Materials, Construction

Construction Procurement Platform Kojo Expands into Mechanical

Construction Procurement Platform Kojo Expands into Mechanical

Kojo, the construction industry's leading materials and inventory management platform, today announced it has expanded to serve mechanical contractors.

"At Kojo, our mission has always been to simplify processes for our customers so that they can have more time back to do what's really important – build," said Maria Davidson, Kojo's founder and CEO. "Our mechanical Beta launch has been our most successful to date. We're thrilled that our mechanical customers are already seeing so much value with Kojo and we're excited to continue to onboard many more all over the country."

Since the offering launched in Beta, mechanical contractors have sent over 6,000 field requests to the office and created 17,000 purchase orders worth $50 million in Kojo. "By our calculation that's almost 6,000 times the field and office didn't have to call and email back and forth to figure out what was being ordered," Davidson added.

Alex Eldridge at Tharco, a leading mechanical contractor in Maryland, said, "Kojo has been really smart in the way they've customized this build for mechanical contractors. For example, there are many nicknames for parts out there and this can create confusion for communication between the field and office. Kojo has a preset catalog field users can order from that even supports slang terms for easy field-to-office part name translation. It's details like this that convinced us Kojo was for us."

The mechanical contracting market in the U.S. is huge and rapidly growing. More than $123 billion of mechanical work is done in the U.S. annually. The sector employs nearly 400,000 workers and that number is expected to grow by 5% through 2031.

Kojo's expansion into mechanical follows the launch of its Automated Invoice Matching product, which streamlines the accounting process for commercial trade contractors. This builds on Kojo's purchase order and delivery functionality, making Kojo a true all-in-one platform that allows customers to manage the full end-to-end materials procurement process. Automated Invoice Matching launched in Q2 of 2023 and to date has processed $9.2 million in invoices, catching mistakes on 27% of invoices processed.

Kojo announced their Series C in September of 2022. Kojo has now powered more than 10,000 construction projects across 47 states, saving customers 75% of the manual entry they previously had to do and reducing materials waste on jobsites by up to 90%.

About Kojo

Kojo is the construction industry's leading materials and inventory management platform. Kojo enables trade and self-perform general contractors to streamline every step in the procurement and inventory management process from takeoff to closeout. By connecting field, office, warehouse, accounting, and vendors teams on one software platform, Kojo gives contractors visibility into real-time materials spending and usage, helps them source the best prices and availability across vendors, reduces material waste, and increases labor productivity. To learn more, visit www.usekojo.com.

Spotlight

Other News
Engineering Tech, Construction

Comfort Systems USA Announces Acquisition

Business Wire | February 01, 2024

Comfort Systems USA, Inc. today announced that it has closed its previously announced transaction to acquire Summit Industrial Construction, LLC (“Summit”) headquartered in Houston, Texas. As previously disclosed, Summit is a specialty industrial mechanical contractor offering engineering, design-assist and turnkey, direct hire construction services of modular systems serving the advanced technology, power, and industrial sectors. Summit’s capabilities encompass a wide range of modular and site-based construction, including process piping, equipment setting, large pipe rack trestles, and related steel erection and specialty concrete work. Summit is a trusted supplier to some of the world’s largest advanced technology, power and industrial companies and is currently deployed on several major chip fabrication projects. Initially, Summit is expected to contribute annualized revenues of approximately $375 million to $400 million, and earnings before interest, taxes, depreciation, and amortization of $35 million to $40 million. In light of the amortization expense, Summit is expected to make a neutral to slightly accretive contribution to earnings per share in 2024 and 2025. Brian Lane, Comfort Systems USA’s Chief Executive Officer, commented, “We are delighted to announce the closing of our agreement to acquire Summit, an extremely capable provider of modular and other complex mechanical services. Summit brings a stellar reputation as a modular technology leader in growing end markets, including multiple ongoing and large semiconductor projects. We are happy to welcome Summit’s wonderful leadership team and excellent production and craft workers across many states, and we are confident Summit will continue to innovate and grow as a part of our network of world-class contracting companies. We are grateful that Summit has chosen to become part of Comfort Systems USA.”

Read More

Spotlight

Resources