Somero vs Ligchine: Levelling Technology and Patent Cliff

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Regarding contract work and the history of Ligchine and Somero, how do you think the laser technology has evolved? Why do you think Somero has maintained its position, while Ligchine is now a strong competitor? Why hasn't there been more competition in this space over the last decade? I'm curious about the barriers to entry, such as patents, and how litigious Somero has been regarding competition entering the space.

Once a piece of equipment is established as the standard, it becomes the preferred choice. The founder and designer of Ligchine, Pete Ligman, used other equipment and thought there had to be a better way. He found the existing leveling approach complicated. So, Pete developed equipment that leveled differently. Both Somero and Ligchine level floors, but they use different technologies. Somero levels the head, while Ligchine levels the entire machine, making them completely different.

This is a snippet of the transcript.Contact Salesto get full access.

Regarding contract work and the history of Ligchine and Somero, how do you think the laser technology has evolved? Why do you think Somero has maintained its position, while Ligchine is now a strong competitor? Why hasn't there been more competition in this space over the last decade? I'm curious about the barriers to entry, such as patents, and how litigious Somero has been regarding competition entering the space.

Somero adjusts the head independently of the boom, making it difficult to account for boom drop. Ligchine, however, calculates boom drop into the leveling process, dampening the head's movement. Watching a Somero machine, you'll notice the head constantly adjusting due to boom droop, which it can't detect. This results in the head moving up and down to maintain a level floor. Somero patented their network technology, making market entry difficult for others. Pete decided not to level the head but the entire machine, accounting for boom droop and using the machine as a dampening device. Ligchine was the first to enter the market without copying Somero's head-leveling method, which facilitated their market entry.

This is a snippet of the transcript.Contact Salesto get full access.

Regarding contract work and the history of Ligchine and Somero, how do you think the laser technology has evolved? Why do you think Somero has maintained its position, while Ligchine is now a strong competitor? Why hasn't there been more competition in this space over the last decade? I'm curious about the barriers to entry, such as patents, and how litigious Somero has been regarding competition entering the space.

In Europe, a few companies are now competing with different leveling approaches, and some startups in China are producing direct Somero knockoffs. Somero will likely need to defend their technology against copycats as their patents expire. Somero is focusing on quality, while Ligchine offers short lead times and lower costs. Compared to Somero equipment, Ligchine's low-end and mid-tier equipment is significantly cheaper.

This is a snippet of the transcript.Contact Salesto get full access.