TMX Onsite: DIRTT Environmental Solutions Ltd.

Article Date: September 18, 2023

About DIRTT Environmental Solutions Ltd.

Pulling up to an unassuming brick building tucked away in southeast Calgary, you wouldn't know it is the headquarters of a global leader in industrialized construction.¹ Walking up the stairs to the main reception area, you soon realize that the humble brick exterior is just a facade for the cutting-edge design of the interior. Gazing towards the exceptionally cool office space with timber framed board rooms, elegant glass-walled multi-functional spaces, and integrated casework, it becomes evident that DIRTT Environmental Solutions Ltd. ("DIRTT") is in the business of building high-end interiors.

According to DIRTT's website, their system of physical products and digital tools empowers organizations, together with construction and design leaders, to build high-performing, adaptable, interior environments. Operating in the workplace, healthcare, education, and public sector markets, DIRTT's system provides total design freedom, and greater certainty in cost, schedule, and outcomes.

History

DIRTT was incorporated in 2003 and began commercial sales in 2005. In 2013, DIRTT listed on TSX and in 2019, it listed on Nasdaq.

Management & Board Changes

During the second quarter of 2022, DIRTT's board of directors was completely refreshed. DIRTT also had several leadership changes throughout 2022 and 2023, including a new CEO, CFO, and COO in addition to the return of one of DIRTT's co-founders. These changes were made to bring fresh perspectives to DIRTT's operations and to align the Board's interest with those of its shareholders in order to maximize value for all shareholders.²

Sustainability

Sustainability is core to DIRTT's business of constructing interior spaces that endure through time. One of the ways they do this is with an eye on waste reduction. Precision fabrication of their clients interiors off-site in a state-of-the-art facility increases efficiency and reduces raw material use. With a construction system that leverages Design for Manufacturing, Assembly and Adaptation allows clients to easily reconfigure their spaces, reducing their carbon footprint and preventing construction waste from reaching the landfill.

DIRTT also prioritizes healthy materials for their clients and building occupants. This includes using finishes, coatings, and adhesives with low or no volatile organic compounds (VOCs) and leveraging materials with a high level of recycled content. By using bio-based and sustainably harvested natural products DIRTT is committed to using options for construction that have the lowest overall environmental impact.

Source: 2022 ESG Report, https://dam.dirtt.com/image/upload/v1685398004/Website/Company/Sustainability/DIRTT-2022-ESG-Report.pdf, 2023

Facilities

DIRTT is headquartered in Calgary, Alberta, with experience centers, manufacturing facilities and Construction Partners throughout North America with a focus on the U.S.

Source: 2022 ESG Report, https://dam.dirtt.com/image/upload/v1685398004/Website/Company/Sustainability/DIRTT-2022-ESG-Report.pdf, 2023

Software

DIRTT's key differentiator is a manufacturing approach based on technology. In 2005, DIRTT developed its proprietary design integration software called ICE^®. ICE is used as a communication tool , to present design, visualize space, configure, price, engineer, specify, order and manage projects. We were fortunate to receive a walkthrough of the software during our visit and were impressed by its ease of use, customization capabilities and degree of detail. Simply put, ICE allows DIRTT's clients to explore their space in 3D and assists in the conceptualization and creation of their custom design. The software also allows collaboration between users in different physical locations. Using an internet connection multiple users can be present simultaneously to visualize and validate their space as it's being designed and any adjustments are immediately reflected in the design and total project cost. What's equally impressive is that ICE automates the manufacturing process too, including product inventory and cataloging, price quotation, order submission, parts manufacturing and production management. The automation of this end-to-end manufacturing process facilitates delivery by allocating production among their facilities based on proximity and capacity, thus shortening delivery time, a key advantage in this competitive space.³

Source: DIRTT

1. DIRTT website, https://www.dirtt.com/about/, 2023
2. press releases, https://www.dirtt.com/news, 2022/2023
3. DIRTT 2022 ESG Report, https://dam.dirtt.com/image/upload/v1685398004/Website/Company/Sustainability/DIRTT-2022-ESG-Report.pdf, 2023

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