The Procurement Software for Contractors to Solve Real Pain & Scale into Acquisition with Or Lakritz

0:00 [SPEAKER_02]: On this week's show, acquiring the supply chain, with or lacrits from Trimble. [SPEAKER_02]: All right, Nathan Wood, we're back, we're sitting down. [SPEAKER_02]: We got having a little fun again. [SPEAKER_02]: Feels like I just saw you a couple days ago. [SPEAKER_01]: Always fun with Legos.

0:23 [SPEAKER_02]: I'm going to just say it likes better with Lego. [SPEAKER_02]: And Lego workshops are just the way. [SPEAKER_02]: I'm going to try to shoehorn Lego and almost anything I do from here on out. [SPEAKER_02]: I think it's just fun to watch a group of adults get into that play space and enjoy themselves.

0:35 [SPEAKER_02]: Well, if you guys are interested in that, you know, look us up stuff is real fun. [SPEAKER_02]: And we're sitting down and I had a little fun with them on the way in with the trim mold. [SPEAKER_02]: And as you can tell from this shirt, struck shares probably where y'all know them from.

0:48 [SPEAKER_02]: Look it into what all that means, but this is a Colorado crew. [SPEAKER_02]: Where you come through is from, or? [SPEAKER_00]: I'm coming from Boulder, actually moved a year ago from Israel. [SPEAKER_00]: a lot of changes in my life in the past year. [SPEAKER_00]: Thank you for inviting me again.

1:02 [SPEAKER_02]: Anytime, man, it's great to have people come back, especially, you know, the great ones that come back and have a story pass along. [SPEAKER_02]: So we'll be right back with the interview for we do. [SPEAKER_02]: You guys know this. [SPEAKER_02]: Follow our guests on LinkedIn. [SPEAKER_02]: Follow the content crew on LinkedIn.

1:17 [SPEAKER_02]: And don't forget to subscribe and follow us on YouTube YouTube dot com for slash at the content crew for those that didn't watch you guys can go back and watch this show but give them the brief sort of who you are your journey and sort of the problem that structure was focused on a lot in the US in the past eight years building structure with Michael founder already the video in the great team.

1:40 [SPEAKER_00]: Truck share is a digital procurement platform specifically built for self-performing contractors really solving the pain and the inefficiencies between the field office and vendors suppliers around materials and procurement management inventory tracking. [SPEAKER_00]: So ultimately the solution is [SPEAKER_00]: simple to use software solution, digitizes all the workflows related to procurement, so from the field building catalog, building requisitions, sending it to the office, the old management, RFQs, quote leveling, delivery confirmation, invoice reconciliation, so really syncing and connecting all the workflows in one place on top of that providing inventory tracking, of course,

2:26 [SPEAKER_00]: Of course, there's a lot beyond the vision, and now I'm excited to fulfill the actual vision within the Trimble ecosystem. [SPEAKER_02]: Update folks, and you've moved here to bolder a few life changes on that one, but also the company's been acquired by Trimble. [SPEAKER_00]: A small milestone company and for the founders.

2:44 [SPEAKER_00]: Yeah, actually four months ago, we were acquired by Trimbo, citing times. [SPEAKER_00]: Actually, I moved toward the regardless to the acquisition. [SPEAKER_00]: My wife started a postdoc in CU in the university. [SPEAKER_00]: So it's amazing that ultimately we were acquired by Trimbo. [SPEAKER_00]: So now the headquarters is 15 minutes from my home and I'm close to both of you guys.

3:05 [SPEAKER_00]: That's exciting as well. [SPEAKER_02]: It is a little fertility. [SPEAKER_02]: She starts her postdoc, you know, triple takes advantage. [SPEAKER_02]: So that's awesome. [SPEAKER_02]: And there is this fallacy in the industry about getting acquired and becoming part of the larger company.

3:18 [SPEAKER_02]: And I hear this a lot in the field about, you know, the trepidation, are you going to get acquired? [SPEAKER_02]: It's almost said with some negativity. [SPEAKER_02]: What was your reason for wanting to be acquired and why you're excited about it? [SPEAKER_00]: Yeah, you know, it's so funny because it's really like that, you know, most people come to the founder like a very entrepreneur, I myself see myself in a very entrepreneur spirit and everyone that knows me as well.

3:41 [SPEAKER_00]: But I feel that Trimble really provides that flexibility, a real space to continue to be an entrepreneur. [SPEAKER_00]: So going back the reason I would say we wanted to be acquired [SPEAKER_00]: as a founder. [SPEAKER_00]: We really saw the opportunity, you know, with the market of evolution, specifically the space of procurement.

4:08 [SPEAKER_00]: I'll say both the challenge of adoption or the pace of that across the industry, but also understanding always that procurement is a piece of something a lot bigger. [SPEAKER_00]: So we always thought about it and also when we built the company, that was part of the strategy. [SPEAKER_00]: In early days, we were strategically partnering with ProCore and Autodesk and other big players with large suppliers across the US because we understood that ultimately from one side, we provide a lot of value.

