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From Good to Great: The Power of UX Design in Software Products

Software is supposed to solve a problem. Whether it’s simplifying tasks that humans struggle with or just streamlining the workflow process, companies spend money on software in order to make their day-to-day operations run smoother. But for this to occur, the development company has to focus on the end users’ needs and wants. And that’s where good UX design comes into play.

Why is good UX design important? The reasons are endless. However, we’ll discuss 9 of the most important reasons here. Keep reading to find out what they are.

What is UX Design?

Before we dive too deeply into UX design, it’s important to understand what it is. It’s become something of a buzzword in the industry over the last few years, but a quick breakdown could be helpful.

UX stands for “user experience.” UX design is the process of developing a product, whether it be a website, software program, or device with the end users’ experiences in mind. With that description, good UX design sounds like a no-brainer, but it takes an experienced team of developers and designers to make it happen.

There are decision trees and formulas that developers use to ensure they’re implementing good UX design, but that’s far beyond the scope of this article. At the core, the development team considers who the user is, what their challenges are, and how the software can solve those challenges in the easiest and most efficient ways possible.

UX designers use market research, product development, strategy, design, and lots of testing to ensure they’re creating a product that is attractive, effective, efficient, and easy to use. That’s good user experience design in a nutshell.

This isn’t wildly different from the construction design process. Engineers, designers, and architects constantly consider how the buildings and infrastructure they create will impact the people using them during the design process.

9 Reasons Why Good UX Design is Important in Software

It might be easy to understand that good UX design is important, but all of the ways it can impact the end user might not be so obvious. The following are 9 reasons why good UX design is important when choosing a software program.

It Leaves a Lasting Impression: Good and Bad

UI (user interface) gives the user their first impression, but UX creates a lasting impression. How smoothly a software program runs, offers intuitive workflows, and allows the user to find the solutions, data, or reports they’re looking for will create an opinion of that program for the user. If the UX is subpar, even if only at the start, users will feel frustrated over just the thought of the software.

However, if that software is fast, intuitive, and provides answers without digging through multiple tabs in error, the user will remember it. They’ll have a much more favorable opinion of the program and rather than feeling dread when they log in, they’ll feel positive that they’re going to achieve their goals.

It Provides Value

Good UX design is not a mistake. It’s the result of a development team focusing its efforts on developing exactly the type of software that the user needs. This means the team won’t be spending time or energy developing aspects of the program the user really can’t use.

In the end, this streamlined and targeted development approach means less wasted resources, and this means a more affordable product for the end user. They’ll be able to get more value from the program because it was designed to solve their specific challenges and nothing else.

It Makes Learning Easier

Regardless of the software program, there is always a learning curve or implementation period where users have to get used to the new processes. Whether it’s the layout, workflow, or integration with other software programs, users need to learn how the new system works and deal with the bumps in the road.

Good UX design can pave those bumps and make learning the new system much easier. With a well-planned layout, intuitive workflows, and the ability to make adjustments that scale across multiple reports automatically, using the program can become like second nature.

It Ensures the Program Will Fit the Users’ Needs

Good UX design involves developing “personas,” or creating a fictionalized version of the ideal real-world user, and developing the software for that persona. Developers will take into account all of the user’s daily activities and responsibilities and the challenges that those activities and responsibilities create, and come up with a tailored solution.

In terms of construction, this ensures that the software meets the needs of the people in the building industry. An effective UX design will account for the project types, contract types, personnel, reports, and accounting that the construction industry uses. There are no useless functions or fluff to deal with.

It Encourages Widespread Adoption of the Software

It’s one thing to decide to implement new software and another thing to actually get everyone on board. While there are always a few folks that will resist change, a good UX design can help pry those old spreadsheets from their desperate clutches.

When a program is designed well and works as it should, the team will notice. Folks will start to show each other how certain functions are saving them time and frustration over the old program. And while a program champion must still learn the software and introduce it to the team, a good user experience can make implementation effortless.

