With the emergence of Big Data, construction companies are finally able to leverage their power in order to increase their bottom line. Construction contractors have a lot of data at their fingertips, but they often don’t know how to use it. Leveraging the power of big data can help construction businesses increase profits and stay ahead of the competition.
The following points will outline how this is possible:
- Contractors can use big data analytics to forecast future projects and generate more accurate bids.
- Construction firms can also rely on predictive modeling technology which predicts what clients need before they even ask – meaning a more efficient workflow for all parties involved.
- Construction companies can use location data from GPS systems on phones, tablets, and computers as well as complex algorithms that take into account traffic patterns for better estimating time and cost.
This blog post discusses the importance of data and how construction contractors can use it to their advantage. It also talks about a few ways that they can leverage big data, such as by using predictive analytics to identify risks before they occur.
Improve Equipment and Plant Productivity
Buildings are becoming more complex, which means construction contractors will have to become even better at maintaining them. One of the best ways that construction companies can do this is through the use of predictive analytics software. You can even improve plant and equipment productivity by using predictive analytics to identify maintenance issues before they arise.
This kind of software helps improve plant utilization rates because it identifies potential problems with plants or equipment well before they happen. Through data collection from sensors in machinery, it’s possible for a company to predict when something might be going wrong. Maybe an oil leak or a power outage is just about to occur—so measures can be taken (like switching over fuel sources) while there’s still time to avoid damage and downtime altogether!
Heavy machinery, such as cranes or excavators, can be operated more efficiently with the use of big data analytics. This provides construction contractors with a variety of data points to show clients how their business is performing in various areas and for different types of projects. For example, this information could include:
- Number of hours spent per day on-site
- Total time is taken to do specific tasks like excavation or demolition
- Cost per hour worked by each worker type (contractor vs subcontractor labor)
All provide a more complete picture for optimization decisions.
Monitoring Project Bids to Analyze Trends
This is a process that can be automated, and it’s been made easier over the years with advances in technology. Contractors have access to many metrics and analytics tools available online or through third-party providers.
These data points help contractors understand how they stack up against competitors on market rates for various aspects of projects like labor, materials, insurance costs, etc. When these are monitored closely, trends are identified much quicker. Instead of just waiting until at the contract bidding phase when more information may not be known about certain components of project bids requiring additional research time before submitting an offer.
For example: “Since this contractor was consistently priced well below other bidders in 2016 but has increased their prices significantly since then without any corresponding increase in performance, we will no longer accept bids from this contractor.”
Monitoring project bids and analyzing trends can help construction contractors better understand the market environment. This insight will allow them to make informed decisions about bidding on projects in these areas so they are not caught off guard by changes that might be taking place.
A contractor who is paying attention to this information may find themselves with a competitive advantage over their peers, as well as more accurate forecasts for future jobs or work hours.
Big data also offers opportunities to would-be entrepreneurs looking to start up a new company within the construction industry, because it provides valuable insights into what types of products customers want. These individuals can use those findings when deciding where to invest marketing dollars while still being certain they have enough product demand lined up ahead of time.
Conducting Surveys for Feedback on Customer Satisfaction Levels
One of the first steps a contractor can take to use big data is conducting surveys for feedback on customer satisfaction levels. Contractors should survey their clients not only about how happy they are with the work but also what was done well and where improvements could be made. This way contractors do not fixate on one aspect or event, which may make it seem like all criticism comes from that one area.
Moreover, one of the best ways to see how your company is doing amongst its current and prospective customers is through surveys. Conducting a survey allows you to be in constant communication with them so that you can better understand what they need from you and figure out how well your business is fulfilling those needs.
You will also gain valuable feedback on everything about their experience – from product quality to customer service levels. With this information at hand, it becomes easier for contractors to decide which areas of improvement are most important for tweaking or upgrading in order to achieve maximum success.
Analyzing Safety Standards Compliance Reports Across Various Regions
Contractors in the construction industry are always looking for new ways to optimize their cost savings and efficiency. One way they can do this is by analyzing safety standards compliance reports across various regions of the world, which includes factors like traffic levels and weather conditions. This may not be a factor that’s relevant to constructing buildings or bridges, but it could still have an impact on other aspects of any given project such as scheduling delivery times or managing crew sizes.
By using these types of analytical data points contractors will be able to see how much time will elapse before certain tasks need completing based on specific geographical location-specific variables.
For example, if a contractor needs two workers who speak fluent Spanish at work site A from March 17 to March 20, they can search for that data. They might find the contact information of two qualified candidates with a simple tap or click.
This is exactly how Big Data analytics works: using structured data and unstructured data to help predict future outcomes and make better decisions quickly.
Streamlining Decision Making Through Predictive Modeling and Simulation Software
In the construction industry, there are many variables to consider when looking at a project. There is no one-size-fits-all solution that will work for every single company and situation. This means that it’s important to be able to decipher what type of data is relevant in order to make informed decisions about how best to approach any given problem or concern.
One way decision-makers can use Big Data effectively is by utilizing predictive modeling and simulation software which allow them to input information like client contact info, specific project needs, employee skill sets, etc., then see possible scenarios play out on the screen before making final moves forward.
The power of using this strategy lies in being able to identify a range of risks and opportunities associated with each scenario so you’re able to make the best decision for your company.
If predictive modeling or simulation software programs aren’t suited for the size of your project, there are other ways contractor firms can use big data as well such as using Google Earth maps combined with geographic information systems (GIS) technologies like LiDAR processing and remote sensing analysis.
When we think of construction contractors, we rarely associate them with digital technology. But there’s a lot you can do to leverage the power of digitalization. For starters, use it to completely take advantage of Big Data. With digitalization and Big Data, an organization can identify key project components that are relevant to their goals or simply want a better understanding for themselves of what’s going on with large projects.
Big Data eliminates the guesswork in determining what’s going wrong with a project because there’s so much to analyze for every single detail that could affect it. Once you decide where your problems lie then things can get fixed at lightning speed! But the foundation of Big Data is digitalization.
Big data has changed how construction companies operate in recent years by providing them an unprecedented level of efficiency when managing projects as well as increased profitability due to decreased downtime caused by big storms or unforeseen events such as natural disasters which hinder their productivity.
The data that is most valuable will vary depending on what type of business you are in and how much information about each scenario you have available. So it’s important to work with a consultant who understands your industry and can help guide you through this process.
Etrellium has several years of experience in digitalizing construction companies as well as helping them make sense of all their data. If you need help with this, feel free to give us a call.