2026.10.09 | GP | Software | Miter: AI-Native Construction Payroll

Primary:

Miter, Inc.

Associated:

CRH

TRMB

ADSK

PCOR

Digital Business Integration, Inc.

ADP

Arcoro Inc.

Buildots Ltd

LumberFi Inc.

Viewpoint:

Competitor

Moderator: Patrick Jamgocian (PJ)

Kyle Hamer (KH), Former Senior Vice President of Marketing - hh2

SUMMARY

Overview

The discussion assessed Miter and competing construction-focused payroll, HR, timekeeping, and accounting platforms. Construction payroll is unusually complex because taxation, union rules, prevailing wages, job costing, and compliance vary by employee location and project. Many small and midsize contractors still depend on paper, spreadsheets, email, bookkeepers, and disconnected software.

Miter is positioned as an early purpose-built, end-to-end platform for commercial and industrial contractors. Its strongest opportunity is among contractors with 50–200 employees, where enterprise systems are often too costly and complicated.

Key Insights

Miter was characterized as the first vendor to effectively address this midmarket need, supported by a modern interface, strong onboarding, suitable pricing, and construction-specific workflows. The market remains in early adoption because most contractors use only isolated digital tools rather than a complete employee- lifecycle platform. Consultant networks around construction ERP systems are critical distribution channels because they reduce implementation concerns and encourage adoption during broader system changes. Miter’s main risk is losing focus by moving too far toward either small businesses or enterprises. Generational ownership transitions could become the largest long-term adoption catalyst as technology-oriented operators replace manual processes. Potential acquirers include construction software platforms, ERP vendors, industrial technology groups, and vertical-software consolidators.

Competitive Landscape

10/12/2026 at 05:58 AM UTC

Company

Positioning

Strengths

Weaknesses

Miter

HH2

Arcoro

Lumber

Midmarket construction HR and payroll

Modern user experience, proven deployments, strong onboarding, broad integrations

Premium pricing, possible capability overselling, risk of strategic distraction

Construction payroll and HR, especially within Sage

Strong job-costing workflows, deeper Sage connections, competitive pricing

Newer end-to-end HR offering and some legacy technology

Established construction HR vendor

Existing market presence

Outdated workflows, legacy constraints, payroll execution challenges

Mobile and AI-oriented field workforce platform

Innovative technology, gamification, strong field tools

Limited full-suite HR functionality and unclear market strategy

BambooHR and Gusto

Horizontal SMB platforms

Suitable for smaller and residential contractors

Less aligned with complex commercial and industrial workflows

Larger contractors

Scale and broad functionality

Heavy implementation, weak construction specialization, often require added administration

ADP and enterprise systems

Quantitative Insights

Metric

Addressable companies

Estimated market value

Core target size

Miter overall rating

HH2 overall rating

Arcoro overall rating

Lumber technology rating

Administrative time reduction

End-to-end platform penetration

Expert assessment

Approximately 120,000–180,000 contractors

Just under $14 billion

10–200 employees, with strongest traction at 50–200

7.5 out of 10

7 out of 10

5 out of 10

8–9 out of 10

About 90%

Below 30%

Broader partial-software usage

Approximately 60%–70%

Expected path to 70%–80% penetration

Roughly 7–10 years

Miter quarterly customer additions

Approximately 40–50

Recent Miter funding

$40 million

10/12/2026 at 05:58 AM UTC

PJ: This is Patrick Jamgocian. I'm a venture capital strategist here at Guidepoint Insights. Our call today is titled Miter, a competitor that discusses this AI-native construction, payroll, HR, and accounting platform. Our advisor today is Kyle Hamer, who's the former senior vice president of marketing at HH2. Kyle, thank you for joining us today. It's a pleasure to have you on our call. Could you please start off by providing us with a brief summary of your professional background and elaborate a bit on your role at HH2 while you were there?

