Industry Information Flashcards
(89 cards)
What size TAM does MetaField serve?
~$35-40M US TAM, of which ~$7-8M is currently served by SaaS vendors, with ~$1-
1.5M available to win each year as CMT labs adopt SaaS software
What is MetaField’s ARR goal by end of 2025?
$10-15 million
For MetaField to reach its ARR goal by the end of 2025, we must execute across three dimensions. What are those?
- Product
- GTM or Go to Market
- Price
MetaField Product Goal?
Product: Invest in improving (1) MF user experience, particularly lab and offline where customers &
prospects perceive weakness, and (2) workflow & forms/reports configurability to reduce effort
required to tailor to each labs’ needs, addressing implementation barriers
MetaField GTM Goal?
GTM: Refresh marketing messaging to more clearly define customer segments, pain points & needs,
benefits of SaaS, competitive distinction, compelling offer bundles – delivered via segmentappropriate GTM motion with a disciplined pricing approach (formal pricing committee)
MetaField Price Goal?
Price: Increase price paid by legacy customers as product enhancements delivered, starting with
~12 previously identified firms paying below market rates that, if brought to 25-30% of hard ROI,
would yield ~$1M of incremental ARR
95% of CM tests are performed during what phase of development?
95% of CM tests are performed during the construction phase of development to confirm materials used meet project specifications; small share of tests are
performed during planning phase, primarily on soil to understand composition (which informs site design), and during maintenance phase in cases where
problems with structure occur and forensic investigation is needed
CM tests performed during the construction phase are done for what purposes?
CM tests performed during construction phase are done for either QC (~65% of volume) or QA (35% of volume) purposes – QC tests are performed by materials vendors and contractors to ensure materials delivered to customers conform to required specs; QA tests are performed by engineering services firms and
captive gov’t labs on behalf of developers/owners to confirm materials delivered by vendors & contractors meets specs; req. before the vendor gets paid
Soil, concrete, and asphalt are the most commonly tested materials for what purpose?
Soil, concrete, and asphalt are the most commonly tested materials for QA purposes; they are tested for density, compression, workability, and durability at either
the construction site or in a local lab, depending on the test & firm
CMT for QA is used most heavily during development of what?
CMT for QA is used most heavily during development of infrastructure (power, air/rail, water) and highways & roads, which together account for ~70% of CMT
spend vs. 35% of construction overall; commercial projects (office buildings, multifamily residential, etc.) are minor portion of CMT market
CMT spend per project ranges from?
CMT spend per project ranges from 10-100bps of total construction costs, and is dependent on ownership horizon of developer, strictness of building codes, and
level of regulatory oversight, which varies by project type and location, with projects in more densely populated areas spending more on CMT
Why do highways & roads and infrastructure projects use CMT most heavily (75-100 bps)?
Highways & roads and infrastructure projects use CMT most heavily (75-100 bps) as tend to have strictest building specs, most regulatory oversight, and often
developed by LT owner of the asset (government and/or infrastructure operator)
How often do office & commercial buildings use CMT?
Office & commercial buildings use CMT more sparingly as generally have lighter building specs, subject to less regulatory oversight, and are often built by developers who build to sell rather than for LT ownership, buildings in urban areas do spend a bit more on CMT due to higher risk if structure fails
How is the CMT spend in single family residential & home improvement categories?
Limited CMT spend in single family residential & home improvement categories, since buildings are small, codes are light, and regulatory oversight is minimal
Where is CMT for QA used most often?
CMT for QA is used most often for government-funded projects, which represent ~60% of CMT spend vs. 35% of construction overall; commercial developers tend
to use CMT less, representing only 20% of spend vs. 50% of construction overall, with infrastructure developers/owners representing the remainder
What is the CMT breakdown (by%) for QA? Example State and Federal is 40%.
State & federal (40%): Regional & national gov’t funding state-wide & interstate highway and large infra. projects, incl. airports, rail stations, water plants, etc.
* City & county (20%): Small municipalities that use federal grants & local gas tax revenue to fund construction of schools, water / waste facilities, & local roads
* Infrastructure (25%): Private owners who build & operate large infra. projects such as hydro, nuclear, wind/solar, airports, etc. – often public/private partnership
* Commercial (10%): Private developers who build office/commercial and multi-family residential buildings; often sell to new owner shortly after completion
Number of CMT personnel and labs?
CMT services are delivered by the ~60k personnel employed by the ~3k CMT labs serving local markets across the country
What do CMT labs provide?
Labs provide mix of geotechnical consulting, materials testing, and non-destructive examination services for construction projects within a 1-2 hour drive;
difficult for lab to serve wider area as cost to transport samples from job site back to lab increases as distance grows
How many individuals work in each lab?
- Each lab is comprised of (1) 10-12 technicians who collect samples and perform tests in both the lab and field (roles can also be separated between lab/field);
(2) 3-5 special inspectors who perform non-destructive examinations on steel, rebar, tendons, bolts, etc.; (3) 1 lab manager who runs day to day operations in
lab; (4) 1 scheduler who organizes technician/special inspector activities each day; (5) 2-3 engineers who provide consulting services and review
tests/examinations before sent to clients; and (6) 1-2 admin staff that help with data entry and various office tasks
How much revenue does each lab generate annually?
- Each lab generates $2-4M of revenue annually, with ~50% from CMT (~$1.5M), 25% from NDE, and 25% from geo-tech consulting service
How does CMT vendor win business?
Vendor will typically build relationship with developer/owner by providing inexpensive site assessment reports as part of property diligence during purchase process; after site is acquired, will angle to be invited to consult on site design, which is then carried through to materials testing and examinations during
construction phase
CMT labs are operated by two categories of vendors. What are they?
CMT labs are operated by two categories of vendors, (1) geotechnical engineering firms who provide QA services to both private developers/owners and
government institutions (as well as some QC to contractors/materials vendors), and (2) government entities who perform captive QA testing services on the
projects they fund; each of these segments can be further broken out into several subsegments
What is the CMT lab and size breakdown?
- Local (1,000): SMBs with 1-2 labs serving local municipalities primarily, focusing on school, water, and road projects; many qualify as DBEs and subcontract
from larger firms on state/federal projects to meet diversity requirements; ~60% of revenue generated by CMT services - Regional/national (60): Operate 5-100+ labs within a regional or nationally, supporting higher mix of infrastructure and state/federal projects, particularly power,
air/rail, and highway; subcontract share of CMT work to local DBEs to meet diversity requirements; often provide environmental services to accompany
CMT/geotech, and generate smaller share of revenue (30-40%) from CMT services; grew primarily through M&A during prior periods of industry consolidation - Diversified (15): Provide range of engineering services, often focusing on site design/planning for construction, or a horizontal testing & inspection firm serving
multiple end markets in addition to construction (i.e. healthcare, manufacturing, etc.); tend to serve higher mix of infrastructure owners and state & federal
governments on air/rail/power projects and roads & highways; can have from 5-100 CMT labs, but CMT services typically represent <5% of firm revenue - City & county (250): Operate 1 local lab serving projects funded directly by the municipality, namely local schools, water & waste plants, and roads
- State & federal (65): Operate 3-75 labs across state or geographic area serving projects funded by the entity (state DoT, Army Corps of Engineers, FAA, etc.);
primarily highways and larger infrastructure projects (dams, power plants, airports, etc.)
Construction materials tests can be categorized across four dimensions. What are they?
- Construction Phase
- Material Tested
- Property Tested
- Location Tested
