a competitive industry on it are separate achievements, and America has repeatedly done only the first.

  1. Brian Potter Structural engineer and writer But in turning these innovations into competitive industries, America has come up short. Why Can't the U.S. Build Ships?construction-physics.com · 5 Sept 2024All korrents from this piece
    But in turning these innovations into competitive industries, America has come up short.

Commercial shipbuilding keeps moving to whichever country has the cheapest labour, and America has never been that country.

Specialise and trade

  1. Brian Potter Structural engineer and writer Shipbuilding is labor intensive, and we see a repeated pattern of it moving to countries with low-cost labor: from Britain to Japan, then to Korea, then to China. Why Can't the U.S. Build Ships?construction-physics.com · 5 Sept 2024All korrents from this piece
    Shipbuilding is labor intensive, and we see a repeated pattern of it moving to countries with low-cost labor: from Britain to Japan, then to Korea, then to China.

American shipbuilding has been uncompetitive for a century; it is not a recent decline.

  1. Brian Potter Structural engineer and writer The situation we face today, with U.S. ships costing at least twice as much to build as ships built elsewhere, is not a recent development; it’s been the norm for at least the past 100 years. Why Can't the U.S. Build Ships?construction-physics.com · 5 Sept 2024All korrents from this piece
    The situation we face today, with U.S. ships costing at least twice as much to build as ships built elsewhere, is not a recent development; it’s been the norm for at least the past 100 years.

What gets built is set by what the public tolerates and permits as much as by what it costs

Our label. 4 claims in Brian Potter's own words.

The binding constraint on building anything in America is permitting and litigation, not money.

Bottlenecks

  1. Brian Potter Structural engineer and writer Political costs and civic opposition will often make a technology unviable regardless of how the dollars and cents add up. Why we stopped building subways cheaplyworksinprogress.news · 28 May 2025All korrents from this piece
    Political costs and civic opposition will often make a technology unviable regardless of how the dollars and cents add up.
  2. John H. Cochrane Economist at the Hoover Institution Endless lawsuits, cost-exploding contracting requirements, decades to get permits, and more bedevil any attempt to invest here. Tariffs, saving, and investmentgrumpy-economist.com · 14 Apr 2025All korrents from this piece
    Endless lawsuits, cost-exploding contracting requirements, decades to get permits, and more bedevil any attempt to invest here.
  3. Casey Handmer Physicist, formerly at NASA's Jet Propulsion Laboratory Yet solar development is hopelessly snarled by dozens of different development regulations which begin with the assumption that it will permanently and severely harm the environment unless proven otherwise, at exhaustive length. Permitting Reform Or Deathcaseyhandmer.wordpress.com · 10 Nov 2023All korrents from this piece
    Yet solar development is hopelessly snarled by dozens of different development regulations which begin with the assumption that it will permanently and severely harm the environment unless proven otherwise, at exhaustive length.

Fabs take roughly a third longer to build in the United States than in Asia, largely because of environmental review.

  1. Brian Potter Structural engineer and writer Fab construction time in the US has increased from just over 650 days on average in the 1990s to over 900 days on average in the 2010s, compared to around 600-700 days in Asian countries, in part because of increasingly stringent environmental review processes. How to Build a $20 Billion Semiconductor Fabconstruction-physics.com · 3 May 2024All korrents from this piece
    Fab construction time in the US has increased from just over 650 days on average in the 1990s to over 900 days on average in the 2010s, compared to around 600-700 days in Asian countries, in part because of increasingly stringent environmental review processes.

American cities chose subways over elevated railways knowing they cost two to four times as much, because nobody would live under an el.

  1. Brian Potter Structural engineer and writer Cities began to prefer subways to elevateds, despite the fact that they were two to four times as expensive to build as elevated trains. Why we stopped building subways cheaplyworksinprogress.news · 28 May 2025All korrents from this piece
    Cities began to prefer subways to elevateds, despite the fact that they were two to four times as expensive to build as elevated trains.

Cut and cover is still often the cheapest way to build a subway and rich countries have abandoned it anyway, because the disruption is no longer tolerated.

  1. Brian Potter Structural engineer and writer Cut and cover will sometimes be the best choice from a basic cost-benefit perspective, as will elevated rail, and both are useful to have in the tunnel construction toolbox for that reason. Why we stopped building subways cheaplyworksinprogress.news · 28 May 2025All korrents from this piece
    Cut and cover will sometimes be the best choice from a basic cost-benefit perspective, as will elevated rail, and both are useful to have in the tunnel construction toolbox for that reason.