It Reduces Reliance on Customer Support

How often do we get frustrated with a program, app, report, or input point and have to call customer support, only to realize the solution was simple? It was just a toggle buried in five layers of user settings. If we’re all being honest, the answer is “too often.”

While great customer support and service are critical to any software program, good UX design minimizes the users’ need to lean on it. By using simple, easy-to-adjust settings and input points, well-designed programs allow users to understand what they’re doing, make adjustments, and see an impact instantly. If something doesn’t seem right in a report, they should be able to access that report immediately and fix the issue without digging through tab after tab to get there.

It Helps Users Serve Their Customers Better

When a company decides to implement new software, the goal should be to simplify processes in order to run smoother and more efficiently. It can change the way the company handles almost all of its most important office work. And you better believe this transfers to the customer.

When a customer, partner, or lender calls a well-run construction company and requests an update, the latest report, a change order, or just clarification, good UX design really shines. A company rep should be able to log in, access the account, and pull that report or make that change in seconds. And if they’re using a program that simplifies data entry and provides automatic updates, they know all of those changes will be reflected across the program.

Not only does this mean serving the customer faster, but it also means providing them with accurate data. Good UX design lessens the chances of mistakes and oversights, and this makes it one of the most important aspects to look for in a software program.

It Promotes Communication

No one understands the importance of communication better than a well-oiled development team, and this often trickles down to the software. Good UX design involves creating channels and avenues that teams can use to talk to each other, work on the same project, and simplify communication.

In many cases, this means using cloud technology to ensure everyone has access to the same data at once. Any changes they make can be sent automatically to the folks who need to know about them, as well. This type of communication promotes collaboration and responsibility—all because the software was designed to do it.

It Directly Impacts Profitability

At the end of the day, any new tools or software that a company implements should improve its profitability. Good UX design, with its focus on efficiency and automation, can do just that.

With less time spent on data entry, updating reports, fixing mistakes, and tracking down signatures, office staff can focus their creative efforts on other projects. Those projects can then help the company move forward, improve its efficiency, and make better decisions. Only a software program created with great user experience design can offer the type of freedom a team needs to work like that.

 

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Author Biography:

Tom Scalisi has over 15 years of experience working in the trades. Since moving to full-time freelance writing, he has developed a passion for helping construction companies grow. He enjoys teaching contractors how technology can streamline their businesses and educating them about their rights during payment disputes. 

 
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Company News Features Industry Insight Tips & Advice

Top 5 Features to Look For in Drawing Management

premier construction software drawing management

Every journey needs a roadmap to take it from start to finish. This couldn’t be more true in construction, except that a project’s journey typically requires an entire atlas: a collection of drawings for every stage. But, keeping that collection organized, up-to-date, and accessible is a serious challenge. And, the more folks who need the drawings, the more confusing it gets.

Luckily, there are ways to simplify the drawing management process. Instead of working from paper plans and printing new revisions at every turn, digitized drawing management programs keep everything saved (and updated) in one database. And while adopting a digital future might be the right move, not all drawing management programs are equal, so it’s important to know what to look for. The five features below are a good start. 

What is Drawing Management?

Before discussing its most critical features, it’s important to understand exactly what drawing management is. Drawing management is a digitized, cloud-based system that collects and organizes architectural plans, structural drawings, mechanical schematics, elevations, and other drawings related to construction projects.

As a cloud-based database, the drawings are available from anywhere as long as there is an internet connection. Users can log into the system, peruse the appropriate drawings, and review them or send them without going back to the home office. 

The Importance of Drawing Management

Drawing management has become one of the most influential forms of technology for construction companies. These online-accessible databases allow for better collaboration, less waste both environmentally and monetarily, and smoother-running projects.

When a construction company uses a drawing management program, they’re able to give instant access to drawings to whoever may need to see them. This includes designers and engineers, subcontractors, material suppliers, inspectors, and owners. This type of instant access ensures everyone is always on the same page and working toward the same goal.

Let’s also look at this from an environmental perspective: Digital drawing management means that there is less paper being printed every day. Revisions performed on a computer can be saved directly to the database, meaning users won’t have to travel back and forth to the shop and site for the latest prints, saving gasoline at the same time. 