4:41 [SPEAKER_00]: We are solving big things, but it's part of a big picture. [SPEAKER_00]: So we got into a point, you know, in the venture after eight years seeing the market landscape and with interesting conversations with players in the industry that it's a good time to make that make that a bigger question for like a stick contact industry of like.

5:05 [SPEAKER_01]: Does the the age old land and expand model kind of like really about how pro core got started like in today's age is not even possible like is it isn't more like the strategy is land You know get your nugget, you know your piece of the pie and get a choir and then that is success because it's such a saturated market.

5:22 [SPEAKER_01]: I mean, what do you think or do you be with that? [SPEAKER_00]: That's a great question and kind of looking at the maturity of the start-up ecosystem or the innovation ecosystem within the industry and how many really big players you have and how much market grab they have if you take the ProCord or the Autosystems, like three or four or five big companies that really [SPEAKER_00]: hold such a big part and it's not only the big part of the industry but also within the customer that taking just such a significant portion of their, you know, of the pain and solving so much for them.

6:03 [SPEAKER_00]: So let you say, like, I do see and think that in the next few years before a different evolution or revolution in the market, that is the opportunity, like looking at the big players. [SPEAKER_00]: And honestly, if you see the small companies, the startups, they're coming to solve a pain, but those big companies hold such a big, [SPEAKER_00]: Grab of the value chain within the construction process for the contractors that it's very difficult to replace them or to come in like you say be the one that is landing and expanding across the customer the customer value.

6:44 [SPEAKER_01]: The challenge and becomes the bigger you are, the more you have to tackle like the big problem, right? [SPEAKER_01]: And the big problem is way different than the small problem of one, you know, an individual self-reform contractors needs versus like the larger projects needs. [SPEAKER_01]: And I think in that and that is that is this the dilemma of becoming big in this industry is how do you solve this unsolvable problem that the customer keeps asking technology to solve, but yet.

7:09 [SPEAKER_01]: I don't think it's technology's job to solve it, you know, incentive challenge of why should we share the information that we all say is what's going to feed AI because at the end of the day, we may not necessarily be incentivized to do so. [SPEAKER_01]: Click that in different directions where we can talk more about acquisitions, but.

7:25 [SPEAKER_02]: You make a pretty good point about, and it kind of connects to what Orr's talking about is with the large players, you're actually in some respects blinded to the areas that they don't do well and you think that you're okay in those areas when really some of those areas are significantly impacting business.

7:45 [SPEAKER_02]: But they're not enough to come and install the overall huge problem that you're talking about, Nathan. [SPEAKER_02]: But the problem that they're solving is really significant. [SPEAKER_02]: And so there is this and eight years is about a good time. [SPEAKER_02]: I mean, if you think about a people like, oh eight years sounds like forever, it happened like that to you.

8:05 [SPEAKER_02]: I'm sure or yeah, I'm sure you can think back to when it was just you and the co-founder a couple people with an idea. [SPEAKER_02]: And then all of a sudden now you're inside of the the triple machine as it were. [SPEAKER_02]: But along there, you found this problem space, that in a market fit and identified that you were really onto something.

8:24 [SPEAKER_02]: That's what we need startups to do. [SPEAKER_02]: That's never going to happen at no-fence a Trimble Procore and Autodesk. [SPEAKER_02]: It's really not happening there. [SPEAKER_02]: It's happening in the minds of the entrepreneurs who either are looking for problems. [SPEAKER_02]: or so many come from the industry that experience the problem and say why is this one in Excel over here and why is this over here and and I have all this but talk about for those context startups and for those folks like you're not saying don't do it you're saying do it but think differently on figuring out your space and then looking around and maybe discuss how you picked Trimble I'm guessing it wasn't only Trimble I just guess I don't have any insider info

9:08 [SPEAKER_02]: that how do you pick it as the place to go where you could succeed in that because you want to do expand and connect into the larger problem. [SPEAKER_00]: I looked at three significant pillars you know to take the decision. [SPEAKER_00]: First and foremost is really the people that are going to work with and the culture that I see in the organization.

9:29 [SPEAKER_00]: Second is the strategic synergy between what I'm doing, what they are doing, if it's in the customer base, where they specialize, and the third is the priority. [SPEAKER_00]: That's very important. [SPEAKER_00]: Like, I really look for. [SPEAKER_00]: and acquire a buyer that will take what I'm doing, continue with that, but it will be a priority for them and not something that I'm putting aside and maybe in two, three years I don't know if I'll be here or not, it will be something that is relevant.

10:02 [SPEAKER_00]: So really [SPEAKER_00]: very, very, very specializing in the industry across the board. [SPEAKER_00]: So that's very interesting and helpful and really passionate about solving for the industry. [SPEAKER_00]: So that's amazing. [SPEAKER_00]: So for what you said, for example, I do believe that a trimble for example is position very well to also identify those opportunities and the gaps and the pains because they [SPEAKER_00]: kind of capture a lot of the customer journey and, you know, with AI, it kind of, it finally enables these big companies to do something that is like the startup.

