Construction input prices remained unchanged in May, ending five consecutive months of price expansion, according to analysis of Bureau of Labor Statistics data released by Associated Builders and Contractors (ABC). Construction input prices expanded 3.4 percent on a year-over-year basis.
Typically, disruption in the workplace is counterintuitive to productivity. But in terms of creating innovative ways to manage people, processes and technology, the concept of “disruption” isn’t such a bad thing for the construction industry. Change is stirring whether contractors are ready for it or not, and firms that have adopted new ways of managing scheduling and workflows are seeing stellar results—earning the accolades of repeat projects for key clients, as well as happy project partners.
Prevailing business wisdom holds that the way to reduce credit risk is to limit credit lines, be stingy in allowing credit and freeze orders on past due accounts. This line of thought posits that it is generally impossible to lower “bad debt” losses without adverse consequences to sales and business expansion.
National construction employment added 11,000 net new jobs on a seasonally adjusted basis in May according to analysis of U.S. Bureau of Labor Statistics data released by Associated Builders and Contractors (ABC).
Business leaders have always been scrutinized for their decision making. In 1914, Henry Ford was both denounced as a fool and praised for doubling wages of factory employees from $2.34 to $5 per day. In 1987, Merck & Company decided to give away a cure for river blindness for free, an unfathomable choice for most pharmaceuticals, because they recognized the cost of the drug would be too high for impoverished international markets.
It’s hard to go to a construction tradeshow or read an analyst report without hearing about a new drone company or how drones are going to eventually impact construction. Today, advanced drone hardware is available at low prices, and U.S. regulation has enabled commercial drone use to be easy for companies and service providers to adopt. Most importantly, companies have built custom software solutions to suit the exact needs of construction companies.
As the economy remains solid and businesses generally are doing well, most construction contractors have likely thought about ways to continue growing their companies. By investing in a minority stake in a business, strategic equity partners can provide capital for growth or shareholder liquidity and help take the business to the next level.
Most construction contractors don’t consider how the creditworthiness and cash flow of their customers can impact their bottom line. But they should. More than 40 percent of small businesses have customers that are more than 90 days late on a payment, according to a survey by RocketLawyer.
After years of stagnation, construction of K-12 schools is finally ramping back up in many districts across the country. In fact, institutional construction is expected to increase 10 percent this year to $118.5 billion, according to Dodge Data and Analytics’ 2017 Dodge Construction Outlook. This number largely is driven by the education sector, which comprises more than 40 percent of the institutional market.
Construction Software and Real-Time Communications Connect for Lean, Agile, Efficient and Profitable Projects
The speed of digital innovation is breathtaking. Mobile communications and software for construction management have revolutionized the business for building contractors. Today, project managers are linked to the office from their air-conditioned, Wi-Fi hotspot crew cab with a laptop and smartphone. General contractors, subcontractors and crews can see revised plans and discuss the construction tasks at hand, over the phone, all on the same page, whether it is a PDF on a tablet, laptop or large smartphone. Continue »
The key to success on any team is communication. For many teams, this is easier said than done, mainly because setting up an environment that is conducive to effective and efficient communication can seem like a daunting task. Too often, this is because people overcomplicate what is necessary for a quality communication infrastructure.
With employees working at multiple jobsites and varying project completion dates, it can be difficult for a construction executive to virtually manage operations across different locations. While cell phones have made it easier to stay in touch with team members working onsite, construction executives that want to promote a communicative, collaborative and accountable work environment should consider implementing advanced software that offers intuitive mobile applications.