The adopting to tech-innovation in the construction sector
Firms in the construction sector are slowly adopting to tech-innovation. These companies have been engaging in more research and ways to improve their productivity in the industry. It is evident that any company in the construction sector that apply tech -innovation their construction process rap more rewards in terms of profits, productivity, better completion of projects on time, and better collaboration between the stakeholders. This results in better utilization of both raw material and finished projects. Nowadays, innovations are utilized at a breakneck pace in construction firms. What was presumed to be future technology of about 10,20 years involving the connection of equipment and tools autonomous, heavy equipment, drones, mobile apps, and robots have become a reality in building and construction sites across the world. When implementing technological changes, the process seems to be a very tough pill to digest. But it is evident that any firm that doesn’t invest more in new technology no longer stays competitive than those that are adopting and implementing tech innovation solutions. By investing in tech innovation, any firm should understand what tech innovation is made up of. Some of the critical parts of tech- innovation in the construction industries include innovation tools, software, automatic machinery, modification system, commonly used in the first phase of project implementation.
Modern construction companies today invest up to $1.05 billion in international startups, this is according to report from James long LaSalle.inc, he adds that to construction companies have increased investment on R&D tech –innovation by 30% from 2017 to 2018. This decreases the cost of production and doesn’t overstretch the company’s budget. Tech innovation has a more significant impact on different areas in the construction industry, which includes: the productivity area, software area, offsite area, machinery area, and safety are. On productivity, the application of technology has remained flats for several decades. The traditional methods used in the design were disjointed and soloed. Still, the introduction of tech-innovation has resulted in investment in different construction designs, where construction companies have ventured into their unique production methods. Traditionally it was challenging to streamline production processes. However, modern technology in this sector has increased productivity the way the retail industry and manufacturing does.
Nowadays, various mobile apps and software are used in construction industries to help manage projects. The software’s applied in preconstruction -scheduling – project implementation and back-office management; this helps streamline the production process. The software allows changes in information updates, schedules, and communications by ensuring that information is transmitted in real-time, hence more accessible communication and collaboration. Cloud-based solution aids employees in submitting reports relating to expenses, work records, and document verification. From these benefits, I conclude that tech-innovation has a more significant positive impact on financial performance in the construction industry.
Recommendation
Tech innovation has a significant impact on the financial performance of construction companies. I recommend that the construction company should fully implement tech innovation in the process of project implementation. This is evident from the benefits that company’s which implement technology achieve. These benefits include reducing production costs, improvement in productivity, increased efficiency, and an increase in employee performance. A decrease in cost results in an increase in profit margins, in turn, indicates these industries’ financial performance. I also recommend that construction change their production game; innovation helps track on-site activities and identify the potential risky area. This reduces job accident exposure and promotes compliance with safety measures within the industry. I also recommend applying this tech innovation on R & D, since it improves on the time taken to implement any project, reduction in time indicates that more and more projects will be implemented. The more projects implemented, the higher the financial gain. From this, it is evident that tech innovation provides a significant positive impact on construction firms’ financial performance.
Lastly, I recommend that construction industries integrate their production processes using drones, wearables, robots, building information models (BIMS), autonomous massive machine detectors, use of computer aid design(CAD), use automatic personal protective equipment, use of construction-related softwares and internet. This will enable construction companies to become more competitive, hence makes them earn more on return on Assets (ROA), return on equity(ROE), and increased operating revenue growth.
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