Presentation of data and analysis about the construction industry, software and IT and other ideas to help startups, IT teams and construction ops teams do their work.

1. Construction
Technology Quarterly
Q3, 2021 Presentation
Sept. 30th, 2021

2. Today’s Agenda
• Demand
• Full Construction Market Structure
• A little about Real Estate/owners
• Supply
• Data Lakes, Warehouse, Products
• Ideas
• Value Chain & Value Curve Analysis
• Supporters

3. Demand

4. Investors and Tech
Companies Make
Assumptions About Size
• We’ve discussed the fallacy of
selling into a $1.3 Trillion
market
• Today we Go Deeper

5. A Note on BLS Data
• At national scale, it is often the best we have
• Consider what follows context, orienting your own analysis
• We expect updates in the next year or so

6. NAICS Organizes
Hierarchically
• Industry = 23
• Sub-industry = 231
• Sub-Sub-industry = 2311
• To 6-digits

7. Top Level: Construction Overall
$1.9 Trillion baseline (vs. $1.3 Trillion) – some double counting for sub-
contractors
NAICS revenue firms workers Revenue/Firm Revenue/Worker Worker/Firm
construction 23 $ 1,994,166,047 701,329 6,647,047 $ 2,843 300 9.5
Building 236 $ 800,474,908 211,179 1,345,938 $ 3,791 595 6.4
Heavy Civil 237 $ 318,079,667 35,245 1,007,942 $ 9,025 316 28.6
Speciality Contractors 238 $ 875,611,472 455,426 4,293,167 $ 1,923 204 9.4
211,179
35,245
455,426
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
Building Heavy Civil Speciality
Contractors
Construction-Number of
Firms
$800,474,9
08
$318,079,6
67
$875,611,4
72
$-
$100,000,000
$200,000,000
$300,000,000
$400,000,000
$500,000,000
$600,000,000
$700,000,000
$800,000,000
$900,000,000
$1,000,000,000
Building Heavy Civil Speciality
Contractors
Construction - Revenue (1,000)
$595
$316
$204
6.4
28.6
9.4
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
$-
$100
$200
$300
$400
$500
$600
$700
Building Heavy Civil Speciality
Contractors
Workers & Revenue/Worker
$3,791
$9,025
$1,923
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
$10,000
Building Heavy Civil Speciality
Contractors
Revenue/Firm ($1,000)

8. What This
Tells Tech
Suppliers
• There are a lot more subcontractors
• General Contractors represent more revenue
as companies, and per worker
• There is obviously some double counting
• Heavy Civil is a smaller market, with large
firms doing higher dollar volume
• Kind of obvious – the degree is
interesting: Heavy civil revenue/firm is 3x
larger than Building on average

9. Building

10. Next Level: Building Types
NAICS Revenue firms workers
Revenue/
Firm Revenue/Worker Worker/Firm
Building 236 $ 800,474,908 211,179 1,345,938 $ 3,791 $ 595 6.4
Residential 2361 $ 342,010,528 170,434 694,023 $ 2,007 $ 493 4.1
Nonresidential 2362 $ 458,464,380 40,825 651,915 $ 11,230 $ 703 16.0
$342,010,5
28
$458,464,3
80
$-
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
$350,000,000
$400,000,000
$450,000,000
$500,000,000
Residential building
construction
Nonresidential
building construction
Building-Revenue
170,434
40,825
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
Residential building
construction
Nonresidential building
construction
Building-Number of Firms
$2,007
$11,230
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
Residential building
construction
Nonresidential building
construction
Building-Revenue/Firm
$493
$703
$-
$100
$200
$300
$400
$500
$600
$700
$800
Residential building
construction
Nonresidential building
construction
Building-Revenu/Worker

11. What This
Tells Tech
Suppliers
Residential & Non-Residential almost
the same market size
Residential firms have 1/5 the
revenue/firm
Residential firms earn about 70%
revenue per worker of non-residential
Intuition says residential is a hard
market to address. This supports that.

12. Residential Building: Sub-types
Building NAICS Revenue firms workers Revenue/Firm Revenue/Worker Worker/Firm
Residential building construction 2361 $ 342,010,528 170,434 694,023 $ 2,007 $ 493 4.1
New single-family housing construction
(except for-sale builders) 236115 $ 68,574,751 48,499 176,059 $ 1,414 $ 389 3.6
New multifamily housing construction
(except for-sale builders) 236116 $ 46,910,655 3,136 44,444 $ 14,959 $ 1,056 14.2
New housing for-sale builders 236117 $ 148,898,346 16,462 132,191 $ 9,045 $ 1,126 8.0
Residential remodelers 236118 $ 77,626,776 102,398 341,329 $ 758 $ 227 3.3
68,574,751
46,910,655
148,898,346
77,626,776
0
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
140,000,000
160,000,000
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Residential-Revenue ($1,000)
176,059
44,444
132,191
341,329
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
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Residential Building Types-
Workers
$389
$1,056
$1,126
$227
$-
$200
$400
$600
$800
$1,000
$1,200
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Residential Building-
Revenue/Worker ($1,000)
$1,414
$14,959
$9,045
$758
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
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Residential-Revenue/Firm
($1,000)

