Construction Trends Enhanced Profitability

Quetstion: Discuss about the Construction Trends for Enhanced Profitability. Answer: Introduction The building industry is one of the major building block for any countrys economy. For this reason, it is crucial that construction companies have clear strategies to use to become more efficient in delivering their services. This will ensure that they also gain maximum profit while providing the best construction facilities to their clients. The current trend in construction industry is undergoing new changes with the improvement of technology and it is necessary that the managers know how to integrate this into their organizations appropriately (Basu, 2016)). Several companies that do not take these strategic approaches in their work end up performing very poorly which results in undesirable structures. Such companies do not survive ell in the industry as they lose most of their clients and they end up being closed. This research report provides measures such as, use of new technology, efficient management of job production for profit, the definition of companys goals and setting prospects, adequate training of staff, and the making of written procedures for the employees which are known to work well in improving their performance (Heap 1987, p. 7). The performance of different construction companies The construction industry is faced with unique challenges different from which other companies in other sectors face. Due to its interactive nature and dependence on different groups of people, the construction industry has particular techniques of managing it. Managers who are not well versed with these methods usually lead their firms astray which makes them suffer dire consequences including huge losses. For instance, delaying of a project may cause very huge financial implications that the company has to pay for ultimately (Hammad, Omran and Kadir, 2011). Such a mistake may lead to the closure of the company or loss of their trusted clients. On the other hand, construction companies that deliver their services within the set time frame, become more successful and they may even make super-normal profits as a result. It is important that managers know the strategies that will ensure they are effective in the industry to enjoy the profits. Each day, the construction industry is receiving new technological inventions that are making the work easier and faster. It is important that managers are receptive to these advancements and implement them to their organizations so as to benefit from the same. Companies that keep up with the latest technologies usually save a lot of time and money that could otherwise be wasted using the former techniques (Naoum, 2001). The fundamental aim of starting any business is usually to make revenue for the same. As such, it is crucial that all construction companies appoint managers who have the desired qualities that will ensure they achieve this goal (Heap 1987, p. 23). Good managers know how to analyze and establish the best construction methods which are most cost effective if used properly. It is, therefore, important that managers make the right decisions in construction as this determines whether they eventually make profits or losses. Definition of companys goals and setting prospects When setting up a construction company, the owners need to have a clear purpose and specification for the services they will handle (Walker, 2007). The construction industry has many branches, and it is prudent that the managers identify the most viable areas to specialize in. All construction companies, therefore, need to set up goals that will act as guides and source of motivation for their employees. The goals should be defined by the management in consultation with their workers to establish the most effective goals that will benefit every stakeholder in the company. It is important that also the clients who engage with the company are notified about these goals to ensure smooth dealings. After recruiting the employees, it is necessary that they are given a thorough training to enhance their skills before they can start working (Rojas, 2008). This is necessary because it is not possible to fully judge the expertise of workers during the interview and appointment stage. As such, training the employees will ensure that they have all the skills and tools necessary to drive the company into good performance. It is important that the company strives to retain their trained employees as this is a form of investment and replacing them may end up being very costly to the firm. Making written procedures for the employees In construction, all the building processes are carried out in a systematic way. As such it is necessary that the company drafts well-structured procedures for performing different tasks which employees can easily follow and implement (Walker, 2007). This will ensure that the tasks are performed in the right way, and it minimizes the chances of making errors while working. Such procedures need to be updated in the event of new technological developments that may occur. The construction industry remains one of the most profitable ventures if done correctly. It is, therefore, necessary that the owners and managers of this organizations are aware of the tactics to use to enhance their performance and maximize their profitability. Some of the methods that were explained above include the use of new technology, efficient management of job production for profit, the definition of companys goals and setting prospects, adequate training of staff, and the making of written procedures for the employees. Every construction company should implement these measures to benefit from their businesses. References Basu, A. (2016). Construction Trends Remain Favorable for Enhanced Profitability. Jobsite. Clair, A. (2017). Strategies to Increase Your Construction Business Revenue. Bplans. [online] Available at: https://articles.bplans.com/strategies-to-increase-construction-business-revenue/ [Accessed 8 Apr. 2017]. COOPER, D. J. (2004). Improving people performance in construction. Aldershot, Hants, England, Gower. Hammad, M., Omran, A. and Kadir, A. (2011). Identifying Ways To Improve Productivity At The Construction Industry. 1st ed. HEAP, A. (1987). Improving site productivity in the construction industry. Geneva, Internat. Labour Office. Naoum, S. (2001). People and Organizational Management in Construction. 1st ed. Technology and Engineering. Rojas, E. (2008). Construction Productivity: A Practical Guide for Building and Electrical Contractors. 1st ed. R.Josh Publishing. Walker, A. (2007). Project Management in Construction. 1st ed. Technology and Engineering.