By Construction Tech Review | Thursday, May 30, 2019
FREMONT, CA: The construction industry has lagged in adopting the latest technologies. But with the entrepreneurs focusing on the opportunities in the industry, the trend is changing. The proliferation of mobile devices, affordable cloud solution services, and IoT technology is transforming the construction space. The massive transformation has led the venture capitalists to fund the related businesses liberally since 2013.
CFOs must collaborate with the IT team to digitalize the processes. They must up-skill the personnel for an environment that will involve a massive flow of data. Then the relevant tools and technologies must also be decided upon that will best fit the enterprises’ requirements. Strategically, the deployment will enable construction and equipment rental finance teams to overcome several challenges. These include:
Business Continuity Planning
It’s common to find family-owned businesses in construction and equipment rental industries. However, it’s essential to work on business continuity plans, whether it’s creating an Employee Stock Option Plan (ESOP), transferring company ownership to next generation, or merging the company.
Industry-specific enterprise resource planning (ERP) and cloud procurement platforms provide a better picture to the financial professionals.
Rescaling Accounting Standards
Revenue recognition is of prime focus in the construction industry. With the rules that are favorable or at least not punitive, toward the construction industry, CFOs must plan on to ensure bill against the contract. Mobile technologies also have a role to play to expedite the flow of information between the field and office locations.
With a rise in insurance cost and the risk involved in the construction industry, the companies are pooling their assets to exempt themselves from the expensive insurance premiums. Meanwhile, the insurance companies are offering flexible plans to help the companies control their costs.
CFOs need to assess the situation and decide upon a suitable course of action. Latest ERP systems provide a comprehensive assessment while devices such as drones can monitor the job sites and provide real-time estimates.
Talent Acquisition and Retention
With unemployment affecting talent retention, CFOs are coordinating with HR to refine their hiring and retention strategies. Utilizing mobile training technology helps them to onboard the unskilled candidates within a short period. Plus, it also lets them access a larger pool of candidates.