Why 80% of Solutions Die in MEP

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Author

Owen Drury
May 07, 2025 • Estimated Reading Time: 11 minutes

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INDUSTRY INSIGHTS
Why 80% of Solutions Die in MEP

TL;DR
How Syska Hennessy—one of the top MEP design firms—successfully adopts new tech in an industry built to resist it:

  • 🔧 MEP firms hate change - unbillable hours + liability = instant pushback

  • ⚠️ 80% solutions fail - in MEP, “almost works” = not good enough

  • 🔁 Innovation works backwards - start with shop drawings, not concepts

  • ✅ 3-step filter for tech - must solve real pain, fully work, and come via trusted intros

  • ⏳ Think long-term - in MEP takes a 10-year horizon


The 3-Step Framework That Syska Hennessy Uses to Successfully Integrate New Technology

About 15 years ago, Google tried to develop design software to compete with Autodesk, which dominates 90% of the construction industry. They started with Google SketchUp, adding pipes and MEP components. The industry watched nervously, expecting disruption. Then Google pulled the plug.

Why? According to Robert Ioanna, Executive Principal of Syska Hennessy (a $200M MEP design firm), they didn't understand a fundamental truth about MEP firms:

"The investments in our industry, you have to come at it with at least a 10-year type of horizon.”

After evaluating hundreds of construction tech startups through Syska's innovation program, Rob has identified exactly why most fail to get adopted—and what the successful ones do differently.


The Problem: MEP Firms Are Built to Resist Change

MEP firms face a unique innovation paradox. As Rob explains, "We're a consulting engineering business, kind of like a law firm. Our asset is people. We sell time."

This creates immediate resistance to innovation:

  • Every hour spent on testing new technology is an unbillable hour

  • Any efficiency gain potentially reduces revenue

  • Engineers carry personal liability for designs, making them risk-averse

When Syska introduced HVAC Manufacturing's Smart Valve—a product that eliminated the need to specify 10 different box sizes—some partners were "pissed because that's a lot of design revenue for us."

Yet Syska has successfully integrated numerous technologies. How?


The 80% Solution Trap That Kills Most Startups

Rob shares a critical pattern he's observed:

"We had a specific investment that was really doing an amazing thing... they claimed they had 80% of the way figured out."

The difference between success and failure? Getting from 80% to 100% functionality.

Success Story: HVAC Manufacturing's Smart Valve

  • Started at 80% functionality

  • Pushed through to 100% market readiness

  • Result: Complete solution that replaces 10 different products

Failure Story: A promising cogeneration product

  • Stuck at 80% functionality

  • Couldn't solve a critical component issue

  • Result: "They iterated and iterated... eventually it just ceased"

The brutal truth? MEP systems can't be "mostly working." As Rob notes, "If AI can't prove to me that it exactly meets codes... you're going to be very hesitant to use it."


The "Backwards Innovation" Path That Actually Works

Here's where most startups go wrong: they try to innovate from concept to completion, like architects do.

But MEP innovation works backwards.

"On the MEP side, I think it's going to come backwards," Rob explains. "Companies like Augmenta, they're going to take the engineer's designs and automatically build the shop drawings from it."

The successful path:

  1. Start with construction documents: Automate shop drawings

  2. Move to clash detection: Solve the "17 different systems that can't hit each other"

  3. Then tackle design principles: Implement rules for system layout

  4. Finally address early design: Work back to conceptual phases

Why? Because individual engineers must sign and seal drawings, taking personal liability. They need absolute certainty before adoption.


Syska's 3-Filter System for Choosing Technology Partners

After forming Syska Innovations in 2021, Rob developed a rigorous filtering system:

Filter 1: Must fit one of seven specific buckets

  • Smart buildings

  • Digitization

  • Eco innovation

  • Industrialization of design

  • AI/process automation

  • Project design

  • Project management

"If something fits into those seven buckets, we'll either invest in that company, take an idea internally, or help develop a product."


Filter 2: Must solve complete problems, not incremental improvements

Rob is blunt: "We're not interested in something that's like a commodity play or something that does something slightly more efficient."

Good example: Smart Valve technology

  • Replaces 10 different VAV box sizes with one

  • Maintains accuracy within 5-6%

  • Solves complete workflow problem

Bad example: Products offering 5% efficiency improvements

  • Don't justify disruption to workflows

  • Can't overcome adoption friction

  • Fail to deliver transformative value


Filter 3: Must come through trusted networks

Cold outreach rarely works. "In the beginning, I responded to every LinkedIn request... now I'll barely even read, even if they do come up with some cool email."

What works:

  • Ecosystem recommendations (Building Ventures, Shadow Ventures)

  • Targeting specific named problems ("clash detection software")

  • Building visibility through quality content

  • Demonstrating deep MEP understanding

"The unfortunate answer is a lot of things we wind up looking at are usually because they were recommended or came through somebody that we knew."


The Bottom Line

Success in MEP tech isn't about having the most innovative solution—it's about understanding that MEP firms need complete, liability-proof solutions that justify the disruption to their billable hours model.

As Rob advises founders:

"Spend a good amount of time really understanding what your total addressable market is. Everybody has the same slide... 'the construction industry is worth $1 trillion'... And you're just like, seriously?"

The path forward? Start where the pain is most acute (construction documents), deliver 100% solutions, and be prepared for a 10-year journey. Because in MEP, there are no shortcuts to adoption

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