Despite ever-present talk about digital transformation in the construction industry and reports that show technology’s momentum in the space, construction generally still lags behind other industries in digital adoption. Much has also been reported on the driver and operator shortage as business leaders look to find and retain talent. How will these trends continue evolving into 2020?
The third annual Teletrac Navman 2019 Construction Benchmark report set out to explore the state of construction, identifying key trends executives and leaders see as challenges. The data found two central trends construction companies are focused on for 2020: advancing digital transformation and improving safety and wellness.
Advancing digital transformation
Not only are 50% of organizations not planning to invest in new technology, 42% still rely on paper-based processes. This may seem unbelievable in the modern world where tech is at the heart of people’s everyday lives, but many construction business operations still pull records or use paper for critical business processes like forecasting hiring, tracking parts or maintenance needs or shipments of raw materials.
Previously, fleets with over-the-road vehicles may have still tracked hours of service (HOS) with paper, but thanks to the final December 2019 ELD Mandate, companies are required by law to track HOS with ELD systems.
The truth is that companies not embracing technology are missing out on benefits that may help solve some of the challenges executives are most concerned about. The data shows increasing material and labor costs, driver and operator safety, jobsite safety and rising fuel prices are the top four industry challenges they’re most worried about. There are tech solutions designed to help companies improve outcomes across all those areas, but the unfortunate truth is very few take advantage of them. Although overall tech adoption in construction is at its highest ever (90% of organizations report using telematics), use is low: the average company only uses three of 12 available telematics features.
A great example of this is fleet management platforms or telematics solutions. On average, companies use telematics to measure basic metrics, like vehicle speed and equipment location, versus measurements that could meaningfully impact their bottom line, like engine hours, equipment utilization, work versus idle tracking, fuel burn or maintenance. In fact, the number of organizations using telematics to monitor behaviors that could impact the bottom line has declined. Only 30% are tracking idling (versus 39% in 2018) and only 21% track fuel usage (versus 32% in 2018).
Companies need to do all they can to optimize and find efficiencies throughout the workflow. As construction firms look to profitably compete for business, they’ll need every business advantage. Moving away from paper-based processes and using existing technology to its fullest are two ways construction firms can achieve this to improve productivity and their bottom line.
Improving worker safety and wellness
Driver and operator safety remain top concerns for construction businesses. According to the data, 21% of leaders cited improved employee safety and 14% cited improved vehicle safety as top business goals. To accomplish these goals, leaders are putting time and resources into technology to monitor safety.
Telematics adopters, for example, are seeing a positive impact, with 51% of companies experiencing fewer safety incidents since adopting the technology and 31% have seen improved driver and operator behavior.
According to the Construction Benchmark report, while only 34% monitor driver performance with telematics, those that do see wide reaching benefits, including speed prevention, improved productivity and efficiency, and preventing driver fatigue.
To improve overall safety and wellness, companies aren’t just monitoring driving. They’re looking to emerging technologies such as driver warning or alerting technology and fatigue management. They’re also developing incentive programs to recognize and reward top performers and safe behavior, a practice gaining momentum.
Safety and wellness are also talent issues; drivers want to work for a company that prioritizes their safety and health. Thirty-six percent of companies with a recognition program have seen improved driver retention, which is an important result as the construction industry looks to attract and retain operators amidst increased demand.
Many of the overarching business trends and challenges construction executives face, such as improving jobsite safety and finding efficiencies through digital transformation, have largely remained the same over the past few years. As the industry moves into 2020, though, leaders will look to new solutions to improve safety. They’ll also take greater advantage of existing telematics systems technology to realize cost-savings and maintain locational, situational and operational awareness across their entire business ecosystem.
