[House Hearing, 116 Congress] [From the U.S. Government Publishing Office] SMART CONSTRUCTION: INCREASING OPPORTUNITIES FOR SMALL BUSINESSES IN INFRASTRUCTURE ======================================================================= HEARING before the SUBCOMMITTEE ON CONTRACTING AND INFRASTRUCTURE OF THE COMMITTEE ON SMALL BUSINESS UNITED STATES HOUSE OF REPRESENTATIVES ONE HUNDRED SIXTEENTH CONGRESS FIRST SESSION __________ HEARING HELD NOVEMBER 19, 2019 __________ [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Small Business Committee Document Number 116-060 Available via the GPO Website: www.govinfo.gov ______ U.S. GOVERNMENT PUBLISHING OFFICE 38-316 WASHINGTON : 2020 HOUSE COMMITTEE ON SMALL BUSINESS NYDIA VELAZQUEZ, New York, Chairwoman ABBY FINKENAUER, Iowa JARED GOLDEN, Maine ANDY KIM, New Jersey JASON CROW, Colorado SHARICE DAVIDS, Kansas JUDY CHU, California MARC VEASEY, Texas DWIGHT EVANS, Pennsylvania BRAD SCHNEIDER, Illinois ADRIANO ESPAILLAT, New York ANTONIO DELGADO, New York CHRISSY HOULAHAN, Pennsylvania ANGIE CRAIG, Minnesota STEVE CHABOT, Ohio, Ranking Member AUMUA AMATA COLEMAN RADEWAGEN, American Samoa, Vice Ranking Member TROY BALDERSON, Ohio KEVIN HERN, Oklahoma JIM HAGEDORN, Minnesota PETE STAUBER, Minnesota TIM BURCHETT, Tennessee ROSS SPANO, Florida JOHN JOYCE, Pennsylvania DAN BISHOP, North Carolina Adam Minehardt, Majority Staff Director Melissa Jung, Majority Deputy Staff Director and Chief Counsel Kevin Fitzpatrick, Staff Director C O N T E N T S OPENING STATEMENTS Hon. Jared Golden................................................ 1 Hon. Pete Stauber................................................ 2 WITNESSES Mr. Lennart Andersson, RA, Director of Virtual Design, Construction & Operations (VDCO), LiRo Group, Professor, Pratt Institute, New York, NY, testifying on behalf of the American Society of Civil Engineers (ASCE), the Construction Institute (CI), LiRo Group, and Pratt Institute.......................... 5 Mr. Ryan Forrestel, President, Cold Spring Construction, Akron, NY............................................................. 6 Mr. Chris Shephard, Vice President, Construction Solutions Group, Trimble, Inc., Dayton, OH...................................... 8 Mr. Phillip Ogilby, CEO and Co-founder, STACK Construction Technologies, Cincinnati, OH................................... 10 APPENDIX Prepared Statements: Mr. Lennart Andersson, RA, Director of Virtual Design, Construction & Operations (VDCO), LiRo Group, Professor, Pratt Institute, New York, NY, testifying on behalf of the American Society of Civil Engineers (ASCE), the Construction Institute (CI), LiRo Group, and Pratt Institute.................................................. 24 Mr. Ryan Forrestel, President, Cold Spring Construction, Akron, NY.................................................. 31 Mr. Chris Shephard, Vice President, Construction Solutions Group, Trimble, Inc., Dayton, OH........................... 35 Mr. Phillip Ogilby, CEO and Co-founder, STACK Construction Technologies, Cincinnati, OH............................... 41 Questions for the Record: None. Answers for the Record: None. Additional Material for the Record: ABC - Associated Builders and Contractors.................... 49 Autodesk Construction........................................ 50 SMART CONSTRUCTION: INCREASING OPPORTUNITIES FOR SMALL BUSINESSES IN INFRASTRUCTURE ---------- TUESDAY, NOVEMBER 19, 2019 House of Representatives, Committee on Small Business, Subcommittee on Contracting and Infrastructure, Washington, DC. The Subcommittee met, pursuant to call, at 10:03 a.m., in Room 2360, Rayburn House Office Building. Hon. Jared Golden [chairman of the Subcommittee] presiding. Present: Representatives Golden, Chabot, Balderson, Hagedorn, and Stauber. Chairman GOLDEN. Good morning, and thank you for joining us. I look forward to having a good conversation here about the future of the construction industry and how we might be able to make some necessary improvements. I think we all know that America's infrastructure needs some pretty focused investment in order to catch up to where we should be. And everyone knows the statistics from the American Society of Civil Engineers, both nationally and in their specific home states. It lays out a clear map for improvement and where we are falling behind. This is one reason why there must be a strong infrastructure agenda in Congress, and in particular, one that focuses on investing in outdated roads, bridges, rails, water systems, housing. I could go on and on. Doing this not only increases opportunities for small businesses in construction, manufacturing, engineering, and many more small businesses, but it also will help create good paying job opportunities and increase our competitiveness as a Nation. The current administration I think shares this understanding that we need to invest in our infrastructure and that this should be a top priority, as well I think as both parties in Congress. So really sometimes we are not sure what is holding us back but we need to continue to have these conversations and be pushing our leadership to go ahead and move forward with an infrastructure spending package. Not just roads and bridges. We need a comprehensive infrastructure package that incorporates information technology and communications so that our Nation not only has the fastest and most efficient infrastructure, but also the most modern. With the Internet, things like artificial intelligence and cloud computing offer new opportunities for smart applications in many new industries, and old. In particular, technology has the ability to reshape the construction industry by creating digital construction solutions where small firms can help lead the way. From GPS-enabled equipment to advanced digital modeling, smart tools are making projects less expensive more ecofriendly, and more efficient. More importantly, digital construction helps level the playing field for small contractors. Through investing in digital tools, small businesses can write lower bids and compete for larger projects. Smart tools also pay for themselves. Increased business and timelier project completion allows small contractors to bring in more business. Early adoption of digital technologies creates a competitive advantage. In fact, almost 70 percent of owners say poor performance is the single biggest reason for project underperformance and only 25 percent projects have come within 10 percent of their original deadline in the past 3 years. Digital tools also give contractors access to powerful data that can help them make informed decisions about materials and design to make structures safer. Smart buildings enabled by digital tools help civil engineers, developers, and architects reduce a building's carbon footprint and increase sustainability. Inspecting structures, like bridges and tall buildings was once a dangerous, time-consuming task. Now, prop tech sensors are built into buildings that can help assess when there is damage and when buildings need to have some maintenance. Drones also offer a way to survey buildings and terrain after natural disasters is just one example. These cutting-edge solutions cut costs and save lives. I hope that today's discussion will help shed a little light on the many ways that digital construction can benefit small businesses and encourage broader adoption of digital tools. I want to thank each of the witnesses for joining us today, and I look forward to your testimony. I would now yield to the Ranking Member, Mr. Stauber, for an opening statement. Mr. STAUBER. Thank you, Chair Golden. And thank you for holding this important hearing. It is a pleasure to work with you on this Committee. On our modern day worksites, you might see workers studying a 3D printed model instead of blueprints, or remotely operating an autonomous crane in the safety of an office. Stakeholders might prefer a virtual reality or aerial tour instead of physically touring the project. No longer limited to R&D engineers, construction workers at all levels are harnessing digital technologies to optimize productivity, quality, and safety. These technologies have brought the worksite into the hands of its operators. Smartphone apps can not only link employees to each other but also enable access to vital project data stored in the cloud. The data may be sourced by drones, artificial intelligence, virtual reality, and 3D modeling. Digitized construction technologies and processes can have a significant impact on a construction company's productivity, but many small firms lack the resources to invest and maximize potential of these technologies. Similarly, regulatory and administrative burdens have restricted implementation across Federal, state, and local agencies. Without greater usage by small business and government agencies, no infrastructure modernization strategy will meet our Nation's needs. As Congress continues to work on infrastructure modernization legislature, including the Surface Transportation Reauthorization and WRDA, we must focus on facilitating