Certainly, the systemic challenges that affected the construction industry prior to the pandemic have not disappeared. Yet, despite the continued importance of long-term strategic planning, it is worth confronting and addressing a few crucial issues that have the potential to impact your contracting business in the immediate post-pandemic environment.
- Diversification – While hospitality and retail construction have been hard-hit by the pandemic, some other sectors (particularly residential construction) are thriving. With renewed federal attention on infrastructure spending, and with growing demand for specialized commercial projects such as server farms and distribution centers, construction businesses should regularly re-evaluate their market strategies.
- Supply Chain Issues – Skyrocketing material costs have thrown many carefully estimated projects into disarray, and underlying supply chain disruptions are expected to continue. Sound vendor management practices and careful contract language can provide some protection, but companies should also update their strategic plans to reflect the long-term effects of continued supply chain uncertainty.
- Modular Construction Advances – Offsite assembly and modular building strategies have become increasingly popular in projects ranging from multifamily residential to roads and bridges. Coronavirus-related safety concerns have added to the appeal by enabling greater control over working conditions and virus exposure.
- Jobsite Technology – No-touch workplaces, keyless access systems, and advances in drone technology are reshaping the way many jobsites are managed. At a higher level, companies should also prepare for continued advances in building information modeling (BIM) software and other technologies that improve jobsite integration and efficiency.
- Cybersecurity – The advent of remote working for administrative functions has further complicated IT security, an already high-priority risk management topic in many organizations.
- Customer Relationship Management – Just as employee relations and jobsite practices have changed in response to the pandemic, customers’ communication preferences and expectations have also shifted away from in-person visits toward video conferencing sessions and online meetings. A strategic plan should reflect these evolving relationships and include steps to ensure the company remains connected and competitive in this new environment.
- Energy Conservation/Green Construction – Although not specifically related to the pandemic, green construction techniques and energy conservation projects are getting widespread attention. These could offer additional opportunities in both the public and private sectors.
Strategic planning, both for long-term growth and anticipating and minimizing disruptions, is essential for the success and stability of your construction contracting business.
Contact Dembo Jones today to begin a relationship with a forward-looking business partner who is deeply knowledgeable about your operations and always eager to offer advice to advance your goals.