Why is forecasting in construction crucial for business success?

As Plato says: necessity is the mother of innovation. The new reality has brought us changes that are meant to stay. Many experts say that the global Covid-19 pandemic has accelerated the Fourth Industrial Revolution and the use of technology across all industries. It has also highlighted the importance of precise construction project forecasting to improve response to disruption.

A single system for maximised visibility and better resilience

Companies that have introduced end-to-end business management solutions in the cloud are already experiencing the benefits of flexibility, visibility and project predictability. Not only do they use one integrated system with a single source of truth, but they can also access it from anywhere and at any time. From an infrastructure standpoint, not much changed for them during the pandemic. They were able to access their documents and data on any device in any location when they needed them. It’s modernisation of this nature that allows construction businesses to adapt quickly in difficult times.

Complete project control and forecasting in construction

For those without a solution in the cloud, work is a lot more difficult. How do you ensure that all data is kept up to date? How do you provide operational users with access to the documents and information they need? And, more importantly, can you trust the data you base your decisions on?

That’s why it makes sense to choose an ERP system that supports forecasting in construction functionality. It allows you t0 record progress levels, forecasts and revenues. Thus, you can monitor the current periods or retrieve snapshots of previous periods. From site supervisors to senior management – everyone has access to the data they need, all in one place and available from anywhere. Only through powerful insights into business data, finances and efficiency, construction businesses can build back stronger.

Construction project forecasting is key for successful delivery

Furthermore, businesses cannot afford to prepare and produce construction project forecasting in a reactive manner. Today, data-driven decision-making using technology is necessary to identify warning signs early, analyse the situation, identify the best way to tackle it and perform corrective actions. The alternative is like driving at night without headlights.

What margin do you make per project, project lead, project type or discipline? These are essential metrics for you to be able to make decisions on a strategic level. Interpreting this data may point you to new business opportunities where margins may be higher.  Ultimately, it is the information that you need at hand to make a thought-through decision rather than letting it happen. It is a matter of not only analysing past project outcomes but drawing on this data to make insightful business decisions going forward.

The intelligence that you need for your business to grow

It is essential for businesses to rely on accurate data not just so that they can define whether they were at profit or loss with the last project but to use that data to make decision, to see trends and to develop their business going forward.  Now is the time for construction businesses to reflect on vulnerabilities and strategise on how to achieve better overall visibility on their operations and improve efficiency. Would you like to know more about hat short- and long-term trends are already shaping the construction industry? Take a look at this whitepaper ‘The 7 Industry trends that will help construction to build back stronger’.

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