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There’s a data science revolution happening across industries. Technology is helping businesses tap into their potential and make more impactful strategic decisions than ever before. This is especially true in construction, which stands to gain the most from adopting data science into its business practices.
The reason data science is so potent for construction in particular comes down to profit margins and cash flow. Construction is a multi-billion dollar industry that’s never going away. The money needed to develop businesses is already circulating within the industry, the problem is getting to it. Historically low-profit margins mean that for every dollar that’s going in, most of it is going right back out into the project with very little left behind. This is where data science comes in.
Data science can help construction companies expand their profit margins. It allows businesses to tap into the wealth of the industry by recovering money that can get lost to change orders, equipment delays, inaccurate forecasts, and the other systemic challenges that can cut into your bottom line.
Let’s discuss the ways that data science can help construction companies improve the accuracy of their processes, enhance their project management and expand profit margins.
Predictive analytics for construction
It’s no secret to anybody in the industry that forecasts are a huge part of any good construction business. They create the roadmap for the company's future and are often the guidebook by which the business plans its next big moves. Predictive analytics takes the practice of forecasting to the next level.
Financial automation software like Briq can provide more depth and clarity into the numbers that companies use to monitor their business health. The software leverages data science to uncover key insights which would have otherwise gone unnoticed. For example, it can perform an analysis of how certain supplier relationships impact your project performance and profitability. A business can choose to run an analysis of when costs are most likely to spike on a project timeline. The list goes on. The right software highlights anomalies and specific trends that a typical forecast may not have accounted for, giving construction companies more strategic power over their information.
Track equipment and assets
One of the keys to project management is getting everything moving onto a job site at the right time. It’s a task that’s more challenging and complex than it may seem at the outset. On top of making sure you have the right quantity of equipment, companies need to make sure the distribution of that equipment is timely and effective. To take it a step further, the maintenance of the equipment and the total costs of repairs over time add another layer of complexity to the task. It’s an expensive priority for businesses.
Tools like Briq can help streamline this process. Financial software can automatically keep track of all your key equipment and assets for you. Instead of emailing a project manager or tracking down a spreadsheet list, you can simply log into the software and pull up the information you need. Analytics tools within the software will not only inform you of your available equipment and where it’s located, but it can also offer insights on the best possible distribution of that equipment based on project timelines. With the right information available, these tools can even help forecast equipment costs and account for maintenance with incredible accuracy. The right financial automation platform can give you the total control and visibility into your assets that your operations department has always wanted.
Gain real-time expense data
One of the biggest barriers to accessing profit in construction comes down to billing. Whether it’s a lost change order or a WIP that doesn’t tell the whole story, the accuracy of the billing process is directly tied to the profitability of a project. In order to keep a project on budget and make sure billing is done correctly, information needs to move fast. Invoices need to be processed in time, field costs have to be allocated within the right time frame, and approvals need to stay in line with the project timeline. The power of data science can help construction companies get there.
Briq offers a suite of financial automation solutions that keep your project data moving speedily through the pipeline. Briq’s Automations can instantly pull information from your other software into a prebuilt spreadsheet for analysis. Digitally synced corporate cards can send receipts for budget allocation as soon as a purchase is made. AP automation tools can process invoices for your AP team so that they only need to verify whatever comes through. This vast array of features all connects to the core principles of data science: analyzing data rapidly and deploying it effectively. A technology category designed to move and organize data is a perfect fit for construction. It’s the key to unlocking the profit potential within construction cash flow.
Get the right platform for the job
Data science is a huge boon for the construction industry. However, it’s important to invest in a platform that gets it right. A data science software that’s not built for the unique financials of construction won’t hold up in the long run. That’s why it’s important to invest in a solution built for the industry. That solution is Briq.
Briq is a financial automation platform built to help construction companies run a better business. It joins your financial and operational data into one platform, empowering you to make more informed decisions, faster. Contact us here to speak with our experts and see how Briq can help you improve your business.