a regulatory environment that allows for new technologies to be deployed in the field. These reauthorizations usually are a fairly long-term 5 year authorization. Technology is changing so rapidly that we risk falling behind if we are too technology prescriptive in legislating. We have the opportunity to empower small businesses to lead the charge on modern construction technologies, a charge that will lower costs, increase sustainability, increase productivity, and being more efficient, allow more projects to be built and maintained with less money. For example, in my home state of Minnesota, the Department of Transportation is pioneering the use of drones to inspect over 13,358 bridges. They have also developed robust lifecycle cost analysis standards and practices, and are working with industry partners to prepare Minnesota for an autonomous vehicle future. By going high-tech, the state will maximize every dollar of infrastructure investment. In addition to this Committee, I serve on the House Transportation and Infrastructure Committee. It is incumbent upon these two Committees to take steps towards investing in a technology-forward infrastructure plan and ensure that small businesses are positioned to help in its execution. Thank you to our witnesses for being here today. And Mr. Chair, I yield back. Chairman GOLDEN. Thank you very much. I do not know how often the four of you have sat in front of Committees here in Congress, so I will quickly go over some of the rules around timing. Each of you will get 5 minutes to testify. Members will get 5 minutes for questions as well. There is a lighting system in front of you. The green light will be on when you begin, and the yellow light will give you a 1-minute warning while you are reading through your opening remarks. The red light comes on when you are out of time, and we would ask that you try and stay as best you can within that timeframe. I would now like to introduce our first witness. Mr. Andersson is an architect with a degree in engineering from Sweden and a Master's in Architecture from Savannah College of Art and Design with over 20 years of experience. He has applied virtual design construction and operation methodologies on a wide variety of building typologies. He is the director of VDCO, at the LiRo--did I get that right? LiRo Group, and teaches at Pratt Institute in New York, where he is leading a collaborative BIM studio between architects, construction and facilities managers. Welcome, Mr. Andersson. Our next witness is Mr. Ryan Forrestel, president at Cold Spring Construction Company based in Akron, New York. I was about to say Ohio there. I got that wrong. Cold Spring Construction was founded 108 years ago by Mr. Forrestel's great grandfather and has completed numerous large and small scale projects across New York. He is also a Co-Chair of the Fair Apportionment of Infrastructure Committee of West New York, a nonpartisan advocacy organization whose primary goal is to ensure that Western and Upstate New York receives their fair share of transportation funds distributed by the State of New York. He has earned a Bachelor's degree in Biology and Biomedical Sciences from Brown University and a Master's degree in Civil Engineering from Penn State University. Thank you for joining us today, sir. Our third witness, Mr. Shephard, vice president of the Construction Solutions Group at Trimble. Trimble is a company whose mission is to transform the way the world works by delivering products and services that connect the physical and digital worlds. He has been a part of the executive team at Trimble for the past 20 years and has worked in 30 years on six continents and managed more than 3,000 employees. Before Trimble, Mr. Shephard served Copeland and Booz Allen Hamilton helping clients solve strategic problems all over the world. He holds a B.A. in Business Studies with a foreign language from the Manchester Metropolitan University and a Master's degree in Management from Northwest University. Welcome, Mr. Shephard. Thank you for joining us. And I would now yield to our Full Committee Ranking Member. No, I would not. I am sorry about that. I do have the introduction prepared. Wonderful. I will yield to Ranking Member, Mr. Stauber, for introducing our final witness. Mr. STAUBER. Thank you, Mr. Chair. Our final witness is Phillip Ogilby. Mr. Ogilby, I was going to refer this to Ranking Member Chabot to introduce you, but since he is not here you will have to take this Minnesotan's word for it. Mr. Ogilby is the chief executive officer and co-founder of STACK Construction Technologies. Founded and headquartered in Cincinnati, Ohio, STACK Construction Technologies is a leading cloud-based preconstruction collaboration platform. After a decade owning a construction company, Mr. Ogilby entered the construction tech industry with his son, Justin, who was only 14 years old at the time. Using Justin's coding skills, and Phil's entrepreneurial spirit, the father-son team have created multiple construction technologies and startups since 1995. With a 262 percent 3-year growth rate--I want to repeat that. With a 262 percent 3-year growth rate, STACK is one of the Nation's fastest-growing private companies. Thank you for coming here to represent high-tech family business and the innovative spirit of Cincinnati. Chairman GOLDEN. Thank you very much, all of you, for joining us. We will go ahead and do our opening statements. And we would start with Mr. Andersson, you are recognized for 5 minutes. STATEMENTS OF LENNART ANDERSSON, RA, DIRECTOR OF VIRTUAL DESIGN, CONSTRUCTION AND OPERATIONS (VDCO), LIRO GROUP, PROFESSOR, PRATT INSTITUTE; RYAN FORRESTEL, PRESIDENT, COLD SPRING CONSTRUCTION; CHRIS SHEPHARD, VICE PRESIDENT, CONSTRUCTION SOLUTIONS GROUP, TRIMBLE, INC.; PHILLIP OGILBY, CEO AND CO-FOUNDER, STACK CONSTRUCTION TECHNOLOGIES STATEMENT OF LENNART ANDERSSON Mr. ANDERSSON. Thank you very much, Chairman Golden, Ranking Member Stauber, and members of the Subcommittee. And thank you very much for inviting me here. As said, my name is Lennart Andersson. I lived in New York City now for 20 years. I originally come from Sweden, and I have been working in the infrastructure sector in New York City for these 20 years. And I am appearing here today on behalf of the American Society of Civil Engineers. I am representing the 150,000 members. ASCE is the Nation's oldest national engineering society. And the construction industry I am representing as well. And it has provided leadership and vision and problem-solving skills for construction design professionals for the past 20 years. I appreciate the opportunity to be here today to discuss this smart construction and increasing opportunities for small businesses. ASE is eager to work with Congress to find ways to improve project delivery at all stages, including planning, funding, design, construction, operations, maintenance, and decommissioning on projects. All phases of construction are poised to change and evolve in the coming years, incorporating traditional tools of the trade and new technologies that could transform the way projects are completed. The industry has a lot to gain from these new innovative technologies so that we can build better buildings and infrastructure and communities. Today's construction design can be slow to adapt to change and incorporate technology because of the complexity and long duration of projects. In 2017, the McKenzie Global Institute released a report that stated that efficiency of architecture, engineering, and construction, often called AEC, the efficiency dropped 26 percent since 1991 to 2017, while the average non-AEC business in the United States increased its efficiency by 48 percent. That is actually a 100 percent difference. So the tools and processes used in the infrastructure construction are still largely analog and manual. And if properly implemented, the very latest technology will enable the construction industry to achieve higher quality results. And on projects in New York City, we have been testing the very latest, actually, we are sort of seeing that you are achieving much better results. The virtual design and construction not only creates assimilation of the project but as a part of the construction process it helps to create budgets and schedules as projects go through funding approval and access a single repository for all project scope and design documentation. It simplifies owner- engineer collaboration through interactive processes and manages in duration of the projects' budget, schedule, and design. And it creates detail estimates and schedules by managing documents, changes, and forecasts, and drives field productivity from anywhere with mobile solutions. Virtual design and construction also enables access to a single searchable repository for as-designed or as-built information to facilitate construction, maintenance, and operation activities. Just one example of East Side Access, a new station underneath Grand Central Terminal in the United States in New York City where I have been involved for