State of Construction 2021: 7 Reasons to Prioritize Digital Investments

Part 1: Innovate with Technology

Savvy construction firms recognize the need to invest in technology to modernize their business processes. Research from McKinsey suggests that these digital investments “can result in productivity gains of 14 to 15 percent and cost reductions of 4 to 6 percent.”

Despite the compelling business case for innovation, many firms are still hesitant to change.

One possible explanation is that construction firms have a high level of business complexity, making it seemingly difficult to implement operational changes across a distributed workforce. Not every firm has a large budget or dedicated technical resources to take on this type of enterprise-scale initiative. 

An alternative approach is emerging though for contractors that want to innovate and prefer to focus on quick wins that align directly with specific business challenges. Easy-to-adopt software as a service (SaaS) products are helping companies to digitize their operations and create a competitive advantage. 

In the current market, companies will need to innovate to maximize their profitability. Continue reading for an analysis on the state of construction and an overview of the business impact of moving away from paper-based processes.

McKinsey suggests that these digital investments “can result in productivity gains of 14 to 15 percent and cost reductions of 4 to 6 percent.”

Part 2: Improving Work Zone Safety

The ongoing pandemic is affecting the economy and creating uncertainty for construction firms. There’s no shortage of new challenges arising — from rising material costs, decreased demand in certain sectors, and increased competition in the market to name a few.

It’s clear that there’s a great deal at stake and organizations will need to limit unnecessary setbacks going forward. Even without a pandemic, there are several consistent challenges present in the construction industry that affect profitability.

Here are four key findings from industry research that summarize these challenges:

Challenges related to productivity The ecosystem represents 13 percent of global GDP, but construction has seen a meager productivity growth of 1 percent annually for the past two decades. (McKinsey) 

Challenges related to safety While the industry makes up 5% of the workforce, 20% of worker deaths each year occur in construction. (OSHA)

Challenges finding and retaining employees 81% of construction firms report that they are having a hard time filling some or all positions.

Challenges related to quality and rework 9% of the total project cost is closer to the actual total cost of rework—considering both direct and indirect factors combined.

Companies should look to leverage technologies that address these specific pain points, balancing the need to increase productivity, keep workers safe, and deliver quality projects on time to clients. By aligning technology investments with these business objectives, firms can make incremental improvements that help them stay competitive and profitable.

Construction executives continue to have a positive outlook despite these challenges. According to research from Deloitte, “68% of executives characterized the business outlook for the industry as somewhat or very positive” from a survey conducted in 2021.

PART 3: The need for digitization

Contractors have historically relied on paper forms for collecting and storing project data across a distributed workforce. Firms are starting to move away from paper and are instead digitizing as much of their core business processes as possible. Bringing the information online helps organizations in several ways:

• Reduction of manual work 
• Elimination of human error 
• Decreased risk 
• Greater business insights

Using mobile apps and software, contractors are now able to streamline their workflows and improve the quality of their data. These applications are simple by design but when implemented they can have a powerful impact on transforming how a business operates.

Research from GoCanvas shows that companies who moved away from paper-based processes to digital mobile apps reported:

• Increased their productivity by 20% 
• Reduced their risk and liability by 18%
• Saved 50+ hours per week manually creating critical reports for analytics

Part 4: 7 Reasons to Go Digital and Eliminate Paper

#1. Increase employee productivity

Paperwork is a leading cause of frustration for employees and this turns into lower productivity levels. Mobile apps for contractors aim to digitize all aspects of paperwork on the job, resulting in streamlined workflows and a reduction in manual tasks.

The most common paper-based processes in construction include inspections, incident reports, work orders, and change orders, estimates and logs, reports, and other types of field data collection on job sites.

Anywhere paper is used to collect and share information can be an opportunity to digitize information using an online form instead. Mobile apps simplify the process for staff, bring information online for reporting, and enable automation for completing other tasks and workflows.

Considering the direct costs associated with paper usage and the indirect costs that stem from lost productivity, there is a clear advantage for firms that can digitize.

