{"id":117424,"date":"2022-10-24T11:44:40","date_gmt":"2022-10-24T10:44:40","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=117424"},"modified":"2022-10-24T11:44:40","modified_gmt":"2022-10-24T10:44:40","slug":"dodge-construction-releases-2022-top-business-issues-for-specialty-contractors-report","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/digital-construction-news\/construction-technology-news\/dodge-construction-releases-2022-top-business-issues-for-specialty-contractors-report\/117424\/","title":{"rendered":"Dodge construction releases 2022 Top Business Issues for Specialty Contractors Report"},"content":{"rendered":"

In partnership with Procore Technologies, Dodge Construction has released the results of its 2022 Top Business Issues for Specialty Contractors Report, which highlights key issues impacting speciality contractors, including workforce management, technology and profitability<\/h2>\n

The 2022 Top Business Issues for Specialty Contractors Report aims to help businesses understand recurring trends better while broadening industry awareness of the advantages of\u00a0leveraging digital solutions.<\/a><\/p>\n

This global research was completed by five types of speciality contractors: mechanical, electrical, plumbing, steel and concrete. Key findings include:<\/p>\n

Labor shortages and supply chain issues continue to afflict the industry<\/h3>\n

The research found that over 90 percent of speciality contractors report their projects have been negatively affected by a shortage of skilled labour. Experts anticipate the current shortage to worsen: on average, 33 percent of the current workforce is likely to retire in the next five years.<\/p>\n

The labour shortage, alongside supply chain disruptions, is having a significant impact on the industry. About one-third of speciality contractors cannot pass materials cost increases on to owners on half or more of their projects. This is highest among steel contractors (43 percent) facing a very volatile cost market. Speciality contractors identify poor resource management (ie: labour, materials, equipment) and poor client communication as top drivers of rework.<\/p>\n

Speciality contractors most frequently cite construction technology investments to counter the negative impact of labour shortages to improve productivity.<\/a><\/p>\n

Rework is significantly impacting profit margins<\/h3>\n

Poor resource management often drives unplanned rework, which is a key drain on productivity, schedule management and cost control.<\/p>\n

In addition to that, unbillable change orders represent major lost revenue, especially for larger companies. On average, 30 percent of project revenue is lost because of unbilled and unpaid change orders, according to survey respondents.<\/p>\n

Construction technology can help alleviate some of the industry\u2019s most pressing challenges<\/h3>\n

On average, specialty contractors report that 20 percent of workers\u2019 time is currently spent on low-productivity tasks, such as tracking down information or documenting information on paper.<\/p>\n

According to the report, an average of 39 percent of respondents state they still primarily use whiteboards, spreadsheets and other outdated processes. This lack of standardized processes hurts field-to-office communication, negatively impacting the effectiveness of key project processes.<\/p>\n

Will Lehrmann, head of product, speciality contractors, at Procore commented: \u201cThe challenges specialty contractors are faced with today highlight the need for a connected platform built to address their needs.<\/p>\n

\u201cSeveral key takeaways show that the power of technology can help improve productivity and efficiency\u2014as well as combat the workforce and skill shortages\u2014that many specialty contractors are still facing.\u201d<\/p>\n

For contractors to advance and evolve to meet the needs of their clients, the report suggests company leaders must identify where inefficiencies are present within their organizations and adopt more dynamic technology solutions to address them.<\/p>\n

Best practices for technology evaluation and implementation include:<\/h4>\n