the last 7 years, and it is the largest infrastructure project in the United States. And we had four people modeling the whole project. It is 6 miles, 125 complex models. It was documented the traditional way, so over 100,000 drawings. And so we were able to actually create a model that everybody can see the complexity. By applying automated reality capture and digitization of documentation, processes, and common-sense standards, it is possible to realize the digital twin of infrastructure before construction. This model is used for planning and augmenting the design for all stakeholders through interactive interfaces. The digital copy is also used for traffic simulations, virtual mockups, staging, planning, construction phasing, site safety analysis, as well as community outreach, which also help accelerate decision-making and optimize execution. BIM increases transparency and fosters an environment of participation for all stakeholders. This method of virtual design sets the stage for more collaborative forms of project delivery methods. BIM also coincides with lean construction and public-private partnership projects, where timely coordination and accurate information is paramount. So we have an opportunity to use small businesses as change makers of infrastructure. Innovation is often more difficult to implement in larger organizations, while small businesses are inherently forced to innovate in order to be competitive. So ASCE looks forward to working with the House Committee on Small Business and Congress to find ways to improve America's built environment so that every family, community, and business can thrive. So thank you very much. Chairman GOLDEN. Thank you, sir. And we look forward to getting a little more out of your testimony through the Q&A phase of things. Mr. ANDERSSON. Sure. Chairman GOLDEN. So thank you. Mr. Forrestel, we now recognize you. Thank you. STATEMENT OF RYAN FORRESTEL Mr. FORRESTEL. Thank you. Good morning, Chairman Golden and Ranking Member Stauber. My name is Ryan Forrestel, and I am the president of Cold Spring Construction. We are a 4th generation family business based in Akron, New York, outside of Buffalo. We have been performing civil and heavy highway construction projects in the western half of New York State and Northwestern Pennsylvania since Cold Spring was founded in 1911 by my great grandfather. We employ about 120 people in our peak season, and as a family business, we are not just a family in terms of the long- term establishment and operation of the business, but we are a family business in terms of the families that we employ. We have multiple members of many families working for our business, and we treat our people like family. We care about them like family. We would not have the success that we have without them. So things like today are very important to us to continue that success and to do everything that we can to take care of those people in our families. We have done projects ranging in size from a few hundred thousand dollars to $130 million, large projects relative to the size of our company. That is one of the things that we focus on in terms of developing our people to be able to do that and leveraging technology and other resources so that we are able to compete at those kinds of levels. One of the things that we have invested in in the last 15 to 20 years is technology related to digital models and automated machine guidance. These technologies have allowed Cold Spring to handle projects that would have been difficult or impossible without the utilization of these technologies. In addition, we have been able to complete these projects more accurately and on tighter schedules than if we had not been using these technologies. And this has been something that we have seen over the last 10 years with greater frequency that we have been able to hit schedules or exceed schedules pretty dramatically. And this is largely contributed to by the use of technology. I have heard arguments from other contractors of the years that implantation of digital technologies as was alluded to earlier, is too expensive and it is just for large corporations. It is too expensive for smaller businesses not to invest in these technologies. When we are seeing increases in efficiency of 20 percent or many times that in some instances businesses that do not make these investments will not survive. And I think as we are going to talk here today, it is important that these technologies are not only allowed but encouraged, and so everybody needs to get on board and this needs to be pushed forward. I will talk a little bit about the advantages that these technologies offer. The first most obvious is efficiency. Everybody wants to be more efficient. These technologies are pushed forward as offering that efficiency, which they do. But some of the more subtle aspects of the benefits are the access to information that these technologies provide. One of the big problems in the field when things are done the old-fashioned way with pieces of paper is changes are made and people in the field do not know what those changes are. Using digital technology and life-time information, when changes are made, everybody knows what they are and they are implemented right away. Nobody starts out doing the wrong thing and then has to go back and do rework, which is one of the most expensive things in construction. And in that same vein, we can avoid problems. If we are building a digital model that incorporates all aspects of the project and all of the things around it, we can see conflicts and the way that new construction interfaces with existing infrastructure before we build it. Whereas, oftentimes in the past we begin construction and then we encounter a problem partway through, which again requires rework, it is expensive, it is time-consuming, and it is certainly not the most efficient way to do work. And another big factor is safety. We have numerous people. Historically, we have had numerous people on the ground around heavy equipment checking grades, laying out construction, and for example, in pipe trenches as well. A guy is down in a hole checking grade, putting pipe in. Now, we have the opportunity to do all those things from in the cabs of machines. It takes those people out of harm's way. Takes those people out of trenches, which eliminates one of the most dangerous aspects of construction being trench collapses. And another thing it allows which contributes to efficiency as well is where it was impossible to do work during dark hours, during nighttime hours without huge amounts of lighting, now we can take those people who are on foot out of the construction site. Only the machines are operating. It makes it much safer and gives the ability to be much more efficient. So to briefly wrap up, I want to say that Cold Spring works cooperatively with owners and agencies to implement these technologies but a lot more can be done to help move this along and bring forward some of the small businesses that have not engaged in this. Project design from inception to completion should be done in a way that complements the use of digital data. Specifications should be written and revised to allow technologies to foster their adoption their adoption and use. These actions are only a benefit to agencies and taxpayers as they allow projects to be completed more accurately, more timely, and more cost effectively. Thank you. Chairman GOLDEN. Thank you very much. Next, we will hear from Mr. Shephard. STATEMENT OF CHRIS SHEPHARD Mr. SHEPHARD. Thank you. And good morning, Chairman Golden and Ranking Member Stauber. My name is Chris Shephard, and I am the vice president at Trimble. I have been with the company for 21 years, and as you can probably tell from my accent, I am based in Dayton, Ohio. Trimble is a global technology company--I am an American citizen, do not worry--focused on transforming the way work is done through the use of intelligent integrated technologies and innovative solutions. Trimble innovation enables economic breakthroughs while enhancing safety, increasing productivity, and reducing environmental impact. Our software, hardware, and services are transforming industries, such as agriculture, construction, and transportation and logistics. As my colleagues have already mentioned, the construction industry is ripe for innovation. We are talking about a $10 trillion global industry. And McKenzie was referenced earlier a couple times, their estimate is that about 10 to 15 percent of that $10 trillion is waste. That is a lot of money. The industry has historically used size and scale to do its work. Bigger machines, more machines, more people, more nails, more cement, more tools. This reliance on scale creates a major disadvantage for small businesses who do not have the capital or volume of work to be able to absorb these inefficiencies. Today, ineffective planning communication and collaboration cause the most problems and drive up project costs. The use of digital construction technologies provide small businesses with the