A percentage of you are not going to like what I have to say this month, but take note anyway. What I plan to cover is the need to move ahead with the Internet of Things (IofT), the “Mobile Evolution” and telematics. In today’s business environment, having a handle on the use of these tools will mean the difference between doing “okay” and being a top performer.
Large national contractors are probably using these tools on a daily basis. They are also likely finding that their work has become more efficient and less costly compared to the days before such tools were installed as part of the systems and procedures used to complete a project.
Contractors the next level down can also benefit from technology tools since they have multiple jobsites to manage, fleets of equipment and trucks to move them, and a sizable number of employees to schedule and keep track of on a daily basis. Those working as subs are finding that GCs prefer they manage their portion of the job using data provided by such tools.
Small contractors with fewer employees and only one or two jobsites to worry about at a time can probably let technology slide a bit, though putting it to use would also save them time and money.
Let me repeat one thing here: Using these tools will save you time and money — no matter who you are or what you do. Saving time is a good thing, as is saving money. It’s also a good thing if you can provide a better customer experience, improve the bottom line on jobs and increase the value of your company. All are great results if you can get them. But how do you get there?
Identify Needs Then Test the Benefits
Many of you who aren’t technology savvy may not like what you’ve read up this point. Believe me, I know where you’re coming from because I find myself in similar situations all the time. But like it or not, you will have to march ahead and determine how to adopt technology that works for you without wasting a lot of time and dollars.
You will need a team to do this. The team may consist of employees or technology geeks you know who are willing to help you understand how this stuff works and what you will need to do to make it work for you. Find out what you can get, then prioritize your requirements and proceed from there.
As I’ve mentioned in the past, I’m not one who likes to reinvent the wheel. Consequently, I suggest you talk with other contractors that have been using digital tools and telematics for a number of years. Contact your equipment dealers and do the same. Equipment dealers should have a handle on what you need to do, what they can do for you and how much it will cost for both options. Likewise, the national rental chains you may rent from are using tools to go paperless and get data from their equipment in the field.
After talking to other contractors with businesses similar to your operation, learning what your dealer can offer and chatting with some vendors who supply sensors and/or software, go back to your internal team to prioritize what you can implement and then set up a plan of attack to try it out.
By “try it out” I mean do a test run to prove to yourself and your employees that this process will work toward the benefit of the company and its bank account. Start by getting a few tablets and putting them out in the field to report daily hours worked; perform job costing; send project pictures; look up service records; track trucks or equipment, etc. You can download apps (often at no or low cost) for these types of services. So far, this is nothing dramatic. Let the geeks figure it out and train your field crews as necessary.
Extra Cost Calls for Added Care
When it comes to telematics, we’re playing in a different ballgame. There are costs for software, sensors and service providers (though a number of OEMs offer telematics free or free for a limited period with equipment purchase), as well as other internal costs to consider.
You and your team will have to prioritize what is needed and then try it out on a limited number of units. The best time to do this is during your slow season when you have time to properly manage the process. Though you’re still in “try it out” mode, use a formal process that holds participants accountable throughout the trial period.
Some of the data points telematics can provide include:
- Equipment utilization
- Asset tracking
- Service dispatch and navigation
- Operations
- Productivity
- Maintenance scheduling
- Operator performance
- Emissions compliance
- Alerts and fault codes
It’s a lot of data to consider — they say it compares to trying to get a drink out of a fire hose! You have to decide what data works for you and then add on when further needs arise.
In summary, technology will continue to change the construction business. It will make contractors more efficient and competitive. And as usual, the work will go to those with the ability to deliver at the best price. In short, you have to get in the game by finding out what other contractors are doing and trying things out yourself until you’re comfortable that it will help you make more money.