KH: So, like you said, my name is Kyle Hamer. I have been in go-to-market leadership positions for the last 15 years inside of construction technology, most recently at HH2. But I started a company called OnCenter Software. We did takeoff and estimating. We then were merged together with a company called ConstructConnect, where we rolled out a general contractor and a subcontractor bid management, and I guess a commercial network for contractors to win work. And then from there, I did some work with HCSS helping them launch a safety product. I did work with ASite, as is listed on my resume, and then most recently, like I said, at HH2. And in my most recent role at HH2, I helped them take and go from a couple of add-on apps in the Sage ecosystem to launching their full-service HR and payroll platform this last fall.

PJ: Great. Thanks for that background on yourself. So just to start, you'll be providing a competitor's assessment of Miter. How did you gain in-depth knowledge of Miter?

KH: So, gained in-depth knowledge of Miter from watching their videos, sitting in on their webinars, visiting their trade show booth, speaking with industry insiders or channel partners who would help us sell our product and do competitive teardowns through the work that we did in our marketing team on both Miter, Arcoro, and Gusto, what's the other one, Bamboo HR, those would have been the primary ones that we looked at.

PJ: Great. So just to understand this niche, you know, what makes payroll, HR and accounting and construction more complex than in other industries? And why can't general payroll companies serve this end market well?

KH: Well, that's a great question. So the primary challenge with construction payroll is it has to do with where the work is done, whether it's union, non-union. So the complexities for a typical payroll person, I'd say I need to dispatch an HVAC tech who's unionized and they're going to go work on a large commercial project. Well, if that project is in a county where there's a specific tax or levy, something that's billed, I have to make sure that that payroll tax is adhered to based on the location of where the person is performing work versus where my office is at. And so the complexity is, are we being compliant not only from a how we're processing it and where the time is captured and marked at, but then how are we being compliant in making sure that we're submitting the right paperwork and forms to the government so that we can continue winning government projects and making sure that our contracts are meeting the prevailing wage payroll needs of the area.

PJ: So how large would you say the total addressable market is that Miter is pursuing?

KH: Is it in company count or dollars? Because I think from a company count standpoint, I believe there's probably about 120,000 to 180,000 companies that Miter could potentially service in the market that fit kind of a, I'll call it the 10 to 200 employee range. And then if they wanted to go smaller, I'm sure that there's a bigger market to go downstream. They would have to change and become a little more sophisticated for them to go much higher than I think 300, 400 employees.

PJ: And do you have a sense of a revenue potential in this 10 to 200 employee market?

KH: Yeah, when we sized it as a competitor, our TAM was just shy of $14 billion.

10/12/2026 at 05:58 AM UTC

PJ: Okay. So if you look at, you know, the 120,000 to 180,000 companies today. I assume legacy tools have the greatest market share and new entrants like Miter and HH2 are coming in with more specialized products. Which legacy tools dominate this end market today?

KH: Pen and paper. I mean, the biggest competitor to what HH2 and what Miter are doing in the market is traditional manual labor process, whether it's writing something down in a ledger or manually onboarding an employee through handwritten forms and then scanning them in and emailing them off or filing them electronically. There's no real end- to-end service that serves this well. Yes, you have players like ADP, but you have to have a certain size and complexity to even really entertain having an ADP, and for most companies under that 200 employees, it's just not worth the heartache of trying to have an HRIS system in play. And so you'll see a lot of these companies will either... if they're dealing with recruiting, they're dealing with somebody like Dice, Zip Recruiter. If they're doing hiring and bringing folks on board, they're processing paper that needs to get filed in different places. A lot of that's handled via spreadsheets or somebody's email inbox. And so what you see Miter and HH2 doing with their suite is actually taking and doing workflow-based HR process mapping, which is a little nuanced and a little different because the turnover in the "I hire somebody, then I lay them off" tends to be project to project, month to month, week to week. And so the degree of that happening doesn't happen in as many other industries. And so it creates a unique set of workflows that the software needs to accommodate for.

PJ: Kyle, I had done a call of this nature on Bamboo HR a little while ago, and the former employee there told me that construction is one of their biggest end markets. They're an SMB player. Do they not serve a piece of this end market, or are they targeting larger players?

KH: What is the name of that company again?

PJ: Bamboo HR, you mentioned them earlier.

