You’ve probably heard that the construction industry has not increased its productivity over the past 20 years. That construction remains stuck in a rut of its own making. New ideas in managing projects are rejected, new materials are ignored, and workers refuse to change the way they work. I’m here to tell you that it doesn’t have to be that way and some contractors are indeed changing and finding ways to increase both quality and margins.
But let’s be clear, the construction industry is entering (or is already in) a period of disruption. Operating your business in the same way you have in the past is going to lead to already slim margins shrinking past zero. FMI asked contractors about change: 58% expect more change in the next 5 years than in the last 50 years combined.
So you’re probably saying to yourself, OK, I can handle change but knowing what to change and how to change it is the key. Change is hard, and many companies have failed due to too much change, so caution is smart. Over the next few months, Hanley Wood will present Building Forward, a web site dedicated to analyzing the disruptive changes in labor and productivity that are transforming construction today. Take a look and keep coming back as we show ways to change and adapt that others have found successful.