13. What This
Tells Tech
Suppliers
Residential is much more complicated
than topline numbers:
Companies that build for sale are the
largest revenue portion, 130k of them
Companies that build multi-family are
largest firms
Residential remodelers warp the
picture – many of them, low revenue

14. Non-Residential Building: Sub-types
Building NAICS revenue firms workers Revenue/Firm Revenue/Worker Worker/Firm
Nonresidential building construction 2362 $ 458,464,380 40,825 651,915 $ 11,230 $ 703 16.0
Industrial building
construction 23621 $ 25,454,943 2,985 71,562 $ 8,528 $ 356 24.0
Commercial and
institutional building
construction 23622 $ 433,009,437 37,892 580,353 $ 11,427 $ 746 15.3
$25,454,94
3
$433,009,4
37
$-
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
$350,000,000
$400,000,000
$450,000,000
$500,000,000
Industrial Commercial and
institutional
Non-Residential: Total Revenue
($1,000)
2,985
37,892
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
Industrial
Non-Residential:
Total Firms
$8,528
$11,427
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
Industrial Commercial and
institutional
Non-Residential
Revenue/Firm ($1,000)
$356
$746
$-
$100
$200
$300
$400
$500
$600
$700
$800
Industrial Commercial and
institutional
Non-Residential:
Revenue/Worker ($1,000)

15. What This
Tells Tech
Suppliers
• Industrial is about 6% of the market size of
commercial
• This roughly corresponds to the EPC
market
• Industrial construction firms are smaller
than Commercial firms
• Industrial construction earns ½ the
revenue/worker Commercial firms do
• Likely because they self-perform more

16. Heavy Civil

17. Heavy Civil: Main Types
NAICS revenue firms workers Revenue/Firm Revenue/Worker Worker/Firm
Heavy Civil 237 $ 318,079,667 35,245 1,007,942 $ 9,025 $ 316 28.6
Utility system 2371 $ 158,659,104 17,526 594,859 $ 9,053 $ 267 33.9
Land subdivision 2372 $ 9,376,544 4,790 23,692 $ 1,958 $ 396 4.9
Highway, street, and bridge 2373 $ 126,575,188 8,876 322,243 $ 14,260 $ 393 36.3
Other heavy and civil 2379 $ 23,468,831 4,140 67,148 $ 5,669 $ 350 16.2
$158,659,104
$9,376,544
$126,575,188
$23,468,831
$-
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
$160,000,000
$180,000,000
Utility systems Land
subdivision
Highway,
street, and
bridge
Other heavy
and civil
Heavy Civil-Revenue ($1,000)
17,526
4,790
8,876
4,140
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
Utility systems Land subdivision Highway, street,
and bridge
Other heavy and
civil
Heavy Civil-Number of Firms
$9,053
$1,958
$14,260
$5,669
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
Utility systems Land subdivision Highway, street,
and bridge
Other heavy and
civil
Heavy Civil-Revenue/Firm ($1,000)

18. What This
Tells Tech
Suppliers
Utilities are largest number
Highway & ‘classic’ heavy civil are larger
firms on average

19. Specialty Contractors: Main Types
NAICS revenue firms workers Revenue/Firm Revenue/Worker Worker/Firm
Speciality Contractors 238 $ 875,611,472 455,426 4,293,167 $ 1,923 $ 204 9.4
Foundation, structure, and building
exterior 23810 $ 178,670,037 91,765 866,527 $ 1,947 $ 206 9.4
Building equipment 23820 $ 411,178,579 179,912 1,999,953 $ 2,285 $ 206 11.1
Building finishing 23830 $ 136,104,427 114,802 800,677 $ 1,186 $ 170 7.0
Other specialty trades 23890 $ 149,658,429 69,138 626,010 $ 2,165 $ 239 9.1
0
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
350,000,000
400,000,000
450,000,000
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91,765
179,912
114,802
69,138
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$1,947
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$1,186
$2,165
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$206 $206
$170
$239
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20. What This
Tells Tech
Suppliers
• MEP and interior trades are the largest block
• MEP are marginally larger companies
• Overall trades are pretty comparable
revenue/worker
• “Other” likely includes rarer trades that are
smaller and can command more per/worker

