BitBuilders 007: Reframe Systems - bringing Amazon's philosophy into construction

?? This week on BitBuilders - tl;dr:

• Vikas Enti, co-founder of Reframe, shares insights on revolutionizing home construction through robotic automation and software-defined manufacturing
• Reframe's mission: building low-carbon homes twice as fast, twice as cheap, with 10x lower carbon emissions
• Key focus on labor productivity, design for manufacturing and assembly (DFMA), and industrialized workflows
• Lessons from Amazon Robotics applied to reinvent the construction process

"We're not a robotics company, we're a systems company. And we believe that we need to get this entire stack to work together to drive the full value that's needed."

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From Amazon Robotics to Reframing Construction

Vikas Enti's journey from Amazon Robotics to founding Reframe is a testament to the power of cross-industry innovation. After spending a decade scaling robotic fulfillment solutions at Amazon, Enti found himself in an unexpected situation: holding his newborn twins in the NICU for eight weeks. This pause in his fast-paced career became a catalyst for introspection and a new mission.

During this time, Enti read "Speed and Scale" by John Doerr, which crystallized his thinking about climate change and carbon emissions. The book's framework highlighted that most solutions needed to decarbonize our world already exist – they just lack the right mechanisms for rapid, scalable deployment. This realization, combined with Enti's expertise in deploying large, complex systems at speed and scale, led him to look for industries where he could apply his skills to decarbonize the environment.

The built environment, responsible for 42% of emissions (with 27% coming from homes), caught Enti's attention. He recognized that the technology to decarbonize homes already exists – electrification, energy efficiency, solar power with battery backup – but the path to deploy these solutions at scale lacks economic viability. This insight led to the birth of Reframe, a company aiming to revolutionize home construction through robotic automation and software-defined manufacturing.

Redefining the Construction Process

Reframe's approach to construction is a radical departure from traditional methods. They're not just automating existing processes; they're reimagining the entire construction workflow. Here's how they're doing it:

1. Vertical Framing: Breaking the Horizontal Paradigm

One of Reframe's most innovative approaches is their decision to frame walls vertically. Traditional modular construction typically builds walls horizontally on framing tables, then uses complex and expensive equipment to flip and maneuver these walls. Enti and his team questioned this fundamental approach:

"Why does a wall have to be built horizontally in a factory? A wall's purpose is to stay vertical," Enti explains. This simple yet profound question led to a complete redesign of their manufacturing process.

By framing walls vertically, Reframe eliminates the need for large, expensive "butterfly tables" used in traditional modular factories to flip walls. This not only saves space and reduces equipment costs but also allows for a more flexible, software-defined manufacturing process.

2. Software-Defined Manufacturing

Reframe's approach to manufacturing is heavily influenced by Enti's experience at Amazon Robotics. They've developed a system that's more akin to a fulfillment center than a traditional construction site or modular factory.

Key to this approach is the concept of a "physical world API" – a way to interact with and control physical objects through software. This allows Reframe to dynamically reconfigure their factory layout and processes, much like how Amazon's robotic fulfillment centers can adapt to changing inventory and demand.

"We've gotten rid of so much conveyor equipment, but it's also allowed us to rearrange the factory layout dynamically," Enti says. This flexibility is crucial for mass customization, allowing Reframe to efficiently produce a wide variety of home designs without the constraints of fixed production lines.

3. Augmented Reality and Smart Instructions

Reframe has developed innovative ways to guide workers through the construction process. They use augmented reality and smart instructions to reduce errors and increase efficiency:

• Direct printing on materials: Instructions are printed directly onto sheet materials, eliminating the need for separate instruction sheets.
• iPad interfaces: Workers use tablets that provide step-by-step 3D instructions, similar to LEGO assembly manuals.
• Pick-to-light systems: These systems guide workers in selecting the correct components, reducing errors in complex assemblies like plumbing and electrical systems.

These technologies allow Reframe to employ a higher percentage of apprentices while maintaining quality. In their first build, 60% of their builders were apprentices who could perform complex tasks like plumbing and electrical work using these smart instruction systems.

4. Robotic Automation

While automation is a key part of Reframe's process, it's notably the last piece of their puzzle, not the first. Their robotic system is designed to work with standard dimensional lumber, which can vary in size and shape. This required developing sophisticated vision systems and adaptive gripping mechanisms.

"We have this super cool move the robot can perform when it tries to mimic a master carpenter," Enti explains. "It has a regrasp move where if it places it, we detect that it's actually not perfectly straight, we can actually re-grasp it, straighten it, and then apply the nails."

This approach allows Reframe to use standard, cost-effective materials while still benefiting from automation. It's a stark contrast to some other modular manufacturers who import more expensive, dimensionally stable lumber from Europe to work with their automated systems.

The Business Model: Outcomes Over Technology

Reframe's business model is as innovative as its technology. Rather than selling modular "boxes" or licensing their technology to existing builders, Reframe has positioned itself as a turnkey home builder. This approach allows them to capture more value and have greater control over the entire construction process.

Why Own the Outcome?