information they need to better manage their costs, schedules, and resources, and levels the playing field so that they compete with their larger rivals. A few examples of digital construction technologies would include application software and modeling that allows contractors to remotely monitor site progress from their office and create design models that can be sent to the machine operators and crews in real-time. Machine control and guidance systems that provide machine operators real-time positioning for guidance and control of their machines, allowing them to accurately grade, compact, and pave to specification. And site positioning systems allow contractors to measure, check, manage, and inspect all the phases of their efforts and paving operations. When these technologies are used on infrastructure projects the results are significant and measurable. Machine productivity increases by 30 percent. Rework can be reduced by up to 50 percent. And overall project delivery costs are improved by up to 30 percent. And technology does not just increase the bottom line. It also improves environmental sustainability by reducing the use of fuel and the loss of resources to waste. Small businesses are the lifeblood of the construction industry. And technology is allowing them to compete against the larger players in the industry. I would like to highlight just a couple of examples of small businesses that are achieving success using Trimble technology. First of all, Mr. Chairman, your home state of Maine, the Shaw Brothers of Gorham, Maine, are using GPS machine control systems to improve the efficiency and equality of their work which has generated savings in project times and overall costs. And on larger jobs, the state DOT will sometimes use Shaw Brothers' 3D files to inspect and keep a record of the work that has been done, making the DOT's work more efficient, too. The second example, Ajax Paving in Detroit, Michigan. Ajax Paving was able to keep a machine moving through dense fog while paving a highway project in Northern Michigan, preventing a shutdown that would have wasted 200 feet of concrete that had already been dumped in front of the paver. Our 50 state DOTs have a high level of awareness of the benefits of digital construction. However, investments in these capabilities compete for scarce resources with much needed infrastructure projects in each state which has in many cases limited the pace and scope of adoption of the systems and capabilities which would support enhanced management and oversight of the projects themselves. Resources provided by the Federal Government would accelerate the advancement of these project delivery efficiency tools. Trimble supports a provision in the Senate Infrastructure Bill which creates incentives for states to upgrade the technical skills of the engineers and technicians who we all count on to enable digital construction delivery. This will result in safer roads, better lifecycle costs, and less disruptions to commerce in communities across America. Small businesses will also benefit from states adopting the use of 3D models through the construction lifecycle as it allows them to fully realize the benefits from their investments in digital construction technologies. So in conclusion, I would say the construction industry is often criticized for its inefficiency and waste, but today we have the technology to ensure the projects are delivered on time and on budget. Increasing the adoption of digital construction technologies not only leads to better quality infrastructure delivered at a lower cost and with less environmental impact, but it also levels the playing field for small contractors to compete with the larger players in their industries and to grow their businesses. Thank you. Chairman GOLDEN. Thank you very much, sir. And in closing, we will give the last 5 minutes to Mr. Ogilby. STATEMENT OF PHILLIP OGILBY Mr. OGILBY. Hi, everybody. Thanks. First of all, thanks for the opportunity. I very much appreciate it. I appreciate the kind words at the opening as well. I have got a fair amount to say, so I tend to talk fairly quickly and it is going to take that to get through this in 5 minutes. My background is in construction. I was a contractor in the very early days. I have started now two significant technology businesses, STACK being the most recent, and we have thousands of customers worldwide. Our customers are small businesses. So fundamentally, I love the direction of the whole hearing today. This is about our customers. That is who we are talking about here. So, I have got some words about why pay attention to me. Much of that has already been covered. You know, the construction industry represents 6 percent of the global GDP worldwide. Construction is the single largest consumer of raw materials worldwide as well. You know, one of the big challenges as I was doing research for this, it was very interesting to find people are moving into urban areas at a very, very rapid pace, and it is creating a huge demand for infrastructure worldwide. Not only in the U.S., but worldwide. In fact, the U.N. estimates that by 2050, there could be as many as 7 billion people living in urban areas. That would be up from 3.5 billion people today. Autodesk, the world's leader in design software, in fact, estimates that that could create a demand for as many as 1,000 new buildings a day over the next coming decades just to meet the demand for infrastructure worldwide. This continuing trend requires a massive amount of new construction and renovations to be done. U.S. construction spending in 2017 topped $1.27 trillion. It is expected to reach $1.5 trillion by 2023. The bigger problem here is the industry cannot keep up, candidly. The industry, the current pace of construction productivity cannot begin to keep up. There have been studies already referenced, productivity gains across the industries outside of construction have exceeded 10 or 15 times or more. The actual productivity level of construction has dropped over the last 80 years. A big part of that is the complexity of the projects, but the failure to adopt technology is also a drain on the system. We also have an enormous labor shortage. So while we cannot affect that personally with technology, I could not go through this process without at least addressing the labor shortage. But there is a high failure rate of construction startups as well that is also a problem within our industry. Again, we focus on the small businesses, candidly, and I was shocked at this statistic. If you start a new construction company in the U.S. today, 25 percent of you will be out of business next year, within 12 months. Seventy-four percent of all new businesses started in construction today will be out of business within 5 years. One big simple drain on this or cause, if you will, is poor adoption of new technology. There is a tremendous amount of very powerful technology available today, but candidly, the construction industry adopts technology at a very slow pace. If you look at studies that have been done across all industries, construction is at the very bottom in terms of the adoption rate of new technology. Digitization, adopting new technology is the answer that we can bring to the table today. There has been a study, the World Economic Forum did a study that predicts an increase in savings and cost savings as much as 20 percent by full digitization of our industry as an impact. Globally, this could unlock as much as $1.2 trillion in costs. I have a couple of asks for the Committee today. One is obviously to find creative ways to help the industry adopt new technology at a much faster pace. Consider mandating the use of technology on government- funded projects and not just at the general contractor level but push that all the way down to the subcontractor level. And then my last ask is interesting. It is consider directly impacting adoption for contractors by extending grants to construction technology providers such as ourselves that we can use to subsidize the cost for the smallest companies who need to make that move into technology. Thanks again very much. Chairman GOLDEN. Thank you all very much for the testimony that you have shared with us today. I am going to very quickly go a little bit out of order just because I want to point out that my wonderful wife Isobel is visiting. She is sitting over here. She snuck in once we got started. So she is here to make sure I am on my best behavior during the Q&A. So I thought one of the first things I would ask, just to go ahead and go right at one of the more potential political questions that you might expect someone to ask when talking about going digital, talking about automation and other things, always there is a real fear out there about the replacement of middle class, good blue collar construction jobs and others. I think, Mr. Andersson, you kind of directly said it in a positive light where you said the very latest technology will enable fewer people to do more and achieve a higher quality outcome. Of course, there