#2. Standardize how data is collected

Data collection is a challenge for construction companies with distributed teams. Without clear processes and standardization, the result is siloed data that is not consistent and hard to analyze.

With paper forms, there is no reliable way to enforce how data is collected. Apps and software for contractors are designed to simplify field data collection, giving employees a better way to submit data.

Advanced features can require standard inputs so the information for reporting is consistent and complete. This creates an environment where data is an asset and can be used to inform business decisions.

#3. Enable staff with insights and analytics

Contractors can use data to their advantage if they implement data collection best practices. On an operational level, staff can see trends in real-time to understand any potential issues, delays, incidents, or problems that are happening on job sites. At the same time, construction executives are empowered with a complete view of their business and they can make any appropriate adjustments. 

Mobile apps and software enable that collection and empower the analytics and insights needed for greater business intelligence. For construction companies, this means finding opportunities to improve quality and avoid rework, spot lags in productivity, manage safety programs, and much more.

#4. Promote a culture of workplace safety

Safety programs managed on paper are difficult to track. Digitizing these programs allows organizations to have more visibility into safety programs and ensures compliance. Going digital makes it easier for employees to complete training or toolbox talks, and a record of their completion is clearly documented. 

Apps for contractors act as a comprehensive safety management solution. With robust reporting that’s visible in real-time, organizations can address potential hazards and limit OSHA violations and fines.

#5 Ensure data is never lost

There is a greater level of risk when information is stored on paper in filing cabinets. Sheets are hard to find and they can be lost, damaged, or stolen. Digitizing this information will ensure that firms are complying with best practices for record-keeping.

Digital information is securely stored in the cloud and can always be accessed. This helps contractors in case of an audit, insurance claims, legal disputes, and similar instances where sensitive information needs to be accessible.

#6 Increase employee  retention

With a labor shortage and difficulty finding skilled workers, firms need to do everything in their power to retain current employees.

An investment in digital apps and software shows workers that brands are committed to investment in worker productivity and safety, with modern business processes that make their jobs more efficient.

All of this leads to a better employee experience and a positive impact on a firm’s brand and reputation. Firms can’t control the labor market, but investing in tools to improve the job is one opportunity to improve employee satisfaction.

#7 Ensure client satisfaction

An investment in digital technology will bring improvements to productivity, minimizing delays and cost overruns. Streamlined operations ensure smooth processes, a high level of quality in work, and on-time delivery.

In an increasingly competitive environment for work, firms need to do everything in their power to create an advantage. Having modern business processes in place is one opportunity to ensure that projects run efficiently.

Part 5: Key Considerations When Implementing Technology

With the right technology in place, contractors can expect to see a significant return on their investment. But navigating the software and apps marketplace can be difficult with hundreds of solutions available to buyers today.

When starting out, firms should consider starting small by piloting a program that is centered around a single area for improvement. They should focus on making incremental changes and solutions with a fast time to value.

Complex software purchases may be overly complicated for some business types. It may be ideal to find solutions that don’t require a large investment upfront or dedicated technical expertise. No-code or low-code solutions are available that enable non-technical business users to digitize their operations, while also offering a high level of customization to fit unique business requirements.

The final consideration when purchasing technology is to focus on adoption. Different stakeholders in the organization should be included during the pilot program to gain their feedback early on. Once a business case is clearly established and the value proposition is clear to staff, companies can begin to roll out these programs on a larger scale. Some employees will be hesitant to adopt, but communicating how this initiative will impact their job can put into perspective the tangible benefits.

By starting small, focusing on simplicity, and working to gain buy-in from staff, organizations can quickly move from paper-based operations to digital. This approach is easier than an enterprise-level implementation and will prioritize the quick wins that bring immediate benefits to an organization and create a competitive advantage in the market.

Ready to Rethink How You Work?

GoCanvas has helped a variety of businesses across multiple industries transform their safety processes and rethink their efficiency, ultimately saving them money. Why not do the same? Reach out to one of our experts today to kickstart your process revolution.