KH: Oh, yeah. So I think a lot of companies that are vertical or horizontal players, I'd say, are trying to verticalize and they see that there's a big opportunity inside of construction. What I would tell you as it relates to Bamboo is, yes, they're an SMB player, and they're probably going to get a lot of residential construction companies where Miter and HH2 focus almost exclusively is in serving the commercial and industrial builders, so your heavy civil larger organizations that are going to do commercial work, not so much residential where companies like Gusto and Bamboo HR see a lot of their growth is very much tailored at that residential, smaller company business.

PJ: Is it plugged right into QuickBooks and complements what they're doing?

KH: Okay.

PJ: And I guess I was surprised to hear, you know, pen and paper predominates. I guess why haven't these companies turned to a payroll company? Even though it might be imperfect, it could be a horizontal payroll platform, would it not? Let them do less manual processes and be sort of okay for them?

KH: I think a lot of times contractors will throw manual labor at it because that's who they are. They don't look to automate or eliminate things as quickly as some others. And so I think you have kind of that as a prevailing theme inside of the archetype. But the other piece I think is that oftentimes you'll have a bookkeeper or an accountant, somebody that's part of the accounting team where maybe part of their services is to run the payroll. But genuinely what they're doing when it comes to tabulating hours, making sure that it's billed to the right project so that they can then submit their pay apps and get paid back for the time that was allocated to that project. All that stuff is still done very much manually via spreadsheets, which is where the big value add is in having an employee knowing where they're at, but then being able to allocate that time, the specific type of work that they were doing, and then have it

10/12/2026 at 05:58 AM UTC

cascade back to the right job, as well as right payroll tax and based off information. That's really where the majority of the payroll admins spend their time in. Can I call it that, 3 areas of proof? What is it that the foreman and the crew logged for time? Does it line up with the projects that we had scheduled and stuff that was set for the work this week? And then, you know, what do we need as special codes or anything as it relates to how these different areas are paid? They'll triangulate that in the first business day. So usually their Mondays and Tuesdays are consumed with that so that they can process payroll by Thursday. And when you ask why do they not just get a horizontal player, some do. They'll do it as part of their PEO, like they'll have a... not Tri-Care, it's TriNet something.

PJ: Right.

KH: Like that, they'll use and they'll leverage it. But again, you have to get to a certain level of scale and there's a lot of contractors that just, if it ain't broke, don't fix it, they prefer to do hands-on. That's just who they are.

PJ: Yeah, you know, picking up on this theme you just brought up. The 1 constant theme I heard in doing calls on software and automation companies that serve in markets with mostly a blue-collar workforce is adoption is tough. They do a pilot, they see the ROI potential, they understand the savings, it's clearly there, and they just don't move forward. There's inertia with staying with the legacy ways of doing things. Is this an issue for HH2 and Miter as well in this end market?

KH: To a degree. I think where Miter and HH2 are going to make hay in the near term is they're going to work through the consultant network. And the consultant networks are plugged into your midsize contractors, your Sage ERP systems, CMIC, Viewpoint, Foundation, Dexter and Chaney. All of these ERPs have some sort of consultant network that sits around them, and typically your HR process is handled in the same office as your ERP. It's the office of the CFO. And so that CFO, when it comes to inertia, if it ain't broke, don't fix it, you're going to find that they're not going to make a lot of new process there. However, if they're deploying a new ERP, if they're changing their system around or if they're trying to scale into a new market, there becomes a disruptor that happens inside of the business that opens them up for looking at a way to automate it or looking at a way to augment what they're doing. What I can tell you is that a lot of the companies sub 200 employees have a really bad taste in their mouth for implementation and setup and the amount of work it takes to deploy one of these software systems; they already have 10 of the things to do, they don't want to think about this as the 11th. And then if it doesn't work on top of that and they need tech support, that's really what delays these is the lack of confidence because companies like ADP came in with heavy configuration, almost, you know, shooting a fly with a cannonball type technology versus need, and those deployments sometimes never got done, never got knocked out the door. And so Miter and HH2 deal with a market that has a memory of these; they tend to be really complex, they tend to be really difficult. And so they're going to lean into that consultant network because those guys will help enable, they'll help deploy, they'll help support, and they'll help make sure the technology gets adopted and utilized.