10:49 [SPEAKER_00]: Last conversations I had, I see kind of something interesting that technology in the past, I'll say before the AI revolution was kind of enabling technology to build solutions for small companies, to have [SPEAKER_00]: like large companies. [SPEAKER_00]: So you have like big contractors that are building their own software, building their own workflows, etc.

11:15 [SPEAKER_00]: And then a software solution came and built that solution for small companies at scale, right? [SPEAKER_00]: But today AI and AI builders and all those tools, [SPEAKER_00]: in fast-paced and agile like the small companies. [SPEAKER_00]: So that's very very interesting in my opinion of like the shift and how it will impact M&A, etc.

11:41 [SPEAKER_00]: You opened up Pandora's box. [SPEAKER_00]: I love it. [SPEAKER_02]: No, I love it. [SPEAKER_02]: There's an heaven flow, right? [SPEAKER_02]: Everything goes up and down. [SPEAKER_02]: And like the smaller companies have had the agility for a while to take advantage of, we called it, and I did a series on it with Project Mark.

12:02 [SPEAKER_02]: the link and join at the time when I was there, it's called punching above your weight. [SPEAKER_02]: It was the ability to use those software to sit in a room and have access to information and be a bigger fighter than maybe you were as this smaller company gave you an advantage. [SPEAKER_02]: Now you're seeing the big companies can take advantage in leverage AI.

12:24 [SPEAKER_02]: I want to challenge to though that that doesn't mean smaller guys, groups, people that are out there that your you can't do that. [SPEAKER_02]: You just had a big highway to do it on before. [SPEAKER_02]: Now we've got to entertain ways and you've got to find the gaps, you're going to have to slip gaps now and shoot between those gaps and get more specific Nathan and I were doing this discussion earlier at an LCI event this week in Denver and I focused on that there's this idea in the future and we talked about this at fabrication two weeks ago at MCAA understanding what you're great at.

13:01 [SPEAKER_02]: And getting, if you are smaller, getting more specific can drive more revenue in your specific area. [SPEAKER_02]: And those contractors are going to need it, right? [SPEAKER_02]: Like if you're not every mechanical, electrical, HVAC has to be a fabricator, they can be installers. [SPEAKER_02]: Right?

13:21 [SPEAKER_02]: Not every software needs to have a project management component to it anymore. [SPEAKER_02]: You're talking about there's both those opportunities, man. [SPEAKER_02]: That's what makes this landscape right now so crazy to me. [SPEAKER_01]: Is that you have both things happening? [SPEAKER_01]: Now I'm going to have to bring the quote in.

13:37 [SPEAKER_01]: Tell me how I measured and I'll tell you how I behave, right? [SPEAKER_01]: Because that's exactly what you're hitting on here is. [SPEAKER_01]: It are companies especially, yeah, trade contractors, those that are in the silver form space that could be buying out or could be doing internally.

13:50 [SPEAKER_01]: And that decision whether or not to, you know, it's not about how much volume can you claim because that is, I mean, ENR said that's that's how people are measured is, hey, look, how much volume I did. [SPEAKER_01]: But guys, volume does not equal profit margin, right? [SPEAKER_01]: Like, if we were actually going back to measuring, okay, what is it those [SPEAKER_01]: profitable thing that we do in our business and how do we do more of that and outsource more of the stuff that we are not as profitable at?

14:14 [SPEAKER_01]: I think we'll come to more of those conclusions, but that's such a taboo way of even thinking in this industry. [SPEAKER_01]: I mean, I don't know, I guess in how you guys have been able to take over something like buyout, that is a very traditional, like this is the way we've always done it.

14:28 [SPEAKER_01]: Have you been able to have some breakthroughs and like getting procurement folks to [SPEAKER_00]: the procurement evolution, the space is not yet in like a transformative like approach like you're saying. [SPEAKER_00]: We're still in the state where we're digitizing the workflows in order to enable exactly what you're saying and to put all the data in one place.

14:50 [SPEAKER_00]: But we do see kind of indications [SPEAKER_00]: you know, due to the ability for what it facilitates. [SPEAKER_00]: For example, contractors before using the digital procurement tool, and I won't even say only structure all other solutions in the market. [SPEAKER_00]: They didn't even do an RFQ a lock for for for buy for buying for the ad hoc buying.

15:22 [SPEAKER_00]: I'm not [SPEAKER_00]: But now you have why they didn't do it because it was a heavy list. [SPEAKER_00]: Like you everything via email, you need to send multiple emails to multiple suppliers, download every PDF, go to an Excel sheet and then you don't have the time to do it for every, you know, four item purchase order or a requisition that comes from the field.

15:45 [SPEAKER_00]: But now, when you have a digital platform that you receive the requisition or the three requisition, and you can in click of a button, send multiple RSQs to multiple suppliers, receive them, structure with a materials to the extreme materials, take that with AI, extract the data, and provide you the bulk leveling sheet in a click of a button.

16:07 [SPEAKER_00]: So that really facilitates change of behavior, very immediate [SPEAKER_00]: you know, a pair of pair are related to amount of purchase orders, dramatically increase their contractors that today, every purchase order they shot. [SPEAKER_00]: They are not taking like the list pricing or contractor pricing for granted.