Drawing management can also help make well-informed decisions faster. Any time there is a design change, the design or contractor can send the proposed change to the customer with the drawing attached. They’ll be able to review the proposed change and the drawing, allowing them to make an informed decision and approve or deny the request.

Drawing management also ensures that the folks actually building the structure are working from the correct plans at all times. With instant access to the latest revisions, users are less likely to be working off of old drawings, ensuring that the project is completed according to schedule the first time. 

The Top 5 Features To Look For in Drawing Management

Choosing a drawing management system goes beyond understanding its importance and role in a modern construction company’s day-to-day operations. The following are some of the best features to look for when shopping for a drawing management system.

1. Add Comments

Traditional paper management systems involve several copies of the same drawings. Management typically makes individual comments on these copies and hands them to the folks who need to see them. This is a lot to manage and there’s no guarantee that everyone will receive their plans along with the notes. But with the ability to add comments for each person who needs to see them to one electronic copy of the drawing, everyone stays in the loop. 

2. Modify and Mark-up Drawings

Just as the ability to make comments is important, so is the ability to modify or mark up plans and drawings. Changes on traditional paper need to be distributed to individual team members while making a change on a cloud-based drawing allows everyone to see the most up-to-date revision without missing the changes. 

But even more important than the ability to mark up the plans is the system’s ability to make those new sketches available for everyone on the job. If an engineer marks up the plan and saves it to the database, the subcontractor who opens those plans will see the marks and be able to act accordingly.

3. Link to RFIs and Change Orders

Drawing management is all about efficiency, and this couldn’t be more true than it is with RFIs, change orders, and other requests. When a user sends an RFI for clarity on a material or design, they’re able to link directly to the drawing in question. This is essentially like the electronic version of stuffing a drawing in an envelope and sending it directly to the customer, only faster. The designer can open the ROI, better understand the question, and answer in a more efficient process.

The same applies to change orders: Any proposed change that might require a CO can be accompanied by a link to the exact drawing in question. This allows users to review the change order, see how it will affect the plan, and make a decision that works for the project in a fast and efficient process. 

4. Track Revisions

Managing revised plans and drawings in a paper system can be a nightmare. First, all of the copies need to be accounted for, and they need to be kept in revision order. They need to be easier to sort through, and to ensure the project goes off without a hitch, the most recent approved drawing needs to be on top. With a drawing management system, this doesn’t need to be so hard.

Digital drawing management systems make tracking revisions a breeze. With the click of a mouse, users can look at older drawings based on dates and revision numbers, or jump ahead to the latest approved version. 

5. Choose Layers

Construction drawings contain a lot of information. But not all of that information applies to everyone who uses those drawings. Comments, notes, and sketches on those drawings can get confusing, but with a drawing management system that allows users to create private layers, users can hide all of the peripheral information and get down to the heart of their job.

With the ability to create layers, designers and project managers can give specific details to subcontractors and other job site personnel. This streamlines the transfer of information, hiding all of the data, notes, comments, and sketches that the sub doesn’t need to see, resulting in a better understanding of the project. 

Why Drawing Management Solutions Are Worth it

Drawing management solutions make a lot of sense, but they’re often an investment that construction companies aren’t sure they want to make. What makes these solutions worth it? 

Realistically, effective drawing management software will begin to pay for itself immediately. Every time that project manager doesn’t have to drive back to the office for a paper drawing, or every time a decision is made faster because drawings are readily available, they’re saving money. 

Consider the cost of performing a few days of work with old drawings and the expense of correcting the mistake. These costs alone could pay for a drawing management solution.

Ultimately, drawing management solutions save construction companies by maximizing efficiency. Companies looking to streamline their processes and protect their profit margins should adopt a solution that fits their needs, and with the features listed above, they’ll know exactly what to look for. To learn more on how Premier can help streamline your business process with this magical tool, contact our industry pros and request your demo today!

