Newstalk’s Business Editor Gavin McLoughlin sat down with recently appointed GoContractor CEO, John Naughton, to discuss how implementing tech solutions can improve construction efficiency and give the industry significant productivity gains. Listen to the full audio interview below.
Why is it that in the past 20 years, productivity in the manufacturing industry doubled while construction is at a standstill? Although heading in the right direction, construction sees less than double-digit improvements when it comes to productivity gains.
GoContractor CEO, John Naughton sits down with Newstalk’s Business Editor Gavin McLoughlin to discuss why construction efficiency is more complicated than efficiency in other industries.
“There’s a whole bunch of reasons for that… it’s not straightforward. There are more variables in construction than anywhere else, from contractors to project length…it’s not the same as manufacturing or even mining, which are more predictable.” shares Naughton.
“Complexities and pressures affect timeline and budget…there’s also labour shortages, which are extreme in almost every advanced economy now. It’s hard to source the workers that you need, and even then you can be sent one group one week and the next week or next month you’re sent a completely different group of workers. All of which will need retooling, relearning and reskilling.”
As Naughton explains, this high-turnover rate with contract workers threatens construction efficiency. New construction workers arriving on site will experience a repetitive on-boarding process that uses up valuable time for both the contractor and site-safety managers. Outdated procedures like this are wrought with inefficiencies and error, and as a result lead to unpredictable timelines and affect overall budget.
Worldwide management consulting firm McKinsey & Company recently shared that large construction projects go 80 percent over budget and take 20 percent longer than initially planned. So it’s no surprise that construction project managers are looking for ways to maximize on construction efficiency.
“There’s an opportunity to integrate a lot of tech and processes to make construction more predictable. With the biggest challenges being schedule and budget, any area you can squeeze out any efficiency, you need to put the spotlight on that work. You need to identify what can be done and sequence that work to get more predictable.”