16:33 [SPEAKER_00]: So that's very interesting. [SPEAKER_00]: But for the really strategic, like you're saying, like looking, planning, and buy-outs like really strategic decision-making, I think there's a couple of [SPEAKER_01]: But what I heard you say was you are kind of transforming or kind of flipping the contract process of instead of, you know, doing all that contracting and PO work after the fact and having to email those, you're kind of taking care of a lot of that stuff, you know, kind of more upfront and having more this marketplace approach, whether it's from materials or yes services or otherwise.

17:09 [SPEAKER_00]: I won't say mark a place because mark a place is a frightening world, I don't write anything. [SPEAKER_01]: I say it conceptually not to say that a trimmer or a structure or anything falls into that category, but someone in the industry that's saying, okay, how is this any different than the way I've done it before?

17:25 [SPEAKER_01]: The idea of the contracting part of buyout. [SPEAKER_01]: being moved up front like to me that's when I say marketplace that's what that means is like it's it's moving that stuff up front so that you now have all these qualified buyers and it's kind of changing it from a you know quote unquote traditional bid to yeah I maybe I won't say marketplace because I didn't realize it's so taboo [SPEAKER_00]: I think for sure it's really facilitates a lot of things that you could have done before, but in order to do it, it should have been really a big decision for the contractor to make and to invest a lot of resources in order to do it regularly.

18:15 [SPEAKER_02]: You know, marketplace is one of those things that for some reason has that connotation and we won't market out because like it's like saying digital twin in front of a dim person. [SPEAKER_02]: Yeah, exactly. [SPEAKER_02]: We're not going to edit out digital twin. [SPEAKER_02]: We don't have to say we love it.

18:28 [SPEAKER_02]: And it can that's the other the other thing in this world is so many things being so many things. [SPEAKER_02]: So or I want to take you back to something to really it's not just for the founders in the space it's for everyone that's thinking about. [SPEAKER_02]: digitizing anything or changing anything, you talked about core transformational steps that have to happen in a process.

18:50 [SPEAKER_02]: Because everybody wants this thing and especially right now with AI, they wanna go and jump all the steps that you have to go through. [SPEAKER_02]: And I have yet to see anything that's gonna let us really do that, right? [SPEAKER_02]: It's just that nothing really that's not how it works.

19:05 [SPEAKER_02]: So what are some of those core transformational steps [SPEAKER_02]: they're not even ready for the future. [SPEAKER_02]: I got to get them to there that, you know, founders can listen to but also those in the position like if you're sitting in a particular spot right now that needs change you have to start at the grass route you have to start at the basic problem level so talk about that a bit because that's what you were alluding to and what you had to do extra sharing and you said it like there's others throughout their chasing it and that means it's a valuable problem to chase.

19:39 [SPEAKER_00]: That's really taking me really back when we found its structure and we started and we went to New York. [SPEAKER_00]: Our first mock-up like we had a paper that we had like the Bill of Materials and a couple of of suppliers in different columns and we said eight years ago, we are going to take all the Bill of Materials in the spec and the catalogs and we will provide you tomorrow like a tailored [SPEAKER_00]: it was like really when we break it down it's like even if we'll have that solution and we'll have a robot that does everything right now.

20:20 [SPEAKER_00]: Where will the data come from? [SPEAKER_00]: How will capture the right persona that is doing that? [SPEAKER_00]: And only that we would be able to provide the [SPEAKER_00]: really fast. [SPEAKER_00]: We kind of mapped and understood who, first of all, who is the right person to to even approach.

20:40 [SPEAKER_00]: We started with the GC, only then we understood that, you know, the one who is really purchasing and buying the materials is the specialty contractor, generally, or you have the self-performing GCs. [SPEAKER_00]: How can you capture the right persona? [SPEAKER_00]: How can you capture that data?

21:02 [SPEAKER_00]: That's how we really identify something that we need. [SPEAKER_00]: So the first step, I'll say, is identifying the ICP, the person and the persona that you need to even that has that pain on a daily routine. [SPEAKER_00]: But more than that, what is the pain that you can solve tomorrow morning, like that will facilitate your long-term vision.

21:27 [SPEAKER_00]: And that's how we kind of identified the requisition to PO, which was like our first product and kind of MVP that, okay, if we'll capture that workflow, the field requisition to creating a purchase order, we're actually capturing the demand right and we are capturing the purchasing intent, what is the data that we need and how can we capture that.

21:52 [SPEAKER_00]: And then like step-by-step, of course, from now it's like covering the customer is the most difficult thing, especially in construction tech, especially eight years ago. [SPEAKER_00]: Today it's maybe a lot a bit easier, I won't say easy. [SPEAKER_00]: But yeah, then when you work with the customer, you really understand okay, what part of the workflow we talked beforehand about, you know, [SPEAKER_00]: kind of the spectrum between a pain point and the entire big problem and the connection between them, even in procurement.

