For most businesses, there remain a myriad of factors that are outside of your control as an entrepreneur, from the macroeconomic and geopolitical climate to the impact of the coronavirus pandemic and subsequent lockdown measures.
This is especially true in the case of construction businesses, which must also cope with issues of supply and demand, the rising cost of raw materials and continued disruptions to global trade.
But what steps can construction firms take to future proof themselves in 2021, especially as the economic climate remains volatile across the globe?
The Sourcing of Reliable and Reasonably Priced Suppliers
As recently as June 2019, the UK’s construction industry suffered its worst month in more than 10 years, with many commentators attributing this to the impact of Brexit.
This has definitely accelerated the rate of change in the global supply of building materials and resources, with the construction sector the largest consumer of raw materials throughout the world.
While companies can do little to mitigate a reduced supply of resources and the subsequent rise of more expensive materials, they can improve their prospects by seeking out more reliable suppliers. Similarly, firms should consider prioritising sustainable and eco-friendly building materials, which will ultimately increase the overall supply, lower costs and arguably create a greater governmental inclination to build more homes.
Forward thinking brands may also want to consider securing more consistently priced materials, to help cope with fluctuating in supply and demand.
This can be achieved successfully through futures trading, which enables you to agree a fixed price with a supplier that will remain unchanged for a predetermined period of time. This can apply to core materials such as cement, timber and sand, while being factored into a wider business model.
Moving and Changing With the Times
Another key method of future proofing your construction firm involves embracing innovation, especially in the form of automated construction equipment that’s capable of streamlining processes and creating far greater levels of efficiency.
Arguably, this can also improve the safety aspects of individual sites, by reducing human error and the risk to individual employees.
At the heart of this trend is artificial intelligence (AI) and machine learning, which utilises large and diverse data sets to program machinery and replicate best human practice.
While some have argued that this could ultimately lead to the replacement of the human workforce, advocates argue convincingly that automation would actually handle time-consuming and rudimentary tasks while contractors get on with more skilled and strategic work.
This is definitely a space to watch in the future, while getting ahead of this curve will enable brands to fortify themselves for the future.