By Karen Peattie
Two former construction industry veterans have developed a new software platform designed to improve efficiencies for small traders and building businesses.
Alex Reid and Graeme Cook, owners of Glasgow-based Apsis Business Components, say their cloud-hosted software enables a small business to accurately estimate a job by planning projects, analysing costs, and managing procurement, suppliers and productivity.
The platform, which represents an investment of nearly £1 million so far, also provides quantity surveyor and commercial management functions, as well as the ability to assess business performance.
Mr Reid and Mr Cook previously operated Hamilton-based Avonhill Timber Frame, a £17m-turnover construction and building services company. The duo closed that business, which started with just five employees and latterly employed over 200, because of failed payments by several clients during the recession.
Mr Reid embarked on a Masters in Construction Management at Glasgow Caledonian University then a PhD at The School of Engineering and Built Environment.
Meanwhile, Mr Cook, a chartered accountant, joined a Scottish semiconductor company as executive director and vice-president while also managing a property portfolio. He joined Mr Reid at Apsis in 2014.
Admitting that losing the Avonhill business was a “terrible experience”, Mr Reid said that having time to reflect on what happened led them to identify “missing gaps” that might have helped although “we could never have planned for not being paid a significant bill”.
“In the construction industry the impact that has – and still has – on the supply chain is far-reaching, and it wasn’t just happening to us,” he said. “Throughout the UK, failing companies were having a knock-on effect on lots of other trades. We realised, for example, that we had no control of data on our sub-contractors and sometimes we were at the mercy of them in our ability to complete a job.”
During his Masters and PhD research, Mr Reid identified that it takes 2.4 managers to run a micro-business. “But the reality is that the owner just works longer hours and ends up becoming less productive,” he said.
“We spotted a gap in the market to help SMEs and decided to design a software system that would provide small business owners with that extra pair of hands and the business data they need to show if their business is actually making money, as well as help manage it more efficiently and grow the business.”
Having worked in the industry, both Mr Reid and Mr Cook knew “exactly what business owners need from the data”.
Mr Cook added: “When you’re a small business you can’t really employ ‘0.4’ of a person so you either have to do it yourself and sacrifice holidays and family time or employ an individual who you can’t really afford at that particular point in your business cycle.
“There are over 340,000 SMEs in the construction sector, with an estimated 142,000 based in Scotland – and over 60% of private-sector employment is driven by SMEs.
“That’s a significant contribution to the economy and if we can support these organisations in their growth, the impact will be widely felt through supply chains.
"The more data a business can have, the more likely it is to be successful.”
Apsis, which can purchased for just £100 for a lifetime licence and provides access to over 150 training videos, uses algorithms to tell the user how their business is performing, highlights deficiencies, and optimises resources.
A key component of the Apsis platform is access to an online community – One Stage – where experiences can be shared and questioned, along with a library of resources. Mr Reid explained: "We're in stage four of the development process and One Stage allows companies to share information and feed back to us.
"We want to created a connected community for the construction industry."
Apsis, which launched its new software platform in January, will continue to develop it over the next two years with the final stage five version using AI (artificial intelligence) to carry out admin functions.
"The more people who use it, the more data we can gather – that's why it has a low price point," said Mr Reid.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules here