The future of the economy depends on doing things more smartly and cheaply. Everyone has to find ways to bring costs down.
That’s easy in large internationally-facing businesses. These often generate revenues of the order of hundreds of thousands of dollars per employee.
But it’s not so easy for smaller businesses that can’t take advantage of economies of scale or simply improve the machinery in their manufacturing facilities. For these individuals, the assistance that technology offers is more subtle.
Solving low productivity in small businesses is an economic priority. Countries that get it right will benefit from higher economic returns and be able to deal with their debt problems and wage inequality.
The purpose of this post is to explore how technology can improve the productivity of the economy’s millions of contractors. We explore how advances are streamlining business activities and helping smaller operators achieve the same output levels for a given level of input as the big guys.
Hiring Solutions
One traditional cost in the contracting sector is recruiting and hiring employees for short-term jobs. Finding people at a moment’s notice isn’t always easy, and the quality can be lacking.
That’s where hiring solutions can help. These maintain a labor pool that contractors can access when they require it, often with just hours’ notice.
These solutions work because of a combination of cloud-based tools, software, and recruitment agencies. This combination lowers the cost of finding people because everyone on the network can indicate when they are busy and when they are available.
These systems work similarly to the freelance economy. Contractors can hire people when they require labor without having to arrange an employment agreement.
Tools can also present worker credentials, letting contractors filter candidates by skill in their local area. For instance, systems let them find contractors, say, within five miles with gas certification.
Real-Time Data And Insights
Another way technology is driving contractor productivity is by providing real-time data and insights. Firms can obtain clearer overviews of their projects and see how they are performing over the long term. These metrics can show where problems lie and which aspects of the business require improvements.
According to Build Ops, a field service software developer, these changes are essential for bringing contractors into the 21st century. Those who can take advantage of the situation will find themselves in a far better position going forward.
“Data collection is at the heart of the most successful businesses,” the company says. “But it should also be core to those that are in the contractor sector. Plumbers, builders, and electricians could all benefit from dramatically enhancing how they operate. Adding insights from data to their practices could dramatically adjust their effectiveness and enable them to make better operational decisions in real-time.”
Perhaps the biggest benefit of the data analytics revolution for contractors will be the ability to adjust labor allocation between projects. Small companies will be able to better track how many resources they are dedicating to specific jobs. Tracking other problems will also become easier, making it simpler for firms to course-correct as the situation develops.
Sensors and data-gathering technologies could also play a role. Head offices could gain real-time insights into various projects, using data to track progress and identify problems, making adjustments where necessary.
Improving Communication
Technology is also improving communication in the contractor sector. Field service management software is having a tremendous impact, according to Build Ops.
“We’re seeing a massive shift in the operating paradigm,” the brand says. “Contractors are becoming aware of the improvements that enhanced communication technologies can offer, allowing them to experiment with new business models.”
The idea is to go beyond phone calls and arrange all the tools companies need to allocate and pay staff within the app itself. Keeping everything in one place makes everything simpler and reduces the risk of making mistakes.
For example, companies can allocate workers to specific sites and automatically calculate things like travel times and pay. Customers can also order specific contractors they want through apps, letting them find those with the best reviews or closest to them.
The technology is also merging with the cloud and includes more functionality. For instance, some solutions also include CRM functionality or accounting software. These features allow services to be more self-contained, reducing interoperability issues that can dog some stacks.
Ultimately, these improvements in technology mean that managers can make better decisions and workers can make more efficient use of their time. Using these systems improves margins and increases the likelihood that the most qualified person is available for work.
Building Information Modeling
Building information modeling (BIM) is also becoming more critical for contractors looking to improve their productivity. These systems can provide all stakeholders with a single source of truth, allowing them to follow unified plans.
Better yet, many of these solutions make it more straightforward to identify and avoid problems before they occur. Architects, engineers, planning officials, and contractors can all share the same information and identify problems before they happen.
As such, BIM has the potential to improve contractor productivity by helping to avoid the problems that affect the sector and prevent firms from completing projects on time. Companies that can leverage BIM for their internal and client-facing processes are more likely to thrive long-term.
Repetitive Task Automation
New technology could also enable the development of robots that could handle repetitive tasks on construction sites once done by people. Manual work may become less common in the future as artificial intelligence develops.
In fact, there is progress in this area already. Machines are already taking over some basic building tasks, such as wall construction, with many also moving into other more sophisticated areas. As this trend develops, it means that humans can focus on the high value-added or artisan elements, improving the aesthetics of their work dramatically without any concomitant increase in price.
AR And VR
Finally, AR and VR have the potential to drive productivity in the contractor sector. VR will be most helpful in training. Software developers can create realistic simulated environments where apprentices can train in situations all day long instead of waiting for them to show up in training.
By contrast, AR will be most helpful on the job. Computer overlays of situations can provide real-time assistance, instructing the contractor on what to do next to achieve the desired outcomes, including the tools they require.
AR could also help contractors identify existing problems and fix them. You can imagine software connecting BIM information to the workers’ heads-up display, providing them with pertinent information relative to the job.
How much longer it will take for AR and VR to go mainstream will depend on the utility they offer and demand. Novices are likely to find such systems extremely helpful, even if it means wearing a device over the eyes for long periods of the day.
Wrapping Up
In summary, technology is already transforming the contractor sector, affecting construction and all the trades. However, its impact remains limited. Many firms still aren’t using the available technology.
If that were to change, productivity could rise substantially. People would produce substantially more per hour worked, allowing them to earn higher incomes and provide more for their families. At the root of it is the proper use of technology, the most powerful tool small contractors have to move forward from where they are now.
Contractor work isn’t the hottest topic in the technology space, but its impact could be profound for the millions of people involved in the sector. The more it can develop, the fewer resources economies must dedicate to basic work.
Editor-in-Chief | Seat42F, a leading source of entertainment news, information, television and movie resources.
