Get a grip on your margins - dealing with staff shortages in construction

For years, the construction industry has been facing a shortage of people. This staff shortage has put considerable pressure on margins in the construction industry. Many companies are therefore asking themselves the question: how do we keep projects profitable despite rising costs and a shortage of skilled workers? In this blog, we talk about how smart strategies and technology can help you keep control of your margins.

How do you protect your margins in times of staff shortages?

Staff shortages remain a major challenge for companies in construction, civil engineering/infra and installation. Whether you are working on large infrastructure projects or constructing new buildings, the shortage of skilled workers slows down your projects and directly affects your margins. Companies often have to hire expensive subcontractors or self-employed workers to support projects, which adds costs, or face completion delays. This is precisely why it is crucial now more than ever to keep a grip on your margins and ensure that each project remains profitable.

Yet some organisations are managing to protect their margins even in these challenging times. How? By strategically using technology and smart insights.

💡 Construction staff shortages are a hot topic in the industry. If you want to know more about this trend, read our e-book “The Labour Market in the Construction Industry”.

Why margins are more important than ever

Construction projects are complex; they require precise planning and execution. If you are faced with tight staffing levels, the danger of budget overruns is never far away. Without a clear understanding of cost items and revenues, margins can quickly evaporate.

Decision-makers in the construction industry know that margin management is not only about numbers, but also about strategic control. How do you ensure that your organisation remains agile and projects remain profitable, despite staff shortages? The answer lies in technology that provides real-time insight and support.

1.     Real-time project data: from insight to action

With real-time data, you can maintain control over your projects effectively. Integrating data from various business processes into a single solution, such as an ERP system, provides you with immediate insights into costs, revenues, and progress. Employees can quickly identify any deviations from the budget and make adjustments on the spot to prevent overruns. This proactive approach helps prevent surprises and protects your margins.

By leveraging an integrated ERP system, project leaders gain real-time insight into their projects. This enables them to make faster and more informed decisions, such as determining which project items should be charged. Additionally, consolidating processes into one system reduces the administrative burden. Project managers no longer have to wait for reports from accounting—they now have instant access to all necessary project data.

This not only ensures greater efficiency but also optimizes the use of staff. In a time of capacity shortages, it is crucial for companies in the construction industry to relieve employees from manual work as much as possible. This allows employees to focus their time and skills on more impactful project tasks, ultimately benefiting the company.

2.     Smart resource planning: everyone optimally at work

When you are struggling with staff shortages, it is very important to use the available personnel optimally. Smart resource planning ensures that everyone is not just casually at work, but works executing that suits their expertise and priority. Companies that plan smartly avoid relying on expensive external workers or subcontractors.

Integrated planning tools show who is available when, what work is a priority and what equipment you need when. This not only helps avoid delays, but also helps your team work more efficiently and with less stress. A good planning system also helps you assess whether the available capacity is sufficient for the planned amount of work. You can quickly see where the biggest bottlenecks are and how best to deploy available employees.

3.     Automation of administrative tasks: saving time

Administrative processes such as time registration, equipment call-off, and procurement management are essential but often time-consuming and prone to errors. In some cases, these tasks are even handled on paper! By automating these processes, you can work more efficiently and avoid manual errors. This automation frees up employees to focus on core tasks that drive projects forward.

Digitisation and automation can significantly improve logistical processes, ensuring that orders are complete and accurate. Automation tools can handle all the conditions surrounding equipment orders, generating a complete list of required items and forwarding it directly to the logistics department. This ensures that equipment arrives at the construction site on time, preventing additional deliveries and saving time and frustration for colleagues.

By preventing errors, optimizing work processes, and saving valuable time and money, digitisation and automation are crucial for increasing efficiency and productivity in any organization.

What does this mean for you as a decision-maker?

Companies in construction, civil engineering and installation that bet on technology have an edge: they stay profitable, improve their processes and respond better to future challenges. The combination of real-time insight, smart planning and automation enables you as a leader not only to protect margins, but also to make strategic decisions that make your organisation more resilient.

Keeping a grip on your margins? We would like to help you!

With our ERP solution 4PS Construct, you can, for example:

• Identify risks early: Keep a finger on the pulse and quickly discover if cost items deviate from plan.
• Plan efficiently: Use historical and current data from projects to allocate personnel and resources optimally.
• Communicate better: Make sure everyone, from the construction site to the office, understands what needs to be done and what has priority.

But of course, this is far from everything. Want to discover how your company can benefit from this technology? Request a no-obligation consultation with our experts.