The Munich startup Vemcon automates excavators and other mobile work machines such as graders and wheel loaders. On the path from joystick to autonomous work machine, the company leverages knowledge and experience from hydraulics and robotics, as well as artificial intelligence. We spoke with the two founders, Jan Rotard and Julian Profanter.
The construction industry is one of the least digitized sectors in Germany. According to a McKinsey study, the sector lags significantly behind other industries, with 30 percent less productivity. At the same time, it is threatened by a shortage of skilled workers. Construction companies are rarely able to complete the growing number of projects on time. Accordingly, digitalization opens up significant opportunities. Vemcon has set itself the goal of simplifying machine operation in the construction industry by combining intuitive ergonomics and driver assistance. To achieve this, the startup uses self-learning software and cloud services.
The two founders' experience stretches back a long way. Founder Jan Rotard, for example, repaired tractors as a child. Julian Profanter, an engineer, extensively explored the topic of operating concepts and joysticks in his diploma thesis. Their passion for construction sites, excavators, and other heavy machinery brought them together. Vemcon was founded in 2012 with the idea of making mobile machinery easier to operate and more productive.
“We listen and get our hands dirty”
It quickly became apparent that additional products could be generated that would create a larger market. The founders say: “We’re on first-name terms with the excavator driver.” And that is important to identify needs. Julian Profanter, responsible for operating concepts & ergonomics, says:
"We listen, understand the people, the machines, and the work process, get stuck in, and sometimes even get our hands dirty. We dig holes or level surfaces together with the operator. For the latter, the machine operator must control up to four, five, or even six functions simultaneously using levers and pedals. This requires a high degree of sensitivity, concentration, and experience. The output depends on the operator's skill and current condition."
Accordingly, Vemcon has developed a methodology for developing intuitive and ergonomic operating concepts. The resulting joystick consolidates movements and simplifies operation. For the operator, it is the tool that keeps the machine under control and helps determine whether the operator can work precisely and quickly at any time of day. The company even won the German Design Award in the "Industry" category for its joystick design.
“The Design Award is also a recognition that we go beyond quality and technology to create unique selling points for our customers,”
says Julian.
In addition to the joystick, a driver assistance system also simplifies work and—to stay with the grading example—makes automatic plowing and previously manually controlled movements smoother. This enables a productivity increase of up to 40%. Another advantage for the excavator operator: recurring processes are optimized and automated.
Julian explains:
"The driver is relieved of mental and physical strain. And our driver assistance system also helps less experienced operators work faster and more precisely."
Going beyond joysticks and driver assistance systems, Vemcon is rethinking machine control and offering solutions that lead to the automation of mobile machines. Driver assistance is combined with self-learning software and cloud services. The result is intelligent, partially autonomous, and intercommunicating machines, as well as productivity increases of up to 60%.
Excavators dig holes on their own, rollers follow graders without human assistance, and agricultural machinery plows the field while the farmer attends to other tasks. In addition, assistance systems and tool trackers answer important questions: Which tool do I need for which task? Where can I get the tool quickly? What is the tool's condition?
Million-dollar investment paves the way for Vemcon
The young technology company initially financed itself through bootstrapping and grants. With the help of the ESA BIC Incubators During the two-year program, they were able to advance their development: scalability was increased, production costs were reduced, OEMs were acquired as customers, and ESA BIC was assisted, among other things, in the further development of the basic technology — algorithms and sensors.
The founders say that part of their success comes from bringing their products to market themselves. And the other part of their success? That lies in the following, so Jan Rotard, CEO of Vemcon:
"We combine the down-to-earth world of work machines with the possibilities of modern hydraulics, digitalization, and artificial intelligence. We work together with the driver, listen, and develop the right solution."
Last year, in July 2017, The Munich startup received seed financing from a strategic investor. With the multi-million-euro investment, the founders have since built a dynamic core team. The company now has over 20 employees. However, Vemcon intends to continue growing. The most challenging question at the moment, according to Jan:
“We are always looking for employees who share our passion for heavy machinery and our vision for a digitalized construction industry.”
Success factor: Sharing the vision for a digitalized construction industry
At the same time, this is also Jan’s ultimate tip for other startups:
“Find a strong team that thinks and gets things done to become a key problem solver for the customer and that has enough stamina to overcome challenges.”
Another key success factor for Vemcon is its advisory board. The three managers and investors on the advisory board bring a combined 150 years of experience and market expertise to the table—and are available to the founders on a daily basis.
The founders are optimistic about the future. Jan says:
"In ten years at the latest, we will be an established supplier of construction, agricultural, mining, and municipal machinery. […] And in five years, we will have already made significant progress toward that goal. We welcome every employee who accompanies us on this journey."
