Last Week in ConTech - 29 July 2024
Turner acquires Dornan Engineering + California to build a Hydrogen Hub
Last Week in ConTech is a summary of the most important construction startup funding, news, policy changes and national project investments in the last 7 days. The goal is to provide decision makers with information on technology solutions and macro-economic trends in construction to help drive innovation in the industry.
In this issue there are:
14 Startup Fundings
13 Policy and Regulatory Changes
4 New National Infrastructure Projects & Priorities
0 New investment funds
1 Acquisitions
4 News articles
40 open jobs - view here
Reading time: 15 mins
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Startup Funding
Autonomous Construction Sites
Applied Intuition, a Californian startup, raised $300 million in a secondary sale. Their software helps companies test advanced driver-assistance systems and automated driving technology more quickly and safely. More here.
Notes:
As we deploy autonomous vehicles and equipment on construction sites, we need to rigorously test the safety of the system and account for edge cases.
As construction is a changing and diverse environment, some edge cases can be difficult to test or are rarely observed on site.
This solution is used by construction and mining firms to reduce reliance on real world testing and allows for the simulation and analysis of thousands of scenarios providing information to expedite the deployment of autonomous equipment on site and inform safety guidelines.
Trades Management
Meisterwerk, a German startup, raised €6m in Series A funding. They provide a central operating platform for craft (trades) businesses by streamlining documentation and processes through the use of an app which has features such as tracking work hours, providing critical job information for frontline workers, capturing photos for documentation and reporting and filling out forms. More here.
[View open jobs - 1 role in Design]
Infrastructure Maintenance
Franchetti, an Italian startup, raised $6.5m in funding. They provide software development and engineering design for the predictive maintenance of bridges and viaducts as well as software for the optimal planning of the construction site of a stretch of road work. More here.
[View open jobs - 3 roles in Civil Engineering]
Home Solutions
EverFence, a Californian startup, raised $7m in Series A funding. They provide an online shopping experience for fencing needs, offering instant quotes and a variety of products including full back-office support. More here.
Notes:
The global fencing market is experiencing strong growth with total transaction value reaching $30.4 billion in 2023 (projected compound annual growth rate (CAGR) of 5.6% from 2023 to 2032).
EverFence has innovated in providing an instant quotation system.
A user can find their house on an aerial map, mark out where the fence is to be installed, pick fence & gate options to receive an instant emailed quote.
Given the size of the residential market in the US, wrapping technology + improved customer service (instant quotes and email follow up) is a significant competitive advantage.
While it is unclear if these models are venture backable (assuming it is a tech enabled contractor play rather than a platform), there is a great opportunity to complete a roll up with Private Equity backing.
Buy into existing markets through purchasing fencing contractors to acquire a local skilled workforce, roll out a technology based CRM and quoting solution, apply localized SEO and paid advertising using a centralized head office team.
Nick Huber ran a similar play for his company Bolt Storage.
Drillbit, a Texan startup, came out of stealth this week. They automate administrative and operational workflows for home service businesses by handling the quoting process from job request through to payment. More here.
Notes:
The United States spends $700b per year on home maintenance.
Site Selection
Paces, a Brooklyn startup, raised $11m in Series A funding. Their platform helps developers to locate the most viable sites for clean energy development by consolidating and interpreting spatial, zoning, permitting, interconnection, and environmental data - a process which can take months. More here.
[View open jobs - 1 role in Sales, 1 role in Software, 2 roles in Support]
Charging Infrastructure
ReliON, a Canadian startup, raised CAD$3m in funding. They provide operational monitoring and maintenance for EV charging infrastructure to optimize performance and provide an integrated experience from problem detection to resolution. More here.
[View open jobs - 1 role in Sales]
Notes:
A 2022 study of 657 chargers at 181 non-Tesla charging sites in San Francisco found only 72.5% were capable of delivering a charge of more than 2 minutes.
Related:
Drones
Aereo, an Indian startup, raised $15m in Series B funding. They provide drones to manage large capital assets catering to infrastructure including construction progress monitoring activities. More here.
