7 Construction Success Drivers

Construction Success

The construction industry (for purposes of definition) includes:

  • Architecture
  • Construction equipment rental
  • Contractor profit
  • Engineering
  • Fixed-site fabrication
  • Infrastructure projects
  • Labor
  • Materials cost
  • Mechanical/electrical installations
  • New homes/buildings
  • Office/overhead
  • Renovations/replacements
  • Site preparation
  • Structures used to support production equipment (pipes, girders, platforms, etc.)
  • Taxes/interest (except for state/federal projects)

Those are construction industry services and supplies directly related to our business. But many different businesses offering retail products and services follow the construction industry.

Smart business developers use building permit data to learn where and what is being built in their markets.

Construction Industry 4.0: Success Drivers

The “Fourth Industrial Revolution” (Industry 4.0) is a term coined in 2016. It references traditional industrial and manufacturing practices that are now smart-technology-driven. The construction industry is seeing a similar revolution. We’re using technology like never before. Builder Hank Withaar says our “success drivers” include:

  1. BIM – Building information modeling improves accuracy and productivity because it coordinates design and deliverables.
  2. GPS – Global positioning systems on construction sites help surveyors, earthmovers, and general supervisors improve productivity by reducing guesswork.
  3. New techniques – Technology has proven valuable to the construction industry, but it also adds time to projects. Data management and intricate communication systems are integrated into new builds, so the project becomes more complex. We’re developing new techniques to offset the additional hours needed for technologically challenging builds and renovations.
  4. Parts carts – Organizing necessary parts – and only what’s needed – before they are needed for field installation saves time spent “looking for” materials.
  5. Prefabrication – This process has improved quality control and speed. Prefab components are produced offsite and delivered when they’re needed. Prefabricated buildings are also trending when standardized sizes and finishes are feasible.
  6. Waste reduction – We can’t afford to waste materials or time. The Lean Construction Institute has developed and promotes new techniques for shorter timelines and fewer errors, including:
    • Daily Huddle Meetings
    • Last Planner
    • Project Incentives
    • Project Visualization
    • Pull Planning
    • Weekly Work Plan
  7. Post-project reviews – The entire team participates in a lessons-learned project review. Ideas for improvement are shared. Techniques that didn’t work and “what went right” are reviewed.

The Industry Resource for Construction Data

Join the growing number of companies that use our construction analytics as one of their success drivers. Contact Construction Monitor today.

Are You Offering the Right Services?

construction services

If 2020 were an appliance, it would be a Cuisinart®. Businesses have been processed and pulverized beyond recognition, and construction services are no exception.

“Survival of the fittest” was coined by British philosopher Herbert Spencer. We often believe the strongest survive, but that’s not always the case. Those most adaptable to change not only survive; they thrive.

Building permit data reflects construction trends here (your “neck of the woods”) and now (weekly updates). The information tells you which direction our industry is heading and is the first clue you need to adapt.

Using Building Permit Data to Expand Your Services

If you sell floor coverings and notice a lot of retail spaces
in the works, but your current product line has nothing
durable enough for commercial use… Chances
are you’re missing out on sales.
David Mineer, CEO

Maybe your marketing focus is on new-home builds. You cultivate that business because that’s what has worked for you for the last 10 years.

Building permit data shows you new home construction is down, but swimming pools and home renovations that cultivate lifestyle are up – way up in some areas. Families are staying home; workers are working from home. People want their homes to be more fun, more comforting.

Your first clue was in your Construction Monitor building permit data report. How fast you respond – adapt – is what sets your company apart from others. Building permit data has driven many companies to revamp their entire approach to business development.

Contact Construction Monitor: Then Be Prepared to Adapt

Home improvements have seen a whopping 140% growth this year. But that’s just one segment of the construction industry changes we’re seeing.

“Green” construction is critical. Improved working conditions to attract better talent is necessary. We’re using modular construction to speed-up project turnaround times. We’re adapting materials to overcome shortages.

Our construction industry is meeting challenges head-on.

If you’re not using analytics from building permit data, ask questions. Learn more. And be prepared to adapt your construction services to take you beyond business survival to profit. Call 800.925.6085 (International 435.586.1205) or contact us today.

Institutional and Commercial Construction Services

construction services

Institutional and commercial construction services require heavy-duty, specialized equipment. Unlike infrastructural and industrial jobs, commercial construction stakeholders are usually interested in profit.

Commercial Construction Services: More Than Construction

Institutional and commercial construction services encompass everything from the building to maintenance, upgrading, and renovating large structures. Contractors and builders are usually employed by private companies. With the unprecedented economic swings of 2020, construction predictors are best-guesses. But from 2014-2019, commercial renovation as a construction services industry rose 8.9%.

Five Ways Institutional, Commercial Construction Use Big Data

Do you know how the term “big data” came about? The concept is based on such voluminous information – data – that you can’t begin to comprehend it, let alone use it properly. It’s that big.

The advantages of using big data don’t occur naturally. You must first set clear business goals. Then you need to understand the power of data analytics. Finally – and most important – you need to learn how to put construction statistics to work.