 

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Company News Industry Insight Tips & Advice Ultimate Guide

The North American Construction Market and the Future of Construction Software

Very few people could have guessed that the past few years would be so interesting. But, despite the tumult, supply shortages, unrest, and other challenges, construction is still one of the fastest-growing industries in North America. All across the U.S. and Canada, construction crews continued to build while other industries were at a standstill—albeit, not all at the same pace.

But what does the future hold for the construction industry? And what does it mean for the future of construction software? Let’s find out!

Where the Industry is Heading

As a whole, the construction industry is heading toward continued growth over the next few years. Government spending on infrastructure projects is helpful, but the majority of the growth will come from the effort of the residential industry. In fact, residential construction deserves most of the credit for the industry’s bounce back after the 2020 recession. 

But how much will it grow moving forward?

With so many entities performing market research on the construction industry, the estimates regarding growth vary. However, most researchers believe that the industry will grow at a compound annual growth rate (CAGR) between 4.8 and 8.4 percent over the next few years. While that might seem to be a drop in growth rate from 2021’s numbers (roughly 12 percent), it’s still within a healthy range for most industries. 

Trends to Watch

One of the best ways to understand the direction of the construction industry is to look at current trends. While they may be temporary, they can steer the direction of the ship.

Residential is paving the way. While the commercial and municipal construction sectors slowed (crawled, really), residential construction experienced a boon. Despite the rising costs of materials and lumber, new home construction and renovation made up the majority of the industry’s growth.

Some construction firms saw the writing on the wall and pivoted from commercial and residential outfits to residential-only. Many downsized their workforces but were able to keep the doors open by building new homes or remodeling existing homes for folks fleeing big cities.

Commercial and industrial projects are likely to continue crawling moving forward for the next year or so, leaving the emphasis on the residential sector. However, both of these industries are expected to bounce back shortly after. 

Labor is still an issue. Finding skilled workers has always been a challenge for the construction industry, and it’s an issue that isn’t likely to go away any time soon. But, it’s not just the ironworkers, carpenters, and electricians that are hard to find. It’s also a lot of the clerical and office staff. In fact, the number encompassing all positions lost during the pandemic is just shy of one million jobs.

Many folks chose to stay home from work for a few years, while others transitioned into other industries that were more work-from-home friendly. Whatever the case may be, there just aren’t enough experienced, qualified workers to keep up with the industry’s demand. 

Companies are doubling down on technology. Despite the industry’s resistance to technology and the changes it may bring forth, companies are investing heavily in connected construction. The hope is that by investing in technology, these companies will be in a better position to answer the call for smart cities, climate change programs, and Urban Air Mobility initiatives.

Along with positioning themselves to take advantage of big-spending bills and government programs, the companies within the industry can now realize improved efficiency, accuracy, reduced costs, and larger margins. 

Supply chains are far from fixed. Supply chain issues plagued all industries in recent years, but they’ve really held the construction industry back. Between not being able to get certain materials or basic materials doubling (or tripling) in price, materials availability and affordability have been an issue.

This issue is likely to play out over the next few years before it comes back to the center. Some materials are still difficult to find, and then getting them to the job site can be even more of a challenge. Until other countries open completely and everyone heads back to work, this is an issue that won’t go away any time soon. 

How The Construction Software Industry Will Respond

While there may be good things on the horizon for the construction industry as a whole, the construction software industry must adjust accordingly. In general, this means developing new technologies or adapting older tech to modern trends. 

1. Adapting to Residential Contractors

Most construction software programs are designed for large contractors tackling commercial and industrial projects. However, with the current trend showing residential work to be the shining star of the construction industry, software companies will have to adapt.

Adapting to residential construction won’t be difficult for most software developers. However, a greater focus on making estimates easier to understand, making forms easier to customize, and simplified invoices will help those working in the residential industry.

2. Better User Experience

With such a shortage of skilled employees to choose from, growing construction companies will often rely on less-experienced personnel to see the job through. In fact, some employees may go right from the slab to the office, and they need to adapt quickly.