[View open jobs - 3 roles in Sales, 1 role in HR, 8 roles in Software, 11 roles in Other]
Climate Risk
Latitudo 40, an Italian startup, raised funding (undisclosed). They use data from satellite imagery to create models that help public administrators, urban planners, and critical infrastructure managers understand and manage climate risks while enhancing resilience. More here.
Fuel Management
CTA Smart, a Brazilian startup, raised $3m in funding. They provide a device for the automation of diesel consumption management of a fleet in a simple and online way. More here.
[View open jobs - 3 roles in Software, 1 role in Sales]
Notes:
The solution was developed to automate pumps located in yards and garages.
It provides real time monitoring to identify the data and time of the fueling, vehicle, volume of fuel supplied, distance traveled / hours worked; average consumption, virtual stock of the tank, among other features.
This solution could be valuable to manage a site fleet of construction vehicles (though it is unclear if they have optimized for this market yet).
Nuclear Energy
The Nuclear Co, a Kentucky startup, came out of stealth this week. They plan on constructing nuclear plants throughout the US using proven, licensed technology and a design-once, build many approach initially targeting sites which already have a level of Nuclear Regulatory Commission licensing. More here.
Notes:
The Nuclear Co aims to complete this by developing standardized processes and scheduling in order to sequence work and minimize delays.
This includes moving construction expertise from one site to the next immediately to improve efficiency.
My notes:
There is a strong push for nuclear energy in the US.
A bottleneck is not the development of nuclear energy reactor technology (this is proven) but the delivery and construction at scale.
Standardized and modular approaches for delivery are being explored in this sector - this is interesting as existing contractors may be ‘pushed out’ of the sector due to a lack of existing expertise and consistent delays / cost overruns with existing delivery methods.
The last nuclear plant in the US was delivered 6 years past schedule at double the planned cost - $15b over budget.
Government
GovPort, a Virginian startup, raised $2.8m in funding. They are building a subcontractor management portal for federal prime contractors which reduces costs and risk by automating compliance tasks and creating a digital trail of subcontractor compliance with subbies populating and maintaining their own records. More here.
Notes:
Prime contractors work directly with the government. They manage any subcontractors and are responsible for ensuring that the work is completed as defined in the contract.
Related:
Space Construction
Star Catcher, a Florida startup, raised $12.25m in Seed funding. They are building a first of its kind energy grid for space which delivers energy on demand at higher concentration than the Sun to existing solar arrays of spacecraft allowing them to generate up to five to ten times the amount of power they would generate otherwise without retrofit. More here.
[View open jobs - 2 roles in Other]
Notes:
While not a construction specific solution this technology is likely to be a key enabler in the space construction race.
NASA has a goal for human habitation of the Moon by the end of the decade and then pushing towards Mars.
To develop the infrastructure for a functioning space economy, construction is a key requirement (mines, warehouses etc) and NASA has shown this intent by funding projects such as a lunar railway network.
This system is to be constructed and operated using robots with energy being a chokepoint (only solar is currently available).
Star Catcher offers a solution for the provision of a space based energy grid capable of providing energy on demand to vehicles / infrastructure using existing solar arrays.
Workforce Management
Workstaff, a Canadian startup, raised $1.2m in Seed funding. They develop workforce management tools for business which manage temporary and flexible staff assisting with onboarding, booking and scheduling, messaging etc to improve efficiency and retention focusing on a variety of industries including warehousing and construction companies. More here.
[View open jobs - 1 roles in Support]
Policy and Regulatory Changes
The DOE is providing awards totaling $52m which support the transition to a clean energy economy.
The awards are across several research areas including:
Windows
Thermal energy storage systems
Insulation innovations
Solid state lighting technologies
Heat pumps
Advanced air leakage detection and air sealing technologies.
How building codes are crunching affordability
States in Australia have adopted energy efficiency requirements.
Master Builders Queensland states these rules (such as increased insulation and double glazed windows) have increased the cost of construction for a single-storey home by $18,000 and two-storey homes by $25,000.
Notes:
Energy efficiency requirements continue to be applied across the construction sector to meet net zero targets.