1. Industry Fragmentation: The homebuilding industry is extremely fragmented. While the top 10 builders construct about 10% of homes, there are thousands of small builders constructing just a few homes per year. These smaller builders often lack the resources to implement advanced technologies effectively.
2. Vertical Integration: By owning the entire process from design to installation, Reframe can eliminate multiple layers of markup that typically inflate construction costs.
3. Design Freedom: Many modular builders constrain designs to fit standardized "boxes." Reframe's flexible manufacturing process allows for more diverse and customized designs.
4. Continuous Learning: By being involved in the entire process, Reframe can quickly iterate and improve both their technology and their product based on real-world feedback.

The Compressed Value Chain

Reframe's vertical integration allows them to significantly reduce costs. Enti provides a compelling example with solar panel installation:

"We were quoted $30,000 to install solar panels on this home. When we did the analysis, the actual bill of materials was only about $9,000 for this panel." By managing the installation themselves and only outsourcing the final commissioning, Reframe was able to reduce the cost to $17,000-$18,000, passing on $12,000 in savings to their customer.

This approach extends to all aspects of the build, from framing to finishing. By eliminating multiple layers of subcontractors and their associated markups, Reframe can deliver a more cost-effective product while maintaining quality control throughout the process.

Balancing Technology and Practicality

One of the most striking aspects of Reframe's approach is their pragmatic balance between technological innovation and practical execution. They're not waiting for perfect automation before delivering homes. Instead, they're using a hybrid approach that allows them to ship products while continuously improving their technology.

The 4% Success

In their first project, only 4% of the walls were framed by their robotic system. Most companies might see this as a failure, but Reframe saw it as a crucial learning opportunity. "That was a success because that was less than six months since we'd actually commissioned and physically installed the robotic work cell to get a wall that actually went into a customer project," Enti explains.

This approach allowed them to deliver a real product to a real customer while simultaneously testing and improving their technology in a real-world setting. It's a stark contrast to startups that spend years perfecting a prototype before attempting to enter the market.

Rapid Iteration

The software-defined nature of Reframe's system allows for rapid iteration. When they discovered limitations in their initial robotic end-effector (the "hand" of the robot), they were able to design, build, and implement a new version in just three months. This agility is crucial in an industry where conditions and requirements can change rapidly.

Scaling Up

From that initial 4% success, Reframe is now poised for exponential growth. For their next project, over 80% of the walls will be framed by the robot. They're projecting to go from building 250 square feet of product this year to 30,000 square feet in 2025 – a 120-fold increase.

This scaling is made possible by their focus on building a flexible, software-defined system from the start. As they improve their technology and processes, they can quickly deploy these improvements across their operations without major retooling.

Lessons for the Industry

Reframe's approach offers several key lessons for innovators in construction and other traditional industries:

1. Rethink Fundamental Assumptions: Questioning basic premises, like why walls are framed horizontally, can lead to revolutionary improvements.
2. Focus on Outcomes, Not Technology: By positioning themselves as a homebuilder rather than a technology provider, Reframe can deliver value more directly to customers.
3. Start with Real Projects: Engaging with real customers and projects from the beginning provides invaluable feedback and forces practical solutions.
4. Build Flexible Systems: Software-defined systems allow for rapid iteration and improvement without major physical retooling.
5. Address the Entire Value Chain: By vertically integrating, Reframe can eliminate inefficiencies and markups at multiple stages of construction.
6. Augment Human Workers: Rather than fully automating, Reframe focuses on making human workers more productive through smart instructions and augmented reality.
7. Balance Innovation and Practicality: Reframe's willingness to use manual methods when necessary allows them to deliver products while continuing to improve their technology.

The Road Ahead

As Reframe scales up its operations, they're poised to make a significant impact on the homebuilding industry. Their focus on low-carbon, cost-effective construction addresses crucial needs in the market. However, challenges remain:

1. Scaling Production: Ramping up from 250 to 30,000 square feet of production is a massive undertaking that will test all aspects of their system.
2. Market Education: Convincing traditional developers and homebuyers to embrace this new construction method may require significant marketing and education efforts.
3. Regulatory Navigation: As they expand to new areas, they'll need to navigate varying building codes and zoning laws across different jurisdictions.
4. Maintaining Quality at Scale: Ensuring consistent quality as they rapidly increase production will be crucial for long-term success.
5. Continued Innovation: The construction industry is seeing increased interest in automation and new technologies. Reframe will need to continue innovating to maintain their competitive edge.

Despite these challenges, Reframe's systematic approach to reinventing construction puts them in a strong position to succeed. By focusing on the fundamental problems of cost, speed, and carbon emissions in homebuilding, they're addressing critical needs in the market. Their willingness to question basic assumptions and rethink entire processes sets them apart in an industry often resistant to change.

As we look to a future where sustainable, affordable housing is increasingly crucial, companies like Reframe are showing how technology and systems thinking can reshape even the most traditional industries. Their journey from concept to execution offers valuable lessons for innovators in any field, demonstrating the power of focusing on outcomes and being willing to reimagine entire systems to achieve those outcomes.

Key Takeaways

• Rethinking fundamental processes can lead to revolutionary improvements in traditional industries.
• Vertical integration and owning the entire value chain can significantly reduce costs and improve outcomes.
• Balancing technological innovation with practical execution is crucial for success in hardware-intensive industries.
• Software-defined systems offer unparalleled flexibility and ability to iterate quickly.

#ConstructionTech #Robotics #Sustainability #Innovation #Manufacturing #HomeBuilding #CleanTech #FutureOfWork