Here are five examples of institutional and commercial construction services’ ways to use big data:

  1. Organization – Data can give you GPS coordinates, vehicular traffic information affecting the job site, and supplies/machinery routing to lower fuel costs and increase operational efficiency.
  2. Prefabrication – Large modules can be designed onsite and prefabricated elsewhere.
  3. Risk management – Commercial and industrial construction companies may have fewer-per-year projects than most construction services. This makes project pricing, staying within budget and on-time even more important. Big data can compare the subcontractors’ and suppliers’ dependability.
  4. Simulation – Many mistakes can be avoided. Frank Lloyd Wright said you can use an eraser on the drafting table or a sledgehammer onsite. Big data can reduce mistakes by comparing site conditions and limitations.
  5. Tracking – Losing a hammer is no big deal. Losing a bulldozer is a problem. “No other industry spreads its assets out geographically like the construction industry,” says project management analyst Rachel Burger.

Statistics for Targeted Marketing Data

Our customized building statistics can give you targeted, area-specific data that cookie-cutter construction software programs can’t. Contact Construction Monitor to learn more.

Grey Areas: New Home and Renovation Construction Services

There are grey areas in construction services. The United States Census Bureau says the construction industry (for purposes of definition) does not include:

  • Gas/oil drilling, including the construction of offshore drilling platforms, digging/mine shoring of mines
  • Land acquisition
  • Maintenance/repairs to existing structures or service facilities
  • Offsite fabrication
  • Production/machinery cost
  • Special-purpose equipment costs (e.g., pews in churches, lockers in gyms, medical equipment, display cases/shelving in stores)

That’s where we disagree – to a degree. Our construction services client-companies using Construction Monitor building permit datasorts often provide these services.

If you bid on a hospital construction project, the price of X-ray machines won’t be included. But if you quote on a church project, chances are you may be including pew and altar-price options based on design.

Grey Areas

There are no grey areas when it comes to quality and profit. No company compromises safety for greater profit. Choices like that can come back to bite you big-time.

New homes and renovations companies avoid grey areas by specifying and pricing bids as tightly as possible.

Confidence Returning to Home Renovation Market

Remodeling and design construction services are optimistic. Third-quarter 2020 is looking better than 1Q/2Q. Following the 2Q 2020 drop, business indicators are returning to – almost – pre-pandemic levels. We can pat ourselves on the back because we managed this by:

  • Applying remote collaboration tools
  • Dealing with supply-shortages
  • Implementing safety guidelines
  • Increased use of video consultations
  • Using more online product sourcing

New Home Construction Services

Single-family and multifamily housing starts rose 17+% in June 2020. This is a good indicator we’re trying to make up for double-digit declines. The bad news? Lumber costs are also increasing.

Our real estate friends say existing home sales rose 20.7% in June 2020; down from last year. Mortgage applications are rising, too.

Data Analytics for Construction Services Profit

At Construction Monitor, we believe numbers don’t lie. New single-family homes and renovation construction services are playing catch-up; the opportunities are there for you. Join our family of construction industry companies using big data analytics to grow and prosper in unusual times.

Construction Services: Property Plumbing

construction service

We think plumbing is more than “essential service.” Plumbing pros within construction services provide a critical service. 

Plumbing Industry Construction Services Outlook

For a while, new construction was so lucrative everyone that could got into the business. Whole subdivisions were developed using the “cheap and fast” model. Then, the fly-by-night building companies vanished.

That led to HVAC and plumbing professionals focusing on construction services damage control in some areas of the country. Repairs and emergency services will always be a significant source of revenue for our plumbing industry friends.

A new day is dawning because the internet brings knowledge to information-starved property owners. Focus is shifting toward quality construction and energy-saving options, like tankless water heating and shower/sink on-demand water usage.

When the coronavirus-related unemployment rates hit record highs, disposable income vanished for many homeowners. The demand for new plumbing installations and renovations nosedived as well. Before the pandemic, plumbing industry average rate of growth was 2.1%.

It’s difficult to find confident construction services growth predictions. Still, the Bureau of Labor Statistics (BLS) predicts a 10% increase in jobs for construction services-related plumbers and pipefitters. It’s also predicted by 2050 there will be a 50% increase in freshwater demands. 

Commercial Property Plumbing: A New COVID Problem

Plumber Magazine says the risk of Legionella bacteria may increase in buildings that have been sitting empty for months. Legionella bacteria grow in stagnant water.

You may want to contact commercial property owners and managers in your area about additional water testing before they reopen. Even if you don’t provide water-testing among your construction services, this goodwill effort will not go unnoticed. (It could be a subtle marketing promotion for your business.)

Here’s a not-so-subtle way to generate new jobs and relevant leads for your company:

Construction Monitor Can Expand Your Plumbing Industry Outlook

Construction Monitor has construction services building statistics for the U.S. Our team wants your plumbing business to thrive. That’s why we encourage you to utilize the data we provide and use it with intent.

If you need marketing strategies for your plumbing company, contact us today. We aren’t successful until you are.