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The FBR company develops robots named Hadrian X, designed to build walls by placing bricks. These robots employ a unique technology called DST for accurate placement. They can build walls at an extremely high speed, currently achieving about 300 bricks per hour. By using larger bricks, they can construct the walls of a house in just one 9-hour shift.
Their potential market is enormous, encompassing much of the global construction industry. The brick market alone is valued at over a trillion dollars annually.
Currently, FBR is not profitable but has developed its next-generation robot, intended to be the commercial model. The immediate business plan involves constructing a house in Australia with this new robot, followed by the construction of 10 houses in Florida. FBR recently signed a significant agreement with CRH, one of the largest block producers worldwide. This agreement outlines that, upon meeting certain milestones, FBR will enter into a contract and partnership with CRH.
FBR’s product offers customers more accurate and significantly faster construction — reducing work from two months to just one day, without waste, air pollution, and with enhanced safety.
This product is a disruptor in the construction industry, promising to shorten construction durations substantially.
The value to the customer is considerable, and FBR stands to gain financially, planning to charge market rates for a faster, superior product, which will yield high profit margins, estimated at about $10-20K per house.
The cost to build each robot is about $1-2 million, with simple operation requirements: a tablet and three operators (one to load blocks for the robot, one to manage the tablet and conduct minor repairs, and a third to relieve the other two as needed). With clients filling 70% of the operational capacity, the return on investment is projected to be less than a year.
FBR’s business model doesn’t involve selling the robots; instead, it aims to establish WAAS (Wall as a Service) branches, where a partner covers all costs and then shares the profits.
The latest contract with CRH aims to establish CRH as a partner in WAAS, though FBR must meet certain immediate, seemingly attainable goals (previously achieved milestones) for this partnership. Even then, CRH has a short window to withdraw, making the agreement akin to a memorandum of understanding. If they decide to proceed, the contract will cover up to 300 machines in the partnership.
Regarding profitability, FBR is expected to start construction in Florida in the coming months, with CRH likely to formalize their partnership under agreed conditions. CRH has been involved with the product for an extended period, generating significant enthusiasm. Should the partnership with CRH not progress, other parties are expected to show interest due to the product’s value and profitability potential.
To become profitable, FBR needs about 15 active machines, fully booked with orders.
The potential market in the United States alone could utilize 3,000 machines, illustrating the scale of market opportunity.
FBR has steadily progressed with their product over a long period, culminating in the recent launch of their commercial model.