In this case, making construction software easier to use will help those lacking experience adapt to the new system. Also, these systems will help to reduce the number of mistakes or errors caused by inexperience—something the industry may come to rely on in the coming years.

3. Cloud-Based Access

With so many folks working from home these days, cloud-based storage systems and real-time reports will become critical. While the actual building happens on-site, plenty of the clerical and administrative roles can transition to a remote commute. And, companies will have to start offering these WFH positions if they want to attract the right people.

For these roles to work, however, they need reliable access to the company’s construction software program as well as the drawings and files that it may contain. Software companies will have to partner with strong cloud service providers to pull that off.

3. Improved Flexibility

As supply chains continue to work themselves out, modern construction software needs to be nimble and flexible. It should allow for easy changes it can also track through the system, adjusting the appropriate values automatically as it goes. There’s no way to predict how often this could happen during the lifetime of a job, and streamlined automation will help.

Construction software should allow for the easy production of change orders should a particular material become unavailable. These change orders should operate on customizable workflows so everyone who needs to see it and approve it can do so. With these features requiring minimal input from the contractor, there will be fewer errors and less downtime, helping to keep projects on track. 

Growth on the Horizon

Between the construction industry and the software that supports it, the future looks like growth. While certain sectors might struggle to keep up, the overall industry is poised to grow over the next few years, and savvy construction software creators will adapt their programs to go along for the ride, including yours truly, Premier Construction Software! Amidst the market shifts, one thing Premier and the team behind the brand can do is adapt. We will ensure your business can benefit from a system like ours.

See how we can help you structure your business for success, schedule a demo today.

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Author Biography:

Tom Scalisi has over 15 years of experience working in the trades. Since moving to full-time freelance writing, he has developed a passion for helping construction companies grow. He enjoys teaching contractors how technology can streamline their businesses and educating them about their rights during payment disputes. 

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Features Industry Insight Ultimate Guide

The 101 on Lien Waivers in Construction

When a contractor agrees to take on a project for a set price, they expect to get paid for their work. If a project owner decides not to pay them, the contractor then has the right to file a lien against the property. While this does initially put the contractor in the driver’s seat, another document exists to protect project owners as well: lien waivers. 

[su_animate type=”fadeInLeft”]So, what is a Lien Waiver?[/su_animate]

A lien waiver is a document that a contractor or subcontractor can sign to give up their lien rights in exchange for payment. This form is exchanged during the payment process, and it states that for a certain amount of money, the contractor will agree not to file a lien against the owner’s property.

This is a powerful document.

If a contractor has lien rights, they can file a lien against the property if they don’t receive money for their work. If the owner still doesn’t make good on the payment, the contractor can act on the lien and force the sale of the property. Once the property sells, the contractor is able to take their cut from the proceeds.

This creates a lot of risk for the project owner. Although most owners want to pay their contractors to keep them happy, they also prefer a bit of reassurance that the contractor won’t file a lien against the property. That’s exactly what a lien waiver does. 

Two Types of Lien Waivers

There are two types of lien waivers: unconditional and conditional. If a contractor signs either one, they’ll give up their rights to a lien. However, exactly when they give up their rights changes based on the waiver type.

  • Unconditional waivers essentially state that the moment the contractor signs them, they give up their rights to a lien. These are excellent documents for project owners because they essentially wash their hands of risk. For contractors, they might be signing this document before receiving any money, meaning they’re shouldering all the risk. If the project owner doesn’t pay, there’s no recourse other than a long, drawn-out lawsuit process.
  • Conditional waivers are a bit more diplomatic. A signed conditional waiver states that a contractor will give up their right to a mechanics lien when they get paid for their work. These forms are essentially like receipts for the project owner and create very little risk for the contractor. If the contractor doesn’t get paid, they still retain their right to a lien. 

Nailing the Lien Waiver Process

These documents carry a lot of weight, so it’s important that they’re handled correctly. Project owners need to ensure they’re receiving lien waivers from the general contractor before or at the time they pay them. However, it’s also important that the GC get lien waivers from their subs as well.

