Construction companies in today’s economic climate face a variety of pressing challenges. According to a recent survey For Intuit, the main issues include a shortage of skilled labor, rising material costs and operational inefficiencies. At the same time, rapid advances in digital technology provide opportunities for companies to invest in new tools and solutions that can alleviate these struggles and drive business growth.
Intuit commissioned a survey of 1,000 accounting and operations leaders in the US construction industry to understand their biggest obstacles, how they currently use digital technology and the level of integration between their systems. The findings reveal significant opportunities for construction companies to take advantage of AI, automation and other technological advances with the potential to transform their businesses.
Intuit Enterprise Suitean AI-enhanced native ERP solution, offers construction companies solutions specifically designed to address the many issues identified by respondents, from using AI to reduce manual work and human error, to increasing productivity by supporting accurate, real-time project costing and reporting. More recently, Intuit announced the launch of the Construction Edition of Intuit Enterprise Suite, designed specifically to meet the unique needs of the industry.
The shortage of skilled labor is the main challenge in the construction sector
According to those surveyed, the lack of skilled workers is the most pressing issue facing the construction industry, with 42% citing the shortage of skilled labor and workforce development as their biggest financial struggle. Additionally, 20% of respondents identified employee retention and high turnover as a major concern.
An aging workforce and federal immigration crackdowns are two factors contributing to the construction labor shortage. According to staff survey conducted by the Associated General Contractors of America and NCCER, 92% of contractors reported difficulty filling open positions.
Fortunately, construction business leaders have a solution in mind. An overwhelming 91% of respondents agree that technology can help address this workforce gap, and 88% believe AI has the potential to empower their workforce. At the same time, identifying and implementing the right mix of digital tools and solutions can present obstacles, along with rising costs in an environment of economic uncertainty.
Rising costs and underutilized digital tools
In terms of operational constraints, rising material costs and supply chain volatility (22%) are the top concerns among construction industry professionals, followed by project delays and cost overruns (18%).
Although 93% of respondents agree that technology can significantly increase productivity and help mitigate the impact of rising costs, many are not maximizing their investments. On average, respondents estimate they waste $11,000 a year on underutilized digital tools, out of a total of $58,000 spent. Even so, the majority (87%) characterize their investments in financial operations and software as “non-negotiable.” In some cases, the lack of integration between tools and platforms hinders the progress of construction companies.
Intuit Enterprise Suite is designed for construction companies that have outgrown their current tools. The platform enables companies to minimize cost overruns by leveraging historical data from previous projects to inform new bids, streamline quote-to-cash cycles with scheduled billing and automated accounts receivable (A/R) workflows, and improve project profitability through AI-based project insights and recommendations.
Bridging the gap between the field and the office
Construction business leaders surveyed by Intuit expressed a need for better visibility, streamlined workflows and accurate benefit information. However, many reported data gaps between the office and the field. A single integrated digital platform, such as Intuit Enterprise Suite, can help construction companies close these gaps and achieve critical business goals. But less than half of respondents reported that their digital tools for managing financial and business operations are highly integrated. And while 91% use digital tools for financial management and transactions, far fewer use similar technology in operational areas such as project/site operations (77%) and business communications (72%).
In addition to hindering a company’s ability to generate a unified view of projects and profitability, a lack of integration can lead to data silos and inefficiencies: nearly three-quarters of respondents agreed that they spend too much time managing data. Intuit Enterprise Suite can help businesses address these issues. Real-time data visibility from pre-construction to project completion supports cost-effective decisions, and the ability to share key project data between teams allows them to streamline operations.
Built-in platforms and AI-powered tools provide solutions
From consolidating and analyzing data for decision-making, to automating payroll and other complex tasks to increase productivity, to leveraging AI and machine learning to deliver powerful insights, the right digital tools can help construction companies navigate complexity and focus on growth. According to Intuit research, 61% of high-growth companies surveyed have fully adopted digital tools to manage operations, finance, projects and customer interactions, compared to just 28% of all respondents. Intuit Enterprise Suite provides the integrated, AI-native ERP solution that construction companies need to manage today’s financial and operational demands.
In an economic environment where construction companies face labor shortages, rising costs and other headwinds, leaders are turning to technology to achieve operational efficiency and fuel growth. Intuit Enterprise Suite offers custom workflows, capabilities and tools designed for larger, more complex and multi-entity construction companies, all in one place, helping them win and deliver more cost-effective projects on time.
For more information, visit https://www.intuit.com/enterprise/construction/.
