The Robotic Pipe Layer

The WCS Robotic Pipe Layer machine is innovative because it greatly increases the productivity of how pipe is laid throughout the world:

§       It has an immediate, positive economic impact on ROI

§       It is the only system in the world that can construct curved sewers saving and reducing Manholes, land purchases, failures, maintenance and materials

§       It uses a new a more productive process for laying pipe while more than doubling the speed.

§       It is a major advancement in excavation safety lowering insurance premiums

§       It substantially increases the degree of competitive pressure.

§       Companies that don’t use the WCS Robotic Pipe Layer will be negatively impacted.

The installation of underground pipe or conduit is currently a manual, labor-intensive process that combines physically difficult work for multiple laborers.  The inherent dangers of work below ground level are vast and many. These injuries and deaths include cave-ins and accidental collision   between humans and the excavator. To make matters worse, experienced operators with the skill set needed to lay large diameter pipe successfully are very scarce.

Assuming that the engineering site design and layout work is complete, the current method includes eight steps for each section of pipe:

·       excavation of the basic trench into which the pipe will be placed,

·       excavation of trench walls to prevent cave-in of the sidewalls of the trench,

·       establishment of the baseline level for the pipe section,

·       placement and leveling of the rock substrate upon which the pipe will be laid,

·       placement and leveling of the pipe,

·       joining of the pipe to the neighboring section of pipe,

·       placement of the rock cover for the pipe, and

·       backfilling of the trench.

The cycle is then repeated for the next section of pipe.

 

As noted above, the work is dangerous as well as difficult. Even though the Occupational Health and Safety Administration (OSHA) has extensive safety requirements applicable to the placement of underground pipe, the National Institute for Occupational Safety and Health (NIOSH) reports that there are typically more than 1000 lost-time injuries in these trenches in the US every year caused by cave-ins, falling pipes and back-fill materials, or impacts with heavy equipment. More than 50 of these injuries typically result in death each year in the US alone.

 

Note: The specific numbers quoted here can be verified and expanded upon at www.cdc.gov/mmwr/preview/mmwrhtml/mm5315a2.htm; for more general information regarding trenching safety see www.cdc.gov/niosh/topics/trenching/.

 

By using WCS Robotic Pipe Layer to place the pipe, the speed and accuracy of the pipe laying process is enhanced and workers are removed from the dangerous below-ground environment. This combination of improvements increases the efficiency of the overall process, reduces lost-time injuries, and lowers the cost of insurance. The economic impact is significant: we project an increase in the profit margin in excess of 40%. Contractors placing underground conduits will see that Robotic Pipe Layer will typically pay for itself in the first three months of use.

Specific Customer Needs

The foremost concern of any excavation company is the safety of its employees. Even when the utmost care is taken, underground excavation remains a dangerous line of work. By using Robotic Pipe Layer, companies will eliminate the number one safety concern at every excavation site: personnel in the trench.

Excavation companies pay exorbitant insurance premiums because of the danger involved in having personnel in the trench. As a secondary benefit, Robotic Pipe Layer will also reduce the cost of insurance.

While the Robotic Pipe Layer lays the pipe in the current trench, the excavator operator can be digging the trench for the next section of pipe. This provides the multi-tasking that increases productivity dramatically

Applications and Specific Uses

Two versions of the Robotic Pipe Layer robotic pipe layer will eventially be available: one for plastic pipe and one for reinforced concrete pipe. Plastic pipe is used mainly for sanitary sewer, city water, and storm sewer while reinforced concrete pipe is used for storm sewer. Plastic pipe is used as part of the plumbing scheme wherever buildings (homes, offices, etc.) are being erected. Concrete pipe is used for drainage from road beds and retention ponds.

Value Proposition to Customer

Excavation companies that use Robotic Pipe Layer will see numerous benefits when they use a robotic pipe layer. The owners of WCS completed a detailed analysis of three Proofs to demonstrate the different ways in which Robotic Pipe Layer will benefit companies.

·       Test 1: Illustrates the savings per foot of pipe laid with a variety of pipe sizes on a Daily Basis.

·       Test 2: Illustrates the annual increase in profits with a variety of pipe sizes.

 

·       Test 3: Illustrates the dollar savings between the conventional method and the Robotic Pipe Layer in the following scenarios:

1.     With an increase in the rate of conduit laid between 0 and 100% (Note: 100% is twice the normal rate.)

2.     With an annual usage rate of between 50 and 250 days per year.

For complete details, see Attachments P-R.

Competitive Advantage

There are no direct automated or mechanized competitors to the Robotic Pipe Layer: this is breakthrough technology. The closest competitors are teams of experienced pipe layers using a combination of heavy equipment to lay pipe. The WCS main competitive advantage offered by Robotic Pipe Layer is that it will double the productivity of the average crew and thereby increase profits dramatically. Robotic Pipe Layer also improves safety by eliminating the need for personnel to be below grade. It also improves the efficiency of the crew because the excavator operator can be digging the next section of the trench while the Robotic Pipe Layer operator lays the pipe. Robotic Pipe Layer will also reduce the size of the crew involved in laying pipe.

