Construction isn’t an easy industry. Between managing client needs, your employees, and the economic climate as a whole, it’s never been harder to run a construction business. However, many construction enterprises are lagging not because of their competition or their workers, but because of their processes.
If you’re using outdated technology or feeling frustrated by complicated manual processes, you’re behind the curve. Construction enterprises must modernize to stay competitive. In an industry with low margins, even a single error can gut your profits.
3 Challenges For The Construction Industry in 2020
Whether you’ve modernized already or not, your construction enterprise will contend with 3 major challenges in 2020. How will you stack up against the competition?
First and foremost, you want to keep your business, your employees, and the public safe. Are you doing that effectively today? It can be a real challenge to document everything correctly, especially in a large enterprise. Construction businesses are struggling to stay compliant and mitigate risk, which opens you up for fines and legal action.
Labor shortages and costs
America’s low unemployment rate means that labor costs are high. We’re experiencing a shortage of skilled tradespeople, which means construction enterprises are paying high costs for in-demand skills. With higher labor costs, it means margins are even tighter for construction enterprises.
Costs are through the roof for labor, materials, and more. On top of that, you have to pay for processes and tools that keep your enterprise moving. It’s hard to find long-term cost reductions that won’t hurt your business in the short-term. Because of these costs, construction businesses have to watch their margins. While you may have had more room for error in the past, today a single error can topple your business.
Bridging the Construction Industry’s Digital Divide
Technology is the key to overcoming these challenges, but construction businesses are often slow to adopt technology. Those that have adjusted are spending more on technology, but overlooking necessary support for their processes and people to facilitate the technology.
More often than not, going digital comes with its own problems, like:
- Information silos: This happens when your departments all use different technologies that don’t talk to each other. This means you’re collecting data you can’t readily use.
- Broken connections: With multiple applications, you have multiple points of failure in your system. If something breaks, it will take forever to find the issue.
- IT sprawl: To combat these issues, you get more and more IT solutions, adding more layers of cost and complexity to your business, with no relief in sight.
Unfortunately, investing in technology alone isn’t the answer. Construction enterprises have to automate strategically, planning for a frictionless experience at every step of the way. In other words, enterprises have to find a solution that manages not just data and tasks, but processes, information, and documents—for each department, employee, and application.
Invest in an IT solution that reduces clutter, centralizes your operations, and helps you stay compliant. DTI Compass helps construction enterprises make their businesses more efficient with all-in-one technology.
Want to learn more? Tune in to the DTI webinar, “3 Challenges for Construction Enterprises in 2020 - And How To Solve Them” at 2 PM on March 18, 2020.
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