Building & Construction (B&C) industry is expected to constantly grow in the next few years. However, it is not that easy for businesses to smoothly achieve success as there might be several obstacles especially during the time of the Covid 19 pandemic. In this article, we would like to list out main challenges facing Building & Construction industry in 2021.
1. Financial Strain
For every business, maintaining a sustainable financial condition is essential as a strong fundamental financial stream raises a high chance for businesses to survive and grow. However, due to the interruption time of Covid-19 in which the business becomes much more competitive, several issues related to slow contract payment, cost overruns, late invoicing, cost misallocating, etc. had emerged and brought lots of companies down.
In order to help strengthen the financial stream of companies within the field, the Singapore government has proactively offered and extended the Productivity Solutions Grant (PSG) until March 2022. This grant provides financial funding to SMEs whereby they can receive the support of up to 80% of the qualifying cost when adopting ERP systems into their business operation. Having an effective management system in place and funding to increase the financial budget, all at once, to increase business productivity? It definitely worths a try for any company, especially during the current outbreak.
2. Labour Force Shortage
In terms of the main workforce aspect, the skilled labour shortage is considered the biggest challenge in Building & Construction field. By a survey of the AGC in 2020, 80% of businesses face serious difficulty in seeking for qualified employees. Usually, unskilled employees are more likely to make mistakes, which is the root cause of operation delays. Therefore, companies are suggested to correctly detect skill gaps in the team and quickly fill them up with efficient training practices.
Additionally, in the same survey, they also pointed out that 21% of employees in the Building & Construction field are between age 55 or older. That means workers within the industry are actually aging out and retiring at a faster rate than the younger in. As such, it is not enough just to find skilled workers, but they must also come from the younger workforce of the market as well.
3. Poor Communication
According to one of the Project Management Institute’s surveys, poor communication accounts for one-third of the reasons for failure in the B&C industry. In the pandemic period, there is an obvious limitation in human face-to-face interactions and physical regular meetings which is more likely to cause unexpected misunderstanding. More than anyone, companies understand that without clear and effective communicating, crucial tasks can slip through fatal cracks.
As such, many companies have been taking advantage of using different technologies such as videoconferencing, online presentation, cloud-based file sharing (using innovative software like cloud-based ERP system) or virtual webinars to help their employee interact, communicate and discuss with each other online. By implementing all these things, workers can maintain a smooth communication flow without the need of attending an in-person meeting. Thus, the efficiency of internal communication within the company still remains even in the most difficult time of the business landscape.
4. Slow Technology Adoption
Numerous surveys have proven that of all industries, the Building & Construction industry has a slower pace of technological innovation adaption. They tend to stick with technologies that passed by time, such as telephones or mobile phones.
However, as we are in the age of new cutting-edge technologies, it is of necessity for Building & Construction companies to leverage innovation like Virtual Reality, AI, or IoT and apply them to business performances. Take Virtual Reality as an example. Worker Safety is absolutely the top priority in the B&C industry. It usually requires a lot of practical training to reduce or lessen the workforce injuries to the lowest point. With the use of VR, any kinds of training such as equipment operator training, safety training or building system training can be set up in the emulator environment. Workers then can attend practical training sessions without any concerns about getting server injuries.
As the Singapore government encourages B&C businesses for technology adoption to facilitate its advantages in handling the above challenges, several grants are released for local companies to tap on. As a pre-approved vendor for Productivity Solution Grant (PSG), Synergix Technologies has helped most of our customers tap on the government grant of up to 80% of qualifying cost. We can also consider other available grants such as Enterprise Development Grant (EDG).
Might you plan to go for an ERP system adoption, contact our ERP expert for a free consultation!