Intellectual Property Protection (Patent # 7607863)

WCS Inc will have a patent that will prevent the other manufacturers from manufacturing a machine that is similar to the Robotic Pipe Layer. The patent has been awarded number 7607863. This will provide a micro monopoly market for WCS to sell into for the life of the patent, which will last approximately through 2026.

Market & Competitive Analysis

Market Assessment

National Market Assessment

The placement of underground pipe and conduit of various sorts accounts for $40 billion or 4% of the annual US construction market of approximately $1 trillion. While most segments of the construction market are estimated to decline in 2009 by percentages from -6% (health care)
to -22% (office and commercial), the manufacturing, highway and street and power segments, which involve the largest amounts of underground piping and conduit, are projected to increase by 4, 6 and 8%, respectively. Therefore, while times are tight for most segments of the economy, the outlook for the sectors that involve the placement of underground conduits of various sorts are expected to grow, albeit modestly.

 

It should be noted that these projections were made before the passage of the economic stimulus plan which includes financial support for extensive infrastructural repair, replacement and extension. Many of these projects are likely to involve extensive underground pipeline or conduit installations. The projected growth for the related sectors are, therefore, probably somewhat conservative for 2009 and beyond.

 

Note: Data is from FMI, a firm which provides management consulting and investment banking for the worldwide construction industry. Projections made in late 2008.

Indiana Market Assessment

Governor Daniel’s Major Moves puts Indiana roads in the forefront of the state’s push towards becoming a key player in the national economic recovery. As the Crossroads of America, Indiana is within a day’s drive of 80% of the population of the United States. Long haul trucking —interstate commercial transportation— is a major component of our state’s economy. When Honda chose Greensburg, Indiana as the site of its new factory it cited Indiana’s commitment to improving its infrastructure as the WCSmary reason why Indiana was selected.

 

The State of Indiana spends upwards of $1 Billion dollars annually on its roads and related infrastructure. Although the specific amount that will be spent on laying pipe depends on the exact nature of the project, it is fair to say that most road construction projects involve excavation and pipe-laying.

Competitive Landscape

WCS will primarily sell to construction and excavation companies. Excavation companies must purchase machines to perform their work. The competing equipment to WCS is a combination of heavy equipment (excavators, loaders, dozers and personnel). Excavation companies currently purchase those machines from a handful of manufacturers. Those manufacturers are Caterpillar, Komatsu, Case, New Holland, John Deere and Kobelco. These manufacturers operate in an oligopoly-type marketplace. 

WCS Inc will  gain a competitive edge over its competition.

1.     WCS Inc will provide a product that fits the demand of the customer better than any other product offered by the competition. WCS Inc provides a product that is very easy to calculate the economic benefits.

2.     WCS Inc will maintain the current patent and protect it and future patents from other manufacturers. They will continue to be innovative and creative in seeking additional construction devise related patents.

3.     WCS Inc will offer a machine with unparallel safety advantages. No other machine exist that can compare to the Robotic Pipe Layer. WCS Inc will promote the safety advantages in the implementation of the marketing plan along with all the other benefits it provides.

First Products

WCS Inc will provide the ability to install underground conduit in a safer and more economical   laying machines that weigh between 12,000 lbs and 30,000 lbs. The first two machines will be the PL1400 and PL1500.

·       The PL1400 is used to lay plastic pipe. These may be sewer or water pipe. It will install PVC Bell and Spicket from 4” to 12” diameter in 14’ lengths.

·       The PL1500 is used to lay concrete pipe. This is typically for storm sewer pipe. It will install Concrete Bell and Spicket from 12” to 32” diameter in the standard 8’ lengths.

Target Customer Criteria

The WCS end user will be Excavation and Construction Companies who meet the following criteria:

·       They are currently installing underground conduit.

·       They are doing municipal and/or commercial excavating.

·       They have between two and ten crews that lay underground conduit.

·       They have revenues from $1 to $300 million.

Careful analysis indicates that there are 6-10 potential customers who meet these criteria in Indiana and in each of the surrounding states. 

The target locations will grow in four steps. They are as follows:

1.     Very local/Central Indiana

2.     Regional/Midwest

3.     Whole U.S. and North America

4.     International

 

List of Websites

Website 1. www.cdc.gov/mmwr/preview/mmwrhtml/mm5315a2.htm: CDC/MMWR Weekly article “Occupational Fatalities During Trenching and Excavation Work —United States, 1992-2001.”
Referred to in the “Proposal Summary” section.

 

Website 2. www.cdc.gov/niosh/topics/trenching/: CDC/National Institute for Occupational Safety and Health website with general information about trenching safety practices.
Referred to in the “Proposal Summary” section.