Research Shows Contractors Grossly Underutilize Technologies that Could Save Money, Improve Productivity
Date Posted: October 31, 2019
Posted In: Ideas,
From For Construction Pros: Technologies, such as telematics, are an everyday part of the construction industry. However, the 2019 Teletrac Navman Telematics Benchmark Report has uncovered just how grossly underutilized construction technologies are. Why does that matter? Because it means contractors are making investments they aren’t fully utilizing, meaning they might possibly be throwing money away — which can harm their business and productivity in both the short- and long-term.
The report results don’t advocate that contractors invest less in technology. Instead, contractors should make sure they are fully utilizing the features of the technology they are investing in.
The Teletrac Navman report gathered input from contractors in construction, mining, and oil and gas in the United States, UK, Australia, New Zealand and Mexico. Of the respondents, 90% indicate they use telematics — primarily to track vehicles and equipment. However, respondents, on average, were only using three of 12 tested features, indicating most aren’t even using half of the technology available to them.
Construction contractors responding to the survey indicated that increasing material and labor costs is the biggest concern. The second biggest concern is driver/operator safety. When it comes to business specific concerns, managing costs tops the list. And 31% of respondents indicated equipment and vehicle maintenance is the largest expense area, followed by 27% reporting fuel as the largest expense area.
Contractors missing opportunities with telematics
While respondents indicated that increasing profits, reducing operational costs and fleet upgrades are top goals and investments, the report has unveiled that contractors are missing opportunities to use technology to achieve those goals.