How to Boost Your Construction Business’s Profitability Through Technology Integration
Profitability is a key challenge for construction firms of all sizes. Regardless of the project scale, ensuring cost control and budget optimization are the keys to driving greater profitability. The implementation of technology solutions significantly optimizes processes, improving output efficiency and profitability.
That is why the digitization of the industry is rapidly evolving project agility and strategic perspectives. If you are a business owner who is looking to reinvent your business, you must know technology plays a significant role in cutting costs and boosting profitability.
In fact, digital transformation has the capability to drive cost reductions of anywhere between 4-6% for construction firms. The integrated nature of digital technology allows project teams to be more productive and aligned towards achieving milestones within budgets.
Key technologies, such as building information modeling (BIM), construction management software, customer relationship management (CRM), accounting automation, and procurement management, significantly reduce cost burden and improve delivery quality.
Automation Driving Cost Efficiencies for Projects
Automation streamlines construction processes across the project lifecycle. In procurement, technology platforms seamlessly order new materials based on pre-existing criteria while automatically filling indent requirements. In project planning, automated designs and layouts can be generated via 5D BIM solutions for better cost mapping and design adherence.
Another key area where automation is adding significant value to developers is IoT and AI. Through sensor-based technologies, real-time data on equipment, materials, and site health can be transferred to central project management tools for better management. This improves site visibility, empowers decision-makers, and directly boosts profitability potential per site.
Additionally, construction firms are increasingly leveraging robotics to drive site efficiencies in terms of inspections, reviews, communication, and mapping. In fact, the global construction robot market is set to grow to $187 billion by 2024, largely due to the connectivity it drives within project environments.
End-to-end Budget Management for Margin Control
Budgeting is a key activity in the business plan that technology streamlines, especially as construction firms scale up to multiple sites and projects. Having an integrated cost management solution is a priority for several developers that want to gain better control over profit margins. They enable the complete mapping of all cost areas while helping generate highly accurate estimates across stages.
Online construction project management tools also help manage the daily expenses of project execution. Labour, materials, equipment, and indirect costs can be directly managed within construction PM solutions, which enables greater visibility and tracking clarity. Resources are also connected with overall budget goals, ensuring end-to-end adherence to set limits.
Seamless Compliance Reviews for Risk Management
Technology also improves compliance management, especially for projects that are complex and resource-intensive. Through dedicated compliance tools, developers can perform audits in a stagewise manner while gaining visual insights on key faults within site work. Compliance tools are also dynamically updated, ensuring that firms are aware of the latest regulations within zones.
Compliance tools provide remediation strategies for site workers to execute as well. This drives a solution-driven environment, encouraging a culture of quality project delivery. This is a key factor for several enterprises that want to avoid costly reworks and improve team performance for their construction sites.
Streamlined Management of Project Output
Technology solutions provide a comprehensive management dashboard, enabling strategic overviews of all processes. This directly reduces associated costs of manual administration, site management, bulky resources, and last-mile overruns. The enhanced management of projects helps strengthen cost control while lowering costs associated with lack of collaboration.
Another key benefit of adopting construction technology solutions is the streamlined management of teams. Companies can drive specific project management strategies and workflows seamlessly through construction management solutions. With 46% of developers believing people to be the most important factor in project success, onboarding a dedicated human resource management solution is critical to profitability.
Improved Marketing Leading to Sales Growth
Automated marketing solutions help boost awareness and sales growth for developers, which is why it is a rising area with construction technology. Close to 74% of developers believe that a stronger shift towards customer focus is set to occur in the next five years through digitization and better personalization.
CRM solutions also streamline relationship building, which directly boosts profitability. It reduces the cost of acquisition and time to closure by providing the right information at the right time. CRM solutions also dynamically update their database, which directly empowers sales leaders with the right insights on customer preferences.