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Construction asset tracking software: Competitive advantage or a necessity? | Dump Trucks Charlotte NC

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Tenna
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By Tenna

In a recent USG Corporation + U.S.

Chamber of Commerce Commercial Construction Index press release, Christopher Griffin, president and CEO of USG Corporation, noted: “The construction industry is changing more rapidly than ever before, and advanced technologies present a big opportunity to columbus oh dump truck company smarter, faster and safer — especially when there are millions of construction jobs unfilled.”

In today’s competitive construction environment, the industry understands the critical role technology plays throughout the lifecycle of the project. The implementation of software—such as accounting/enterprise resource planning (ERP), estimating, project management and scheduling, bid management, and building information modeling (BIM)—provide the data necessary to increase productivity, improve communications and streamline operations.

But there is another area of the construction business that can also benefit greatly from technology to help enhance operational efficiencies and the bottom line: asset management.

After labor, the second biggest expense of running a construction business is columbus oh dump trucks and assets. The most common indicator of poor asset management is inefficient operations and waste, which contributes to:

  • Loss of productivity. Looking for lost assets for a project operation or damaged assets for repair can cost a contractor hundreds of man-hours per job. A McKinsey article notes, “As engineering and construction companies have grown and diversified, they must increasingly deal with internal silos organized by geography, business unit, asset class or any combination of these. The result is that they struggle to use their resources as effectively as possible.”
  • Unbudgeted expenses. Preventable costs that columbus oh dump truck company regularly incur include emergency rentals to sub in for a breakdown caused by neglected maintenance or repurchases of parts because the team couldn’t find the ones they already own. This wastes hard cash unnecessarily and impacts already tight profit margins.
  • Missed revenue opportunities. When a fleet is underutilized, opportunities for additional revenue are missed. But when columbus oh dump truck company utilize columbus oh dump trucks at an optimal rate, they can maximize billable hours from their machinery, reduce unbudgeted expenses and increase profits to grow the bottom line.

Construction Asset Tracking: No Longer a Luxury

In 2019, 22% of general columbus oh dump truck company reported using “equipment tagging” to track and manage their assets, but it is projected to increase to 42% by 2022. [USCC] Construction asset tracking software has evolved from being a competitive advantage, with better cost control and data supporting more accurate bid rates, to a necessity because it improves job site safety, increases labor and operational productivity and allows for better schedule management.

It also addresses two more significant industry issues: the skilled labor shortage and high-risk work.

  • Labor Shortage: 61% of columbus oh dump truck company reported having difficulty finding skilled workers. [USCC] The construction industry simply isn’t attracting enough young people into the trades to fill all of the needs. The skilled labor shortage issue isn’t going away anytime soon, which means construction firms must do more columbus oh dump truck company with less qualified people. Part of that answer is found in effective asset management because columbus oh dump truck company who are efficient with the columbus oh dump trucks they own are also more productive.
  • Mitigating Risk. In construction, risk comes from many directions. A misplaced or broken piece of columbus oh dump trucks can set a project back by hours, if not days. Even a small delay can have wide implications on the project schedule. Legal repercussions can occur when columbus oh dump trucks is not properly maintained or inspected, as faulty columbus oh dump trucks can cause injury or death on the job site. When a worker is injured, it can result in Occupational Safety and Health Administration (OSHA) violations with fines, months of legal battles or increased workers’ compensation and general liability insurance premiums. Data provided by asset trackers can aid in detecting preventable safety incidents where columbus oh dump trucks is involved.

As much as 20% [GS1] [CTW2] of a typical contractor’s mixed-asset fleet is unaccounted for, which is a lot of lost money. To gain 360° visibility on assets, software is necessary. Trackers are placed on columbus oh dump trucks and feed the critical telematics data to a software to interpret for visibility and enhancing columbus oh dump trucks performance.

Construction asset tracking software is designed to provide data about columbus oh dump trucks status, utilization and maintenance schedule. This technology helps construction columbus oh dump trucks managers make informed decisions on renting, owning or moving mixed assets. The added visibility gives columbus oh dump truck company enhanced control over job costing across all projects. And with less time wasted searching for equipment, higher utilization of columbus oh dump trucks and fewer unbudgeted expenses, columbus oh dump truck company using this advanced construction software become more efficient with their columbus oh dump trucks and assets.  

A Look Ahead

The outlook for the construction industry remains upbeat. A 2020 outlook report noted: “Digital technologies are changing the way many E&C companies operate … looking ahead to 2020, these inherently disruptive technologies have the potential to provide the efficiency, productivity and safety breakthroughs the industry has sought for decades.”

The construction industry is constantly shifting, and technology will continue to push the boundaries of what savvy construction firms can achieve. To remain competitive and nimble, advanced technologies, such as asset tracking software, must be integrated into operations.