are some people who might fear that this could pick winners and losers out there in the construction industry. And I just wanted to give, I thought Mr. Andersson, and maybe Mr. Forrestel an opportunity to talk about this because, obviously, like you said, you are a family business. You want to take care of your entire family. And I know you all want to keep people working. So just your thoughts in general about those who might have concerns about job loss. Mr. ANDERSSON. If you look at the needs of infrastructure in this country, I think we need to become much more efficient because I think if you look at New York City, I think there is a huge issue because there are cost overruns traditionally. It makes it hard to make new initiatives. We need new tunnels. We need so much in New York City. But I think because of all these cost overruns there have been issues that actually hurt industry. And I think the efficiency, we can do much more to a high quality. Mr. FORRESTEL. Well, I think to reference what Mr. Ogilby said, there is a huge shortage of tradespeople for the construction industry in this country. I mean, it is widely acknowledged by the Associated General Contractors of America that construction employment is a real problem in terms of companies finding good workers. And I think the one point that Mr. Andersson made about the technology reducing the number of people because of the increase in efficiency which we need to see in the industry for many reasons is a big deal, but I think it is also an opportunity to attract more members of the younger generations into the industry. They do not want to dig ditches with shovels. They want to be involved in something interesting and engaging. And this technology, a lot of these technologies offer that opportunity for the younger generations who are used to engaging in those technologies, or technologies similar to what we are using in the construction industry. So I think it provides real opportunity not to exclude people who might want jobs that actually include---- Chairman GOLDEN. And do you think your workforce or potential future workforce is getting the kind of training opportunities and exposure to the kind of competency in digital technologies or, you know, new equipment, more modern, forward- leaning equipment? Mr. FORRESTEL. No, I do not think the adequate training is out there. I think there is some movement to head in that direction, but we are not seeing it yet. It hit our people in the field, so a lot of our training for that is once we hire people, but it is an opportunity. And I think it is an opportunity to take an industry that has been considered dusty and dirty and dangerous over the generations to be something that is really an opportunity. It is an opportunity for people to make a fantastic living doing really interesting work and really meaningful work. I mean, I know our people take enormous pride in traveling around Western New York, telling their kids about the projects they worked on. Chairman GOLDEN. Oh, yeah, these are great jobs. I think a lot of people back home in Maine also take pride in being a part of the construction industry. One of the things I love most about your testimony, sir, was talking about the distribution of information in the field and preventing rework. The Marine in me, they put a big emphasis on, you know, if you do not get information out into the field, how can people make frontline decisions and not make mistakes. So it makes a lot of sense to me in terms of the digital stuff. Mr. Shephard, I want to give you in the closing time I have here, an opportunity to field a question. As people were talking about the expenses of new equipment, automation, digital technology and others, I was thinking about the BETE tax exemption programs for equipment that I became familiar with back home in Maine, if you know what I am talking about, the Better Equipment Tax Exemption Program which I imagine would cost something like an automated bulldozer. But would it also include things like digital technology upgrades that would improve the efficiency and planning phase? Could a company write off those types of investments as well under that program? Mr. SHEPHARD. I am not sure, Mr. Chairman, but if it does not, it ought to. Chairman GOLDEN. Mr. Andersson? Mr. ANDERSSON. It actually does. Yes, we bought this $250,000 laser scanning equipment and it is a write-off. And it has made a huge difference for us, so. Mr. SHEPHARD. Do I have a second just to comment? Chairman GOLDEN. Yes. Mr. SHEPHARD. I think what is important to Bill and what Lennart said in his opening remarks as well, we need to go from the beginning to the end of the process; right? We make systems that can be used all the way throughout the process, but if you do not start with a digital beginning, a design, and then pull it all the way through, that is where you get the real advantage all the way through the construction process. Chairman GOLDEN. Thank you very much. I am out of time, so I am going to go ahead and yield to Ranking Member Stauber. Mr. STAUBER. Thank you, Mr. Chair. Your testimony, all of your testimonies were fascinating to me. You talk about digital technologies, where it is at. In my hometown, in Hermantown, Minnesota, small town, we put up a health and wellness center, and it had to be bonded. And to make people understand what it was going to be like, you put the goggles on and you literally walked through the health and wellness center and it was amazing. And so you talk about the technologies you are putting forward. I think this is absolutely where it is at. There are a couple of questions, Mr. Shephard, for you first. I am aware that the Minnesota Department of Transportation and Trimble have worked together on intelligent compaction and a tool called Eroutes. Could you expand on what these projects look like and what came out as a result of the collaboration with MnDOT? Mr. SHEPHARD. Yes. Sorry about that. I have to press the button. Actually, I am glad you brought that up because the Minnesota DOT now mandates the use of intelligent compaction on its projects. And what that does is it guarantees the quality of the finished product by knowing that you are compacting to the right specification every time that you do the compaction. So that is a use of technology on the compaction material, on the compaction equipment, the compactors that can make the right number of passes at the right, provide the right, I keep saying the word ``compaction.'' Sorry. It is all about compaction. It gets the compaction correct without having to do any more rework or guessing or missing spots in the place. So it really gets the quality you have done the first time accurately and you can be assured that it is okay. Mr. STAUBER. Which maximizes the investment. Mr. SHEPHARD. Well, it improves dramatically the quality of the finished project, the road or the pad or whatever it is. You get it built right to the design and there is no guesswork. Mr. STAUBER. I just want to put a plug in for the Minnesota Department of Transportation. I was the Chair of Public Works and Transportation for a county and I am extremely proud of that relationship the counties and MnDOT have built to maximize that investment using these new technologies. Very critical. Another question I have, in March--this is for Mr. Ogilby. In March, I introduced H.R. 1890, the Preserving America's Infrastructure Dollars, the PAID Act, which would require states to conduct a lifecycle cost analysis on infrastructure projects that use more than $30 million in Federal funds. How do digital technologies reduce lifecycle costs for larger infrastructure projects? Mr. OGILBY. Push the button. That is a great question. From the infrastructure standpoint--I am not confident that I can answer correctly. Mr. STAUBER. Anybody? Can anybody answer that? Go ahead, Mr. Andersson. And then, Mr. Ogilby, you can finish your sentence. Mr. OGILBY. Sure, thanks. Mr. ANDERSSON. So we work with B&T, Bridges and Tunnels in New York City. A lot of existing facilities. The vast majority is nine facilities. And there we actually are scanning and modeling all the existing facilities and then the asset management piece is a huge, sort of unknown as far as I think their budget is $2 billion the next 3 years just to maintain these facilities. We have found multiple steps of inefficiencies. They cannot find the records to maintain this. People move much more in the workplace than they used to so you do not have the guy that worked there for 30 years that know where these things is. So we are digitizing everything so you can actually quickly find a piece of equipment. And you are talking millions in savings every year. Just alone, just to find things and now what to do so you can fix something quickly. Mr. STAUBER. Thank you. Mr. Ogilby, finish. Thank you. Mr. OGILBY. Actually, I wanted to touch on something Mr. Golden brought up earlier which was around the workforce. And so just some stats that I had dug up. There were 300,000--according to the U.S. Bureau of Labor Statistics, 300,000 vacancies in the construction industry in June of this year, expected to climb to 757,000 by 2026. So, yeah, there is more labor needed dramatically, and I would not place that as a concern---- Mr. STAUBER. Okay. Thank you. Mr. OGILBY.