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Contractor growing pains evident in construction software buying report

1/20/2017 at 12:10 pm by

It’s inevitable. As the demand for construction continues and contractors’ pipelines grow, there’s going to be some pain as current methods and business tools get push beyond their limits. That certainly seems to be what’s happening, according to Software Advice’s “2016 construction industry trends buyer report.”

The report is based on a random sample of conversations with hundreds of prospective construction software buyers over 2016. It provides a unique perspective of the common pain points driving their search as well as the functionality they want most in new solutions.

Most of the buyers (62 percent) covered in the report are from smaller firms with revenue of $5 million or less. And, not surprising, many (50 percent) are currently using manual methods such as pen and paper or spreadsheets to manage their projects and businesses. Thirteen percent are using non-construction software.

What are these software buyers primarily interested in? It still falls to what I like to call “the core four”:

  • Estimating (60 percent)
  • Takeoff (40 percent)
  • Accounting and job costing (37 percent)
  • Project tracking (34 percent)

These four software categories make up the virtual command center for many construction companies. Without them, contractors—especially as they grow—can easily lose control of costs, profits, and prosperity for their businesses.

Why are contractors evaluating software? Here is where the growing pains come into play. Current methods no longer seem to cut it. Contractors are looking for ways to:

  • Speed up processes (30 percent)
  • Increase transparency and improve tracking (24 percent)
  • Automate and standardize processes (20 percent)
  • Increase accuracy (15 percent)

If you’re feeling growing pains in your construction business, check out some of these previous posts for some tips:

The outlook for construction looks bright. Don’t let confining processes and systems hold your company back.

 See more results from Software Advice’s 2016 construction industry trends report.

About the Author

Deb Carpenter-Beck is a writer and marketer with more than 25 years of experience in the construction and real estate industries. She often writes about technology and best practices and is passionate about helping contractors and real estate professionals achieve their business goals. You can follow her on Twitter @DebCBConstruct.

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