Last month, Tough Leaf and Procore teamed up to host the second installment of our “Futureproof Your Business” series of webinars. These sessions are designed to help owners of small, local, and diverse construction firms embrace emerging technology. This time, we focused on how digitization is transforming the bidding process.
We explored:
- The current state of tech adoption in the industry
- How Underrepresented Business Enterprise (UBE) subcontractors can avoid being left behind
- How technology impacts projects, scales success, and enhances bidding strategies
Highlights from the session are below:
Overview of the Construction Industry Landscape and Technology’s Role in the Near Future
Integrated technology solutions can transform your subcontracting business by improving collaboration, enhancing data accuracy, and bridging the gap between field and office teams. Adopting the right tech can reduce business risks, empower workers, and streamline processes, leading to greater efficiency and success in securing and managing projects.
With a market size of approximately $2.1 trillion, the construction industry is brimming with opportunities for growth through new tools, improved workflows, and the essential value of skilled labor. Specialized projects like data centers and infrastructure offer new avenues for subcontractors to explore. We also can’t ignore the workforce shortage of approximately 360,000 unfilled positions. The question is: How can subcontractors like you use technology to be real contenders in this space?
Small firms face several challenges when competing for work, including staying aligned with industry demands and managing projects within their capacity. Attracting and retaining talent is a constant struggle, as is monitoring rising costs in materials and labor. Small contractors also contend with tough competition from larger firms, often losing bids due to inaccurate takeoffs. Investing in technology can help subcontractors address these issues, improve bidding accuracy, and boost their chances of winning projects.
“Wherever you are is exactly where you need to be because that’s what you’re able to manage at this time.” - Nick Tilford, Procore
Keeping up with new technology can feel overwhelming, but remember, wherever you are with tech is the right place for your current needs. There will always be opportunities for improvement and betterment, and not all of these opportunities will be right for your business. That’s okay. The key is to find the solutions that work best for you and your team.
Technology Adoption in the Construction Industry
The construction industry has invested $10 billion in technology over the past decade, boosting efficiency and productivity. However, while 71% prioritize digital transformation, fewer firms fully implement it. Embracing technology increases workforce enthusiasm and retention.
Construction Technology and The Bidding Process
ConTech can simplify and accelerate construction processes, including takeoffs, estimating, and bidding. Teams that adopt technology can reduce manual work, collaborate more efficiently, and ensure consistency across various stages. Automating processes helps enhance profitability by minimizing errors, especially during estimating and procurement. Ultimately, technology solutions, like Procore enable contractors to respond faster and more accurately, improving overall project success and reducing the risk of missed deadlines or miscommunication with general contractors.
Creating a Culture of Innovation at Your Construction Company
Scott Levine, Tough Leaf’s Head of Product, stepped in to explain how to foster a culture of innovation within businesses. The key is to start by identifying the problem to be solved. Then, company leaders should guide, not dictate, the process and involve the team early to create a sense of ownership. Champions within the organization should be empowered to lead initiatives, and growth should be encouraged through recognition. Finally, it’s important to set goals, pilot new processes or technologies, and track success metrics to ensure your efforts deliver meaningful results.
How UBE Subcontractors Can Maximize Growth and Resilience Through Strategic Technology Adoption
Adopting new technology requires time, leadership, and a clear return on investment, especially for small, local, and diverse construction firms. Construction projects for tech clients are expected to increase 17.2% over the next five years to about $22.78 billion for projects like solar farms and tech headquarters. Embracing digital tools like BIM (Building Information Modeling) and ERP (Enterprise Resource Planning) systems is key to matching these growth rates and staying competitive. Firms that adopt technology see increased productivity, profitability, and reduced delays. However, the full benefits of technology integration often take a year to realize. Ultimately, firms that embrace digital transformation are better positioned to weather economic shifts and remain competitive.
A Special Offer from Procore for Firms in the Tough Leaf Community
Certified small, local, and diverse firms that are verified on Tough Leaf have direct access to Procore special pricing for Diverse Firms. Remember, keep your unique profile up-to-date so we can continue to share educational resources and send targeted project bids your way.