10 October 2020 3 min read

COVID Effects on Construction

How To Manage Productivity Losses


The decrease in productivity can cause many problems for a construction company. Project delays and costs connected to it are a nightmare for many businesses. Learn how to manage the projects better and keep your teams' productivity under control! Your company will thank you for it.

2020 is a surprising and unpredicted year for all of us. The coronavirus pandemic influenced every country, every economy, every industry, construction including. Its long-term effects are not fully known yet, since the situation changes all the time, new restrictions take place, new problems occur. We can analyse the data we already have and try to predict the future, but we can’t be sure that it won’t change in a matter of days. So what can we do? We can prepare our company for that unpredictable future.

Productivity Losses

While the long-term consequences of the pandemic are not certain, short-term effects are already a pain point for many. The impact of covid-19 is already causing productivity losses of around 35% on the UK’s construction sites! As a result, we are now facing project delays and growing costs connected to it.

Why are Modern Technologies Beneficial?

Oftentimes, when companies consider investing in new technologies, they usually focus too much on costs and underestimate the benefits of the solutions. As we mentioned at the beginning of the article, we need innovations to better respond to customer needs and not to be left behind our competitors in this constantly changing market.

The situation is troubling and there’s no simple (or fast) solution. Since there’s no cure available yet or vaccines, the primary solution for self-protection is social distancing and extensive hygiene. Problem? Social distancing is almost impossible on the construction sites! Adding new restrictions to the labour shortage and material delays cause deepening productivity gaps. Oftentimes, to meet the deadline, companies could use all the workforce they have and assign it to a particular project to boost the final construction stages and deliver the project on time. Right now, it’s not possible, and many projects are falling behind.

What Can Be Done?

Fortunately, the construction industry can use some solutions to control and manage the growing problem of productivity decrease. With the increasing importance of modern technology and innovative approaches - we can make the situation better.

  • Offsite Construction
    New methods of construction, such as offsite manufacturing and offsite construction, are becoming much appreciated by many companies now. It refers to various activities like manufacturing, planning, design or fabrication. What makes this technique unique is the fact that these processes are made in different locations than the final destination. After the production process, they are transported to the construction site and combined with the rest of the parts. It makes the construction faster, and with the current procedures that construction sites must follow, using offsite manufacturing can be a significant relief.
  • Digital Solutions
    Technology is one of the most powerful tools nowadays. The construction industry had to learn this lesson in a hard way during the covid pandemic. Many companies who already had in place smart, modern technology avoided many issues and are handling this coronavirus crisis in a much better way. Good news is - implementing a construction management solution does not necessarily take a lot of time, and the return of investment is vast! In times of remote work and a fast-changing market, digital solutions help us manage, control and oversee all business activities within the company. Project management, budget control, tendering, procurement process, even heath and safety procedures can be done faster, smoother and more efficiently. Digital Transformation is here, and thank God for that because the construction industry desperately needed its support during this and coming years!
  • Improved Communication
    74% of employees say they miss out on crucial company communication which impacts their productivity. Besides, more than 52% of employees have witnessed serious financial outcomes because of ineffective communication. The profitability of projects and the wellbeing of the employees depend on how well the company’s communication stands. It’s vital to improve it, especially now, when the risks of mismanagement, lost information, or ineffective data flow can cause even further delays and costs. Take a look at some actions you can consider to streamline communication in your construction company - here.

For more ideas on increasing your company’s productivity, check out our article here. Or contact our Consultants - we’ll be more than happy to assist you! Message us!

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2024-07-21 07:30:24