--regarding technology adoption at all. Mr. STAUBER. Interesting. Mr. Forrestel, with your company, it sounds like very well respected, 4th generation. Can you tell us, give us an approximate amount that your company invests per year in digital technology to stay competitive? Just a rough estimate. Mr. FORRESTEL. It has varied some. We were fortunate to be an early adopter when we had a lot of work that the technology was applicable to. But I would say on average the technology across the board, we are investing 5 percent---- Mr. STAUBER. Okay. Mr. OGILBY.--of sales in technology. Mr. SHEPHARD. That is 2-1/2 times the industry average. Mr. STAUBER. That is 2-1/2 times the industry average. Okay. Mr. OGILBY. But at the same time, we are seeing enormous returns on that. Very fast return on investment. And then everything above and beyond that ROI is profit or being able to bid projects at a lower price and procure more work and do it more cost effectively for the owners. Mr. STAUBER. I think you mentioned in your testimony that small businesses cannot afford not to invest in this technology to stay competitive. And Mr. Ogilby, you talked about, I could not believe this stat, but one out of four construction startups will be out of business in one year. Mr. OGILBY. Yeah, that is correct. And it is really stunning. And we see it. I mean, these are our customers, and so we see it, unfortunately. But that is the case today. Mr. STAUBER. Right. Mr. OGILBY. One thing I would just like to add on, too, I think it was Mr. Golden asked about the current tax breaks that are in place. I think most of that we find is around hardware and equipment. So just from the pure technology standpoint, I do not think there is much out there available today. Mr. STAUBER. Okay. Thank you very much. Chairman GOLDEN. We would now recognize Mr. Hagedorn, from Minnesota's 1st Congressional District. Mr. HAGEDORN. Mr. Chairman, I am happy to defer to our Ranking Member Chabot. Mr. CHABOT. Go ahead, please. Mr. HAGEDORN. Are you sure? Mr. CHABOT. Yes. Mr. HAGEDORN. Okay. Thank you for the opportunity. I appreciate it. I take it that this technology, this digital technology helps you be more precise. Would that make some sense? And your planning, reduce costs, things like that, certainly, it could be an advantage if you are bidding on contracts, you are probably going to be viewed as the team that is going to maybe have the best deal or at least be the closest to the end. So Mr. Forrestel, what is your experience? How much can you save in these areas? How important is it to be efficient by using this type of technology? Mr. FORRESTEL. It depends somewhat on the type of project. Some projects it is easier to leverage the technology for cost savings than others. We were fortunate---- Mr. HAGEDORN. Give us an example of a difference. Different type of projects. Mr. FORRESTEL. So big earthwork projects are sort of the natural fit for the automated machine guidance type work where you are moving huge quantities of dirt. You can move it more quickly because everybody who is working on the site in a machine knows when they are getting close to what the finished product needs to be. They are not getting somewhere in the ballpark and then the survey crew has to come out and check grades again. They are grading to the finished grade and they are done. So that is where some of the biggest efficiencies lie. I gave an example in my written testimony of roadway grading where the efficiency has improved in the neighborhood of 500 percent with automated machine guidance. And so on long expressway-type projects that are new construction or full reconstruction, the savings are astronomical. And initially, we were fortunate because not knowing what those savings were going to be, we realized a lot of those as profits which allowed us to cover our costs of implementing the technology early. Now, we are competing against more contractors who are sharing in the same advantages, so now those savings are being passed on to the agencies and ultimately the taxpayers. Mr. HAGEDORN. That is good. Is it considered now the industry standard that you have to do this or are states requiring it to make bids? Mr. FORRESTEL. There are not requirements. There have been more changes in the specifications to allow it. Initially, we saw resistance from a lot of the agencies because it was just unchartered territory. They did not have the same reference points to look at that they used to, oftentimes being stakes in the ground. That was all information on a computer screen, so they had trouble adjusting to that. But we are getting there in terms of allowing it. I think now it needs to be encouraged or required. Mr. HAGEDORN. Now you have kind of proven the technology a little bit and they see the benefits. So Mr. Ogilby, you talk about workforce issues, and I happen to be somebody that agrees with you 100 percent. For a long time in this country we almost discouraged people from getting into a vocational trade certificate program, skilled labor. Told them if you did not go to a 4-year college you are just not going to amount to anything. That turned out to be not such a good thing. And now we are trying to get folks to the point where they have a choice. And whatever they choose to do, whatever is in their heart, they should be fostered, enabled to do that. A piece of legislation that I have introduced with Congressman Van Drew of New Jersey, it is bipartisan, it is called the American Workforce Empowerment Act, and it would make it so these 529 education savings accounts could be applied to certificate programs, apprenticeships, skilled labor type fields, the purchase of tools and equipment. Is that the type of legislation that you might be able to help us with? Mr. OGILBY. Oh, that is fabulous. I love that. Yeah, that is fabulous. Yeah, 100 percent. You know, there has been a stigma around it and we have alluded to it. My friend from the AGC I am sure would confirm. I mean, it is probably, aside from, you know, the adoption technology, we have an enormous lever with technology where we can really drive efficiency, and this Committee is doing the right thing. But on the labor side it is the single number one biggest problem and challenge for the construction industry as a whole today without question. Mr. HAGEDORN. Does anyone else have a comment on the skilled workforce issue? You pretty much agree? Mr. SHEPHARD. Yeah, definitely. We are testing in New York actually the apprenticeship model, sort of reverse mentoring. It is sort of a generational thing. The kids growing up, they just run with this technology. But the people that are really experienced are not so familiar with it. So teaming a young person up with an experienced, and we have seen some really interesting results on that. Mr. HAGEDORN. Thank you. That is H.R. 4469. So thank you very much. I appreciate it. Mr. OGILBY. Yeah, thank you for that. One thing I will add is that technology can be a carrot here as well, right, for adopting, for getting new people to want to move into the industry. The more we adopt technology as an industry, I think the more attractive it becomes to young people. And a couple other fellows made that comment as well. Mr. HAGEDORN. Thanks very much. I yield back. Chairman GOLDEN. Thank you very much. We will now call upon the Full Committee Ranking Member, Congressman Chabot, from Ohio's 1st Congressional District. Mr. CHABOT. Thank you very much, Mr. Chairman. And Mr. Ogilby, I will go to you if I can. Welcome, again. I understand my colleague from Minnesota introduced you. I hoped to be over here but unfortunately, around this place, things always come up and change plans. Mr. OGILBY. No worries. No worries. Thank you very much. Mr. CHABOT. The best laid plan. But it is great to have you here, as well as it is the other witnesses. Your company, STACK, has experienced some really incredible growth in a relatively short period of time. Could you talk about the types of financing that you have secured to facilitate that growth? I know you talked about going to 20 different cities and being told no by various venture capitalists. Mr. OGILBY. You have done some research. Mr. CHABOT. Yeah. So if you want to talk about that, perhaps, and also, what availability did you find in our community in Cincinnati that you found helpful in growing your business? Mr. OGILBY. Yeah, sure. Well, first of all, my story goes back probably, well, 2 decades now. So when I started iSqFt, which was my last startup, now employs more than 1,000 people. It is known as Construct Connect, still based there in Cincinnati. A lot of those war stories around raising money and traveling around the country, I finally found an angel investor in Cincinnati to help us fund that business and get it off the ground. Mr. CHABOT. What would you say America's greatest city is again? Mr. OGILBY. That would be Cincinnati. Mr. CHABOT. Thank you. I appreciate that. Go ahead. Mr. OGILBY. Thank you, Mr. Chabot. And by the way, the State of Ohio was very helpful with additional financing to get our young, very young business off the ground 2 years ago or 3 years ago. Mr. CHABOT. Greatest city and the greatest state. I am just saying. But go ahead. Mr. SHEPHARD. If I could jump on the bandwagon, my daughter goes to the University of Cincinnati. So I would just like to jump on. Mr. CHABOT. Oh, excellent. Our daughter is a graduate of the DAP program there and my wife is a graduate there as well, so great school in a great city. No, go ahead. Mr. OGILBY. Thank you for the opportunity. I could expand but---- Mr. CHABOT. So anyway, on the financing and---- Mr. OGILBY. Yes. Mr. CHABOT.