One missed lien waiver throughout the payment chain can lead to a lien.

So how should a project owner or general contractor handle the lien waiver process? The best route is through automation. 

Automated Lien Waiver Generation

Tracking down lien waivers from every contractor, sub, trade, or material supplier can be a nightmare. And, it can drag the payment process out far longer than necessary. Instead of manually handling the process, lean on automatic waiver generation.

Premier Construction Software can be programmed to generate lien waivers automatically. Contractors and subs can generate them and send them when submitting invoices, or the system can require them before issuing payment. The system’s customizable workflows can send these documents to everyone who needs them, including internal and external personnel.

This automated process can provide a bit of relief for the GC or project owner. As the system automatically generates proper lien waivers (unconditional, conditional, or even final payment), they’ll know that money won’t switch bank accounts until the document is signed. This lessens the risk for these parties tremendously. 

Electronic Signatures

When a contractor or sub receives or submits a paper lien waiver, they have to sign in and include it in their payment application paperwork. This creates yet more risk, as the document could easily get misplaced, leading the project owner’s accounting staff to believe the contractor never submitted the document, so they withhold payment until they receive it. Since the contractor isn’t getting paid, they might consider filing a lien. 

It’s a nasty cycle caused by one misplaced document. 

Since Premier Construction Software allows for electronic signatures, the risk of losing a lien waiver is almost non-existent. Contractors are able to access documents on any mobile-enabled device. Once they review the form, they can sign it and submit it to the project owner. This happens in real-time.

Storage and Review

Keeping all those lien waivers organized in hard copy form can be challenging for office staff, and it allows more room for human error than is necessary. Poor file management can mean time wasted looking for a specific lien waiver, or not knowing who even submitted them.

Premier Construction Software puts secure storage at the users’ fingertips. Premier automatically stores signed agreements on its cloud, and then sends the contractor or sub a copy of the signed document. The project owner knows who’s submitted the doc, and the contractor knows their lien waiver is on file. 

And, once the waiver is in the system, it enters an approval inbox. Users can access this inbox to view approved documents (such as signed waivers) and drill down for important information like payment amount, dates, and who signed the document. 

Customizable and Repeatable Lien Waivers

Depending on the owner, GC, and sub, lien waivers can look very different between each party. The owner’s customary lien waiver they send with payment could look different than the version coming from the GC or subcontractor. While they all serve the same purpose, standardizing them into one document can streamline the payment process.

Premier Construction Software offers users the ability to configure and customize their forms. This gives the owner and GC a standardized form they can use across the payment tiers. Subs submitting invoices will be filling out the same document the project owner sends to the general contractor. This consistent language not only makes the form easier to produce and send but also ensures everyone understands the form, allowing better transparency and communication. 

[su_animate type=”fadeInLeft”]Lien Waivers Require Careful Handling, and Premier Can Do It[/su_animate]

Lien waivers are vital to both project owners trying to keep their properties clear from litigation and contractors and subs looking to speed up their payment. Both entities can benefit from a system like Premier, like automatic generation, real-time electronic approval, and cloud-based storage takes the guesswork out of lien waiver management.

To see how Premier Software can help you structure your business for success, schedule a demo today.

Continue reading “The 101 on Lien Waivers in Construction”
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Industry Insight Tips & Advice Ultimate Guide

Economics of Construction, Post-Covid

As more and more states relax pandemic restrictions, the construction industry is beginning to return to normal. All be it a new normal, as contractors continue to struggle with material shortages, higher prices, and a labor shortage. Still, most economists predict that construction will continue to rise throughout 2022.

Looking at 2022, I would say I’m nervously optimistic. Nonresidential construction, by and large, seems to have passed the low point and is on an upswing.

– Ken Simonson, Chief Economist for the Associated General Contractors of America

With the passing of the infrastructure bill, many large federal projects are expected to go online in the 3rd and 4th quarters of 2022, giving a much-needed boost to the industry.

