Construction groups try and cut costs all the time. It’s in their nature.
But shopping around for the best price on materials and equipment, for example, won’t yield the same result in savings it once did. Even if you’ve been using the same supplier for years, you need to check costs to keep people honest.
Investing time into finding the best prices on quality tools, rather than cheap substitutes will help a little, but this practice also isn’t what it once was in terms of savings.
And other small things like setting clear expectations with cash and lunch policies are great, but again, it’s a small savings in the end. It’s not going to make much of a dent on your bottom line of the overall project.
So what’s this one investment that will give you huge results and value?
The single greatest opportunity for savings is through the investment in technology.
The more successful you want your construction group to be, the more you’ll need to invest in technology.
Small adjustments that pack a punch.
Here are some great investments in technology that you can make, today, that will have huge returns.
One great investment with technology is the small, yet impactful investment in converting to an electronic payment system for smaller transactions. This one change can save your construction company, big time. Often time’s foreman or contractors will add a person to their payroll and pay them thousands of dollars in payroll for one simple task: reconciling hundreds (if not thousands) of petty cash accounts payable/receivables, month after month. Even better, consider using payments technology like credit cards with strict limits for these purchases. With this small investment, you’ll potentially save tens of thousands off your bottom line.
Another excellent investment in IT and technology, that can save you time and money, is investments into a CRM and ERP software. These software tools take manual labor out of the equation, at least for specific tasks, and automate what once was tedious.
Remember: time that’s quantified into dollars and cents, is money saved.
Behind the eight ball.
Change and technology adoption is hard. We get it.
But you can do it. You can. There are some things you need, first.
First, you’ll need to have some goals and a technology plan in place that identifies your criteria for your technology needs.
Second, you’ll need an outsourced IT firm (or someone internally; maybe that’s you) that can help you with requirements and security.
Lastly, you’ll need to change your mindset. Even though construction companies are notoriously poor adopters of technology, it’s still possible.
You have to ask yourself “What’s the unintended consequence of doing nothing? Am I missing out on easy ways to save money, and possibly missing out on winning bids?”
Companies that haven’t adopted the right technology usually end up behind the eight ball. These companies risk losing out on business, they lack a measurable return on investment (ROI), and when they do decide to take the plunge into technology, after everyone else already has, the learning curve is even steeper.
Not to mention you’ll be behind your competition, trying to catch up.
Don’t play catch up. Invest in technology.
If you’re a Los Angeles-based construction company, looking for help your IT and technology, take a look here at how we’ve helped other construction businesses, just like you.
Or better yet, email us here to learn how DigiSync can help your construction company, through outsourced IT services.