Improving Productivity in the Construction Industry
2016 is proving to be a great year for construction professionals and companies. As reported by Construction Dive, analysts had predicted 6% growth for the industry, with construction starts reaching nearly $712 million.
However, along with these rosy predictions came several key challenges. First and foremost is the continued issue of skilled labor shortage. While this is not a new issue, the extent of the labor shortage is likely to be felt by companies for years to come as experts have predicted that the deficit will require several years to repair. As Tom Menk, an assurance partner with BDO’s national real estate and construction unit, told Construction Dive, “Not only has the construction industry struggled to appeal to a younger, more technologically savvy workforce, but during the economic downturn, many companies opted not to bring in younger, newer talent.”
Exacerbating the labor shortage is also the issue of stagnating productivity within the construction sector. McKinsey identifies several internal and external factors that can affect a company’s ability to improve performance and innovate, which include:
- Talent management – Few companies are developing talent internally and have historically resisted hiring from outside of the field, which limits the industry’s ability to learn from other sectors.
- Best practices sharing – Inconsistent performance management causes companies and teams to treat and view each project from scratch rather than learning from experience.
- Failure to adopt new technology – While many firms have begun implementing BIM and tools such as drones and smartphones in the field, many others are still tied to legacy systems that make change difficult.
- Coping with complexity – Megaprojects are on the rise and projects in general are becoming more complex as client demands force teams to devise intricate solutions that sometimes, unfortunately, reduce productivity.
Addressing these challenges can help construction companies deliver projects on time, on budget, and to specifications. Discover how to take the first step in mitigating the factors that cause poor productivity and budget overruns at U.S. CAD’s upcoming construction webinar series.
Construction Webinar Series, Part 1: Site Planning and Coordination with Bluebeam
August 31,2016 at 11:00 a.m. PST
Construction Webinar Series, Part 2: Risk Management with BIM 360 Docs
September 8, 2016 at 11:00 a.m. PST
Construction Webinar Series, Part 3: Model Coordination with iConstruct
September 15, 2016 at 11:00 a.m. PST