Efficiency is critical in our post-recession climate and companies are turning to software for construction to deliver their new strategies.
A new era for construction is here, with efficiency at the heart of everything.
The recession sent property markets into a tailspin and as both public and private sectors turned off the taps, billions of pounds of work disappeared.
The Office of National Statistics says construction's output crashed from £102.5bn in 2007 - to just £88.6bn two years later.
Recession took a heavy toll
Employment in the construction industry also nosedived; from its 2007 peak of 2.29 million to barely two million by the end of 2013.
Inevitably, morale suffered and, in January 2013, a national workplace study revealed almost three-in-four construction employees (72%) felt they'd suffered most from recession, against less than half (47%) across all industries.
The Department for Business, Innovation & Skills was so concerned, it asked consultants EC Harris to analyse construction supply chains.
In October 2013, their report identified massive fragmentation and inefficiencies and the need for radical change was evident.
Software identified as crucial
One of the industry's biggest players, Balfour Beatty, had already set about transforming its supply chains, having identified the greater use of software for construction as critical, driven by its BIM (Business Information Management) strategy.
The firm's director of BIM, Peter Trebilcock, stressed his organisation's commitment. “It's a more efficient way of working that will more than pay for the investment.”
Now, with Help to Buy extended until 2020, house-building is driving construction forward, but Turner & Townsend's MD, Steve McGuckin, still counsels caution.
“Rapid expansion after such a long and lean period means some growing pains are inevitable, but with careful cost planning, the business risk associated with growth can be mitigated.”
Takeaways:
- Old-school doesn’t work in this new era. Change - or you’ll be another casualty.
- Learn from the best. Software for construction delivers bottom-line benefits.
- Cost planning must be the cornerstone of your new growth strategy.
