Too often the construction industry will implement technology in the "back office" but overlook efficiencies that can generate cash flow and reduce costs on the job site. The net income of the top contractors in the U.S. is as much as 25% higher than the rest, and the major contributor to this difference is their use of technology.

Accurate information that provides a business owner the ability to make immediate decisions about his/her operation resulting in a boost to profitability is crucial during an economic downturn. If revenue is down and the market mood does not permit price increases, then profitability can only be realized by reducing costs. So you must ask yourself "What prevents me from 100% efficiency?"

Focus on "Faster and Better" Every asset, machine, tool and person you have must be accountable and cycle more quickly. An airline cannot survive when planes are not in the air producing revenue. Your business cannot survive unless you know where your assets are and how they can be used efficiently. Imagine being able to view where your tools and equipment are at any moment so that you can plan to transfer them to the next job. How important it is to locate a unique tool when it is required on another active job, avoiding any down time? What happens when your employees get to a job site and don't have the inventory or tools they need to complete the job? These situations and others cause accelerated costs and reduced productivity.

Take a Proactive Approach Under normal circumstances a business owner will review financial (accounting) information, overhead and direct operating margin at the end of a month or quarter. But these aren't "normal" circumstances. "Business owners must plan their destiny and not look in the rearview mirror!" stated Bill Allen of W.A. Allen Consulting. "Instead of flying blind (until a project is completed) it's time to operate from a plan. Understand what prevents you from 100% efficiency."

Buy-in Happens from the Top-Down Start by developing a culture that compels events to conform to your plan. Anything that deviates from the plan is an opportunity for cost-savings and efficiencies. Do you have too much time loss in non-direct labor areas (idle or down time)? By evaluating what interrupts the workflow on a daily basis, you will uncover areas that with improvement will provide an increased bottom line. It is up to the business owner to make a conscious decision to manage from a plan rather than react to circumstances, and to hold all employees accountable for following the plan. This transition will be easier if the technology tools available today are adopted.