3 Tips to Create a Strong Technology Foundation at Your Construction Company

By: Pete Schermerhorn

Technology continues to gain momentum in the construction industry. Over the last 18 months, a “perfect storm” of internal and external factors — driven by a boom in construction activity, population demands and a lack of skilled labor — has spurred contractors to begin adopting construction technologies.

Eighty percent of construction contractors are having difficulty filling hourly craft labor positions, which make up the bulk of the industry’s workforce, and nearly the same percentage believe it will continue to be hard — or only get harder. This affects project costs, timelines and overall safety as construction firms have to increase base pay rates, lengthen schedules and hire from a limited labor pool without the ability to test their skills. At the same time, construction activity continues to increase, with the USG Corporation + U.S. Chamber of Commerce Commercial Construction Index (CCI) reporting the highest levels of backlog since the survey’s inception.

As construction companies learn to do business with fewer resources, they are adopting new digital solutions to enhance visibility, unlock efficiencies and build safer and smarter than ever before.

And, the market has responded with record outside investment in construction technology firms, including $1.38 billion in 2018 alone. This has accelerated the development of innovative technologies that connect the jobsite through Internet of Things (IoT) solutions, including wearable devices, sensors and drones. While software still requires some degree of manual entry, IoT solutions automatically collect data from sensors worn on workers, tagged onto equipment and tools, or placed around the jobsite to monitor environmental or site conditions.

Yet, as 2019 approaches, and solutions become more sophisticated, the mere presence of technology on site does not guarantee a competitive advantage. Technology is only as good as the people and processes that support it, and below are some tips for getting started and seizing opportunity in today’s market.

1. Start with a problem

While it seems like common sense, it’s essential to start with a defined business problem or issue that can’t be solved by existing, manual methods. Technology for technology’s sake isn’t just a waste of resources but can result in end-user fatigue and frustration. When a solution is adopted and then quickly discarded or forgotten, employees at the jobsite begin to discount future initiatives.

To that point, it’s essential to include different departments and functions in the problem identification and technology evaluation process, especially the people at the core of the solution who will ensure its day-to-day use and optimization. What one role may think is a pressing need may be seen differently by other members of the project team. Consider what “success” will look like for each stakeholder: is it streamlining processes, enhancing safety, or improving reporting and communication? Thinking through the on-boarding, training and daily administrative processes sets your organization up for success.

2. Determine the best solution

As contractors become more familiar with construction technology, and the number of solutions grows, pay attention to quality over quantity. With limited resources, companies can’t afford to spend on solutions that aren’t built for the jobsite.

If you’re willing to invest in construction technologies, you should be willing to invest in up-front research and education. Who else has adopted a solution and why? Is it for its technology innovation (non-GPS or superior battery life, for example), its initial training and on-going support, or its ability to integrate with existing construction hardware or software?

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