Sage Construction and Real Estate Information technology trends. Summary report North America construction
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1 Sage Construction and Real Estate Information technology trends Summary report North America construction
2 Introduction Sage serves more than 6 million small and midsized organizations worldwide, regularly surveying them and other organizations for their opinions on a variety of business topics. This particular report includes highlights of a survey that examined information technology (IT) trends of North American construction companies in More than half of the firms surveyed are optimistic about how the economy will impact their business in % 23% 33% Optimism has been steadily growing since the first Sage construction technology survey. Top six business issues As the economy and optimism improves, construction firms are faced with more competition for skilled labor. This year, the shortage of labor was one of the top three issue s the first time since the survey was introduced in Getting new customers 38% Cost of materials 26% Labor shortage 25% Increased competition 25% Profit margin erosion 22% Government regulations
3 Strategic IT investment The recession caused many construction companies to reduce their IT spending. With still limited resources, construction firms are investing in IT where it will deliver the largest and quickest return. Top objectives include attracting new customers, improving communication and collaboration, and streamlining processes. Number of firms that do not have a dedicated IT person on staff less than1% Percent of revenue two out of four firms spend on IT Key reasons firms are investing in new technologies (including mobile): 36% Attract new customers 33% Improve communication and collaboration 30% Streamline processes 2 Improve cost control 24% Improve productivity 18% Produce accurate bids faster 17% Track and approve time worked more efficiently Most valuable IT solutions Construction professionals rated the high importance of various IT solutions to their business. Although familiarity with cloud computing is growing, mobile technology still leads. Device usage Recognizing the value mobile technology brings to their business, it s not surprising that contractors intend to add more tablets and smartphones, outpacing laptops. 5% 10% Cloud computing Big data Mobile technology 16% 38% Tablets 2 Smartphones Laptops
4 Information access Construction professionals want to access and share a wide range of data with mobile technology. Most cite customer and job information, followed closely by drawings, schedules, photos, and documents. How construction businesses plan to use mobile technology for information access and sharing: 48% Customer and job information 47% Drawings, schedules, photos, and documents 38% Daily field report entries 36% Job cost and project reports 30% Time capture and approval 25% Scheduling 24% Punch lists 16% Service work orders 12% Equipment tracking GPS tracking (fleet tracking) Material acceptance at the job site 6% Inventory tracking 5% Field payment processing Mobile device ownership How mobile devices are allocated by construction firms: Mobile device security Despite the expected increase of mobile devices as IT solutions, many contractors do not have a mobile security plan in place. Because the rate of malicious software threats to mobile devices is also rapidly growing, this lack of security may need to be addressed soon. Percentage of construction companies with mobile security plans: 44% Combination of company and employee owned 41% Company supplies all mobile devices 44% 41% Employees supply their own (BYOD) 12% 51% 31% No security plan Have a security plan
5 Business visibility technology Additionally, construction professionals are expanding their use of business visibility technology as an efficient means to improve decision making and company performance. Standardized reporting, dashboards, and alerts/notifications of changes were rated most important. Top benefits of business visibility technology: 50% 48% 35% 13% 50% 48% 35% 13% Standardized (or consolidated) reporting across the company Dashboards that track key performance indicators across the company Alerts and notifications when specific situations occur Access to reports through mobile devices Forecasting Online analytics 6% Big data Big data is a relatively new term for most construction professionals, yet it promises to significantly improve how a construction company can forecast projects and predict what will impact their business in the future. 22% Construction professionals familiar with big data: 6% Very familiar 22% Somewhat familiar 72% Not familiar 72% Obtaining new business Competitive pressure is pushing contractors to use technology to bid faster and with greater accuracy. Relatively few, however, have yet adopted CRM software as a way to improve their marketing, sales and business development efforts. 10% Top two technologies contractors use to obtain new business: 10% Estimating/bidding software CRM software 40% of contractors don t use technology to attract new business
6 Social technology While the use of social technology is growing in construction, its adoption is still relatively small. Many contractors are still unsure of the tangible benefits social technology brings to their company. How construction companies use social technology: 27% 20% 1 17% 14% 2% Marketing to attract new customers and stay in touch with current customers Stay abreast of industry news, trends, and upcoming events Communicate news, events, projects, and company milestones Develop new business by connecting with prospective clients Share knowledge with employees, company partners, and industry peers Track competitors, customers, and industry groups Collaborate on projects 60% don t use social technology 27% 17% 20% 1 14% 2% About the survey The survey was conducted in 2015 among Sage customers in the U.S. and Canada who are construction businesses. A total of 645 people responded to the survey Sage Software, Inc. All rights reserved. Sage, the Sage logos, and the Sage product and service names mentioned herein are registered trademarks or trademarks of Sage Software, Inc. or its affiliated entities. All other trademarks are the property of their respective owners. SPK /15
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