PJ: All right, so go through each of the specialists here in this space. To my knowledge, it's Miter, HH2, Arcoro, and BuildOps, which was an acquisition they made. Are these primarily the 4 competitors here?

KH: In this space, you also have Lumber HR that's coming on as a bit of a competitor, and then depending on where you want to set them in the space, Raken app was starting to pick up parts of the HR or the parts of the payroll process, timekeeping, some of the field management, which makes them look a little bit more like BuildOps. So there's a couple of ancillary, but for the most part, it's Arcoro, HH2, Miter and Lumber HR.

PJ: Okay, so you don't consider BuildOps one of the top competitors here.

KH: BuildOps didn't have a lot of traction when we were looking at our HR. Doesn't mean that they haven't gained it in the last 9 months, but I've not looked at the market for about 9 months.

10/12/2026 at 05:58 AM UTC

PJ: Right. So take these 4 competitors, if you can, and talk about the strengths and weaknesses of each and give a score of 1 to 10 to each one with 10 being excellent reflecting product quality for the price.

KH: Sure. So Miter, I think, is probably first to market and first to get it right. I would say that if I had to rank their product overall value for functionality based on my understanding of where is that, I would give it probably 7.5 out of

1. From a UI, UX standpoint, I think they probably are at the 9.5, 10. They've got a modern UI. The technologies

doesn't come with any sort of tech debt per se. The white glove experience of how they do their onboarding, I think is really well received. The way they do their billing is really well received. I think they have some lighter integrations now. That could have changed just because of access, but with Agave API and their connection to that, I think Miter's positioned really well to be a good app for construction technology, whether coming in through Procore, Autodesk, Viewpoint, or any of the Sage Network. I think they're sitting in a good spot to pick up a lot of the market, and their model talks to the pains of the contractor, so I think Miter's, they're a 7.5 out of 10. HH2, I would put them in that 7 out of 10. HH2 was deploying something that was new for them. They were learning how to stand up and deploy payroll outside of just collecting time and now actually doing onboarding, offboarding, and the whole entire back office operation. So I think that from a technology standpoint, they're probably on par with Miter, but coming with a little bit more tech debt because of the remote payroll product and some of the legacy things that had deep integrations into the Sage network. From a usability standpoint, I think that you're going to get very similar things. I think you'll probably have the ability to do a bit more cost coding and complex workflows, if you will, in the HH2 product, just because of the size of the customers that were driving that technology build and what we heard early from feedback in Miter. Arcoro, Arcoro is probably 5 out of 10. Looking at it just as an HR tech or an HR construction tech, it comes with a lot of legacy challenges. They've had 2 or 3 stutters, stalled starts as it relates to actually running and processing payroll. Through the beginning of this year, they still hadn't successfully run a payroll on behalf of 1 of their customers. And so their technology was aged, their workflows were out of date, and they were having trouble even in their new environment getting it to perform as expected.

PJ: And Lumber?

KH: Yep. And so Lumber was probably the closest to Miter. The difference was Lumber was leaning more into the app, in more of an app feel, and was very much leaning heavily into gamification and AI. And so when they came to market, they had a lot of the tools that I would need as it related to capturing my time, categorizing it, but they were looking at it more from like an individual down market smaller team than like a trying to work with a team of 20, 30, 40, 100. And so their technology from what we could tell was competitive, but it wasn't a full suite HR system. It was a lot of the field enablement components, but not a lot of the HR process where it was onboarding, offboarding, running true payrolls, checks, those sort of things.

PJ: So what most differentiates Miter in this market?

KH: I think Miter being purpose-built for HR and for construction in the way that they've designed their pricing, their packaging, the way that they are trying to talk to the market, the way that they've addressed and talked about the pains that the market has, I think they have a really good understanding of what's going on in construction and they're talking to the right parts. They're also really the first player that had answered a big need in I'll call it the mid-market for construction. Even as an executive inside of HH2 talking about potentially doing an HR tool or HR platform, there wasn't really a demand for it. And what we saw is Miter come in and as Miter started checking the boxes of what they did that Arcoro couldn't deliver on and that we didn't have capability of doing yet. They had a very quick groundswell because they were first to market and frankly well positioned for the service and what they had.

