Analytics: A Critical Key to Unleashing Productivity And Profitability In Construction
In a simple truth being learned by major construction firms, optimizing your existing jobsite data can unleash greater productivity and profitability.
Successful construction operations generate volumes of drafts, blueprints, licenses, and other data. Yet many contractors fail to apply effective and efficient methods for capturing and analyzing the reports and jobsite feedback. Efficiencies get lost in the process. Opportunity to analyze failure as well as success vanishes. Profits endure the loss.
In this short piece, we offer some pointers on how your company can better utilize data collection, data analysis and data sharing. In essence, this is how you can make your existing and forthcoming data work toward higher operational profitability.
Gaining Efficiencies Means Creating Profitability
According to reports from the European Union, between 2006 to 2015 industrial companies endured a mere 1.6 percent in productivity growth (McKinsey&Company, Operations, “Manufacturing: Analytics Unleashes Productivity and Profitability.” August 2017; Authors: Valerio Dilda, Lapo Mori, Olivier Noterdaeme, and Christoph Schmitz). It brings to mind a few simple questions:
- How many opportunities for increased profits fall to waste beneath the burden of ineffective data and document management?
- How many contractors work within the boundaries of a poor efficiency ratio merely because they have no accurate methodology for tracking how the company is using assets and liabilities to generate income (Investopedia, “What is the Difference Between Efficiency Ratios and Profitability Ratios?”)
- AND How much valuable weekly data input ends up in a cluttered and impractical database system?
Efficiency ratios assess a contractor’s capability for successful management of liabilities and effectual use of available assets. Points of evaluation include:
- Inventory turnover, including accurate tracking in costs of product as related to average inventory
- Receivables turnover, basically measures a contractor’s efficiency in debt collection and extended credits
- Asset turnover, involves comparing revenues to assets
- AND Workforce allocation.
It is all about accurate data collection in a manner that promotes effective analytics. However, advanced analytics can only function in a data-efficient environment. Thus three processes must move as one: Effective data collection and monitoring enable a greater analysis of jobsite efficiencies, which can and usually does enable increased overall profit.
Assignar: The Contractor Resource For Increasing Profitability With Efficiencies and Analytics
Assignar workforce and asset allocation and planning software offers contractors effective data management tools designed to simplify the process of customized reports. We help contractors get insight into every aspect of construction operations.
These tools help you collect data from multiple jobsite sources, visualize the components, and then optimize your workforce and asset operations. Act now to get started with one of the most advanced analytics systems on the construction market. We help contractors penetrate previously opaque complications while also revealing hidden solutions for removing bottlenecks and other unprofitable operational problems.
Example of a competency matrix exported from Assignar
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