Why the Construction Industry Struggles With Asset Management
The construction industry has faced and continues to face tremendous challenges. While these challenges can come from various causes, they all have in common: they can be lessened by using construction asset management technology. But before diving into how this technology can help your construction company, let’s highlight some of the largest challenges the industry faces today.
Challenges the Construction Industry Faces Today
The COVID-19 pandemic and modern technology have affected the construction industry more than many other industries. While not all the challenges the industry faces today are due to the pandemic, many lasting effects have dramatically decreased the efficiency of the industry.
Some of the challenges that the construction industry is still facing today are:
- Labor shortages — in October 2022, the unemployment rate in the construction industry was 4.1%.
- Supply chain and material sourcing delays
- Inflation — as of March 2022, inflation rates are at 8.8%, the highest since May 1981.
- Material and equipment theft
- Technology adoption
- Increased weather dangers — CSU and NOAA predict a 60% chance of an above-average 2022 Atlantic hurricane season.
- Increased downtime
- Stagnant productivity levels
While these struggles cannot all necessarily be solved by a single solution, they can be improved using asset management tools. You may wonder how asset management can help alleviate the struggles the construction industry faces today. But, before we can get into this, we need to establish what asset management is and why it is important.
Why Is Asset Management Important?
Asset management is crucial to all industries, and construction is no exception. Anytime an asset (like a tool) goes missing, it decreases your profits. An asset management system can help you better manage your assets so this does not happen. Not only does asset management help companies to organize their resources, but it also gains better visibility into how those resources can be better utilized.
Asset management allows construction companies to:
- Track assets and maintain an accurate asset database to streamline the project assignment process.
- Keep accurate maintenance records of each asset and help schedule maintenance when needed for assets.
- Provide more informed recommendations for the construction equipment and workers needed for upcoming jobs.
How Asset Management Alleviates Construction Site Struggle
Now that you are familiar with asset management and its importance, you may wonder what it can do to address the challenges construction companies face today. So, without further ado, here are some of the most impactful ways asset management software can alleviate the struggles construction companies like yours face today.
Reduces Risk of Theft
Construction equipment and tools are extremely valuable assets. Because of this, unfortunately, many construction sites are prime targets for theft. If your assets are not adequately protected or accounted for, you could lose them and have to re-purchase them. If you use an asset management system that tracks and manages your assets in real time, you do not have to worry about them “wandering off” at a construction site.
Improves Visibility of Assets
Your equipment and tools are constantly on the move — whether on a construction site or moving from one location to another. Unfortunately, this means that there are a lot of opportunities to lose track of these valuable assets. But, with asset management software, you can easily track and monitor their location in real time from anywhere.
Manage Repairs, Maintenance, and Services for Assets
Repairs and maintenance are crucial to ensuring that your equipment is in top working condition. But, not knowing exactly when these repairs or routine maintenance checks need to be done can cut your profits if you are getting them too often (or forgoing them and risking broken machinery). Asset management software can help you log and manage these appointments and keep detailed records of when they were last serviced and when they need to be serviced again.
Reduce Safety Risks and Wasted Time on Job Sites
An asset management system can help ensure that your equipment is properly cared for and safe to operate. When you have detailed records of any issues with your equipment, you can more effectively solve those problems — whether repairing or replacing the item. This way, you do not have to worry about safety hazards on your work sites.
Similarly, when you are not bringing faulty equipment onto your work sites, you can reduce the amount of downtime your workers spend trying to get their work done with equipment that isn’t working. With asset management software, you can limit the time your workers spend trying to repair or trade in equipment that isn’t working. This way, your workers can do their job effectively and efficiently.
Receive Insights on Your Assets
Before making any decisions on getting new inventory, you need to know what you have. With asset management, you can keep detailed records of what you have, how much it costs to operate, where it is in its lifecycle, and when it requires repairs or replacement. This can help you streamline your inventory and help notify you of which pieces of equipment need replacing and which do not.
Unfortunately, many of the struggles construction companies have faced are not likely to go away as we progress into next year. Whether by the lasting effect of the pandemic, increasing climate change, or the modernization of technology, there are still many challenges that companies like yours will face going forward. But, many of these challenges can be combated through the use of good asset management software.
If you are interested in improving your efficiency, reducing risks, and saving time and money, you should consider RedBeam’s fixed asset tracking software. RedBeam delivers high-quality visibility and control across your entire construction site and helps manage multi-million dollar projects. To find out more about RedBeam’s asset management solutions, schedule a demo today.