A shifting workforce, economic uncertainty, supply chain challenges and rising costs are forcing a transformation in the construction industry. Businesses are working to keep pace as industry dynamics fluctuate.
As a result, many construction firms are turning to technology to create efficiencies and support changes within the organization. AvidXchange conducted a 2024 Trends Survey in September 2023 to learn more about trends impacting finance departments and how leaders are addressing them.
Below are a few of the top issues facing construction businesses today.
Talent Shortages
A study by the Associated General Contractors of America (AGC) found that 93% of construction firms have open positions they are trying to fill. Research says the construction industry is currently short about 650,000 employees.
Without the talent needed to complete jobs, construction projects can take longer and become more expensive. Some firms are implementing technologies like artificial intelligence (AI) and automation to help create efficiencies and do more with reduced staff.
Investing in digital tools also helps improve employee retention by reducing administrative tasks and allowing employees to focus on more fulfilling work.
Supply Chain Hurdles
Material costs and availability continue to create disruptions in construction, although prices show signs of stabilizing in 2024 (according to a 2023 piece by Yahoo! Finance). Delays in the production and transportation of materials have impacted the industry’s ability to meet project timelines and budgets.
To help mitigate supply chain issues, many construction organizations are investing in tech platforms that help back-office staff better navigate relationships with materials suppliers. Access to real-time purchasing and receiving data can help construction companies make informed decisions to ensure timely delivery of materials.
Tech Innovations
The construction industry is becoming increasingly digitized with the use of software, drones, sensors and other technologies to improve efficiency and productivity. Digital tools enable better project visualization, precise planning and real-time collaboration among stakeholders across sites, resulting in cost savings, streamlined operations and timely project completion.
Automation is also playing a role in construction back offices, reducing labor-intensive tasks. New tools will help shape decision-making and reporting.
“The construction industry today is unpredictable. You just don’t know what’s going to pop up. Creating an electronic workflow where teams can track project and payment status will help construction businesses navigate industry challenges and remain productive amid uncertainty.”
In addition to addressing these construction-specific trends, industry leaders must focus on the latest overall business trends to drive organizational growth. AvidXchange’s 2024 Trends Survey found that artificial intelligence, data analytics and real-time payment platforms will boost productivity and better inform decision-making in 2024.
To learn more about these business trends and how they’ll impact the construction space, download our free whitepaper, “Construction Trends to Watch in 2024.”