The construction industry has experienced a recent boom in technology investment, with an estimated $50 billion invested in architecture, engineering, and construction technology between 2020 to 2022, which is 85% higher than the previous three years.1
As businesses adapt to this digital revolution, they are increasingly turning to technologies such as building information modeling (BIM), drones, artificial intelligence (AI), machine learning (ML), and financial and project management software. However, the success of these technologies depends on how they are utilized; if they aren’t fully embraced by an organization’s people and well-integrated into its processes, then their impact will ultimately be diminished.
This article explores how construction companies can align their people and processes to maximize their technology investments by improving in the areas of cultivating a tech-forward culture, investing in skill development and training, encouraging cross-functional collaboration, and taking actionable steps to prepare for technology adoption.
Cultivating a Tech-Forward Culture
While construction has not historically been a tech-forward industry, it is now experiencing a fourth industrial revolution known as construction 4.0, delivering levels of automation and technological advancements never seen before. However, for businesses to realize the benefits of emerging technologies, they must get their people on board, which is easier said than done.
In the 2024 Construction Hiring and Business Outlook, 41% of contractors surveyed cited employee resistance to technology as one of their top IT challenges.2 Fortunately, businesses can combat this resistance by creating a tech-forward culture that embraces new technology.
Commitment From Leadership
Cultivating a tech-forward culture begins at the top. Company leaders must demonstrate a genuine interest in and commitment to adopting technology. When leaders embrace technology, it sets an example for the entire organization. Leading by example here means utilizing digital tools, showing they aren’t afraid of change, and supporting teams in their efforts to adopt new technologies.
Tony Merry, Practice Director at ETHOSystems, stresses how important this is: “When it comes to technology utilization, you need to have buy-in from the top from the beginning or you’re going to run into major roadblocks along the way.”
Encourage Employee Involvement
Employees should provide feedback and suggestions regarding the adoption of new technologies. Consider asking employees to share what’s working, what needs improvement, what new technologies should be prioritized, and what resources teams may need to effectively adopt these new technologies. This involvement fosters a sense of ownership and increases the likelihood that they will use new software and tools.
Create Tech Advocates
Identify individuals within the organization who are enthusiastic about technology. These tech advocates can act as influencers and help their peers understand the benefits of the new tools.
When selecting tech advocates, look to employees who are proficient in utilizing technology and incorporating technology tools into their daily workflows. It can also be extremely beneficial if these individuals can provide examples of how technology has helped them achieve better project outcomes.
Measure & Showcase Impact
Define key performance indicators (KPIs) to measure the impact of technology on project outcomes, efficiency, and other relevant metrics. Regularly showcasing positive results can help to reinforce the value of technology.
Thomas Cochran, CFO at Orion Companies, shares the quantifiable results when they adopted a cloud-based financial management system. “It used to take us 10 days to reconcile our bank accounts,” says Cochran. “Now, we have 40 bank accounts, all of which are linked in real time. All the transactions come over daily, and we reconcile our bank accounts the same day. We have thousands of transactions, and what’s really nice is we can actually have real-time daily cash understanding.”3
Celebrate Success Stories
Acknowledging and celebrating successful technology adoption stories within the organization can help create a positive narrative around technology and motivate others to follow suit.
Benefits of a Tech-Forward Culture
When implementing technology, benefits such as increased automation, collaboration, and efficiency often come to mind, but the benefits extend way beyond the obvious.
Businesses that cultivate a tech-forward culture also have an advantage when it comes to recruiting and retaining top talent.
“Labor is tight throughout the industry so skilled candidates can be selective as to where they want to be employed,” says Kurt Bangert, Owner of Bangert Inc.
“The technology a company is using can be a deciding factor, especially for younger talent. Businesses that are not technologically forward-thinking run the risk of missing out on the best talent.”
Thomas Cochran echoes this sentiment, noting that their cloud-based accounting software has been very helpful in their ability to recruit.
Investing in Skills Development & Training
By investing in skill development and training, construction businesses can bridge the gap between their workforce and technology, ensuring that employees are not only proficient in using new tools, but also aligned with overall business processes and objectives.
Similar to cultivating a tech-forward culture, making skills development and training an integral part of business operations can help companies maximize their technology investments.
There are several ways contractors can embed training and development into their business DNA:
Build Training Into the Implementation Process
When implementing new technology, training is a top priority for everyone who may use it. If employees don’t know how to effectively use a technology, then they are less likely to adopt all of its capabilities.
This is often a challenge for businesses — according to the 2024 Construction Hiring and Business Outlook, the top IT challenge selected by 43% of contractors was finding the time to implement and train on new technology.4 However, effective implementation is the only way employees can successfully learn the new system while managing their day-to-day responsibilities.
Provide On-Demand Trainings
While initial training can go a long way toward making an employee feel comfortable using a new technology, it’s important to offer trainings on demand so they are available any time an employee needs a refresher or wants to learn about additional product capabilities.
Some software providers even offer on-demand trainings on a variety of topics and features. It is important that teams are aware of these resources and encouraged to use them regularly.
Kurt Bangert adds that making these trainings readily available to all employees supports cross-training: “The knowledge is out there, often at no additional cost. Why not take a course on another role, so that, let’s say, our payroll person goes on a two-week vacation; we’re not trying to scramble and figure out who’s going to do payroll.”
Encourage Continuous Development
Learning is an ongoing process. Selecting the right technology that gives a business room for growth means that even the most proficient software user has more to learn.
Businesses can also consider implementing certification programs to motivate employees to master new skills, resulting in higher adoption rates and a more tech-savvy workforce.
Prioritize Employee Growth
Consider employee skills development and training, not just in terms of how it will help them better utilize a company’s technologies, but also in how it will aid in their professional development.
Encouraging employees to learn new skills and equipping them with the resources to do so can help them progress in their career development.
Leaders should also consider regularly checking in with their employees to better understand their career goals and how training and development can support them in achieving those goals.
Benefits of Skills Development & Training
When training and development are prioritized in an organization, a host of benefits can be realized.
Enhanced Proficiency
Training programs equip construction professionals with the skills necessary to effectively use technology in their day-to-day operations.
Increased Adoption Rates
Training mitigates resistance to change by familiarizing employees with the benefits of new technologies. When team members understand how technology can improve their work processes, they are more likely to embrace it.
Efficient Project Execution
Training can enhance employees’ project management capabilities, ensuring they can effectively utilize technology for tasks such as scheduling, budgeting, and resource allocation.
Reduction in Errors & Rework
Proper training emphasizes the importance of accurate data input and management within technology systems. Training reduces errors, minimizes rework, and streamlines workflows so projects can progress more smoothly.
Adaptation to Industry Trends
Continuous skills development programs keep construction professionals informed about the latest industry trends and technological advancements. This knowledge allows businesses to keep pace with innovation and adapt quickly to changes in the construction technology landscape.
Employee Engagement & Retention
As mentioned previously, offering training opportunities shows employees that the company is invested in their professional growth. This not only helps boost morale, job satisfaction, and overall employee retention, but can also aid in attracting top talent.
Encouraging Cross-Functional Collaboration
By encouraging cross-functional collaboration, construction businesses can overcome departmental barriers, align people and processes, and create a conducive environment for successful technology adoption.
This collaborative approach contributes to a more agile and responsive organization that can collectively leverage technology to achieve greater project outcomes.
Benefits of Cross-Functional Collaboration
Encouraging cross-functional collaboration among construction teams is instrumental in aligning people and processes around technology. There are numerous ways fostering collaboration can contribute to better alignment across a business, including:
Breaking Down Silos
Cross-functional collaboration breaks down departmental silos so information can be shared seamlessly across different teams and departments. Collaboration also integrates processes and creates a more unified approach to technology utilization.
Real-Time Communication
Technology can facilitate real-time communication among project teams. Increased communication ensures everyone is on the same page when it comes to project goals and progress.
Greater Project Transparency
Cross-functional collaboration ensures that project information is accessible to all relevant stakeholders. Transparency fosters trust among teams and provides a comprehensive view of project status and performance.
Informed Decision-Making
When different departments work together and share information, they all gain access to more comprehensive data and insights, leading to more informed decisions.
Integrated Project Workflows
Collaboration tools and cloud-based technologies facilitate the seamless flow of information across various functions. They encourage the integration of different systems and technologies, enabling data from various areas — such as finance, project management, and field operations — to be consolidated and analyzed cohesively.
Resource Sharing
Cross-functional collaboration encourages the sharing of resources, including technology-related expertise, tools, and knowledge. When teams share resources, they are collectively leveraging all available tools, maximizing a business’s technology investments, and improving its processes.
Knowledge & Skills Transfer
Collaboration brings together individuals with diverse skills and perspectives and facilitates the transfer of skills and knowledge throughout the organization. Teams learn from each other, gain a deeper understanding of different roles and functions, and can identify more efficient ways of working together.
Kurt Bangert highlights the importance of this: “You want teams to have a better understanding of all the roles in the company and a better understanding across the board of the technology that’s available. Having this knowledge can lead to improvements that benefit everyone. “For instance, one may discover that making a small change in one of their processes could save someone else time in their function, or vice versa.”
Improved Problem Solving
When teams address challenges related to technology adoption collaboratively, it can lead to innovative solutions that benefit the entire organization.