Episode 35, The Economics of Construction
Peggy Smedley kicks off a new episode, talking about infrastructure, labor, and technology. She narrows in on the economics of construction, saying we are on the precipice of a change that is impacting nearly every construction company across the globe. She talks with economists, educators, and experts on what is coming next for the construction industry.
ERP (enterprise resource planning) software was introduced in the manufacturing sector in the 1990s, and rapidly spread to industries including education, finance, and healthcare. The home construction industry, however, was slow to adopt ERP software, with many smaller firms choosing an ad hoc approach to managing each business function.
The acronym ERP (enterprise resource planning) was first coined by the Gartner Group, www.gartner.com, Stamford, Conn., in the 1990s. Acquiring an ERP system is one of the biggest investments a business can make. Traditionally, implementing such a system required a substantial capital investment in infrastructure: hardware, software, and personnel.
As those of us in the industry already know too well, construction has a productivity problem, and multiple studies confirm that companies are doing very little to help themselves. The idea that your productivity ultimately determines your bottomline pushes firms to fixate their efforts on time—the most quantifiable measure of productivity.
The Peggy Smedley Show
Peggy is joined by Chris Penrose, president, Internet of Things, AT&T Business, and James Brehm, founder and chief technology evangelist, James Brehm & Associates, who identify the biggest hurdles of the IoT including security, integrating IoT into business, scaling IoT, and lack of talent. Penrose explains how AT&T is helping manage security end-to-end. They also talk about the trends going forward, including the fact that every business will change the way they operate by introducing IoT technologies.
Construction professionals recognize the skilled labor shortage is causing a ripple effect that is impacting every single business across the country. The good news; however, is that technology can help in a big way, especially if implemented at the right time within the right company. Forrester Research, www.forrester.com, Cambridge, Mass., suggests 2018 will be the year when a majority of enterprises will start dealing with the hard facts, which include embracing technology solutions such as AI (artificial intelligence), big data, and cloud computing, among others.