As these are applied to the Residential sector, they can increase costs reducing construction at a time when housing affordability and supply are topical.
Increasingly governments will be faced with balancing choices between affordability and livability of their cities with long term planning for decarbonization.
The proposed legislation that would bolster the Federal Energy Regulatory Commission’s authority to approve transmission lines and require interregional transmission planning.
The Energy Permitting Reform Act of 2024 would eliminate the National Interest Electric Transmission Corridor designation process.
It would instead allow FERC to approve transmission projects that meet certain requirements to be deemed to be in the national interest.
Additionally it would:
Establish deadlines for permitting renewable energy projects on federal land.
Set a goal of permitting 50 GW of renewable energy projects on federal land by 2030 as well as 30 GW of offshore wind.
New buildings standards regime on the horizon (UK)
The Government has recently confirmed that it has approved the drafting of legislation to set up a new Buildings Standards Regulatory Authority.
This is following a publication of a steering group which recommended an independent central competent authority should be established to, amongst others:
Strengthen the oversight role of the State in respect of the design and construction of buildings.
Strengthen the oversight of the marketing and use of construction products.
Reduce the risk of building failures and recurring defects.
Enhance public confidence in construction related activity.
The new law is aimed at speeding the development of renewable energy infrastructure.
This change is inline with the State’s goal of achieving 100% clean energy by 2040.
As of early 2024, wind, solar and energy storage projects in Minnesota have received $13b in capital investments.
EPA announces nearly $160M to cut construction emissions
The funding is to support efforts to report and reduce climate pollution from the manufacturing of construction materials and products (such as concrete, asphalt, glass, steel and wood).
Trump Vows to End Electric Vehicle ‘Mandate’ on Day One
The Biden Administration doesn’t have a mandate on electric vehicles, however Trump is referring to the EPA regulation limiting tailpipe pollution which would compel automakers to sell far more electric and hybrid models over time.
Biden does have a goal of having 50% of all new vehicle sales be electric by 2030.
Notes:
The Biden Administration set tariffs on Chinese made EVs in a bid to protect domestic manufacturers.
While it seems unlikely that Trump would reverse the tariffs, removing the ‘mandate’ or stated goal could have an impact on new manufacturing construction for EVs and electric charger infrastructure deployment.
Related:
New law allows Tennessee developers to hire their own building safety inspectors
The law allows developers to hire their own inspectors to check for environmental, safety and building violations on construction sites.
Building inspections are typically conducted by city and county codes departments in the state's urban areas and by the state fire marshal's office in rural areas.
This is intended to streamline the building process.
Proposed Legislation Offers the Promise of a Much Needed State-Wide Building Code in Missouri
Missouri does not have a statewide building code which contractors must abide.
It has left the adoption and enforcement of codes to its local municipalities and counties.
They have introduced a law which would introduce statewide standards for plumbing, mechanical, electrical, property maintenance and other renovation and construction activities.
US Taps Federal Buildings to Test Next-Generation Climate Tech
The Biden Administration will test 17 climate tech products in federal buildings which are on the edge of commercialization.
Kazakhstan Government To Raise Uranium Extraction Taxes By Up To 18% Beginning In 2025
The plan is to gradually increase the tax from 6% to 18%.
Kazakhstan is the world’s largest producer of uranium.
Notes:
This is critical as it is a key requirement for nuclear energy generation.
It could impact the construction and deployment of small nuclear reactors and the allocation of funding / investment in the sector.
Nigeria lacks capacity to probe building collapses – COREN
The Council for the Regulation of Engineering in Nigeria has expressed concern over the incessant building collapse in the country.
This year there have been 22 cases of building collapse.
Several factors are considered including use of substandard materials, structural failure, illegal conversion of buildings, quackery, and inadequate supervision during construction.
The country’s inability to investigate and prosecute those responsible is a major challenge as they don’t have the expertise, equipment or resources to do so.
600+ NYC facilities pledge to cut energy use as part of expanded demand response program
627 city facilities are collectively pledging to reduce energy use by 122 megawatts.
