8 Solutions to Challenges for Construction Companies
- April 4, 2020
- Posted by: ross
- Category: Construction, Engineering, Trades
8 Solutions to Challenges for Construction Companies
Will your mindsets be a large factor of success? We are here to encourage you and your team.
Construction is estimated to be the third largest industry in the Australian Economy. As an essential service, the Australian construction industry has felt much pain, but for many it’s been ok (compared to other sectors). The Australian Performance of Construction Index (PCI) hit its lowest ever point during the
pandemic peak – showing serious effects.
Whether your business is small or larger we are all facing similar challenges and you can survive and even thrive. It’s in the problems that we find better ways, better mindsets, gain stamina and value what and who we have alongside.
Working on these challenges now can mean significant benefits to a business, and lifestyle for the owners and their teams.
Here’s a list of some solutions and encouragement for thriving in construction and associated industries, hope it helps.
1. FINDING AND ATTRACTING NON PRICE DRIVEN CLIENTS
Points of difference (PODS) and value proposition (VP) are often left behind by companies, particularly when business has been booming. Understanding and providing evidence of the VPs and PODS
incorporated in the lead generation campaigns increases trust. Implementing branding and awareness strategies takes some time and consistency. When the times get tough, prospects are more relational and ready to accept invites to quote.
Reaching out via social media is one method which needs to be done, other more direct methods are available and can be quicker. Remember that relations take time for trust to develop. You and your team may need to compete on some price levels if efficiencies are not valued or known, but to get in the door you will need an edge.
Do you have a clear list of your value offers , efficiencies cost benefits and ABC client types? What makes the difference between your business and the competition?
There are many points of difference, if you know how to find and develop them, you can provide a USP. Investing in You First is the fist step, second is using your leadership. If you bring more value to your team and clients what will that mean for your profits growth rate? We can share more direct methods if you need help.
2. TEAM CULTURE PERFORMANCE
TEAM IS AT THE TOP. Creating a proven employment filtration process and established culture is paramount. The business is a reflection of the leader, the team culture is possibly the most opportune area for increased success.
Knowing the values of a self propelling, interested and a bought in team can be overlooked and be the detriment of growth. On fireindividuals, competent and efficient, aligned to the company and their personal goals is a recipe for success. Learning spent in this area is a proven antidote for leaders to find more free time and a business that performs with less management. The people reflect the value of the company team and help drive new business outcomes.
3. LABOR SKILLS SHORTAGE
Whilst technologies are increasing, the team are key. With the rising age of our population it is becoming more difficult to recruit and retain highly skilled and motivated workers. We need to attract the younger workers into the trades so they view construction as a valued and lucrative career. The older days often left the apprentice with little motivation.
Today, they are looking for purpose and motivation. The opportunity to utilise and acknowledge them through interaction between tradesmen and their skills is a great way to help them to stay.
4. SLOW RECEIVING OF PAYMENTS & INVOICING
We need cashflow to survive. Cash is king, often the invoicing and office systems are not suitable. Freeing up and utilising more of your resources requires a clarity of payment systems as your projects continue.
Systems are key to efficiencies for receiving money, reduced staff costs and easier reemployment. Good understandings of office procedures with systems and rules of the game in place will positively affect cash flows, giving the abilities to maintain better cash flows and enter more projects.
5. UNDER PLANNING
Planning to fail or failing to plan brings the same outcome. Having 100% right decisions is not always possible, but making many more right decisions is possible with experience and will bring growth and stability.
Marketing, Sales, Operations, Admin, HR, WHS, Projects Planning will reduce failures and increase confidence. Learning and psychology around the planning is paramount in stepping forward with better decisions. Nothing beats brainstorming with others that are seasoned and experienced in business decisions. Investing to increase competencies in decision making will provide greater and faster returns.
6. UNCONTROLLED GROWTH
This is one of the failures for business which is often unseen or comfortably hidden as the thrill of growth comes. Many companies can find themselves in hot water and stress due to loosing sight of their vision
and their available capabilities and resources.
Knowing the financial numbers and cost centres clearly, with an easily read scoreboard, helps to make informed decisions. Strategies and planning with tracking for expansion and demand is critical to growth.
7. USE OF TECHNOLOGY
Technology has a key role in helping win new business, retaining existing clients and day to day operations. Without the right systems, business can be slowed. Making the right decisions here is critical and possible with the right knowledge, questions, and matching the systems.
Looking at the future with an overall professional view of the business is a key to the rate of growth and profits. Part of your business vison mapping and planning considers the right technologies with capital and time considerations.
8. WORK HEALTH & SAFETY TRAINING
Cutting corners and reducing the spends on WHS can occur to maintain the profitability margins. Litigation and insurance costs can turn out to be much higher than compliance costs.
As the business grows and competence is found, WHS can take a turn for the better. Finding the strategies, systems and understanding to turn WHS into a positive is of high importance to future growth and provides the ability to sleep well at night. Training is an opportunity when facilitated with the business planning and team culture processes.
The overall structures of a company are many, it can often be daunting to know the best decisions. Often the wheels can spin, some leaving it years before venturing out of the known zones.
We hope this article was helpful, reach out if you would like to know how to implement changes easier and faster.