22:26 [SPEAKER_00]: So we solved one problem, but we understand it's not enough. [SPEAKER_00]: No one will buy only a requisition and P.O.2. [SPEAKER_00]: So we expanded to inverse reconciliation and delivery of conservation and inventory and only then we felt comfortable that this is a product that is sellable for the contractor.

22:44 [SPEAKER_00]: and that also captures all the data. [SPEAKER_00]: So that's like step two is capturing the data and really only step three is that will facilitate transformation and behavior. [SPEAKER_00]: hope it makes sense. [SPEAKER_01]: Absolutely. [SPEAKER_01]: And so in that whole exploration of the problem statement from the customer, did you find where like you could only go so far in solving their problem when it was something else kind of outside of their control that you can't necessarily solve or yeah, what was an exemplary scenario where that happened?

23:16 [SPEAKER_00]: When we started even like a good example is the relationship between the contract and the distributor, right? [SPEAKER_00]: So that's where you can't change that. [SPEAKER_00]: And that was like a kind of a north star for us across the entire journey, is that we are not here to change relationship between people or between, you know, companies.

23:41 [SPEAKER_00]: We are facilitating that. [SPEAKER_00]: we are making it easier. [SPEAKER_00]: So instead of coming and why a marketplace is taboo, it's because a marketplace is changing the relationship. [SPEAKER_00]: You know, the core relationship between the subcontractor and his vendor partners and it's supported to call it vendor partners, you know, and we said no, we are not coming to change that.

24:05 [SPEAKER_00]: We are coming to [SPEAKER_00]: Help you as a subcontractor. [SPEAKER_00]: First of all, solve the problem internally, but more than that is the relationship with your vendors and help you and facilitate that connection and communication and collaboration. [SPEAKER_01]: Yeah, and I think just take a step back and kind of from my own knowledge is we learn about billing and the whole billing structures.

24:29 [SPEAKER_01]: It's like there's labor. [SPEAKER_01]: There's materials. [SPEAKER_01]: There's equipment and there's like sub-contracted work. [SPEAKER_01]: I kind of like the four standard categories, right? [SPEAKER_01]: And so that's like, yeah, it's interesting that you it sounds like you came up to materials first.

24:40 [SPEAKER_01]: And then so have you spread into all four? [SPEAKER_01]: Probably not labor, right? [SPEAKER_01]: Like how far did you spread across those four? [SPEAKER_00]: So, ultimately, we are very focused first of all the self-performing on the specialty contractors. [SPEAKER_00]: So, sub-contracted work is less like something that happens a lot.

24:56 [SPEAKER_00]: And even if it does, it's really similar to the way they purchase materials or equipment. [SPEAKER_00]: We really focused on the materials and I'll say on the rentals equipment, tools part, really focusing on the site, [SPEAKER_00]: all day, every day, and increases a lot of overhead, and then expanding a bit more to like the buyouts, a lot of peos, all those big chunks of purchasing.

25:25 [SPEAKER_02]: I like the expansion. [SPEAKER_02]: I like the steps. [SPEAKER_02]: I like how you guys put it all together. [SPEAKER_02]: But now, [SPEAKER_02]: We have to segue you into, you've gone to Trimble and I have to get this out about Trimble really fast is that they're one of the differences in them to all the other players we talk about.

25:42 [SPEAKER_02]: She'll have Hardware too. [SPEAKER_02]: Hardware first. [SPEAKER_02]: Yeah, Hardware first. [SPEAKER_02]: You are, and actually, and I will say this and I'll say it, you know, sort of publicly is like, one of our problems, I don't want to call it that. [SPEAKER_02]: It's kind of like that.

25:56 [SPEAKER_02]: Challenges has been the [SPEAKER_02]: Trimble came from a hardware first, focus, and they were very hard when they first got into the software side of things to understand the software side of things, although I would say about in my opinion about four years ago, I saw a real mine shift of [SPEAKER_02]: Hey, wait a minute.

26:17 [SPEAKER_02]: This software thing actually helps us with this hardware thing and we could learn a lot from it, right? [SPEAKER_02]: Because it's a commodity in the hardware business and that's a different sale in a different life cycle. [SPEAKER_02]: And so I saw that switch. [SPEAKER_02]: And I've seen that croaked from the organization as a whole.

26:34 [SPEAKER_02]: We've had on the team from RIVIT that was acquired and is now part of the team there. [SPEAKER_02]: Now we have you on, that's been acquired and there. [SPEAKER_02]: We've had, you know, Jordan lover on and I talked about the leadership that he brought when he was there. [SPEAKER_02]: So where does this all fit in and how is that?

26:50 [SPEAKER_02]: What are you now looking around at Trimble and going? [SPEAKER_02]: Ooh, let's go, because you're titled quickly changed, which I think is part of the growth. [SPEAKER_02]: So where do you see it going next? [SPEAKER_02]: You know, what nuggets can you give us? [SPEAKER_00]: I must say it's a lot more dramatic than what you say.

