Although it is not practical to completely overcome all the hurdles that contractors, equipment dealers, and rental agencies face these days, opportunities for change and transformation will inevitably present themselves. Those who most quickly and aggressively embrace these changes will emerge stronger than those who don’t.
An old proverb says, “May you live in interesting times.” We are currently living through such interesting times, and the construction industry is not immune to the impacts. However, another proverb says, “This too soon shall pass,” which means we will soon be living in a new reality that offers both new challenges and opportunities. In our past three articles, we addressed what the industry can look forward to this year, why construction firms should be playing for the long-term, and how standby costs can help mitigate project delays and slowdowns.
So, as we look ahead to this transition, some of the prime opportunities include:
- Re-think and restructure supply chains and tactics. According to a recent ENR construction industry survey, more than half of respondents expressed worries about supply chain interruptions. Along with embracing the need to adopt safety measures for employees, a recent PriceWaterhouseCoopers report recommends that construction-related firms can also increase transparency in the supply chain by self-reporting with critical suppliers.
- Embrace digital transformation. An article in Entrepreneur noted that in an environment such as ours, where the shift to digital engagement will only become stronger, “Better utilization of data and technology” is where the “battle will be won or lost.” Having data that is thorough, diverse, specific, and current can make the difference between being prepared and vulnerable.
- Look ahead and plan accordingly. Work closely with local, state and federal governments with whom you have contracts. Knowing which projects may be shut down can help you prepare to identify alternate project delivery methods, and plan for contingency materials sourcing. And knowing where your assets are in their lifecycle can help prepare for potential dispositions.
Our previous advice for construction firms stands here: Understanding of critical data elements such as internal charge rates, active/standby rates, retail rental rates, and current market values are essential to planning. And using available data to its fullest potential will help you make better decisions to prepare for the months ahead. We can choose how to define this unprecedented time. Either it becomes a burden to our industry, or it presents a chance to redefine what is important and use this opportunity to remake our situation for the better in new and innovative ways.
To learn more about how we can help make better decisions on these issues in these uncertain times, schedule a personal demo with us. Let us show you how we can address your individual challenges with EquipmentWatch data. Learn more.
Brand Marketing, EquipmentWatch