Related articles:
1. Attain never outdated, always supported construction tech (this article)
2. How Trimble construction tech subscriptions work
3. Before getting a construction tech subscription, ask these five questions
Civil construction firms face constant pressure to do more with less and find ways to decrease rework. One area that holds immense opportunity for transforming operations is construction technology. According to Gartner, 45% of construction organizations use spreadsheets and other manual methods to manage their day-to-day practices. Because these methods can be inefficient and inaccurate, many firms are considering construction software and hardware to improve collaboration, enhance project management and increase accuracy.
Realizing the value of construction technology
Construction software and hardware offer opportunities to transform daily operations and benefit the bottom line. For example, construction technology can help civil contractors:
Improve overall site productivity by 40%
Create more accurate estimates and win more bids
Track project progress in real time
Prevent costly downtime
Eliminate rework
Quickly generate as-builts with accurate site data
Reduce material use by up to 20% using grade control
An image of a machine outfitted with Trimble construction technology hardware, which remains up to date when purchased on subscription.
Understanding the barriers to technology adoption
With all these great benefits, why aren’t more contractors using construction technology? McKinsey & Company reports that construction technology adoption has been slow, with contractors spending an average of less than 1 percent of revenues on tech. This lag may be because purchasing construction technology — machine control, surveying systems or software — typically requires significant upfront expense. Contractors then must cover this overhead cost on the promise of improved productivity or new business.
Of the investments made, most are used to increase control rather than improve productivity. However, this is starting to change as contractors face an ongoing shortage of skilled workers. Not only does technology help automate tedious tasks and boost efficiency, but it can also help attract tech-savvy workers to open positions. According to a survey by the Associated General Contractors of America, 75% of contractors report that using innovative technology has aided their recruitment efforts.
As technology advances, contractors want to keep up with changes, take advantage of new advancements and ensure their workflows are supported. New construction hardware is typically released every three years. Upgrades can be costly — more so if an entire system needs to be replaced. As a result, contractors often run multigenerational fleets, pairing their old tech with new, because it’s too expensive or capital-intensive to upgrade an entire fleet at once.
Then there’s the fact that accidents happen. Costly hardware, including system components and displays, can get damaged or broken, leading to unplanned downtime. Unexpected repair and support costs must be factored into the budget.
Making investing in technology easier than ever
Fortunately, there’s a better way to acquire construction hardware and field and office software — one that overcomes these challenges and enables contractors to turn their technology vision into a reality.
Instead of requiring a significant upfront capital investment, construction technology subscriptions let contractors obtain the hardware and software they need with a predictable and affordable monthly or annual payment. Minimizing upfront costs frees up capital for other initiatives and can help contractors add even more technology to their fleets. Furthermore, they can now build capabilities through incremental upgrades instead of waiting until they can afford a major purchase.
In most cases, hardware upgrades and software updates are automatically included with the subscription. Having up-to-date technology means crews can adopt improvements now, instead of using outdated solutions for an extended period. This reduces crew members' learning curves and knowledge gaps and ensures that everyone is working with the same technology. Rather than moving their grade control technology to different machines or running various versions from machine to machine, they can standardize their technology across their mixed fleet and make management more manageable.
The predictability of subscriptions helps contractors develop more accurate estimates, avoid surprise expenses and better understand project costs. Along with a predictable payment, subscriptions come with service and support from a local dealer. Setup, training and troubleshooting are all included to help contractors maximize uptime and improve crew technology adoption.
Furthermore, subscriptions are generally supported with a maintenance plan and even accidental damage repair and replacement to help eliminate unexpected costs. And this benefit alone can really pay off: Unbudgeted repair costs for damaged or out-of-warranty technology can cost up to 10% of the system’s value per year.
With a scalable, flexible subscription model for state-of-the-art construction technology, contractors can control costs, get work done on schedule and maximize productivity. To learn how Trimble Subscriptions can help you ensure that you have affordable access to the right hardware and software for your business, read the other two blogs in our series: How Trimble construction tech subscriptions work and Before getting a construction tech subscription, ask these 5 questions.