--Cincinnati, and how you went through this process. Mr. OGILBY. Sure, sure, sure. So, well, very early on, again, I literally traveled the country. There was some resistance. Everybody I met with it seemed like told me this was the greatest idea. They could not believe nobody was doing it already. I was in San Francisco many times. You know, New York, Chicago, many, many times. And at the end of the day, I was able to secure angel financing in Cincinnati, and we had a very friendly angel who helped us to continue that business even when we were still hearing no locally. We did finally secure financing from a local Cincinnati venture firm in River Cities Capital and Chrysalis Ventures out of Louisville. That was my last startup. Today, we have funding out of the City of New York, the great state of New York with Level Equity, but you know, it is all money very, very well invested. And driving technology into this industry is not for the faint of heart but it has been a very rewarding experience as well. I love hearing the stories about the impact of technology. We literally have hundreds and hundreds of testimonials from customers who tell us how it has impacted their business and their family lives and the impact of their family of their employees. And it is just very, very gratifying. So this is near and dear to my heart what you folks are putting together here, the concept. Mr. CHABOT. Thank you. And it is my understanding that STACK provides colleges and universities with free access to its pre-construction tools. How do these partnerships help with industry workforce development, and what impact has that had on your business? Mr. OGILBY. You know, it is something we have debated through the years. Being a relatively small business still today we do not always feel like we have the resources we need to do that but it has been a tremendous program. So we do that. As you have explained, we offer free technology, our solutions free for universities, and it has been a powerful thing for the ones who have adopted it. And obviously, the goal being we want to seed the market with experienced operators of the technology as they go into the workplace. Mr. CHABOT. Very good. And then finally, how do platforms like STACK integrate with other tools that are offered by other companies? How do businesses learn how to fully utilize these tools? Mr. OGILBY. Yeah, that is a great question. Training is a whole another issues, and training is getting easier and easier with the modern tools and the modern design. Training today is not nearly what it was 25 years ago with desktop software solutions. So training is less and less of a challenge for us every day. But one of the things that we do focus on is integrating with other platforms. We are not everything to everybody, and we do not intend to be. And I think most solutions are the same. So we see a tremendous amount of value in integrating. So we have an API behind our platform but it is really a set of hooks that other software can use to pull and push data in and out of our platform. I know Trimble has the same sort of things. And it is becoming more and more common in the industry to do that, but I think ultimately success and widespread adoption across the industry of technology is really going to require that kind of interconnectivity between apps. Mr. CHABOT. Thank you very much. Mr. Chairman, my time has expired. Thank you. Mr. OGILBY. Thank you. Chairman GOLDEN. Thank you very much. We will now move on to Congressman Balderson, also of Ohio, and Ranking Member of the Subcommittee on Innovation and Workforce Development. Mr. BALDERSON. Thank you, Mr. Chairman. And thank you, panel, for being here today. I have never talked this much about Ohio in a long time. I am glad to hear that we all agree. And this question is broad for the whole panel, so anybody can go in any particular order you would like to go. But I want to thank you again all for being here today. I sit on this Committee, and also the T&I Committee, like our Ranking Member, Representative Stauber also sit on the T&I Committee. So I know how critical it is to fix our Nation's crumbling infrastructure. In your written testimonies, each of you highlighted the rate of adoption, or rather the lack of thereof of new technologies by small construction businesses, as well as the state departments of transportation. Would each of you share some of the reasons this is the case? And have there been any cases we can look at in which states or small businesses have done a good job of adopting innovative technologies? And as I said, you all make this--whoever is ready to go, go right ahead. Mr. ANDERSSON. One of the issues we are finding is rate of adoption, I have been at this for 20 years now, is that a lot of the standards and requirements are outdated. So when you get a project from an agency, you are supposed to use CAD 2D drawings and submit the piece of paper. So the effect that you have to maintain a legacy system and innovate on the new side becomes very expensive. So it will be much easier if agencies start mandating these new technologies and then you can actually make the decision without maintaining the old system. Mr. SHEPHARD. If I can just add, you know, representing a manufacturer that develops these tools, the software, the hardware, et cetera, back at Woodland it says we do not want people to mandate our specific products. I do not want the world to be mandated to be Trimble products. That would be nice but that is not what is needed. We are happy to work with everybody to increase the adoption broadly and then all boats rise on the tide. And we will take our chances individually as which consumer prefers the right solution. And we work collaboratively with people that we compete with in the marketplace every day to try and find innovative ways to increase adoptions so that we can gain all these efficiencies that we have all testified to today. So we are happy to do that. It is really about seeding the mindset to ease the adoption. Mr. BALDERSON. Would anybody else like to add? If not---- Mr. FORRESTEL. Sure. Mr. BALDERSON.--my follow up--oh, go ahead. I am sorry. Mr. FORRESTEL. I can add a little bit from the construction industry side in terms of resistance to adoption. I think it has been alluded to some today but our industry is old school. You know, guys who start construction companies like to buy their iron, their equipment, and technology does not necessarily fit the same mold. So I remember when we were getting into it, my father was questioning the expense of investing in the technology. He said, well, that stuff does not move dirt or put pavement on the ground. Well, no, it does not, but it helps you do it a lot faster and a lot more accurately and a lot more efficiently. So it is getting over the hump for some people of understanding exactly what it does and how much it does benefit. And that it is not exactly getting the work done but it is helping you get the work done so much more efficiently. And that is just what I have seen in the industry and through personal experience in terms of being an impediment to adoption is just that that perception that it is not the nuts and bolts stuff that we have always done. Mr. BALDERSON. Okay. Thank you for your answer, all of you. My follow up in the brief time I have here left, to the best of your knowledge, are there Federal regulations preventing these types of systems or technologies from being adopted? Mr. FORRESTEL. I can name one off the top of my head. Mr. BALDERSON. One is one, so. Mr. FORRESTEL. For FAA work, paving on airports where the owner of the project is the FAA, they mandate paving with string lines. That is their specification. And there has been some success by us and others to convince them in certain instances to be able to use machine automation which in paving, whether it is blacktop or concrete, is way more efficient. And especially in the tight timeframes that are often required for airport work, that is a big deal. And it is just an antiquated specification that does not allow for new technology. Mr. BALDERSON. Thank you very much, panel. Mr. Chairman. Chairman GOLDEN. Thank you all very much. I am going to