If you think your construction company can achieve growth and success through manual processing and ad hoc systems, think again! For small companies at the start of their journey, growth might come easily – even in the absence of technology. As your company matures and expands, it will become evident that the only way to survive and thrive is by building the foundation of your business on technology. This solid foundation is the only way to ensure continued efficiency and effectiveness.
The challenges encountered by mid-sized construction firms are many
As one of the biggest sectors in the nation when it comes to economic impact and employment, construction is vital to the existence of our society and the growth of our economy. Regardless of economic or political conditions, the sector continues progressing. According to a report, global construction spending is expected to hit $15 trillion in 2023.
While a large percentage of this spending will be contributed by big construction companies, for small and mid-sized construction firms, carving a growth story is not going to be easy.
- How do you find, attract, train, and retain a skilled workforce – especially in an industry where the skills gap is constantly widening?
- How do you track project progress, conduct quality checks, view attendance, and ensure equipment safety efficiently remotely?
- How do you integrate siloed tools and systems to achieve end-to-end visibility into complex construction projects?
- How do you regulate cash flows in the absence of robust invoicing systems integrated with other financial systems– especially given the different timelines, hourly rates, and taxes in different regions?
- How do you estimate the capital you will need to fund projects without accurate and relevant data about previous project performance?
- How do you enable easy payroll management for your union, certified, and non-certified employees without encountering compliance hassles and blowback?
- How do deal with the rising cost of land and raw materials – especially when you have limited liquid cash?
- How do you enable real-time data exchange between your job site and back office?
- How do you manage, control, and deliver project-based work and reduce closing times?
- How do you keep up with evolving compliance rules and industry regulations and avoid the repercussions of non-compliance?
Construction and technology – An unbreakable bond
Technology is advancing at a rapid pace across the business world, but most small and mid-sized construction companies still conduct their business the old-school way. Excel-based payroll processing, physical inspection of the job site, largely-manual time and daily logging, and reactive maintenance of equipment are still largely employed. Not only are such approaches inefficient, but they also consume a lot of time.
Slow ROI in the short term is touted as the bigger barrier to technology investment. This is followed by a lack of resources, an absence of savvy employees, and a general suspicion of new ways. What most companies don’t realize is that in the long run, digital adoption can help overcome almost every challenge these small and mid-sized firms face.
In the construction industry, digitization can help in boosting collaboration, productivity, and safety. It can aid in improving the efficiency of projects, improve visibility and tracking of large and complex sites, and enable project teams to meet strict project deadlines (and tight profit margins).
As more and more contractors, architects, engineers, and suppliers shift to working and collaborating digitally, technology can create value like never before. Here’s what makes construction and technology an unbreakable bond:
- Automate repetitive tasks: A lack of sufficiently skilled labor is a growing challenge troubling small and mid-sized construction firms. For such firms, automation of invoicing, payments, and customer support activities can lead to quicker and more efficient results. For instance, timekeeping and construction payroll automation can allow construction managers to process orders, send invoices, track payments, and fulfil contractual obligations seamlessly. Automation can also help them build accurate, timely, and reliable reports on financial and operating results, as required by the SEC or other regulatory bodies.
- Streamline payroll processing: As the construction industry increasingly employs union workers, technology can help streamline payroll processing like never before. Using advanced payroll solutions, construction HR teams can easily manage the payroll processes of different states and unions, while remaining fully compliant with necessary labor laws. They can efficiently monitor your complex payroll functions and determine proper union rates, differentials, overtime assessments, fringe benefit management, and payroll taxes – all under one roof.
- Enable real-time tracking: Equipping field crews with usable, intuitive construction project management software can make a huge difference in assigning, tracking and costing, every task from the site. Modern construction management software can give construction firms complete visibility into every aspect of their projects. It can help field workers stay connected with schedules, checklists, and daily reporting. The software can also help manage budgets, forecasts, and billing activities while improving the efficiency and reliability of their planning, scheduling, and resource/task management processes.
- Modernize timecard reporting: Managing hundreds of trade unions efficiently and administering prevailing wages for thousands of craft doesn’t come easy for small and mid-sized construction firms. Technology can help minimize payroll complexities involved within the construction industry. Construction daily log software can help simplify union payroll and certified payroll reporting for federal and state jobs. By modernizing timecard reporting for remote crews, the software can streamline the recruitment of project resources with advanced skill-matching capabilities. This can help consolidate and simplify the process to land the best recruits and allow for 360-degree reviews and weighted ratings.
With technology trends constantly evolving, most construction executives today understand the role technological innovation can play in driving growth. But not many have a clear strategy in place to integrate those advancements.
At CEM, we help organizations exploit the benefits of modern technology. Whether you want to streamline recruitment, automate processes, improve payroll processing, or modernize timecard reporting, we can help you get ahead.
Contact us today and leverage our 20 years of experience driving digital transformation for construction businesses!