A new survey from CMiC highlights the opportunity to enhance efficiencies amid a dynamic landscape of various financial, workforce and risk mitigation challenges
TORONTO, ON / ACCESSWIRE / July 18, 2024 / CMiC, a leading next-generation construction enterprise resource planning (ERP) provider, today released "Construction in Transition: Insights from 550+ Industry Leaders", a survey which explores the top challenges and opportunities facing construction industry leaders in 2024. The results highlight the industry's position at a digital turning point, and how this impacts financial health, risk mitigation, workforce retention, and professional development within the industry.
"The appetite for digital transformation revealed by the survey affirms the opportunity technology presents to standardize, streamline, and automate workflow processes so that construction professionals can focus on collaboration and innovation in their work," says Jeff Weiss, Chief Revenue Officer - CMiC. "As a result, industry leaders can focus on the future with the confidence that their companies are optimized to operate efficiently."
As their first primary research initiative, CMiC collected responses from over 550 decision-makers working in the construction industry (between February and March 2024). These decision-makers included general contractors, specialty contractors, owners and developers, civil-heavy highway subcontractors, architects, engineers, as well as others.
Key findings from the report are as follows:
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91% say the financial health of their business is average or above average despite challenges with cash flow management, risk management, and other factors.
The financial health of construction firms is an integral way of assessing the resilience of the industry. Despite most respondents reporting financially sound businesses, the survey shows that industry leaders continue to grapple with five primary financial challenges including: cash flow management, risk management, retaining skilled labor, project cost overruns, and tendering and bidding.
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While 78% of respondents are confident their workforce is properly skilled for the future of construction in the next ten years, closing the generational skill gap is critical to ensuring talent development, progress and collaboration.
In response to the rapidly evolving construction industry, leaders must consider optimizing their workforces and worksites to operate efficiently despite any external challenges. The survey highlights increasing wages, a highly competitive job market, and limited training and development programs as the top challenges in employee retention. In addition, the report also shows that collaborative project management software is the most effective tool for addressing communications challenges among project teams and stakeholders.
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A staggering 80% of construction decision-makers plan to undergo a digital transformation project within the next 12 months and are open to the incorporation of AI in the industry .
The increase in customer expectations, coupled with the aftereffects of the pandemic, has led to changes in consumer behaviors, resulting in increased expectations of technology tools from customers. This surge in digital adoption shows clear recognition of the importance of embracing technology to overcome data silos and unlock the full value of AI-driven innovations in project efficiency and, above all, remain competitive in a rapidly evolving industry.
86% of respondents recognize the positive impact sustainability has on revenue, reputation, and relationships.
Survey respondents overwhelmingly shared that sustainable practices are an opportunity to gain a competitive edge in the industry. This strong preference for sustainability highlights its pivotal role in driving differentiation, resilience, and long-term value.
Workforce diversity is another strategic factor for construction companies, with seventy-nine percent of respondents indicating that their company prioritizes and invests in workforce diversity, recognizing its potential to foster innovation, creativity, and inclusivity within the organization.
At the highest level, this research reinforces the role that technology will play to propel the construction industry forward.
"In the digital age, construction leaders must ensure their teams are nimble and able to adapt to external factors while ensuring projects are completed on time and on budget," says Jonathan U. Dougherty, PhD, AEC industry thought leader and vice president, strategic initiatives at Providence Engineering. "As evidenced by the survey's findings, the time for digital transformation is now, and firms that effectively tailor their business operations will be better positioned to meet the rising demands of clients and navigate through the challenges facing organizations today."
What becomes increasingly clear is that construction firms will continue to work towards becoming early adopters and champions of new technology going forward.
For more information about CMiC, please visit the company's website here.
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About CMiC:
As an industry pioneer, CMiC delivers complete and unified Financials and Project Management software solutions for construction and capital projects firms. CMiC's powerful software transforms how firms optimize productivity, minimize risk and drive growth by planning and managing all financials, projects, resources, and content assets-from a Single Database Platform™. With customers throughout North America and overseas, CMiC serves one-quarter of ENR's Top 400 Contractors and hundreds of small and mid-sized construction firms, from general and specialty contractors to heavy/highway and project owners. Over $100 billion in construction revenue is handled by CMiC annually.
Isabelle Lewis
720-400-8012
cmic@matternow.com
SOURCE: CMiC
View the original press release on accesswire.com