“I think that 2022 is going to be very busy for you all,” says Anirban Basu, chief economist for Associated Builders and Contractors and CEO of consulting firm Sage Policy Group. “Think very long and hard before you enter into contractual obligations. Make sure you build enough margin and contingency.”

Basu predicts a rise in state and local spending on construction going forward, including school construction. Contractors will need to ramp up their operations to handle the influx of available work.

“I think, to be successful, it’s going to help to be bigger,” he says. “Significant technologies are more expensive, and recruiting costs are significant, and training costs are significant. It’s nice to have a larger line of credit and more bonding capacity to go after some of these large-scale projects that are coming down the pipe, whether in infrastructure or other segments.”

The continued increase in volume can be tied to the effects of the pandemic both on the industry and the general population. “The impact of COVID has been far from equal,” notes Global Construction Perspectives director Mike Betts. “In most countries it’s been negative but in some, it’s been positive as working from home has encouraged people to invest more in their homes.”

This investment has led to a steady recovery for the industry over the past year and a half.

Continuing challenges

However, we aren’t out of the woods yet. Many contractors are struggling with the residual effects of COVID shutdowns that occurred two years ago. Workers and building materials are hard to come by and are more expensive than they were before the pandemic began.

Labor shortage

The construction industry continues to struggle with bringing new talent to the industry. The perception of construction jobs as dirty and physically demanding may be a part of the problem, along with the societal view that students graduating from high school should all want to seek a college education. The fact is that college isn’t for everyone, and construction careers can be performed by anyone given enough training. Most journeymen tradespeople get paid more than their college-educated friends and don’t have the tuition debt to show for it.

In the industry, there were 345,000 unfilled jobs at the end of November 2021. That was actually down from October when openings hit an all-time high of 455,000, but up from 261,000 a year earlier, a 32% jump, according to the Bureau of Labor Statistics.

One of the answers some companies are pursuing is the adoption of technology. Today’s young workers grew up with technology, so they are more comfortable with it than past generations. Contractors are recruiting young workers to help with scheduling, estimating, and project management, which most companies use software for. Upcoming tech for virtual reality, drones, robotics, and building information modeling (BIM) is driving the surge of young people to the industry.

Supply chain issues

A combination of production and shipping delays and rising material prices has created a problem for contractors on current projects. Production stoppages due to the pandemic and trucking and shipping disputes have caused project delays and price increases.

“The good news is we are starting to see factory output come back to close to where it was prior to the pandemic,” Richard Branch, chief economist at Dodge Data & Analytics said. “That should help the supply side, and if we start to see some improvements with the log jams at ports, perhaps by the backside of 2022, we might see some reprieve from these higher prices.”

“I’ve gotten more optimistic about material prices,” Simonson said. He doesn’t expect them to return to pre-pandemic levels but anticipates more up and down volatility, which is better than the upward swing many material prices took through 2021.

Some contractors dealt with the material shortage by stockpiling materials they used on a regular basis. Unfortunately, this is exacerbating the current supply crunch.

Some of it is a shortage, and some of it is shipping, but some of it is still a little bit of fear, where people are buying products to try to protect themselves. That’s driving up the demand, which does not help the overall industry.

– Deron Brown, President & COO of U.S. Operations for Edmonton, Canada-based PCL Construction  

Experts don’t see supply chain issues being resolved completely until sometime in 2023. Contractors need to keep this in mind and be proactive with purchasing to ensure project timelines are met.

Positive outlook

Overall, it appears that the construction industry is set to continue its rebound. Contractors are learning to deal with shortages in labor and materials, and these will continue to be problematic. Adopting technology, like project management software, can attract younger workers and make systems more efficient, reducing company overhead costs.

For more on how Premier Construction Software can help your company, request a free demonstration.

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Author Biography:

Dawn Killough is a construction writer with over 20 years of experience with construction payments, from the perspectives of subcontractors and general contractors. Dawn has held roles such as a staff accountant, green building advisor, project assistant, and contract administrator.  Her work for general contractors, design firms, and subcontractors has even led to the publication of blogs on several construction tech websites and her book, Green Building Design 101.