Innovation is key to staying ahead of the curve
Covid-19 is having a detrimental impact on many industries, but in New Zealand, construction isn't one of them. This sector is experiencing a massive boom - just look at the building consents - there's been a 5.8% increase since last year.
"Housing construction demand continues to climb, supported by low interest rates, strong housing market activity and New Zealand’s chronic housing shortage," ASB senior economist Jane Turner said.
Nationwide, construction is one of the most important industries for New Zealand's economy. According to the Ministry of Business, Innovation & Employment (MBIE), approximately 250,000 New Zealanders work in construction, while another 200,000 are in construction-related occupations.
In order to remain competitive, construction companies need the right tools for the job. In other words, they need to innovate. While the construction industry has always been innovative when it comes to physical tools and building techniques, they're often slower to adopt the kind of technology that streamlines workflows and business processes.
Ask yourself the following:
- Can your competitors offer better service, quicker completion, and lower prices than you?
- Are you having difficulty cost-effectively coordinating the people, materials, consents, budgets and timing of projects - small, medium and large?
- Are you experiencing a drop in productivity because your teams don’t have access to the programs they need to work effectively?
- Is morale slipping due to frustration and dissatisfaction?
If you've answered 'yes' to any or all of these questions, then you’re risking your business falling behind its competitors and potentially suffering significant reputational damage.
Using technology to take advantage of the construction boom
Digital transformation is continuing to disrupt organisations on a global scale, and the construction industry is no exception. Digital technology is advancing in leaps and bounds, with business management platforms that have been specifically designed with the construction sector in mind. Here are four ways successful construction companies will leverage technology to make the most of the opportunities presented by today’s construction boom.
1: Be early adopters of digital technology and enterprise resource planning (ERP) systems
Don't be one of the last construction businesses to jump on the innovation bandwagon. If ever there was a time for being proactive, this is it. If you want to be at the forefront of the industry, you need to be continually looking at how you can invest in technology that will keep your business competitive. Now is the time to harness software designed specifically for the construction industry - not later.
2: Bring disparate and legacy systems together
Successful construction companies are those that evaluate their current systems and look for ways to combine what works with what's new. Disparate and legacy systems can cause errors, delays, and communication issues. An ERP system will identify problem areas in current jobs, accurately estimate future projects, increase collaboration across teams and streamline time-intensive processes to avoid delays.
3: Ensure projects stay on time and budget
In a recent report on the New Zealand construction industry, the two most common causes of disputes were reported as poor-quality documentation and delays in work or extensions of time on project. Deploying an ERP system designed for construction will ensure timely information, automation and integration. You’ll have timelines and budgets well in hand with more accurate quoting, reduced errors with better communication, and the visibility to keep clients in the loop and catch and solve issues early.
4: Bring the right ERP partner on board
Your ERP journey starts by finding the right implementation partner. Look for one that offers a range of ERP solutions, with proven expertise in implementing and supporting them. Right from the beginning, they'll focus on understanding your company's needs, the systems you currently have on board, and what you want to achieve. They'll have a successful track record of implementing and supporting ERPs and will demonstrate a good understanding of the industry.
MYOB Advanced Construction - designed specifically for the NZ construction industry
The MYOB Advanced Construction ERP system is a purpose-built solution aimed at helping the construction sector harness innovation and succeed into the future. The solution gives you complete control and will make sure your projects progress efficiently. You'll no longer struggle with the inefficient process of switching between different sheets and systems, and you'll have at your fingertips high-quality data that will improve decision-making.
The more the construction industry grows, the more complex it will become. Legacy and paper-based systems will only increase errors and separate your company from your competitors who are evolving to meet the increased demands. The key to remaining both competitive and profitable is to harness the power of ERPs like MYOB Advanced Construction as early as possible.
Keen to learn more about how ERPs are an essential tool for your construction business? We've got two eBooks that will interest you: How technology is shaping the future of construction, and Information: the most powerful tool for construction projects.
