Construction businesses in today’s economic climate face a variety of pressing challenges. According to a recent survey by Intuit, the top pain points include skilled labor shortages, rising material costs, and operational inefficiencies. At the same time, rapid advancements in digital technology present opportunities for companies to invest in new tools and solutions that can alleviate these struggles and fuel business growth. 

Intuit commissioned a survey of 1,000 accounting and operations decision-makers in the US construction sector to understand their biggest hurdles, how they currently utilize digital technology, and the level of integration among their systems. The results reveal significant opportunities for construction firms to leverage AI, automation, and other technological advances with the potential to transform their businesses.

Intuit Enterprise Suite, an enhanced AI-native ERP solution, offers construction businesses purpose-built solutions to address the many pain points identified by survey respondents—from using AI to reduce manual work and human error, to boosting productivity by supporting accurate, real-time project costing and reporting. Most recently, Intuit announced the launch of the Construction Edition of Intuit Enterprise Suite, purpose-built to meet the industry’s unique needs.

Skilled labor shortages rank as the top construction industry challenge

According to survey respondents, a lack of qualified workers is the single most pressing issue facing the construction industry, with 42% citing skilled labor shortages and workforce development as their most significant financial struggle. Additionally, 20% of respondents identified employee retention and high turnover as a point of significant concern. 

An aging workforce and federal immigration crackdowns are two contributing factors to construction labor shortages. According to a workforce survey conducted by the Associated General Contractors of America and NCCER, 92% of contractors reported difficulty filling open positions.

Fortunately, construction business leaders have a solution in mind. An overwhelming 91% of those surveyed agree that technology can help address this labor gap, and 88% believe that AI has the potential to empower their workforces. At the same time, identifying and implementing the right combination of digital tools and solutions can present obstacles, alongside rising costs in an environment of economic uncertainty.

Rising costs and underutilized digital tools

When it comes to operational constraints, rising materials costs and supply chain volatility (22%) are the top-ranking concerns among construction industry professionals, followed by project delays and cost overruns (18%). 

While 93% of respondents agree that technology can significantly increase productivity and help mitigate the impact of rising costs, many are not maximizing their investments. On average, those surveyed estimate that they waste $11,000 per year on underutilized digital tools, out of a total of $58,000 spent. Still, the majority (87%) characterize their investments in operations and financial software as “non-negotiable.” In some cases, a lack of integration between tools and platforms hinders the progress of construction businesses.

Intuit Enterprise Suite is designed for construction businesses that have outgrown their current tools. The platform enables companies to minimize cost overruns by leveraging historical data from previous projects to inform new bids, streamline quote-to-cash cycles with scheduled billing and automated accounts receivable (A/R) workflows, and enhance project profitability through AI-powered project insights and recommendations. 

Bridging the field-to-office gap

Construction business leaders surveyed by Intuit expressed the need for better visibility, streamlined workflows, and accurate profit insights. However, many reported data gaps between the office and the field. A single, integrated digital platform, such as Intuit Enterprise Suite, can help construction businesses close these gaps and achieve critical business objectives. But fewer than half of respondents reported that their digital tools for managing financial and business operations are highly integrated. And while 91% use digital tools for financial management and transactions, significantly fewer are leveraging similar technology in operational areas, such as project/site operations (77%) and business communications (72%).

In addition to hindering a company’s ability to generate a unified view of projects and profitability, lack of integration can lead to data silos and inefficiency—nearly three-quarters of those surveyed agreed that they spend too much time managing data. Intuit Enterprise Suite can help businesses tackle these issues. Real-time data visibility, from pre-construction to project completion, supports profitable decisions, and the ability to share key project data between teams enables them to streamline operations. 

Integrated platforms and AI-powered tools offer solutions

From consolidating and analyzing data to inform decision-making, to automating payroll and other complex tasks to boost productivity, to leveraging AI and machine learning to deliver powerful insights, the right digital tools can help construction businesses navigate complexity and focus on growth. According to Intuit’s research, 61% of high-growth businesses surveyed have fully embraced digital tools to manage operations, finances, projects, and client interactions, compared to only 28% of total respondents. Intuit Enterprise Suite delivers the AI-native, integrated ERP solution that construction businesses need to manage today’s financial and operational demands. 

In an economic environment where construction businesses are facing labor shortages, rising costs, and other headwinds, leaders are turning to technology to achieve operational efficiencies and fuel growth. Intuit Enterprise Suite offers tailored workflows, capabilities, and tools designed for larger, more complex, multi-entity construction businesses, all in one place, helping them win and deliver more profitable projects on time.

To learn more, visit https://www.intuit.com/enterprise/construction/.