This is the largest commitment from city facilities in the past decade.
The city plans to install over 1,150 real-time meters in city buildings to help manage municipal electricity use.
National Infrastructure Projects & Priorities
US
California launches world-leading Hydrogen Hub
The DOE announced the official signing of a $12.6b agreement to build a clean, renewable Hydrogen Hub.
This will facilitate a network of clean, renewable hydrogen production sites with the goal of decarbonizing public transportation, heavy duty trucking, and port operations by 2 million metric tons per year.
This could include developing infrastructure for hydrogen transport and use, including 60 heavy-duty fueling stations and 165 miles of open-access pipelines.
India
India commits to record infrastructure spending
India has announced its 2024 federal budget.
They will spend a record 11.11 trillion rupees (US$132 billion) on infrastructure.
This is approximately 3.4% of the country’s Gross Domestic Product (GDP).
China
China plans to connect Earth with the moon through a communication superhighway
The China Academy of Space Technology (CAST) and the Beijing Institute of Spacecraft System Engineering's researchers have outlined a roadmap to create a cislunar communication network.
This involves building 3 lunar ground stations and 30 satellites to provide monitoring services, navigation and real-time communication to global users.
The network will provide accurate positioning, navigation and timing (PNT) when a spacecraft is traveling between the moon and Earth and if lunar surface operations are being carried out.
Notes:
Both the US and China are rapidly advancing plans to support space exploration and the development of a space economy.
The push for space and related construction efforts is reminiscent of The Space Race and could become a new axis for competition.
As a result, more funding and grants will become available for construction technology solutions that demonstrate competency and competitive advantage in helping either country achieve these aims.
China orders infrastructure checks after another deadly highway collapse
Over a dozen people died in a highway bridge collapse brought by heavy rain.
This is the second incident of its kind in three months.
In response local authorities are increasing safety checks of key infrastructure.
In some regions transport authorities have ordered intelligent monitoring technologies such as ground penetrating radar and drones to monitor infrastructure in real time.
Notes:
A number of nations around the world are facing an aging infrastructure crisis combined with more extreme weather related events (in 2023 - there were 28 billion dollar weather disasters in the US).
Real time infrastructure monitoring solutions to assist with predictive maintenance and prevent failure will become more important.
Related:
Acquisitions
Turner Construction, one of the largest US contractors, purchased Dornan Engineering, a specialist mechanical, electrical, instrumentation and commissioning engineering contractor with operations in Ireland, the UK, Continental Europe, and the Nordics. More here.
Notes:
Dornan delivers complex large-scale projects for blue-chip clients in the advanced technology sector, including data centers and biopharma facilities.
The deal comes with their backlog of $1.2b in projects.
This acquisition allows Turner to increase their presence in Europe in a growing segment (data centers).
News
This little-known agency has billions to make federal buildings green
The U.S. General Services Administration (GSA) owns and leases nearly 8,800 buildings, covering 370 million square feet, including offices, laboratories, warehouses, and data centers.
The 2022 Inflation Reduction Act provided the GSA with $3.4 billion to help decarbonize federal buildings.
More than $2 billion of this funding is for buying common construction materials, such as concrete, glass, steel, and asphalt with low amounts of embodied carbon.
$1 billion of the IRA dollars will go toward evaluating and deploying emerging technologies that can slash carbon emissions from building operations.
This is completed by placing new technology through an initiative called the Green Proving Ground.
It installed technology in federal buildings which are evaluated to gauge their performance in the real world.
Over 107 technologies have been evaluated with 23 being harnessed in more than a third of the GSA’s portfolio of government-owned buildings.
Climate Change Risk to National Critical Functions
The US used to experience 3 billion dollar weather disasters a year.
In 2023 there were 28.
US Public EV Chargers Set to Surpass Gas Stations in Eight Years
The US added ~700 new public fast-charging stations for electric cars in the second quarter.
The nationwide total is almost 9,000.
A Developer’s Guide to Mass Timber
If I missed anything this week, please reply and let me know! I’ll make sure to include it next week.
FYI Paces raised $11m, not $1m :)