BUSINESS CASE: CONCRETE

There are 2131 concrete companies in the US in 2021 (source: ibisworld.com), and have grown 0.9% per year on average over the five years between 2016 - 2021.

CURRENT SITUATION

  • Ready pre-mix companies mix cement, arid aggregates, additives, additions and water in specific proportions to achieve a desired concrete performance. A typical company has over 2000 different recipes or products. 

  • There are 2131 concrete companies in the US in 2021 (source: ibisworld.com), and have grown 0.9% per year on average over the five years between 2016 - 2021.

  • Cement accounts for most of the total product cost (up to 90% in some cases) and provides the resistance of the concrete mix.

Camión de concreto
trabajadores de la construcción

THE OPPORTUNITY

  • To ensure always achieving the desired resistance, companies add cement in excess to their standard recipes, so variance in their production process do not undermine the required performance. But this excess in cement also implies excess in cost.  

  • We found that a properly trained Artificial Intelligence can determine in advance which particular production batch will need more or less cement than the standard recipe.

THE RESULTS

  • Decomplex Algorithm was able to reduce by 6% the total amount of cement consumed by premix companies which translates to an average of 4% net margin increase. 

  • We built this for two customers, using their historical records of the last 2 years. Results are solid.

Electricista con tableta
Edificio en construcción

THE MARKET POTENTIAL

  • Ready-Mix Concrete Manufacturing in the US Market Size in 2021 is $33.5bn. Source Ibisworld.com

  • With a potential of improving a customer's net margin between 2% and 4% the market size for our product is huge.

  • A central organization, with few sales engineers and low cost of infrastructure, provides a net margin of the business over 95% its sales.

  • A growth potential in the US, China, Germany, and practically all the long tail of companies in the world, that can be served from one single location.

WHY DO WE NEED THE CAPITAL?

  • In order to grow, we need few sales engineers that can offer trials to potential customers, adapt the AI to their specific data and maintain the infrastructure.

rascacielos