The issues faced nowadays by the demolition industry are touching every company regardless of their size. Do you want to be able to keep pace with other demolition businesses out there on the market? Do you wish to overcome the challenges encountered along the way? And finally, would you like to enjoy seamlessly running processes within your organisation? We know what exactly you need to achieve your goals: digital transformation!
Although we could say that demolition is a sector like any other having its ups and downs, the truth is that its management is far more complex compared to other industries. It happens to be so because you have to remember to take into account waste management, health and safety management, equipment and machinery management, scheduling and much more. It seems like a lot, doesn’t it? But don’t worry: we’ve got you covered!
Today, we’re going to particularly look at some of the main challenges the demolition industry is facing, how those will impact some of the businesses across the sector and, most importantly, how we can help you provide solutions, meet the challenges that are being faced and start to eradicate some of the issues that are problematic. Ready, steady, go!
The demolition industry overall today is on the rise: there is more work and it is slowly improving. Good news is that in the last 12 months, there has been industry growth of 19%. On the other hand, although there is more work, profits have fallen for many by almost a smashing 30%! So, there’s definitely an issue around profitability nowadays.
A big thing that was announced a few months ago is the UK Demolition Framework that is currently tendering agreements for contractors from both big and small companies - as a result, everyone gets some work from this framework. All in all, things are looking positive yet challenging.
We have already touched on this one in our previous article where we discussed the upcoming Trends on the Market. So, here is what to expect in the near future on the demolition market:
Remote-controlled machines and robotics - being able to handle more of the HR-driven work in a more remote-controlled way using technology
Screening technology - screening of sites be it the drone, satellite technology to gain quick surveilling information around the site for safety and security reasons, as well as using infrared technology to have a look under the ground for the archaeology work that may need to be done
Recycling and sustainability - materials that will help to not leave footprint on site; using these materials properly and compliantly to industry standards also helps to keep the site clean
Evolution of workplace - the average age for excavator drivers is 52, so if they were to leave in a big wave, it does leave a huge hole for the industry to fill, which is certainly a challenge in regards to recruitment going forward
Having gone through the industry’s situation up-to-date and its upcoming trends, we can now present you the common challenges faced by demolition in 2021:
Furlough and lockdown costs - we are still going through Covid-19 issues, at present having to remain compliant on site, having to deal with certain breakouts of Covid, people having to self-isolate in numbers from certain sites;
Uncertainty and projects put on hold - uncertainty of Brexit that has been put on hold temporarily, but will make certain projects and schemes uncertain for some people, which will hit the demolition sector;
More competition for less work - although there is more work across the industry, it is highly competitive to win it; consequently, companies must diversify the kind of work that they take on;
Lack of materials preventing projects - the shortage of construction materials makes it difficult to continue project execution;
Less budget available and fees have dropped
People wanting more work done for less money - being expected to be paid less and deliver more, which is not a healthy place to be in the sector;
Since at Archdesk, we believe in the power of digital transformation, we identified three major issues the demolition businesses are currently facing and decided to show you how we can address them all with our digital tools! Take a look:
From our experience working with lots of demolition companies, we have developed our solutions to meet the requirements of businesses in this industry. Our digital tools will come in handy when it comes to managing the processes and fighting the obstacles in your demolition company!
Wanna know how? Watch our Webinar recording that is now available online for free and discover how to smash the industry challenges with our help!
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