Impact of COVID-19 on the Construction Sector

Impact of COVID-19 on Construction Industry

Introduction

The Coronavirus pandemic on a positive note has made the construction industry review its conventional way of conducting business. The reformation comes in a technological front that may have a solution for building a robust, operational preparedness procedure in cases of similar emergencies in the future. The trend though has begun way back a decade ago, where the industry players had little known the importance of going digital for sustainable development. 

As per a recent article published by McKinsey, from 2014 to 2019, investors poured $25 billion into Engineering and Construction technology, up from $8 billion over the previous five years. The pandemic at hand has become a catalyst, further boosting the drive towards automation and digitization. 

Impact of the Pandemic

Construction unlike other soft professions mandates human presence at the project site for effective execution. The restriction on travel following the lockdown has heavily impacted the industry in the sense that it has almost brought all the operations to a grinding halt. This has affected multiple players in the industry and not to mention that the small-time players have been completely chucked out of the game for good. 

Now comes the million $ question. Could this all have been averted? Is there a reliable solution to avert running into such risks in the future? Let’s find out. 

What was the single major pain point caused by the pandemic? It’s the inability of the project managers and associated stakeholders to be physically present at the site to monitor the activities and other back-office processes. This can be rectified in the future by incorporating a mobile technology that enables the stakeholders to gain real-time visibility and control over their operations from any part of the world at any time. 

Top construction companies were already investing in technology before the onset of the pandemic. Contractors, Architects, Engineers, and Suppliers have quickly shifted to working and collaborating digitally—from video-call site meetings to filling digital orders. The future of constructing buildings has to be clean, smart, and lean. 

Industry Post Pandemic

The pandemic has surely triggered a new perspective for the industry’s future. Many contractors are seeing shrinking backlogs and more competitive bidding environments by going digital. Having been in the industry for quite some time, it has been observed that those who opt for a technological transformation report timely completion of projects without facing cost overruns. It reduced the man-hours required to complete a project by eliminating factors like overlapping of decisions, duplication of work, improper communication, etc. Studies show that majority of the start-ups are more agile when it comes to automating their construction process. This is mainly because clients prefer a construction firm that is technology-driven rather than a firm that still operates like it’s in the 19th century.  

Contribution of Tactive ERP 

Tactive Construction ERP Software has been built in a way that encompasses all the possible pain points that a construction firm may face in turbulent times like these to help the end-user steer clear of any adversary that may surprise them. It is built as an end-to-end digital solution that caters to the A-Z needs of a construction company by integrating all the required modules from Tendering & Estimation to HR & Payroll and beyond, making the operations streamlined, organized, and easy to execute. 

Geography is no limit for the clients as Tactive ERP is capable of being hosted for the users through the cloud server. The ERP solution of Tactive is not designed as a stand-alone solution. It’s a suite of digital solutions that targets all the key areas of a construction firm and is incorporated with Business Intelligence required for the forthcoming generations to operate the firm smoothly. 

To know more in detail about how Tactive stands to help you increase your productivity and scale-up revenue, take a free demo at Construction ERP Free Demo

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