Leveraging Technology to Improve Profitability

Rising material and labor costs, coupled with an increasingly competitive landscape, means tight margins for construction firms and very little room for error when it comes to delivering construction projects. A 2020 Deloitte Engineering and Construction Industry Outlook report noted that most engineering and construction firms “continue to experience low profitability and margins…The industry’s traditionally low margins, combined with increasing project complexity, fierce competition from Asian companies, and supply chain constraints, will likely continue to put extra pressure on US companies’ profitability in 2020.”

In this environment, many construction firms are struggling to grow and achieve business goals. Leveraging technology in project design, building, and managing can help firms remain competitive and improve profitability.

Design

A design-assist approach, which brings together key construction team stakeholders with design professionals early in the design phase, is a collaborative approach that helps address complexity in construction projects. Advances in technology are helping facilitate this approach connecting architects, contractors, engineers, and key subcontractors to develop a shared understanding of the project early in the process. This can help make projects more profitable by…