Measuring and Maximizing your ROI
Date Posted: October 12, 2018
Posted In: Discussion,
From Procore Jobsite: There are many reasons, of varying degrees of legitimacy, why some construction companies have been reticent to adopt the latest technologies. You read a lot about things like a general discomfort with the idea of change or technology itself, not wanting to lay out the initial cash for implementation, or the hassle and time involved in retraining workers in new methods or systems.
Of course, uncertainty whether there will be an eventual return on the required work and investment is also a major concern. Logically, construction executives are more likely to adopt a new technology if it helps them improve efficiency and boost profitability. According to a recent Vistage CEO Confidence Index survey, 73% of CEOs at small to-mid-sized construction firms believe that company success depends on creating operational efficiencies that result in reduction of time and/or cost.
Given their comparatively low cost of entry, mobility solutions and apps have been a good first step for many companies looking to dip their toes in the technology waters. Every jobsite has a tablet or laptop, and every worker has a cell phone in their pocket, so it makes sense to add tools that work with those ubiquitous devices, especially if it makes workers’ jobs easier and improves the information flow to and from the field.
Lacking those tools, companies waste time and money on downtime spent waiting for the latest project updates or drawings, hoofing it back to the office to retrieve forgotten paperwork or site plans, or making endless copies of information gathered by hand in the field. The return on the investment in mobile tools that eliminate such time-consuming tasks is immediately apparent.
According to digital construction consulting firm Telos, a major contributor to construction’s low productivity is staff at all levels spending too much time on such non value-added tasks. They cite a study conducted by a major US-based general contractor that showed by using digital mobility tools instead of analog, paper-based methods, workers saved one full day per week of non value-adding work, a productivity gain of 15-20%.