Sensing greatness: Giatec Scientific lands more funding to fuel pursuit of $100M in annual revenue

October 8, 2024

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Giatec Scientific has secured millions of dollars in new federal funding as the Ottawa-based cleantech company chases its goal of reaching $100 million in annual revenue within the next five years. Giatec announced Tuesday it has received $17.5 million in grants and loans from Innovation, Science and Economic Development Canada to help fund its three-year, $65.8-million project to develop a platform that uses artificial intelligence to calculate the right blend of cement and other additives in concrete mixtures. It’s all part of the fast-growing company’s mission to make concrete production more efficient and environmentally friendly. Giatec says its technology, which includes cutting-edge sensors that measure the quality and consistency of concrete throughout the entire construction process, will help builders cut material costs and reduce greenhouse gas emissions – a huge potential boon for the environment, considering the concrete industry accounts for about eight per cent of all global carbon dioxide emissions. “This industry is very, very slow to adopt (new technologies),” CEO Pouria Ghods told Techopia on Tuesday. “We hope that because the economic driver is there … that will be enough incentive for (concrete manufacturers) to adopt faster.” Part of the latest federal cash will go towards building a new facility in Ottawa that will showcase Giatec’s “smart concrete” technology and serve as an innovation hub where private companies and universities can brainstorm new construction innovations. The plant is expected to create up to 160 new jobs. Industry Minister Francois-Philippe Champagne said Giatec’s technology could be a key component of a greener construction industry as the federal government strives toward an ambitious goal of achieving a net-zero economy – meaning the amount of carbon being removed from the atmosphere is equal to the amount being emitted – by 2050. “By leveraging technological innovation to reduce greenhouse gas emissions and improving building materials quality, we can drive efficiencies that lower construction costs, making projects more affordable and profitable for our construction industry,” Champagne said in a statement. “It is a win for our planet, our infrastructure and our industry.” With the net-zero push gaining steam, Giatec has become a breakout star of Ottawa’s cleantech ecosystem. Founded in 2010, the firm gained attention more than a decade ago for patenting the first handheld device, called iCOR, that allowed non-invasive examination of concrete structures. The company expanded its product lines from there, eventually branching out into AI. In the past three years, Giatec has raised millions of dollars in federal and private-sector funding and forged a partnership with German concrete producer HeidelbergCement, which operates in 60 countries and provides invaluable market intelligence for the Ottawa company’s AI engineers in their ongoing effort to make Giatec’s technology even smarter. Giatec says its AI-based software and testing products can help reduce customers’ greenhouse gas output by up to 20 per cent. The firm’s goal is to cut the industry’s carbon dioxide emissions by 400 million tons annually, the equivalent of taking 110 million cars off the road. The company’s sales have been steadily rising as more customers realize the financial and environmental benefits of its technology. Revenues rose 42 per cent year-over-year in the firm’s most recent fiscal year ending July 31, beating Giatec’s goal of 38 per cent. “Considering the economy, it was a great year,” Ghods said. While he says Giatec is already the clear leader with more than 50 per cent of the smart concrete technology market, Ghods believes the firm is “building a foundation” to become a much bigger enterprise. He figures Giatec and its competitors are currently serving only about 10 per cent of the total addressable market for their products, leaving plenty of room for his firm to cement its position of dominance. When Giatec unveiled its five-year strategic plan to employees a few months ago, it laid out a clear target: going from less than $20 million in annual revenues in 2024 to $100 million by 2029. “We think we have a great opportunity to reach that $100-million mark within five years,” Ghods said. “It depends how lucky we are.”