A growing share of construction firms say improving proficiency is a top priority, yet fewer are turning to technology to get there. In a recent report from CBIZ and The National Center for the Middle Market, 31% of construction-industry respondents named increasing efficiency as a top strategic lever. That’s the highest response rate among the industry categories covered in the report.
Alternatively, and surprisingly, only 26% of construction firms cited investing in technology as a top strategic lever. That’s just one percent away from the least prioritized strategy in the survey. Human beings are roughly as capable and hard-working as ever, so where exactly do construction businesses see their efficiency gains coming from if not technology investments?
It’s a question that means facing a long standing and poisonous attitude toward modernization in construction. And now, with tech reaching capabilities that were once thought fantastical, the pervasive and problematic attitude threatens to distort business’ understanding of what needs to change in order to achieve better results.
The Grudge
If you’re a moviegoer, you may be familiar with a common trope in scary movies: there’s a sinister curse that haunts families for generations. Try as the characters might, they can’t escape the negative influence of a specter that’s shared like a family heirloom from parent to child and so on. There’s a clear analogy in construction – which is one of the top industries for family ownership – and, like the monster in a horror film, it can wreck havoc whether you know it’s the cause or not.
Origins of a Curse
Construction is a hands-on business. It’s historically grounded in skill-based crafting and trade work of all kinds. These pursuits have earned the dedicated lucrative careers and yielded incredible marvels celebrated by all of humanity. With the sense of pride that work inspires though, comes a shadow. It’s very common for construction leaders to forego technological aid in favor of a “roll-up-your-sleeves” attitude that assumes only what happens on-site, and its eventual result, is truly worthwhile.
Businesses stuck with this attitude may not last much longer in a rapidly modernizing industry. And that’s not because robots will soon be replacing your crews. Instead, the technology powering growth throughout the industry is largely helping offsite and in the office with material management, financial processes, administrative duties, and safety and compliance.
These technological tools aren’t about overshadowing professional skill and, despite what certain technologists may say, it’s unlikely we will see robots take over the job sites. However, software programs, AI, and other advancements, represent meaningful advantages that can enhance your team’s capabilities, free their time to focus on growth initiatives, and reduce resource waste and inefficiencies across your enterprise. If you’re looking for efficiency enhancements, here is where you’ll find them most readily.
AI
From pre-construction to close-out, AI assists by compressing timelines and reducing rework. It can:
- Analyze historical data, material prices, and labor availability to help estimate costs and result in more competitive bids;
- Identify sequences relating to scheduling and issue alerts regarding material availability so preventable hiccups don’t result into change orders;
- Monitor progress, safety compliance, and quality assurance programs;
- Contribute to a more efficient back office by reducing manual tasks, redundant efforts, and time spent collecting and laying out data for reports.
ERPs
Enterprise resource planning programs (ERPs) centralize data for easy access, integrate and share information across departments for higher visibility, and help decision makers act on real-time insights. They can also:
- Reduce the burden on in-house IT teams by delivering service via the cloud;
- Include bespoke configurations specifically designed to ease demands relating to construction-specific workflows;
- Integrate information from disparate sources to provide one access point for key information from across your various systems;
- Track inventories and aid in project management and job costing; and
- Provide in-depth audit trains, enforce controls, and simplify reporting.
Monitoring and Modeling
Drones are already in-use to keep an eye on job sites, with the potential for another layer of technology to actually analyze and identify potential code violation occurring in feeds. Using advanced sensors, these drones and other tools can also chart out obstructions underground.
Similarly, modeling software can help you see what’s not there – yet. Advanced systems can even enable teams to test materials and methods in virtual environments.
Banishing the Curse
Change management is the process by which organizations align leadership on important changes and communicate the value of changes with employees. With it, your team will better appreciate the benefits these changes represent and contribute to a successful implementation.
Because each organization has its own level of sophistication and specific implementation in mind, the process of updating and modernizing systems is always unique. It’s true that the growing pains of moving from pen and paper accounting to an ERP might be more severe than upgrading from an outdated system to a modern one – but the benefits will be greater in proportion. Not everyone embraces change easily, but accomplishing more in less time always feels good. Effective change management empowers employees to have a greater impact so they’re excited to contribute in a new and improved way. Success typically requires engaging professionals to formalize what’s changing and lay out a strategy for introducing new systems and processes.
Success introducing new methods goes beyond simply acquiring new tools and conducting basic training. For best results, consider governance and controls, access parameters, how you’ll house new technologies, and much more.
It is a lot of work, but work is one thing the construction industry has never been afraid of.
The Finale
For a long time, the attitude of the construction industry has been “the more things change, the more they stay the same.” Modern advancements prove the folly of that approach as the potential for improving efficiency is simply too hard to ignore and too costly to miss out on.
Luckily, many companies have been through the modernization process and come out better for it. Technologists and advisors are available to provide tried-and-true roadmaps to help even the most byzantine back offices join the 21st century.
If your construction firm is not already taking advantage of these key technologies, take a careful look at the benefits they offer and imagine missing out where your competitors are finding an edge. Now that’s a scary thought.
