Clue Insights — Q&A with CEO and Co-Founder
Equipment represents a complex part of the construction value chain. Its management reflects the broader complexity of the industry’s dynamics: Commercial or residential contractors typically rent or lease equipment as needed, or they choose to subcontract the work; while heavy civil and earthmoving contractors often find it more cost-effective to own their own equipment and treat it as a profit center.
Within this complexity, Clue is innovating to help equipment managers make better informed decisions and help project managers better understand a critical piece of their project’s delivery.
I like to kick things off by asking: What is the mission of Clue and what is it that got you interested in the space?
Our mission with Clue is to transform construction into a more innovative and productive industry, and our focus is specifically on companies that own and operate heavy construction equipment.
There are tons of companies that don’t just own their equipment, they might rent it. But at the end of the day, the success of the project depends on whether that equipment operates, is getting utilized, and is used to the best benefit. In many cases they are stuck because they have no access to the information from the equipment they’re renting.
So part of the solution we offer is precisely for that. We developed something called “one pane of glass” or “one stop shop”. That means we clean, standardize, and normalize all of the data from every single asset, from every single OEM telematics system into a single place — and that’s super important.
I often view construction innovation through the lens of five broad domains, with equipment being one of them. We take it for granted that so much of a construction project’s activity is done using machinery and that management of equipment has such huge implications on project performance. Where in the value chain is Clue entering and why is it important?
You’re right to say that heavy machinery has been somewhat disregarded, despite playing such a fundamental role in the productivity, efficiency, and completion of projects. Those machines build the fundamental institutions that our economies work and thrive from — yet, they are often afterthoughts. Clue aims to change that.
We enter the value chain right in the heart of the operations domain. We provide a single “source of truth” and a centralized place to manage all fleet operations. We increase productivity by delivering digitized operations, data-based analysis, and AI-enabled telematics for all fleets. In a way, we’re giving those machines a voice, a way to become more visible and be utilized to their full potential.
That’s why Clue’s value is foundational. Really seeing those machines — their volumes, cycle times, load counts, driving routes, being alerted when a fault code is detected, the AI granting insights into how best to move and compose fleets — that granularity is crucial to optimizing a project’s overall profitability.
You presented and won the BuiltWorlds Start-Up Pitch Competition this year. What do you think set your company’s pitch apart and why was this year the year for Clue?
BuiltWorlds always manages to bring together the best of our industry’s professionals and create an environment of learning and cooperation. All the pitches were brilliant in their own right. I think it came down to Clue not merely being innovative in the industry, but showing how our innovation is going to sculpt the space for years to come.
It’s somewhat ironic, but the construction industry can be stubborn when it comes to its own remodeling. It’s strange to think that one of the largest industry sectors globally is also one of the world’s least efficient. In the US, we’re less efficient today than we were fifty years ago.
I also think industry leaders are tired of hearing that, and I think that’s especially true of my peers at BuiltWorlds. I think Clue won this year because the industry is ready for us. It’s hungry for change and it’s finally willing to invest in technologies that bring effectiveness and efficiency forward.
A quick glance at your LinkedIn profile shows a 7 year stretch called “Various Hats”. You’ve been involved in technology for over a decade and have seen the tech industry from a lot of different angles. What is unique about construction and where do you see the long-term opportunities for new technologies?
Please, you’ll make me feel old! But I can’t deny that I’ve been around awhile. Those seven years were unbelievably enlightening. They taught me how to be agile, that technology and interest in it moves fast and you have to keep pace if you want to make an impact in that sphere. It also showed me how innovation is always looking for a home, a place to grow.
That’s one thing that makes the industry so unique right now. It’s fertile ground where technology can flourish. In a lot of ways, so far as innovation is concerned, construction is in its infancy. That’s good news for the entrepreneur. We get to guide that development. It’s also good news for long-term innovation within the sphere since there’s vast room to expand.
I think the industry is at the threshold of a technological surge, perhaps one as significant as those processes that sparked the Industrial Revolution.
What would be your advice for entrepreneurs looking to get into construction technology, especially in the context of funding sources and patient vs. impatient capital ?
There are really two models to raising funds: one is from venture capital and the other is from private investors — or in the case of construction, industry insiders whose capital will be more patient.
The venture capital route is, by definition, impatient capital. And in construction, you’re not going to push someone to adopt your solution tomorrow. Let’s put it this way, the speed at which funds need to be returned is somewhat faster than the speed at which construction companies make decisions and move. So there’s a tension there between the VC model and what can work in construction.
There are many family-based construction companies with over a billion dollars in assets. And some of them would be very interested to fund technologies and ideas that solve solutions they’re familiar with. So if a founder has the ability to do that, I would definitely recommend pursuing it.
Nate Fuller is Managing Director of Placer Construction Solutions, advising leadership teams to transform their organizations in ways that improve performance and agility at the field level.
He provides construction companies with a field assessment that delivers transformative information about their field operations and is proven to accelerate innovation & technology adoption for Top ENR contractors.
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