Top 3 Ways in which the Construction Industry Can Rebuild Itself and be more Profitable


Unlike the manufacturing and the retail sectors which have reinvented themselves to meet the changing trends and demands of the market; the construction industry has for some reason failed miserably in keeping a track of the latest developments in the market. High fragmentation of the industry along with stringent regulations and inherent corruption in the work process are major reasons for the dismal performance of this industry. While products like construction management software are seen as viable solutions to overcome problems related to time and expense management; there are still many areas which need to be fixed for the industry to grow to its full potential.

The simplest way in which the construction sector can fix its problems, apart from using construction management software, are:

1) Bringing in transparency by revamping the regulations

Regulatory complexities are one major hindrance in the construction industry. Regulations, rather than making the work process systemized and seamless, have posed as roadblocks in the construction sector. The need of the day is robust nontechnical risk management programs for streamlining the work process. Also, transparency in the entire system is mandatory so that innovation in delivering the results can be encouraged.

2) Encouraging new skills in the workforce and rethinking design

Reskilling the workforce is one major change which needs to be taken care of if any concrete development is what you are looking for. Programs for training frontline workforce in core skills and latest technology is sure to break the seasonality and related roadblocks in the industry. Also, by bringing the public officials, educators, as well as other major stakeholders on a common platform it will be much easier to rethink the entire design process of the construction industry.

3) Better procurement process

Procurement has been a major hindrance in the construction industry. Analysts are of the view that switching to digital modes of procurement will not only make the entire process quick, but will also bring down the scope for errors. Supply chain management will be another area which will gain a positive advantage with enhanced procurement processes.

The construction industry has lot of functional areas that needs to be explored in order to disrupt the market in a fruitful manner. Switching to technology and employing cross-industry strategies are sure to reap long-term benefits for all the major players in this market.