27:10 [SPEAKER_00]: Like from one first of all, [SPEAKER_00]: Yeah, like Trimbo is really uniquely positioned by having both the physical and the digital world and really so that enables the enable today us connect that, right? [SPEAKER_00]: But more significantly, Trimbo at some point, again, a lot before I came, understood that the software [SPEAKER_00]: is the leader rather the hardware.

27:38 [SPEAKER_00]: And that was a big, big transition within the organization. [SPEAKER_00]: When I came here like four months ago, I came integrated really what I do when I come to a new place is really mapping everything and understanding the people, what was the history, et cetera. [SPEAKER_00]: So it's really amazing to see that that shift in such a rapid time.

27:57 [SPEAKER_00]: I think Kudos to Rob, Trimble, CEO, [SPEAKER_00]: but that is a shift in the mindset of the entire organization. [SPEAKER_00]: So software became what's driving the growth and kind of leading. [SPEAKER_00]: And that was before the AI. [SPEAKER_00]: Now with the AI, it's even a lot stronger and enables so much opportunities to be realized that that's what's my excitement.

28:28 [SPEAKER_00]: It's like [SPEAKER_00]: Everything, man, Trimble really holds so many assets, both hardware, but in the software space, the strongest ERPs in the industry for specialty, a leader in the estimating business, in project management, really growing, now procurement and supply chain, connecting everything together is really like what I see as the biggest opportunity and why Trimble is [SPEAKER_00]: really positions is being a swan leader and that's why my excitement, you know, about joining.

29:06 [SPEAKER_02]: I can't imagine the amount of data that the hardware is creating to that's sort of been used, but I think is [SPEAKER_02]: wholeheartedly left under utilize. [SPEAKER_02]: So again, I also think that software on top of that hardware, which is all creating data, is creating a unique environment for you guys.

29:23 [SPEAKER_02]: And I want to go back to, you know, bringing in Rob Painter and having him change the organization's focus. [SPEAKER_02]: Those are critical. [SPEAKER_02]: You know, I'm over at Bluebeen now and Usman Shoesha came in as the CEO and has really changed that focus. [SPEAKER_02]: It's amazing what great leadership can do to come in and say, hey, you've made it to here.

29:42 [SPEAKER_02]: How are we going to make the next leap? [SPEAKER_02]: And I think that's cool to watch some of these construction technology companies, your hardware and technology, but I probably can take the leap into the next generation. [SPEAKER_02]: And we're at the cusp of it. [SPEAKER_02]: AI is the new rocket fuel we're pouring in the tank.

30:02 [SPEAKER_02]: But ultimately, the industry still [SPEAKER_02]: It's still the industry, right? [SPEAKER_02]: We still have the problems that we have and lots to improve. [SPEAKER_02]: What are thinking on that level? [SPEAKER_02]: Some of the barriers you think you've come across or kind of see out there for people to think about because a lot of them, when they hear the show, they go, oh my gosh, I'm so far behind.

30:26 [SPEAKER_02]: Oh my gosh, I'm never gonna catch up. [SPEAKER_02]: That's not the case. [SPEAKER_02]: What do you think? [SPEAKER_02]: can give people some practical steps to go do and to get ready as these organizations move into this next generation of what we're all going to be. [SPEAKER_02]: So when you say people are you speaking about the contractors or the founders, you have this unique great to say to me, I want you to answer both.

30:50 [SPEAKER_02]: So let's start with the construction industry, [SPEAKER_02]: Because the industry is driving down the road and they got job sites to get to. [SPEAKER_02]: So let's get them. [SPEAKER_02]: Then let's go to the founders who have a tendency to listen a little bit longer when there's a nugget for them.

31:01 [SPEAKER_02]: Let's start with the industry itself, that self-perform contractor, that contractor, that's out there, that's you know, drinking from the fire hose and trying to get worked on, but here's all these stories of the things out there and the robots and the AIs and what, but it feels lost. [SPEAKER_02]: What should they really focus on to, because it's not all lost, I'm going to, you know, preclude that, what should they be thinking about right now?

31:26 [SPEAKER_02]: And why is it important? [SPEAKER_02]: Why is now so [SPEAKER_00]: I'm a true believer in finding low-hanging fruits that you can solve rapidly and easily without the kind of the frightening word change management, okay? [SPEAKER_00]: So I'm saying like find, you know, the specific workflows that you want that are significant [SPEAKER_00]: And then that creates momentum.

32:00 [SPEAKER_00]: That creates something that people are excited about, besides saying the word AI, et cetera. [SPEAKER_00]: And it doesn't matter if you will solve it with AI, with digitizing the work flow, with automating the work flow. [SPEAKER_00]: Ultimately, you solve a pain for someone. [SPEAKER_00]: It makes him excited.

32:19 [SPEAKER_00]: He makes other excited. [SPEAKER_00]: And that kind of drives a flywheel of, OK, we can solve things in a construction business. [SPEAKER_00]: with software let's start doing it and now you know from there you can either go and do a couple of steps more or you can say okay let's do it strategically but if you start strategically it's just you don't start you don't it's kind of you don't move from there because so much you know to talk about [SPEAKER_02]: I like that.

