The construction sector is one of the largest industries in the U.S. economy. Nearly a billion structures are being constructed annually, employing more than eight million workers across a million businesses. 2022 is almost over, but many construction pros are left wondering what more issues and challenges they will be facing in the next months.
While many things have happened in the previous years, things are slowly returning to their normality. Yet, it does not mean that there are still no challenges to the sector this 2022. In this blog post, we will cite below some issues that are still unique to your industry and how embracing technologies can help you overcome these challenges.
1. Supply Chain Issues
With the present supply shortage driving up the construction materials cost, waste is insufficient and can dissolve the profit quickly. The truth is, without material, the job site is at a standstill, and there is no alternative for timely equipment and materials.
Time and construction material costs are nothing but the majority expense of every project. If a certain job is not planned accordingly, expect the profit to be non-existent. And the worst is that when mistakes are committed, the outcome is detrimental to your construction business.
Today’s technologies assist construction companies with procurement, project, and material management. With this Technology advancing daily, the cloud-based construction management application ensures that every aspect of your business is carefully and consistently tracked anytime and anywhere.
2. Stagnating productivity levels
What is the level of productivity in your people? Is it improving? Or is it downgrading? Take note of your people’s productivity levels because it will directly impact your company. Good thing that the benefits of connectivity from the latest construction techs today are integral to your business growth.
Therefore, while the construction market continues to outshine the U.S economy overall, better construction job scheduling software solutions and ERP systems particularly designed for the needs of your construction professionals in the sector will be integral to improving overall productivity.
3. Hybrid working
What becomes a different thing to do two years ago has become normal. Yes, and we are pertaining to a work-from-home setup. But then, many sectors are now introducing a new setup – hybrid working. Agile, remote, and hybrid working are among today’s buzzwords. The construction industry, considered an in-person sector, has faced more challenges in adopting online working than in any other field. This does not sound surprising anymore.
Many business leaders have been crediting technologies as a life-saver, a critically important resource. In fact, online construction management software has made remote work possible. Employers and employees both say they have seen the many benefits of this cloud-based tool despite the hybrid setup.
4. An aging workforce
Using technologies and remote hiring approaches to further expand the talent pool for hiring people is also one way for construction business owners to overcome the challenge of an aging workforce. There is nothing wrong with having an aging workforce because they are already seasoned and veterans in the field. However, having a pool of young talents with unique skill sets also benefits your company.
That is why you need to attract the next generation of employees to your company. If your company has a slow adoption of the latest software solutions, trends, and technologies, it may be harder for you to attract new and young talents. Another important thing you need to consider is upgrading your existing workforce’s skills. Investing in workforce training allows your young and old workforce to leverage their skillset.
5. The increasing costs of raw materials and equipment
The increasing number of construction projects and demand for supplies and materials impact the price and availability. The key here is to stabilize your supply chain, which we previously explained.
You better focus on determining the gaps and risks and the potential solutions you can come up with. You may start by forecasting project requirements and simplify the overall process. In managing equipment and resources, consider leasing than an indecisive purchase, and this gives you more flexibility to upgrade when equipment becomes more competitively priced.
6. Challenging environments
AI stands for Artificial Intelligence, has created new possibilities, and has changed how we use AI in the workplace. As a matter of fact, if your worksite is now equipped with advanced sensors, cameras with upgraded communication and detection features, and safety equipment like IoT devices (Internet of Things), you are already taking action to improve onsite safety and reduce employee health risks and fatalities.
Designing for quite challenging work environments is another avenue AI has been pushing developments. There can be issues, whether you are thinking about constructing housing solutions for many people or planning an ambitious commercial building. But AI can make project delivery more economically efficient by fully optimizing your project’s modeling and design stages.
7. Tracking Equipment and Material On and Off-Site
While extra figures are hard to nail down, construction material and equipment theft from job sites has been prevalent these days. If nobody is working or tracking, job sites are prone to theft of equipment and supplies. However, specialized equipment like drones can help to solve this issue.
Drones have already significantly impacted the sector, and their contribution is expected to rise in the next years. In your large project site, leased or purchased construction equipment may easily go misplaced, but using drones can maintain the monitoring and tracking of all materials and equipment instantly.
Taking advantage of contractor scheduling software can also help you with your overall asset management. This software enables you to align all the resources you have, from your equipment, tools, and other assets, across different project timelines. On a more detailed level, software solutions can help you organize the day-to-day allocation of your construction tools and equipment, tracking their usage in real time.
To put it simply, you will have a more effective and much more efficient means to coordinate all your resources when you employ this sophisticated tech within your operations.
8. The Environmental Impact Should Be Addressed
Construction waste, emissions, fuel, and travel requirements contribute to today’s environmental issues. The dumpsters full of building materials, the heavy machinery running for weeks, and the building material waste left onsite can ultimately result in environmental conflicts.
Have you heard about machine learning? If not, machine learning is the capacity of a computer to particularly learn a job without being automated to perform a task. Machine learning is used to optimize operations, lessen waste and enhance efficiency over time. We mention machine learning because it can change or improve one area in the construction sector – project management.
With the algorithms easily picking up on material costs and availability patterns, helping to better plan your jobs, machine learning is expected to help prevent potential budget problems. Machine learning is the future of construction, from machine programming to design improvements.
9. Dealing with your people while managing contracts and payments
With higher overhead costs in securing equipment and materials, your construction business is often behind the standard. You need to find a way to improve your construction management if that is the case – from project initiation and milestone payments to project closure.
Improvements in contract management should also be one of your focuses. If you pay attention to these areas, cost reduction and more payment cycle improvements can be achieved. Good thing that project management tools built for your business are available today. These cloud-based platforms are purposely designed to help you and your team communicate in real-time, reducing mistakes across project changes, and contract revisions and saving you more time and money.
Increase Tech Adoption, Begin with Pro Crew Schedule
Suppose you read this whole blog and even our previous blogs. In that case, you will notice how we always mentioned that the construction industry is the least exposed industry regarding the latest technologies. That is why we asked you to level up and embrace this world’s new advancements. Not only the latest technologies right now are helping you to resolve and face challenges, but they can also help you level up your game in the industry.
Embracing cutting-edge software solutions help you stay ahead of the competition. Take Pro Crew Schedule, a cloud-based construction task management software that enables you to craft a solution that integrates your existing processes, bringing more visibility to the forefront. This all-in-one collaborative platform helps your company to improve operations using real-time insights.
If you want to get started with your digital transformation journey, avail our 30-day free trial for free and start your journey for a better construction management using the latest technology in construction.