21. Subcontractors

22. Specialty Contractors:
Foundation, structure, & exterior
Speciality Contractors NAICS revenue firms workers Revenue/Firm Revenue/Worker Worker/Firm
Foundation, structure, and
building exterior 23810 178,670,037 91,765 866,527 $ 1,947 $ 206 9.4
Concrete & Structure 23811 52,694,411 20,553 239,062 $ 2,564 $ 220 11.6
Steel & Precast Concrete 23812 15,476,984 3,506 77,366 $ 4,414 $ 200 22.1
Framing 23813 16,165,452 11,494 85,674 $ 1,406 $ 189 7.5
Masonry 23814 23,560,290 18,207 141,977 $ 1,294 $ 166 7.8
Glass and glazing 23815 14,124,308 5,653 61,758 $ 2,499 $ 229 10.9
Roofing 23816 40,770,160 19,108 178,559 $ 2,134 $ 228 9.3
Siding 23817 6,574,724 7,730 35,070 $ 851 $ 187 4.5
Other 23819 9,303,708 5,553 47,061 $ 1,675 $ 198 8.5
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30,000,000
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($1,000)
20,553
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11,494
18,207
5,653
19,108
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$2,564
$4,414
$1,406 $1,294
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$2,134
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23. What This
Tells Tech
Suppliers
• The most Structural & Roofing
• Masonry large number of firms, lower overall
revenue
• Steel & Precast Concrete the largest firms

24. Specialty Contractors: Building Equipment
Speciality Contractors NAICS Revenue firms workers Revenue/Firm Revenue/Worker Worker/Firm
Building equipment 23820 $ 411,178,579 179,912 1,999,953 $ 2,285 $ 206 11.1
Electrical contractors 23821 $ 171,416,144 72,187 845,813 $ 2,375 $ 203 11.7
Plumbing, heating, and air-
conditioning 23822 $ 206,208,216 101,561 1,020,861 $ 2,030 $ 202 10.1
Other 23829 $ 33,554,219 6,267 133,279 $ 5,354 $ 252 21.3
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$100,000,000
$150,000,000
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Building Equipment-Firms

25. What This
Tells Tech
Suppliers
• Electrical and Mechanical/Plumbing very
similar
• “Other” outperforms, perhaps because this
covers ”low-voltage” data installations or
other specialties

26. Specialty Contractors: Finishing
Speciality Contractors NAICS revenue firms workers Revenue/Firm Revenue/Worker Worker/Firm
Building finishing 23830 $ 136,104,427 114,802 800,677 $ 1,186 $ 170 7.0
Drywall & Insulation 23831 $ 45,083,613 17,803 258,608 $ 2,532 $ 174 14.5
Painting & Wall Covering 23832 $ 25,388,981 35,408 190,200 $ 717 $ 133 5.4
Flooring 23833 $ 18,039,180 15,710 78,494 $ 1,148 $ 230 5.0
Tile and terrazzo 23834 $ 9,264,998 9,766 57,235 $ 949 $ 162 5.9
Finish carpentry 23835 $ 27,561,178 29,478 145,852 $ 935 $ 189 4.9
Other 23839 $ 10,766,477 6,672 70,288 $ 1,614 $ 153 10.5
$45,083,
613
$25,388,
981$18,039,
180
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98
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178
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$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
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Building Finishing-Revenue
($1,000)
17,803
35,408
15,710
9,766
29,478
6,672
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
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$2,532
$717
$1,148
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Building Finishing- Revenue/Firm
($1,000)
$174
$133
$230
$162
$189
$153
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$100
$150
$200
$250
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Building Finishing -
Revenue/Worker ($1,000)

27. What This
Tells Tech
Suppliers
• Drywall is the largest by revenue, highest
revenue/firm
• Many more finish carpentry & painting than
others
• Flooring is the highest revenue/worker

28. Specialty Contractors (number)
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
< 5 5 -> 9 10 -> 19 20 -> 49 50 -> 99 100 -> 249 250 -> 499 500 -> 999 1000+
Chart Title
US Census, 2019

29. Specialty Contractor Pay/Worker
$48,087
$46,939
$53,754
$61,026
$66,044
$70,533
$72,061
$73,598
$71,121
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
< 5 5 -> 9 10 -> 19 20 -> 49 50 -> 99 100 -> 249 250 -> 499 500 -> 999 1000+
US Census, 2019

30. What All This
Means
• This analysis will be made available on
Slideshare
• A complicated industry with varying revenue
levels
• Widely varying ability for trades and
company types to pay for technology
• As technology providers seek markets, a
more sophisticated ‘map’ can guide strategy
& tactical plans

31. Real Estate/Owners
The people that buy all this work are
owners of varying kinds