Mobile, Connected and Data Driven: Are Heavy

Construction Contractors Missing Out?

New Survey Shows Awareness of Benefits, but Also Missed Potential
By Greg Norris | Monday, October 22, 2018
Mobile , Equipment , Productivity , Software , Technology

Heavy construction companies are realizing that software and mobile capabilities can
help them operate more efficiently, manage costs and connect workflows. Still, many
stop short of investing and continue to miss out on the potential of those
technologies. Those are key findings from Mobile, Connected and Data Driven: 2018
Tech Trends Survey conducted by Dodge Data & Analytics in partnership with B2W
Software.

The survey asked contractors specializing in heavy construction in the U.S. and
Canada to weigh in on the value of various technologies, how they are using them
today and how they plan to use them going forward in operational processes ranging
from data capture and analysis and cost management to safety, fleet maintenance,
scheduling and dispatching.

Contractors indicated that software and mobile capabilities were helping them and
would continue to help them in all of these areas. However, there were some
interesting discrepancies between theory and practice. Some of the feedback also
indicated that construction companies may not fully appreciate the potential of
technology.

MOBILE IS EVERYWHERE, BUT UNDERUTILIZED

Tablet and smartphone use on the jobsite has exploded in recent years. All but one
percent of the respondents use mobile devices in the field as part of the construction
process. However, the survey indicates that they may not realize the full potential of
the mobile revolution.
As expected, access to data and improved coordination among team members were
cited as the top benefits of mobile technology, with the ability to get performance data
from the field and increased field staff productivity also ranking high.

When asked about workflows that would be impacted by mobile technology in the
next two years, however, fewer than 30 percent listed resource scheduling and
dispatching, safety and equipment maintenance. That is surprising, given the obvious
potential for mobile capabilities to improve those workflows.

DATA FROM THE FIELD IS ESSENTIAL BUT ELUSIVE

Heavy construction contractors were asked whether getting more accurate and more
timely data on project performance could help them keep those projects on schedule
and on budget. Seventy five percent strongly agreed or agreed, while only four
percent disagreed.

Offline paper-based processes, a lack of structures or standards for data, and

ineffective software applications were listed as the top barriers to getting information
on productivity, labor and equipment hours, and safety.

Purpose-built mobile applications offer obvious advantages, but paper and

spreadsheets remain prevalent. Only 33 percent of the contractors surveyed use
mobile applications for safety, with the figure jumping to just 47 percent for
productivity tracking and 50 percent for labor and equipment hours. As a result, the
typical lag time between when information is captured in the field and when it is
available in the office is a barrier. Less than 50 percent of the contractors get data on
productivity, labor or materials on a daily basis.

MOBILE COULD IMPROVE COST MANAGEMENT

Managing project costs is obviously important for contractors. Mobile applications,

mobile devices, real-time connectivity and data analytics ranked as top technologies
with the potential to impact this challenge. GPS, telematics, machine automation and
drones also scored at or close to 100 percent when contractors were asked how
likely these technologies were to improve cost management in the next two years.
However, contractors are not planning to invest at levels that would allow them to
take advantage. Fifty-two percent plan to invest in mobile apps over the next two
years. Close to 40 percent expect to invest in telematics, cloud/web connectivity and
drones. The numbers drop off precipitously after that for expected investment in
machine automation, data analytics, augmented or virtual reality, and sensors.

BIG POTENTIAL IN EQUIPMENT MAINTENANCE

Contractors in the survey are managing large fleets. More than 75 percent reported
50 or more assets, and the mean average was nearly 250.
Holding the cost of maintaining those fleets to approximately five percent of revenues
is an established best practice benchmark, but only 20 percent of the contractors
surveyed were hitting that target, and 35 percent indicated they did not know or did
not track that figure.

Paper and spreadsheets are still the predominant tools for managing these fleets, but
technology could help. Between 60 percent and 70 percent of contractors said
specialized maintenance management software could be very important or extremely
important in helping them improve preventive maintenance, inspection and work
order management processes. At the same time, just 30 percent currently use
specialized maintenance management software, and only 34 percent indicated they
plan to invest in that area in the next two years.