PJ: Sorry, did you give Lumber a score from 1 to 10?

KH: That's good. Lumber would probably be, from a technology standpoint, probably the most interesting at an 8 or

10/12/2026 at 05:58 AM UTC

9, but an overall company and go-to-market, probably a 3 or a 4. They hadn't figured out who they wanted to be when they grew up yet, but we were running into them in time and attendance and field management opportunities.

PJ: Okay. So when you've gone up against Miter at HH2, why would Miter win and why would it lose against HH2?

KH: Miter would win early on because they had proof. They already had customers in flight with the technology using the HR tools end-to-end. Or... that's where they would win. We rarely lost a head-to-head deal to Miter on time and attendance, but we lost quite a few early on because Miter had an established HR software and platform in the back. Where HH2 came in was to put pricing pressure on initially, and where they're going to run into each other is going to boil down to preference and packaging. And so what Miter is probably going to run into is as the consultant network goes to help move folks from Sage 100, 300 over into Sage Intacct for construction, and there is a big push to do that because they've end-of-lifed Sage 100. What will happen is that the consultants will be looking to package it up and the business will be looking at HR, remote, payroll, and their ERP as an all-in-one package. And where Miter might find themselves in a challenge is that they were still charging a premium for some market, really in a class of their own when they first came out. But now, businesses are looking at, well, instead of making a $20,000 or $25,000 or $40,000 decision on Miter, now I'm going to have to make like a $320,000 decision, and the consultants have it as part of like a Sage Intacct and consulting hours and all these different parts. Miter may run into some pricing headwinds as it relates to too many pieces of technology being sold at the same time through that network.

PJ: So what type of ROI do Miter customers see once implementing?

KH: I couldn't answer that question with honesty. I wouldn't know.

PJ: Well, I guess from HH2's perspective, I'm just a general question when they go from pen and paper to this software, what type of ROI do they typically see?

KH: Well, from the payroll collection and processing standpoint, you took what would normally take 8 to 12 minutes per person in order to go do it manually, and typically you could process 200 folks within about 20 to 25 minutes. So you took something that took about 2 days to get done and you've compressed it into half of your first hour before you've had your coffee, and it makes it easier for them to go find errors, mistakes, et cetera. So there's a 90% time savings as it related to the administrative overhead of those. That work.

PJ: Yeah. If you could give us a sense of customer feedback at Miter, what are the main sources of praise from happy customers and what are the main complaints from those who are dissatisfied?

KH: The complaints that I heard about customers that were dissatisfied had more to do with... I feel like maybe they were oversold on where the capabilities of the platform were. And I do think that Miter being one of the first in market and the startup the way they were probably had a little bit of that roadmap selling that happened. And it's very natural for a software company to do that. But what I think that happy customers would rave about is the fact that once it was deployed, it was easy to use. And for the most part, it worked. They didn't have additional headaches. You know, they had the reports and system running that it wasn't something that kept them up at night anymore. And I think that's probably one of the biggest pieces is that those administrators are often worried about, did I file this piece of paper? Did I file that paperwork? Where's this? Where's that? And tools like Miter's help alleviate a lot of that stress because you can quickly glance and know, yeah, I did file all of my... The prevailing wage, I can't remember what the name of this new reform is, but it did file all of my certified billing paperwork this week. So I'm still complying to the state. It's an easy thing to now see and have an audit trail to, and I think that's probably something that really gives those administrators comfort at night.

PJ: So if you look out over the next 2 years, what are the biggest opportunities and challenges you see Miter facing?

10/12/2026 at 05:58 AM UTC

KH: Oh, I think Miter is going to get distracted. All companies do when they go... am I going to be... am I going to support the little guy? Am I going to support the big guy? Where am I going to be? If Miter stays focused, I think they will do really well. But I think that they are at a natural inflection point where I think there is going to be ability to want to scale. And depending on if they go down market, that is going to change their model. If they go up market, that may change their model. And where they are really getting traction right now is in that 50 to 200 employee range, and they were hammered down putting up 40, 50 companies every quarter and it was incredible to watch them do it.

