June 12, 2018
Construction Companies Investing More in Technology
Technology has had an impact on virtually every aspect of life from the checkout counter at the local grocery store, to how new keys are cut at the hardware store to how passengers check-in for flights at the airport. The American landscape is littered with changes brought about by technology. The job site is no exception as project managers, contractors and subcontractors are now using Building Information Modeling (BIM), augmented reality, and scheduling software to more easily and profitably manage their projects. Unfortunately, the construction industry still trails behind other industries in how much is spent on IT. According to the 6th Annual Construction Technology Report, published by JB Knowledge, while construction companies lag behind other industries in IT spending they are starting to expand their budgets to support new investments. It also appears that companies are focusing on data security and more robust estimating, project management, and scheduling software. To help clients, prospects, and others identify the key report trends, Wilson Lewis has provided a summary of key points below.
About the Survey
The survey was distributed to construction industry professionals electronically via email, social media, online advertisements and online publications. A total of 1,974 respondents participated in the survey representing various company types including general contractors, subcontractors, design and build contractors, construction technology providers, architectural/design firms and owners/developers. The size of companies participating varied widely, but a majority had between 100 – 1,000 employees with a revenue range between $5M – $100M.
Key Findings
- Growing Budgets – According to the survey, 46% of respondents spent less than 1% of annual sales on IT, 14% spent 1% of annual sales on IT, 10% spent 2% of annual sales on IT and 2% of respondents spent 5% or more of annual sales on IT. These numbers show a shift towards increased spending as prior year surveys showed that 56% of respondents were spending less than 1% on IT. The data confirms that industry companies are continuing to invest in and leverage the benefits of IT.
- Data Security – Protecting company data remains a concern for respondents and a variety of methods are being used to increase security levels. According to the survey, 66.7% of respondents are providing employee training, 46.8% are installing security software on mobile devices, 45.9% have developed a corporate IT policy, 27.7% have purchased a cybersecurity insurance policy and 26.1% have moved to a two-factor authentication process. Companies are also using cross-platform authentication and cloud liability insurance to protect data.
- Project Management Software – The number of companies using project management software continues to grow as do the options in the marketplace. According to the survey, 22.9% of respondents are using Procore, 17.5% use Viewpoint, 14% use Sage, 10.7% use custom in-house software while 7.2% use Prolog. While the most popular project management applications were ERP related the survey did see an increase in the number of project management-only solutions such as Kahua, InEight and Red Team.
- Estimating Software – Much like project management software, the number of companies using estimating software continues to grow and change. According to the survey, 17.5% of respondents use Sage, 13% use Accubid, 11.5% use Quick Pen, 11.1% use custom in-house software, 8.4% use Heavy Bid and 5.6% use Viewpoint Estimating. Although the most prominent name appears to be more widely used, the entrance of other applications indicate the need for additional flexibility in software implementation.
- Project Scheduling Software – Companies continue to rely on prominent project scheduling software to help manage their projects. According to the survey, 58.9% of respondents use Microsoft Project, 44.8% use Primavera P6, 4.7% use Astra Powerproject, 4.6% use custom in-house software and 3.8% use Smartsheet.
- Emerging Technologies – The use of emerging technologies continues to be an area that many companies are investing in. According to the survey, 37.8% of respondents are using drones, 19.9% are using pre-fabrication and modularization, 19.7% are using 360-degree photo and video, 13% are using smart tools and 12.7% are using either virtual or augmented reality technology. The use of these technologies continues to grow as there was a 20% increase the in the number of companies using emerging technologies over the prior year.
Contact Us
The is no doubt that construction industry companies have and will continue to adopt technologies that save time, reduce costs and drive profitability. If you have questions about the survey, construction technology or need assistance with an audit, tax or accounting issue, Wilson Lewis can help. For additional information please call us at 770-476-1104, or click here to contact us. We look forward to speaking with you soon.
