Due to a number of factors, including tariffs and cost of transportation, the cost of construction materials rose 7.8% in 2018. The labor shortage in construction and the skilled trades has pushed worker costs up as well, so contractors and project managers are struggling to make projects profitable.

Since cost of materials is largely out of their control, forward-thinking leaders in the construction industry are turning to tech solutions to find efficiencies that cut costs in other areas. The tech world is responding with more offerings and innovations that target construction industry pain points.

While the industry has been traditionally slow to adopt new technologies, market forces are rapidly making construction technology a necessity for companies to maximize profitability. These advancements range from managing workflows and inventory control to the essential work of construction.

Finding Everyday Efficiencies

When looking to cut costs, the best place to start is with low-hanging fruit. What tasks take hours that could be cut to minutes with a technology solution? Look for pain points in process and technologies that will provide immediate return on investment by improving processes overall and making work easier for employees and subcontractors.

Cloud-based or mobile solutions for time cards and dailies are a great place to start, as well as technologies for managing workflows. Many contractors are turning to convenient, easy-to-use mobile applications for smartphones or tablets. The best-of-breed applications target specific workflows and pain points instead trying to provide all-in-one business solutions. They allow supervisors to complete administrative tasks in a fraction of the time required for old-fashioned pen-and-paper methods.

Managing Assets

Another aspect to consider is asset management. Materials and equipment with RFID tags on a geofenced site will help companies track usage and location of these items as costs continue to rise, making sure they are used as efficiently as possible. Finding the right turnkey software solution for these efficiencies is crucial to creating buy-in from your team and making sure they will actually use the software.

Fabrication Alternatives
The most exciting developments in construction technology might not be fully adopted for years to come, but some forward-looking companies are pioneering new ways to build. Already, prefabrication and automation are supplementing onsite construction. In addition, 3D printing promises to transform the construction process in the decades ahead.

Onsite construction comes with inherent risks. Weather and site conditions can create a work environment fraught with danger, delays and miscommunication. Prefabrication puts the building process in a controlled environment, dramatically reducing costs and increasing quality. Work can be completed assembly line style, reducing scheduling and sequence of work issues that occur on a traditional jobsite.

In response to the skilled labor shortage, tech firms are developing ways to automate simple construction tasks such as laying bricks and pavers or creating curbs, allowing project managers to dedicate crews to the most important tasks.

Doing More with Less

While it is tempting to focus on particular products when finding efficiencies, the tech world’s response to rising construction costs isn’t about gadgets. It’s about a shift in thinking about the construction process from beginning to end. Innovators in the field and the professionals who embrace their technologies are finding ways to do more with less. They’re delivering high-quality, attractive construction at prices customers are more than willing to pay.

While these changes won’t happen overnight, the next decade will see seismic shifts in the industry that will benefit contractors, workers, subcontractors and end-users. As technology transforms the construction process, designers, architects and builders will deliver better buildings at a quicker rate, for better profit.