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September 22, 2022
Construction companies navigate constant change. Development projects are affected by labour market trends, economic shifts, and supply chain disruptions. Amid these challenges, you must manage current jobs through to completion while you plan for future projects. This is no small feat!
Currently, the industry is facing widespread labour shortages. The unemployment rate has dropped to 2.7%, reports BuildForce Canada—“the lowest level seen since the data series was introduced in 1976.” In addition, realities lingering from the past two years, with the COVID-19 pandemic limiting training opportunities and disrupting supply chains, are complicating the construction labour market challenges.
If the industry's current state is increasing the pressure on your company’s resources, it may be time to explore new approaches to help build resilience for what’s ahead. Smart companies will be exploring innovative tools to help address labour shortages and cut costs without affecting work quality.
In this blog post on construction industry challenges, we’ll explore:
How labour market shortages are straining construction companies
How innovative tools can improve your project monitoring
The benefits of high-resolution webcam monitoring
Steps to recession-proof your construction business
Labour market shortages strain the construction industry
The industry rebounded in 2021 with an annual growth of 6.1% over the previous year, and further growth to come, according to BusinessWire’s Canadian Construction Market Industry Report 2022. However, this has brought new challenges to construction and development companies as there simply aren’t enough workers to meet employment needs. Fewer workers and higher demand make it hard to manage current projects, much less advance plans for the future.
Talks of a forthcoming recession also complicate a tough labour market. “Inflation, labour shortages, and rising interest rates will drag on Canadian growth, pushing the economy into a moderate contraction in 2023,” states RBC.
Retiring construction workers deepen labour market struggles
The industry has also struggled to train and prepare new workers to replace those likely to retire in the next few years. The number of experienced workers leaving the industry for retirement is expected to reach the highest level yet over the next two years, reports BuildForce. This exit of experienced workers will only exacerbate the problems these companies face.
Uncertainty also prevents construction and development companies from booking future work. These disruptions can cause cancelled or delayed projects or higher costs for projects that eventually do break ground. In addition, repercussions can ripple through communities as important projects drag on without completion.
Webcam monitoring: innovative tools for better project management
The bottom line is that project managers need better ways to manage projects, while companies need to keep costs under control and maintain brand reputation with high-quality work. As a result, new technologies are becoming more attractive to companies looking to reliably keep their project teams on task and on time.
Companies across the industry are discussing technologies like intelligent automation, the Internet of Things, and big data, according to KPMG’s Construction in the Digital Age Report. But these advancements are long-term solutions, and most construction companies are still using legacy systems they aren’t willing to abandon.
Where can you make improvements today that will positively impact your business? Better project monitoring tools like high-resolution webcam monitoring technology can offer a competitive edge to companies determined to protect their profits through turbulent times. And, a webcam system can provide you with valuable oversight and data you can use immediately to finetune your project management.
Here are three ways webcam monitoring can help recession-proof your construction business:
1. Implement real-time project management
Having a live, high-resolution view of work sites at all times is a game changer for improving project management, and improving internal communication. Software capabilities help your company quote, manage, and deliver better project outcomes.
With the real-time information gleaned from a webcam monitoring solution, you’ll be on top of every opportunity to increase production or trim costs to keep projects within scope. Catching errors swiftly and mitigating losses due to changes in weather or other external factors also help project managers deliver better results on every job.
A webcam system can support your supervisors’ logs, allowing visual confirmation of deliveries, site visits, and work progress. With full details easily accessible to project managers, image archives can improve dispute resolution, build trust, and preserve client relationships.
2. Cut travel costs with remote monitoring
With project managers and engineers working remotely, sometimes across the country and with multiple jobs on the go, better monitoring solutions can be the key. Projects need constant management to ensure the best approach is being used to carry out work plans and make adjustments in real time. Remote access helps ensure you always know what’s happening onsite, so you can adjust or shift resources to where they are needed most.
Remote site monitoring can save travel time and transportation expenses for project managers on every job, cutting manual checks on work sites. The savings don’t end there, though. When work schedules or priorities need to change, you can alert entire crews before they arrive on a particular job site for the day.
3. Stay competitive in a tough market
When tough times strain an industry, companies need to get more competitive. Your reputation will count on delivering quality work even when disruptions occur.
Clients will be awarding projects to construction businesses that stand out and can showcase their success in meaningful ways. Innovation helps you differentiate yourself from competitors and offer tangible examples of how your company will manage projects.
Internally, you’ll need every advantage to bid jobs accurately and ensure you can execute on any you win. With smoothly run operations and tighter estimations, you’ll protect your profits and your company’s ability to navigate future growth.
Recession-proofing your construction business
Construction companies have always needed cost-efficient ways to monitor job sites to help manage projects and boost customer service. However, industry trends drive companies to explore solutions to fill this gap and shore up their businesses as they navigate change.
You can build a more resilient company by staying on top of labour trends and making plans to protect your business through the changes to come. Running efficient projects, cutting unnecessary costs, and reducing travel time can help you make the most of your existing team of workers.
We give businesses the ability to capture their properties and projects in high resolution to offer them a competitive advantage in tough markets. With more effective use of your resources (time, human, and financial) you’ll boost your ability to keep taking on projects and reduce the impacts of any economic contractions on future planning.
Read about other challenges facing construction companies today or book a call to discuss how high-resolution webcam monitoring can help you weather the changes to come.