The construction industry has been the slowest one to adopt new technology, but that’s all changing as entrepreneurs are turning their attention to the needs of the workforce. The ubiquity of modern technologies like IoT, cloud computing, 5G is making it possible to put robust technology into the hands of the staff, including construction workers. Moreover, deploying new tools can resolve many challenges which include:
• Risk Management
Construction industries are more prone to risk factors than any other sector. Some companies are even investigating captive insurance programs which incorporate multiple companies that pool their assets and fund their own risk by placing money under management so that they don’t have to pay unreasonably high amounts.
Insurance companies have responded with more flexible products to help these companies in controlling the cost parameter. CFOs are expected to evaluate their options, and if they are ready to participate in a captive insurance program, every participant has to undergo a thorough assessment of financial stability.
There are technologies available that can help reduce job site risks such as drones as they can monitor job sites for safety and security, or even wearables that alert workers about fires or any toxic chemical exposure, etc.
• Attract and Retain the Talent
Companies face growth opportunities while they lack employees to do the work. With unemployment at a loss, it’s been difficult to hire and keep good employees. Management needs to work with the HR and plan strategies so that one can employ the right talent and retain for it as long as possible.
• Cash Management
This is probably the biggest challenge any company face in the construction domain. The key to this challenge is coordinating amid the subcontractor confirming that a job is complete, project managers verifying that completion, and syncing everything with the work-in-progress (WIP) schedule. Drones and mobile applications in this sector can enhance the speed and accuracy of data delivery to finance.
Finance departments must be all prepared with the adoption of modern cloud systems for accounting, spend management and payments. With adopting all the latest technology trends, one will witness some real movement towards digitization of the construction industry.