Who? What? When? Why? These are all important questions to ask when making big software decisions in a construction firm. As construction companies move forward with new technologies, these four questions and many others will be key before making a big investment. Let’s walk through the power these “Ws” today.
Who Should Invest in Technology?
This is a fundamental question all construction companies should be considering today. Who should be investing in technology? This question has multiple layers. The most obvious question is what companies should be investing in technology. The most obvious answer is all companies because the reality is $30 to $40 billion is lost annually due to poor productivity, according to the 2023 Labor Productivity Study from FMI Corp.
Some companies might assume technology investment doesn’t apply to them, but the reality is the pace of work is picking up at a rate faster than ever before, and companies that don’t invest in technology will be left behind. We know many companies are grappling with a labor shortage. The best way to keep pace as well as to attract the generation of leaders is to implement cutting-edge solutions. Implementing innovative technologies is perhaps one way to solve these challenges. Technology can help increase efficiencies and attract new talent that understand how to capitalize on these solutions as well.
Another layer is who within an organization should be investing. The answer is myriad and will depend on each company. The best way to approach this answer is for each department or the leadership team to identify weak areas in the business and detect how technology addresses and fills in these gaps.
What Should Companies Invest In?
The answer to this question depends on each individual organization. Organizations must start by identifying the need before implementing any technology. Technology just for technology’s sake will instantly fail. For some, field apps are needed. For others, it is backoffice software. A company may have a need to shore up estimating processes, but accounting is already a well-oiled machine. Know your company and know what you need.
Companies should start by asking: what needs do we have? This will help point to what technologies are best to invest in. Although, candidly, most companies can probably stand to benefit from improving planning, communication, and collaboration. FMI Corp., suggests three of the four internal factors influencing productivity are related to planning, communication, and collaboration.
When Should Companies Invest in Technology?
Companies should invest in technology once they have a plan in place. Developing a clear strategy will be essential to success. Over on Substack, I have written articles about my top tips for construction project management and strategies for IT implementation. A clear strategy helps ensure a clearer path to greater success. The first step is always to develop a plan. We must always first recognize the need before we choose which hardware and software solutions to implement.
Today, take some time to identify if there is a gap in your business that technology can help solve. If you have identified a need, then now is the time to invest. Reinvesting in technology and moving the needle in this direction is always a good journey to take for your team to see more success.
Why Should Companies Invest in Technology?
There are perhaps too many reasons to count, some of which have already been outlined in this blog, but the reality is the construction industry needs to improve productivity and technology can help. Allied Market Research published a new report, Why Invest in this Industry, and it found the global construction management software market size will reach $23.9 billion by 2031, which is a 10.2% growth rate from 2022 to 2031.
While the construction industry is growing, I still wonder how well the construction technology market is doing in making sure it’s educating the next generation of leaders on the tools they are delivering and why they are needed in shaping a new built world? There are so many tools on the market today that it’s clear more education needs to separate the wheat from the chaff for construction firms to make good technology decisions going forward.
That’s one of the reasons our readers asked us to create the Top Products Awards. Thus, if you are a technology provider offering technology for the construction sector, make sure to get your product in front of our audience by submitting and being considered for the 2025 Constructech Top Products awards. The deadline is fast approaching. This year we added some new judges from a variety of universities and the industry to lend their expertise to help us consider the technology pool.
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