Beginning in 2020, the partial lockdown due to COVID-19 had a negative impact on the economy in general and on building and construction firms in particular. Businesses have to struggle with interrupted supply chains, project and manpower shortages, etc. Dealing with inconsistent income and lower profit, construction companies are seeking a more effective way to maximise their gain. In this article, we will discuss 4 ideas to get the highest business profit possible.
It’s no secret that construction work generates waste. If construction businesses reduce waste, not only can they protect the environment, but also save money. Construction waste, for example, lumber and manufactured wood products, can account for a big amount of cost.
Here are some tips construction firms can apply to reduce construction waste, raise business profit and get a better bottom line.
- Rent or buy a roll-off dumpster to dispose of construction waste
- Negotiate unused material buybacks from suppliers.
- To save more beforehand, only order necessary materials with less packaging.
- Protect materials from harm and theft by storing them in a secure location.
- Save scraps for backup or patching purposes.
- Optimise designs to make the most of purchased resources at the size specified.
Minimise Equipment Downtime
It would take a huge amount of money and time to keep track of every piece of equipment a company has. A broken machine – regardless of its size – can be hard to deal with. Even if it’s only a small truck, it’s critical to day-to-day operations. So, construction companies might want to keep errors and costly repairs to a minimum to maximise earnings. Regular maintenance and performance assessment is the most effective approach to do this.
Keeping track of when your equipment is operating, working, idle, or turned off is not a piece of cake. Maintenance regimens should be followed according to supplier and manufacturer recommendations. Thoroughly grasp operator notes and feedback so you can stay on top of equipment maintenance and potential issues. Allocate your time for equipment management on a regular basis, especially between projects. The better you look after your equipment, the better it will benefit your business—and that will help you raise your business profit.
Manage your data efficiently
B&C firms are more likely to struggle when there’s too much data to manage, for example – extra costs on sites. That’s why some companies with a clear and well-defined business revenue model still got stuck although they planned carefully.
Synergix ERP solution can help you with real-time business updates such as cash flow, inventory management, sales, projects, purchase orders, customer satisfaction, lead management, revenues, business profit and loss statements, and balance sheets. The system offers Business Analytics and forecasting capability to show a holistic picture of your firm. Moreover, it can also aid in the integration of data from several platforms into a centralised one, allowing all departments to capture work processes.
Expand your circle
Making contacts is an important part of acquiring business. B&C companies are not the exception when there are numerous partners and trades involved in projects of any size or scope. Hence, joining trade associations, local chambers of commerce or related events is helpful for constructors to expand the network. A project usually includes lots of parties such as contractors, subcontractors, material suppliers, etc. Therefore, if you can build relationships with them and get them to trust you, this can be an opportunity for qualified projects.
Being a member of B&C business associations also keeps you informed and prioritised about regulatory changes and current issues. You also can get advice on how to control expenses, reduce injury and liability risks, and ensure proper equipment selection as well as skill training for workers. All of these factors can assist you in completing job activities more efficiently and profitably.
The industry’s complexity, as well as the countless parties involved sometimes make problems stay hidden. These issues are frequently discovered only after the project has been completed and the financial damage is irreversible. Learning from these experiences, B&C sectors can consider adopting advanced technologies to manage their businesses better.
Synergix Building & Construction ERP system can be a helpful assistant. You would be able to manage your business and many applications, processes, and resources from a single platform and in real-time. Thus, by automating most processes to a large extent, the administrative burden can be reduced, allowing more time to be allocated to developing strong customer relationships, increasing sales, and optimising resources.
Exciting news for construction firms!
Grant for Industry Projects for Digitalization (IPD) – Limited Grant for 15 Construction Companies.
In partnership with Enterprise Singapore (ESG), Synergix Technologies is happy to be one of only three suppliers in Singapore to be qualified for this grant. If you are eligible, you will receive an 80% assurance of funding and immediate approval (no waiting period). This incentive will only be available to the first 15 construction enterprises that meet the criteria. The registration period will close on July 10, 2022, or when the grant has been fully utilised, whichever comes first.
Don’t pass up this chance to digitise your construction company. Join us now!