ClubFixit: Diary of a startup

January 29, 2001: 8:55 a.m. ET

Part 7: There is a need for technology, but is there enough demand or desire?

NEW YORK (CNNfn) - The fact that so few in the construction and repair industry are technologically savvy is the great opportunity for a company like ClubFixit. Bridging the technology gap for these types of businesses, which lag behind the rest of industry in this area, is precisely the goal of Sean Mullin's startup.

It is also, he is starting to think, the biggest problem. So many of his target customers operate in a technological vacuum and, frankly, they don't seem to be in any rush to change that fact.

"These guys still communicate by fax and phone," said Mullin. "The more I talk to them the more I realize many of them are not really interested in changing."

Major contractors already adopting technology
This is not to say small business owners in the construction and repair industries won't benefit from technology. On the contrary, many recognize that construction has lagged behind other businesses in utilizing new technology. Now, there is a major modernization push going on in the industry to compress the construction cycle and to achieve cost savings.

The big names in construction, names like Turner Construction and Bovis Lend-Lease, have adopted a wide array of new technologies to help manage their large-scale construction projects. Using digital cameras, they post photographs on project-specific Web sites so owners and consultants can see progress without visiting the site in person. New technology has compressed communication, once a huge time-consumer, among all the participants in a large project including designers, architects, subcontractors and suppliers. Those are but a few of the benefits technology brings to construction.

Technology, said Mark Pursell, director of business development for the Associated General Contractors of America, is revolutionizing the industry. From planning to execution of major projects, technology is the driving force that is making construction cheaper, better and faster.

"We are encouraging all our members to get online," he said. "It's an issue of efficiency, cost and communication."

While the largest companies are using high-tech tools from lasers for surveying to the Internet for project management and realizing new efficiencies in their projects, many of the little guys are still far behind the technology curve.

Many benefits for the little guys



	Construction is a food chain where the owners drive everything and more and more owners and large general contractors are requiring use of Internet-based applications.



	Mark Pursell director of business development, Associated General Contractors of America

At the very least, small contractors should have Internet access, e-mail and their own Web page, said Pursell, whose Alexandria, Va.-based trade group represents 38,000 large and small contractors. Those very basic computer functions would allow them to learn about projects, make bids for jobs, provide estimates and even locate suppliers.

"There are a lot of benefits for small contractors," said Pursell. "Faster communication and more sure communication can really help their business. Construction is a food chain where the owners drive everything and more and more owners and large general contractors are requiring use of Internet-based applications."

Are they ready for this?
Meanwhile, back in New York City, Mullin, who is trying to help these small contractors and repair men bridge the technology gap, is showing the first signs of frustration in the short life of his small company. In an attempt to meet more target clients, and pitch them on ClubFixit's services, which include Web design and e-mail, Mullin has been meeting with local unions.

The conclusion? "I'm not sure they're ready," he said recently after attending a union meeting in Staten Island. Most of the members had no Web site, no access to the Internet, and no e-mail. Those he spoke with were friendly, but not ready to sign on as ClubFixit clients.

The past few months have been a real education for Mullin. In trying to market ClubFixit, he has grown ever more confident that the services his company provides can help small contractors and repairmen become more efficient. At the same time, in pitching his services to these small business owners, he has grown increasingly aware that small contractors and repairmen are not yet eager to incorporate new technology into their businesses.

It has been a real eye-opener for Mullin and the rest of the ClubFixit crew. Mullin freely admits to possessing a techno-centric view of the world and has not had, until now, only limited contact with people who don't at least appreciate some benefits technology has brought to their life.

The challenge that lies ahead is obvious. Mullin and Co. have not only to get word out about ClubFixit and ClubFixit's mission to be the premiere technology provider for the construction and repair industries. They also need to come up with a way to convince potential clients about the value that technology can add to their business.