The good times for the construction industry are long gone. After some rough years during the financial crisis, the industry has now reached a more stable – although somewhat lower – level compared to previously.
Hence, companies are required to increase their productivity and revenue in order to survive in a market with zero growth. Accordingly, companies should (1) reduce errors, (2) create good results for their customers and (3) have the courage to take action since they will not be rewarded for waiting for the industry to take a turn for the better.
The Danish Construction Association and 3F have asked QVARTZ to develop five steps describing how companies can get started on improving both productivity and revenue:
1 Co-operation between management and employees. The management and employees share many interests. Hence, better co-operation between the two groups is essential
2 Better processes. A standardisation of the work processes contributes to boosting productivity and reducing errors
3 Applied technology. The construction industry is not digital at this point. A series of new solutions could reduce the administrative burden and increase profitability
4 Get close to the numbers. Good management is about continuously ensuring insight into the finances in both the company in general and in each project
5 Maintaining the right clients. Not all clients and assignments are equally attractive. A company must focus on the clients and assignments which create the best results according to the specific needs of the company
Download the full report here, and learn how to work with the five steps.