PJ: What competitors do you see when you go up market, like in the 200 to 1,000 employee range and then 1,000 plus? What kind of payroll systems are those companies using?

KH: And now you are getting into your ADPs, your PeopleSofts, you are getting into more enterprise level software at that point.

PJ: Okay.

KH: And PJ: so are those KH: there are not PJ: horizontal players able to serve the intricacies of construction well?

KH: Well, no. Not well at all, but the larger organizations, a certain number of employees have enough cash that they can either hire consultants or throw another admin person to kind of help work around the limitations. And the tradeoff is, yeah, the bigger piece of technology and it is bolted onto my systems, but operationally I save, audit-wise I save. And so the tradeoff becomes the big system gets a babysitter...

PJ: Okay. So if there KH: additional admin internal, yeah.

PJ: was a good middle market and enterprise product here, would it be able to disrupt those end markets? Is the horizontal solution plus the babysitter good enough and priced?

KH: I think it's the accepted one. You'd need a compelling reason inside the organization. And I don't know what those pains are specifically at a larger company to be able to pull that off. Is there opportunity there? Sure. But you're talking about very skinny branches.

PJ: Okay, so for Miter and HH2, you see the opportunity in the SMB world largely penetrating this end market against pen and paper and less so going up market?

KH: Yeah, very much I do. And the reason for that is the further up market you go, the more geographies you're going to have to support, the complexities are different. Is it division? Is it region? Is it an individual player, your Bechtels, your Turners, your Skanskas, then you have your regional players where I might be TJ Weiss Drywall Company, but I have a location in St. Louis, one in Chicago because I'm working only on Northwestern, one in Columbus, Ohio, because I'm working on the University of Ohio State. You just end up with these, as you go up market, they call the ENR 400 and 600. There's 600 subcontractors, 400 general contractors that make up that list. And across that group, the complexities of those organizations. I would think that it would be tough to serve that as well as still have a really good solution for the contractors that got us here or got Miter started.

PJ: So at what rate is this industry growing revenues if you take Miter, HH2, and the other couple of competitors? What is the average sort of revenue growth rate here?

10/12/2026 at 05:58 AM UTC

KH: You mean for the companies that are selling into this space?

PJ: If you take Miter, HH2...

KH: If you take Miter, and I cannot speak to this directly because I don't know, but based on their unit count and what we saw... because HH2, so the connector for Miter to Sage, and so we could see their installs based on the way their installs were going... I want to say from 24 to 25, I would be willing to bet their revenues went up by 80% to 100% as they were gaining traction. And I don't think that would have cooled as far as the unit count. The growth rate probably still in that 40% to 50% would be my guess.

PJ: And are the other...

KH: So PJ: Yeah.

KH: HH2 is a little more established with existing products. I think from a growth standpoint, you probably see them grow 20% to 25% this year with the HR product, and it'll be largely on the back of the HR product. And so I think that that's probably real, 20% to 30% year-on-year growth right now. At this, you'll have some that'll come out and they'll do it faster, but that's going to be your coverage model. It's a little bit like what we saw with Procore. When Procore took on venture capital money in, I want to say it was 2017, 2016, 2017, they got a $120 million influx of cash and they went from being about a $20 million a year company to almost immediately $80 and then again popped up to $120. But they took that money and they heavily focused on getting their message right and picking specific high-tech customers. I could see somebody do that in this space and have a 2 to 3-year tear where you're looking at that 60% growth rate or higher, but it would require a more substantial investment than I think a private equity firm is going to make for a company like HH2.

PJ: Yeah, Miter just raised $40 million on September 30th, so very recently. How penetrated is this end market? So out of the 120,000 to 180,000 companies here, what percent have adopted a software like this?

