3 changes you should make to your construction forecasting today
We’d all like a crystal ball to help us see what lies ahead for our business – but making three key changes can make a real difference to how well your construction forecasting works.
Hang on – what just happened?
The construction industry shot out of the recession. Business is booming, materials are getting scarce and skilled labour is in high demand.
Not everyone saw that coming, so read on for our three top tips on changes you should make to your construction forecasting that will help you plan better.
Managing the complexity of change
Many construction companies use forecasting to predict what’s ahead, how projects will progress, what materials and labour they will need and how prices might rise or fall.
Construction forecasting is complicated. Why?
- Projects evolve – especially long ones.
- Unexpected business comes your way.
- Subcontractors let you down.
- Prices shift.
Preparing for better construction forecasting
These are the three changes you should make to your construction forecasting:
- Get real about your software.
- Make sure you’re joined up.
- Take advantage of automation.
Why? Good construction forecasting means great preparation – and successful companies know being prepared means getting ahead of the game.
1. Real time, real life.
Is your construction forecasting software fit for purpose - or did you let it slide during the recession? Opportunities in construction are finally on the up, so now’s the time to make up for that false economy.
Your construction forecasting software needs up-to-date data to give you accurate forecasts.
Real time updates mean real-life estimates and real profits.
“The past six months have seen consistent and strong growth within the industry, with demand for materials and output reaching levels not seen since the onset of recession in 2008. New research shows that prospects are even brighter for the start of next year.” – Construction News
2. Join it up
Plenty of construction companies have accounts systems, HR systems, retentions systems and procurement systems.
But do your systems join up? Do the people who run them know what their colleagues’ systems say?
Make sure your construction software joins up. That way, you get instant access to all the information you need.
We’re talking about seeing the bigger picture – all the time. So you can make truly informed decisions about where your company is going.
3. Taking advantage of automation
Have you been tied up recently worrying about the Construction Industry Scheme?
Plenty have – UK construction companies have already been fined more than £130m recently for mistaking employees for subcontractors.
By adopting the right construction software that offers automation, these issues can be taken out of your hands – it will record, verify and report all your CIS payments automatically. HMRC will love you – and you can get on with running your business.
Takeaways:
- Construction forecasting is about the future – but you need to do it now.
- Good software gives you real time data to make realistic decisions.
- Joined up systems give you the bigger picture about your business – all the time.
The construction industry is changing as the economy grows, materials get scarce and skills even scarcer. There are opportunities to grasp – but also challenges to overcome.
Discover how the changes you make to your forecasting will improve your finances by downloading: How to Reflect Construction Industry Changes into your Financial Management