3 Ways Analytics Can Improve Your Construction Business
Are you skeptical of data driven decision making? If so, you are not alone. Many construction business owners wonder if using analytics can provide better answers to their business questions - such as which types of projects should our company avoid? Sometimes, the more experience we have in the field, the less inclined we are to rely on analytcis in our decision making.
However, it's been shown time and again that analytics-based decisions can help organizations gain a competitive edge.
Here are 3 ways you can use analytics to improve your construction business:
1. Analytics Help Improve Profits
The right analysis tools can help you spot patterns and trends in your work. For example, an HVAC contractor might determine that installing a certain type of air conditioning unit for a certain type of customer in a specific region has an outsized effect on profitability. Armed with that information, the company’s executives might discontinue sales of less profitable systems, step up marketing in that region, or develop new strategies.
2. Analytics Help Prevent Repeated Mistakes
Nothing holds back a construction firm like a mistake that’s repeated project after project, year after year. This is especially true when you start looking at costs like labor, materials, equipment, and energy consumption. How much would the same bad labor decision cost a general contractor over a period of 20 years? Analyzing your operations across all projects can help you pinpoint these trouble areas and make changes.
3. Analytics Help Manage Workforce Better
For nearly any construction firm, nothing causes the profit and loss statement to swing one direction or the other like labor. Thus, a company that understands its workforce needs better than its competitors can gain an edge in the labor market. Analyzing productivity both at an enterprise level and down to the individual worker will help you determine what exactly needs to change in order to get the right level of productivity from your labor.
If you'd like to learn more about applying analytics-based decision making in your company, contact us for a free consultation.