Recently, Matt Gray, BuiltWorlds founder and co-chairman of Graycor, a 90-year-old, Chicago-area general contractor, interviewed The Combine Co-founder and Partner, K.P. Reddy. We captured the interview on video, which is important, because this interview is one of the very few times you’ll ever see K.P. Reddy in a collared shirt and a coat. Here’s the video.
Notable Quotes from K.P.
The capital requirements to start an architectural firm are nothing. All you need is a customer.
The Combine works with large companies to spin out new tech companies. Especially in service companies, they are so close to the customer’s problem. They understand the problem. They’ve studied the problem. Then they start trying to solve that problem, by launching a new service unit to focus on that problem. Or, these days, everyone wants to build a new piece of hardware or software.
There is no line item for R&D
But in these companies it’s about billable hours, project revenue, project margin. There is no line item for R&D. So we’re able to go into these companies and mine these really cool innovative ideas and spin them out as tech startups.
Higher ROI outside of their core business
The large companies also retain ownership in the startup. Startup valuations are very different than services firm valuations, and particularly engineering and architectural firms. So we’re able to in many ways generate higher ROI outside of their core business than within their core business.
When you hear the term “civil engineering”, your eyes and ears usually don’t perk up in anticipation like they do when you hear “new iPhone” or “driverless cars” or “Artificial Intelligence.” Instead, you think bridges, roads, dams, airports, traffic patterns…buildings. Civil engineers are boring, right? [Read more..]
Despite project scopes growing more ambitious, the construction sector’s productivity and adoption of the latest technologies continue to lag behind those of other sectors.
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Heavy equipment manufacturing giant Komatsu and positioning software maker Trimble are teaming up to enable the sharing of 3-D construction job site data.
The Post Komastu, Trimble partner for 3-D construction data sharing appeared first on Construction Dive.
While keynotes from industry stalwarts like Paul Doherty and Aaron T. Becker and plenary presentations by Greg Bentleyand Burkhard Boeckem were considered by many to be the highlights of the SPAR 3D Expo and Conference, the biggest news from the show had actually come a few weeks earlier. In March, SPAR 3D and AEC Science & Technology (AEC-ST) announced that they would co-locate in June of 2018 in Anaheim, California.
The post Developers propose $1B suburban Chicago technology park appeared first on Construction Dive.
“Due to the growth of cloud and mobile technology as options in the field, the construction sector is ripe for disruption,” McCreanor told Dynamic …
The post ‘SMART MONEY’: VC FIRM OUR INNOVATION FUND BACKS TWO TECH STARTUPS TO THE TUNE OF $5M appeared first on Dynamic Business .
CIMdata delivers Product Lifecycle Management (PLM) consulting, research, and education to global PLM leaders. Their annual review of the AEC market provides a thorough look at the trends in the market and how AEC solution providers are responding to them. The 70-page report includes 20 charts tables of data detailing the global AEC market along several dimensions.
In the report, details like the growth in cloud services, innovations in the area of reality capture as well as VR/AR developments are discussed in detail. Additionally, the report contains AEC solution provider analysis for some of the biggest companies in the industry, including Autodesk, Bentley Systems, Hexagon AB and Trimble Navigation, just to name a few.
We caught up with Ed Martin, Director, AEC / Manufacturing Convergence Consulting Practice, at CIMdata to gather a few more insights around the sort of info that’s in this report, and how it can best be utilized. Ed has previously detailed the opportunities and obstacles to change in AEC, and it’s clear this report deals with those topics directly and indirectly. He also lays out some high level takeaways and talks about how the info in this report will influence strategic planning and marketing for stakeholders in a variety of roles and industries.
Jeremiah Karpowicz: At a very broad level, what does the information in this report tell you about the position and stability of the AEC market?
Ed Martin: Overall, the market is showing steady growth in most areas. We’re seeing especially strong growth in the construction solutions segment. The market for process plant solutions has been weak, driven by continuing weakness in energy prices, but most other areas are strong. Autodesk’s business transition has impacted headline revenue numbers, but that is an expected and temporary effect due to their move to recurring term subscriptions.
Were there any major surprises that stuck out to you in the course of compiling the info in this report?
I was struck by the strong growth by certain providers. For example, Nemetschek’s organic growth exceeded 15%, and their Build (construction) segment organic growth was 30%. Their overall growth including acquisitions was of course even higher. They weren’t alone, either, we estimated strong growth by certain other companies as well.
Did you notice or highlight major changes for any of the solution providers that were profiled in the report? Have many of them expanded their services, or made an adjustment to focus on a specific product or service?
The report goes into some detail for each provider, and their strategies do differ somewhat. However, there are some common themes that emerge. There is clearly a trend toward more and richer cloud solutions, and several providers are expanding their solutions for construction. There are some pretty substantial differences in acquisition strategies, with some companies in a very acquisitive phase and others taking a much more conservative approach.
Can you talk a little bit about how you envision the information in this report can and will influence strategic planning and marketing for stakeholders in a variety of roles and industries?
CIMdata’s market reports, including the AEC report, are used throughout the industry as a source of both quantitative information and qualitative insights to inform strategic planning, product planning, and M&A activity. These reports help companies validate and update insights they obtain from their own engagement with the market. We expect the AEC report to be used in a similar way.
What would you say to someone who is looking to setup a strategic planning session for their organization, but doesn’t believe the 2017 AEC Market Overview Report needs to be part of that discussion?
I would encourage that person to visit the CIMdata website to see what they’re missing. The table of contents and a list of figures and tables is freely available for download. The report itself is very cost-effective in comparison to the information it contains.