go ahead and do another round. I do not know if there are other members who might be interested. One thing, talking about the workforce training opportunities, and it sounds like you are doing a little bit of this, Mr. Ogilby. In Maine, when I was in the Maine legislature, we went ahead and put a little bit of state money into a training program working in the logging industry where we do see a lot of technological advancement in the equipment, but it is very expensive to have. Hard for a community college or a training program, apprenticeship program to purchase half a million dollar pieces of equipment or more. So really, we are having a hard time getting youth opportunities to get in and get trained with that equipment which then made it harder to hire them because you are dealing with a pretty expensive piece of machinery that requires extra training. So the industry actually was willing to kick in some of that equipment so we did not have to purchase it and now we had like a nice public- private partnership where our young loggers were able to get in and get enough hours working new equipment so that they were entering into the workforce not just trained on one piece of equipment which was kind of the industry standard, but on multiple pieces of equipment. Now they had a more dynamic, more flexible workforce, and more likely to be hired more quickly into the jobsite and be more valuable. And if a piece of equipment went down, they could just hop on another one. So I do not know if you all have seen anything like that but even with the digitization side of things, helping to pool resources for training opportunities I think is a big part of getting a trained and ready workforce. I did want to ask if any of you have anything to say about potentials around 3D printing in the construction industry. The University of Maine Advanced Structures and Composite Center, I just have to brag about, they now have the largest 3D printer in the world, and they are working with all kinds of neat stuff. You know, hybrid manufacturing, 3D printing, using long fiber reinforced tapes. They are doing thermoplastics, bio resins and other things. You can think about cross-laminated timber for the construction industry. They are making lightweight tougher than steel axels for equipment and other things. It seems to me like the sky is the limit but I am curious what you are seeing with 3D printing in the construction industry. Any of you. Go ahead. Mr. SHEPHARD. Just a quick comment on that. We are a partner in a venture fund which is led by the Hope family who own the Caterpillar dealership in Texas. It is a broad fund that is focused on construction technology. And they closed 3 or 4 months ago. We had the first meeting a couple of weeks ago, and one of the businesses they are looking at is a business that actually 3D foot homes. Like 1,200 square foot homes. It is remarkable. And they are focused on affordable housing where you can go into plots of land in underprivileged areas and these are really affordable, properly built, durable homes and it is a startup out of Texas that is doing that. This is an explosion in this area. It is really where, you know, one of my soap boxes is this is the fusion of what you call just normal manufacturing principles and technology brought to the construction space. This is how people have been building cars, cutting metal chips all across the Midwest for years. So now we are applying these principles, and 3D printing is no more than taking a CAD file and putting it on a lathe or a machine, a C&C machine that cuts metal to print a house the same way. Just one quick comment on your education, Mr. Chairman. And it ties two things together about the job loss or the fear of job loss. We actually work very closely with the unions. We have a collaboration, a partnership with the International Union of Operating Engineers where we use their facilities, we donate equipment, we bring customers to train. The union loves it because they can upscale their people. We love their facilities and we can use the space and their equipment to show our customers and showcase. And it has been a very symbiotic relationship where they get something out of it. We get something out of it, too. And it helps the workforce. Chairman GOLDEN. That is great. Thank you very much. The 3D printing aspect, you know, I find very interesting. They just did, like I said, the largest 3D printer in the world for now. I think we are going to continue to see advancement. But I think they did a 30 or 40 foot boat in under 72 hours. If you stop and think about that, that is pretty amazing. They started it up on Friday and came back in to a finished--it does float, yes. I actually got into it. Mr. STAUBER. Mr. Chair, I will let you know, my staffer asked the question. I did not. Chairman GOLDEN. Yeah, that is right. So, you know, more to come on that. And thanks for sharing the training partnership with operating engineers. Go ahead, Mr. Stauber. Thank you, Mr. Chair. If Ranking Member Chabot were here I would ask him to have a conversation about which state is better because I will take Minnesota any day. I have got just a couple of comments. First of all, thanks for your expertise in sharing this with us. I think that by using digitized technologies we can save money. That is the investment from the taxpayers. The projects, the lifecycle can be longer because of, for instance, the compaction is perfect. And then one of the things that we talk about is the safety. And Mr. Forrestel, you talked about working at night. The safety of the men and women that are putting the projects together, it is critically important that we invest in these. And I am excited. Mr. Forrestel, you had mentioned the FAA mandates paving with string lines. I am on the Aviation Subcommittee, and I turned to the Chair to my staffer here. And I said, this is something that we can implement in the RFPs. My hometown airport of Duluth, Minnesota, just did a complete paving of the runway 927. And if that saves the taxpayer money and does it quicker because it is also our F-16 base. And so these are some things that you as experts can bring to us that we can help change and do things better, more efficient, maximize the taxpayers' investment. So I really appreciate your comments and considerations today. Thank you for your time. I hope you felt it was valuable because I know we did. And to the Chair, thanks for putting this together. These are the type of really nonpartisan or bipartisan things that we, in Congress, can do to help small businesses succeed. So thank you, Chair Golden. Chairman GOLDEN. Of course, always a pleasure to work with you. I would say as well, Mr. Andersson, you were talking about having to have two different platforms, you know, drawings and sketches, and then also having the 3D option. And it makes me think of the need to invest in an advanced workforce within government as well, whether that be DOT or other agencies and departments at the Federal and state level. If we are not investing in a workforce that is able to keep up with the private sector, then it will inevitably hold us back. And we all know the large role that government plans in regard to the procurement of services, many of which you provide in construction, particularly with roads and bridges and others. So we have got to be looking to that as well. And I am interested in the FAA piece as well, Mr. Stauber. So I want to thank you all for joining us today. Please feel free to send us more info if you have it, or if you think you want to add in more or you did not get some of the questions that you really wanted to answer, let us know, and we are happy to have that information. I think it has been a worthy hearing where we have learned a little bit about how digital construction tools can help our small businesses find opportunities to cut costs and compete for more business. Nimble small businesses need a level playing field to contribute cost-saving services as we begin to spend Federal dollars to improve our Nation's infrastructure. But small businesses cannot unlock these opportunities if they fail to adopt cost-saving equipment, which is why the members of this Committee are looking to raise awareness of the value of digital tools and encourage small businesses to actively adopt them in construction, design, and engineering. I look forward to working on this issue with the Ranking Member and members of the Subcommittee and Committee. Some of you had some ideas on how we could incentivize some of these things and we will be looking back at your testimony and advice. So thank you for joining us today. And I would go ahead and ask unanimous consent that members have 5 legislative days to submit statements and supporting materials for the record. Without objection, so ordered. And if there is no further business to come before the Committee, we are adjourned. Thank you very much, gentlemen. [Whereupon, at 11:17 a.m., the subcommittee was adjourned.] A P P E N D I X [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]