Construction Software Can Help You Prepare Your Business for Success
This new report will help construction companies strategize for continued growth and make recommendations about how construction software can help you prepare for industry changes coming in the next 2 to 5 years.
We’ll provide data that details the impact and importance of New Zealand’s construction industry and show where investments are supporting construction in various sectors. And, while experts say there are certain roadblocks to watch out for, construction software can help you weather downside risks.
New Zealand’s construction market was worth $57 billion in 2021 and is projected to achieve average annual growth of more than 3% during the next three years. This is good news after a 5.4% decline in 2020 due to restrictions from the COVID pandemic.
Where is Construction Growing Fastest?
Residential construction of single family and multifamily housing makes up more than 50% of construction activity in New Zealand. As part of its goal to get to 100% renewable electricity consumption by 2035 and to carbon neutrality by 2050, the government has enacted housing development plans and Green Investment Finance.
Commercial Construction includes leisure and hospitality buildings, office buildings, outdoor leisure facilities, retail buildings, and other commercial construction. With the reopening of international borders and a gradual recovery of tourist inflows commercial construction will grow next year and beyond.
New factory and industrial construction starts are outpacing other construction activity. Industrial Construction, including chemical and pharmaceutical plants, manufacturing plants, metal and materials production, processing plants, and waste processing plants is supported by improvements in manufacturing and increased export activity.
With Wellington’s investment on public works that will improve regional connectivity such as the National Land Transport Programme, there are more approved Infrastructure Construction projects such as rail and road infrastructure.
And the focus on renewable energy, oil, and gas projects are driving increases in Energy and Utilities Construction. For example, an investment of NZ$139 million to build Kowhai Park at Christchurch Airport will generate 150MW of electricity or is enough to power 30,000 homes.
Finally, Institutional Construction like educational buildings, healthcare buildings, research facilities, and religious buildings is supported by government investments on health and education projects. The Wellbeing budget of 2022 includes NZ$1.8 billion to upgrade health infrastructure.
How to Overcome Construction Industry Roadblocks
In New Zealand, the construction industry faces several roadblocks, including higher interest rates and increased costs for materials, as well as supply issues that have been exacerbated by Russia’s war in Ukraine. Building materials costs continue to rise at double digits on average.
But you can use construction software to minimise disruptions that are affecting the industry globally by improving your ability to manage cash. With quick, easy invoicing features, you can keep more cash on hand and pay your suppliers more quickly and avoid higher interest rates.
Construction has traditionally been a late adopter of technology, and that has cost the industry in productivity and efficiency. But now, thanks to pervasive mobile devices and high speed internet, it’s easier than ever for construction companies to take advantage of technology to streamline operations. Construction software supports better collaboration and reduces the risk of complex jobs exceeding their timeline. Additionally, using a single source of shared data can decrease miscommunications and rework.
How can Construction Companies Prepare for Increased Industry Growth?
Construction is characterised by remote work that’s completed by distributed teams. Working efficiently means working from the same data, because construction generates an awful lot of data. Using a single system to run your business helps you to collect your data into a single system that everyone on your team can access. Within a shared data system, you can eliminate time wasted importing and exporting data, whilst also improving communication, working more consistently, and eliminating silos within your company.
When you’re looking for construction software, you want to ensure there are solid tools for document management, project management, and remote timekeeping. In addition, you want to ensure that your software also includes robust and flexible reporting capabilities so that you can capture the status of any project or any invoice at any time.
Construction ERP allows you to plan, schedule, and manage jobs more efficiently, so that you can maintain tighter cost controls and preserve your profit. The ability to track and handle all your updated data helps you make better business decisions when you need to. Additionally, using a single system to run your business efficiently means you will improve your everyday processes like estimating, scheduling, project management, and accounting. With faster and easier invoice tracking, you can keep your cash flow positive, and complete jobs on time and on budget.
Release date: 18th January 2023