32:48 [SPEAKER_02]: We call that analysis paralysis. [SPEAKER_02]: You know, exactly. [SPEAKER_02]: If you start by eating the whole cake and one bite, you're never going to swallow it. [SPEAKER_02]: You're never going to get anywhere and you're going to get sick to your stomach. [SPEAKER_02]: So I love that low hanging fruit a great one that we give out all the time to tell people.

33:03 [SPEAKER_02]: If you want to know what that is, and I believe in somewhat of management by walking around not completely management by walking around, but walking around and when you're sitting down and you're talking to teams ask like. [SPEAKER_02]: Let's still one thing you come to work every day that's like, there's gotta be a better way.

33:19 [SPEAKER_02]: Like, why do we do this? [SPEAKER_02]: And those are the areas you're gonna find some of that low hanging fruit that will be consistent in a lot of areas and it'll give you some momentum. [SPEAKER_02]: Getting off the starting line is absolutely key and being ready to think about how that went.

33:36 [SPEAKER_02]: Don't just, and I like your idea of maybe solve one, maybe solve two, [SPEAKER_02]: Stop worrying about how, right? [SPEAKER_02]: It doesn't matter if the solution is AI, if the solution is analytics, or if it's just a forms tool, right? [SPEAKER_02]: It's just a time card. [SPEAKER_02]: I don't wanna call them just, but they are.

33:59 [SPEAKER_02]: But they are classic software that solves problems. [SPEAKER_02]: Right. [SPEAKER_02]: It doesn't have to have the flashy AI thing on it. [SPEAKER_02]: Don't worry. [SPEAKER_02]: They'll try to sell you that. [SPEAKER_02]: But again, not focusing on and confusing people with the underlying way.

34:14 [SPEAKER_02]: It's like me going to buy a car and you trying to teach me how the engine works before you let me drive it on test drive. [SPEAKER_02]: I'm not buying the car. [SPEAKER_02]: And I'm not driving the car. [SPEAKER_02]: Just let me get into the car. [SPEAKER_02]: Tell me where the pedals are.

34:24 [SPEAKER_02]: Let's go. [SPEAKER_02]: Let's take a first bit. [SPEAKER_02]: So. [SPEAKER_02]: and then that will build you to eventually being strategic. [SPEAKER_02]: I think you're talking about that momentum. [SPEAKER_02]: So I love that advice for the people. [SPEAKER_02]: Now to our founders, what is your advice given the landscape that you see in the seat that you sit in?

34:45 [SPEAKER_00]: Before that, I do want to add another thing that I believe could be very significant, especially with the AR and technology area that it's becoming so cool. [SPEAKER_00]: And also the generation kind of, you know, involvement within the construction industry, select a couple of people or one person that he's excited about it.

35:06 [SPEAKER_00]: and just give him that ownership and accountability in a very small capacity of his actual role and he will just drive everything because it's exciting. [SPEAKER_00]: It's just exciting to implement and to help the organization even if you're a project manager or a foreman or office manager or procurement manager, it doesn't matter.

35:26 [SPEAKER_00]: It's just exciting and once you you as an owner or general manager or whatever you're providing [SPEAKER_00]: It's not you that needs to do the walk around. [SPEAKER_00]: It's him. [SPEAKER_00]: And he will drive his friends, or you know, the people that he's working with. [SPEAKER_00]: That's another small suggestion I have.

35:46 [SPEAKER_00]: From the founder point of view, I actually think I would tie it to the same thing. [SPEAKER_00]: Like, we're solving big problems. [SPEAKER_00]: but we need to find the core, core, small problem, workflow, pain, person that we are solving it for and what we are solving, right? [SPEAKER_00]: That's like the key.

36:10 [SPEAKER_00]: It's like you said before, you need to find that small thing that makes one person excited and [SPEAKER_00]: That's the same thing as a founder in the initial, you know, initial go-to market to find those design partners, beta customers. [SPEAKER_00]: Man, it took us, it was eight years ago, but it took us like two or three years to find our first beta customers.

36:35 [SPEAKER_00]: It was crazy. [SPEAKER_00]: But even today, it's difficult to find out design partners. [SPEAKER_00]: So you need to find the key thing that you're solving for them. [SPEAKER_00]: And [SPEAKER_00]: And that will help you, you know, get into the first step and stages of building the venture.

36:55 [SPEAKER_02]: It is great advice because I see this very often. [SPEAKER_02]: You're everything to everybody. [SPEAKER_02]: Then in my opinion, nothing to anybody. [SPEAKER_02]: because it's just, it's too much. [SPEAKER_02]: And so being super, super specific and finding those individuals, but I'll be honest, the Nathan I'll be interested where you go with this, but that's not sexy to investors.

37:18 [SPEAKER_02]: I'm just going to say it that way. [SPEAKER_02]: And so there is an absolute trap and conund in that play. [SPEAKER_02]: So I challenge founders to be able to articulate that, [SPEAKER_02]: But honestly, be focusing on exactly what you said is find that individual, find that workflow, find that 4% in a lean 4% improvement because those 4% improvements over a period of time become monumental change.