KH: So I would say largely 60% have something in their system that's software, whether it's how they collect time or how they share out pay stubs. They have some version of this HR platform that Miter would have. And I would say that's probably 60 to 70%. A solution like Miter... that's end-to-end, comprehensive, complete, or like HH2s, again, end-to-end, whole employee lifecycle, I think you're looking at less than 30% of the market.

PJ: So we're sort of past the early adopters. Do you think we're in the early majority phase of this software penetrating the end market?

KH: No, when you say that you're past the early adopters, you're just talking about... I don't think you're past the early adopters because there's not been anything that's been tailor-made for construction really up until Miter. Those workflows, it's non-trivial what a self-performing general contractor has to do as it relates to, you know, I'm doing road work and I'm laying concrete and I've got to have this much rebar and I need 7 laborers and this... the complexity of what you have to do from a payroll standpoint, I don't think has really been serviced into an entire end-to-end employee environment where I can do onboarding, where I can do employee reimbursement, where I can do time off. There's a lot there inside of an HRIS system that contractors just largely ignore. The 60% that I'm talking about, it's like they'll have a part of it. Maybe it's just their time app that is automated. So they have some classification or they may use QuickBooks payroll services to run their payroll every week. They may be using parts of this, but not this system as it would be tailor-made for construction. And so for me, I think in having a product market fit, you're in the early adopters phase of people figuring out how easy it can be for a contractor to set this up and how much a pain it's alleviating. And you're very much in the early adopter phase right now. And I think that you'll enter the early majority

10/12/2026 at 05:58 AM UTC

phase at some point next summer as the market continues to wake up and you have other players come on board.

PJ: So how long, I mean, I'm asking you to predict the future, but how many years do you think it'll take for this less than 30% penetration to sort of get close to 70% to 80%?

KH: I would be willing to bet it's a 7 to 10 year ramp. And what's going to be the largest driver of adoption of things like this is the handoff from boomers to Gen X or Gen Xers to millennials in the ownership transition where the next generation is tech savvy, doesn't want to deal with the administrative overhead, watch dad say, if it ain't broke, don't fix it his entire life, and is like, no, we can do this more effectively. I think that'll be a large catalyst driving that next round of adoption because a lot of the reason why you don't see technology adopted is these guys did not grow up with technology. They have a hard time with it themselves, and they may believe that it can help, but they don't want to learn it in order to train it to somebody else. And so they just deal with the paper because it's what they've known for years, and it's just part of how a contractor is made, like just the ethos of who they are.

PJ: So how do you see an exit here for Miter and HH2? Miter is VC-backed, HH2 is private equity-owned. You know, further down the road, do you think both corporations are buying one of these guys? Who else might be interested here?

KH: Well, I think anybody who's looking at integrating the entire construction lifecycle would be interested. So you have Procore, you've made no bones about that. You have Autodesk and what they're trying to do with their construction platform. You have some international players that could potentially want to use it as a way to come in and acquire a part of the US market. If I'm a company like ThinkProject or... oh my God, I can see their website. I can't think of their name. Even a company like Aconex who ended up getting acquired by Oracle when they came over, I think you're going to have both strategic players who want to consolidate and then specialty players who want to flank on certain things. So, for example, Sage might be really interested in buying Miter and integrating Miter as the HR platform for Sage exclusively because it looks like they're picking up integration somewhere else. You could have HH2 acquired by Trimble because Trimble figured out that the HR platform they purchased doesn't actually integrate and have great usability for their particular audience. There's a lot of places that it could go. I think the very natural place for Miter or HH2 to go next is to a company kind of like Vista or Roper where they have a play in the market. So like a Roper has a Construct Connect, they have a Deltek that kind of have pieces and parts of the construction lifecycle that they own, and I could see them purchasing an HH2 or a Miter to kind of round out part of their portfolio as it relates to apps and services for that particular vertical.

PJ: Kyle, those are all my questions. This was terrific. I think we got a lot of great insights here and I enjoyed doing this with you. Thanks for doing this.

KH: Thank you, Patrick. I appreciate it. Hopefully what I've shared today has been helpful.

PJ: Yeah, very helpful. Enjoy the rest of the day. Bye.

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10/12/2026 at 05:58 AM UTC