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Society is in the middle of the fourth industrial revolution. Just as the advent of steam—and later gas engines—revolutionized the way industries evolved, data is now changing nearly every aspect of how business is done. With the computing power, storage capacity, and bandwidth available to make it possible, there is more data collected than any human could ever hope to sort through. Thankfully, with an increase in data storage and collection capacity comes an increase in technology to process that data.
While it's easy to see the analogy to the industrial revolution (with improvements like automation technology or IoT devices that connect our equipment in intelligent ways) it's also the unseen factors of this improving technology that are making a big difference. One way tech is aiding the construction industry is by making forecasts more accurate. Let's look at some ways technology helps in that regard.
1. More accurately determine equipment, labor, and material costs
Nobody can see the future, but we can make smarter predictions by analyzing the past. This is how forecasting has always been. How much did this similar job cost? How long did it take to complete? The problem is, until recently, we were relying on intuition and the limited ability of the human brain to process data and come up with these answers. Now, we have granular data about every job performed and machines that can detect patterns that previously would have gone noticed. In doing so, they can more accurately determine the cost of a project.
2. Improved risk assessment
Often, what goes wrong in a forecast isn't something that could have been foreseen. Shipping delays, subcontractors who don't show up or turn out to not be qualified for the job, equipment breakdowns, injuries—the list is endless. Of course, these factors have always been known, and attempts to account for them are always made. That's the entire nature of risk assessment and risk management. But with humans performing the assessment, the data simply isn't processed as thoroughly and efficiently as it could be. The advanced algorithms in today's construction technology, coupled with the big data discussed previously, can make more accurate predictions about when things may go wrong, so you can better account for them in your forecasts.
3. Unified data
This may be the biggest benefit of technology, and it's one of the more simple functions we've discussed. Often, problems arise because one department doesn't know what the other is doing. Data is stored in multiple disparate locations, and needed information just isn't as readily available as it should be. Modern construction needs technology that can be that single source of truth. This way multiple departments can work collaboratively with data that is accurate and up-to-date with the result of working smarter and faster.
Briq unifies your financial workflows, making them more efficient, accurate, and timely. Learn what that could mean for your company by speaking with our construction finance experts.