37:46 [SPEAKER_02]: That's the whole philosophy behind lean. [SPEAKER_02]: which I think really plays well in the construction and construction technology. [SPEAKER_02]: So, you know, Nathan, I'm interested in where you go in that way. [SPEAKER_01]: We're well, I think, well, some of my piece of advice would be, you know, I mean, whether you're in industry, customer of technologies, start up or otherwise, or if you're a founder, looking at all these different big guys is that oftentimes, because they solve all these different problems, we forget which problem they came from.

38:11 [SPEAKER_01]: We talked about Trimble again coming from hardware coming from GIS robotics and other field tools. [SPEAKER_01]: Blue being again coming from really first engineers with JPL and then into really that strongholding contractors, but you know, landing and expanding from there. [SPEAKER_01]: I think that's where I just shout out to Trimble again.

38:27 [SPEAKER_01]: I mean, if you talk about a cool story of watching how a culture at such a big company really can evolve over [SPEAKER_01]: an eight to ten year span where technical software user wind trimble acquired them back in what 2011-2012 and was super excited about what I saw as potential only to see a lot of stuff fizzle because it was early but also trimble was a very different company back then they were a really a hardware-driven company the difference in leadership to see that tuned change where [SPEAKER_01]: Just because you have all the tools doesn't mean you have to be the end all be all solution for all projects.

38:58 [SPEAKER_01]: It's this recognition that yes, you've got a lot of different stakeholders coming in that are going to have their different tools that create data. [SPEAKER_01]: And we've got to figure out as Trimble how to get them all to connect. [SPEAKER_01]: I think you're coming into a great culture and have some awesome tools and excited to see where it goes with all that sweet at tools over there.

39:13 [SPEAKER_02]: I think it's a great time for us all. [SPEAKER_02]: And I want to double down on this, too. [SPEAKER_02]: And I'll be interested to get your thoughts on it. [SPEAKER_02]: You can drop the mic on the way out. [SPEAKER_02]: Make sure you let people know where to get you and everything. [SPEAKER_02]: But the other thing I want all the founders to do is to get fanatical about those people.

39:28 [SPEAKER_02]: I think in my own opinion in this process of all the investment and all the dollars and all the AI and all the hype, we have forgotten. [SPEAKER_02]: that in the end, everything we're doing is to get the women and men that build the world around us, home safer, home quicker, more time with their lives, a more balance.

39:51 [SPEAKER_02]: So get fanatical and connect back to those people and the problems that drive them and solving them because [SPEAKER_02]: That's the juice in the industry and in your culture that you need. [SPEAKER_02]: That's the juice in the fuel. [SPEAKER_02]: So get fanatical about those people. [SPEAKER_02]: And that's weird when you say get fanat, I mean, I've been through a lot of places.

40:13 [SPEAKER_02]: Get fanatical about an estimator. [SPEAKER_02]: get fanatical about a pre-conic executive, get fanatical about a detailer. [SPEAKER_00]: So true because if you're not, you just don't understand and it's so complicated. [SPEAKER_00]: I didn't come from the industry, I didn't, nothing really.

40:29 [SPEAKER_00]: And if I wouldn't go to New York to the US from Israel every month and live there, et cetera, I would never build the right product for the people. [SPEAKER_00]: It's just [SPEAKER_00]: you can, and I also see today, like, with early-stakes founders that are building great companies, are the ones that are knows the people and are really closely with them.

40:50 [SPEAKER_00]: And even if you came from the industry, you still, it could be even harder because you have like already a perspective. [SPEAKER_00]: You need to meet other people, you need to meet your customers, you need to know them, and to know what you're building with for them, to understand exactly it's everything.

41:09 [SPEAKER_02]: do that with your drop your microphone. [SPEAKER_02]: Here with us today, tell people where they can go find out more about what you're up to, man. [SPEAKER_02]: I want to make sure that I know there's going to be some folks want to connect with you. [SPEAKER_00]: Best thing through LinkedIn, just reach out.

41:21 [SPEAKER_00]: I'm very happy to talk with founders. [SPEAKER_00]: I'm really passionate about startups and building stuff, especially construction tech and pushing this industry forward. [SPEAKER_00]: So I talk about with founders, with investors, you know, part of Trimble. [SPEAKER_00]: So I'm very excited about [SPEAKER_00]: Where does industry is heading so and thank you guys great conversation looking forward to meet you soon Yeah, let's do loves let's get together in person.

41:42 [SPEAKER_02]: Let's get the Colorado crew together. [SPEAKER_02]: Nathan. [SPEAKER_02]: Thank you for joining me again as always my right hand man [SPEAKER_01]: Always here for y'all, but you're huckaberry. [SPEAKER_02]: Thank you for tuning in the day to geek out for our interview or lackrits. [SPEAKER_02]: To read all our new stories to learn more about our guests and to listen to the show, visit D. Contact her.

42:01 [SPEAKER_02]: This is the Contact Crew signing out. [SPEAKER_02]: Until next time, enjoy the ride and geek out!