Industrial equipment manufacturing, construction and building materials, and engineering companies play a crucial role in post-pandemic economic recovery. However, like the other industries, the construction industry has also been impacted by the pandemic leading to closures of construction sites across the globe. The impact is also evident in the declining financial indexes of engineering, construction, and building materials (ECB) companies.
In such a scenario, planning for economic recovery post the crisis is crucial. As such, construction and building materials companies must strategize and plan their moves to emerge stronger in the new normal. However, a fast return to normalcy seems unlikely for the construction industry, prompting business leaders to act now and define what the construction industry will look like after the crisis. Experts at Infiniti Research have put together five action points to help players in the construction industry predict changes and adapt to the post-crisis world.
Beyond the short-term impact, the crisis is expected to hit long-term supply and demand in the construction industry, resulting in permanent shifts in consumer needs and investment patterns. Contact our research experts to find out how these shifts can impact your business.
Thriving in the Construction Industry: Five actions businesses need to take now
Leading construction companies are redefining their strategies and operating procedures to tackle the current situation and improve their odds of future success. In most cases, the aim of these companies revolves around launching new initiatives to drive innovation and positive change on the heels of the pandemic.
Track customer needs and demand shifts closely
With customer demands and preferences undergoing a massive change, it is evident that major shifts will emerge post the crisis, most of which are likely to become engrained and normalized in customer preferences permanently. Therefore, businesses operating in the construction industry must quickly track customer needs and fill demand gaps to gain an edge in the post-pandemic world.
Accelerate organization-wide digital transformation
With very little time at hand, businesses cannot rely on experimentation to develop a perfect action plan for the crisis. Instead, they must draw inputs from well-proven remote use cases. For example, businesses can adopt digital business models, scale up remote collaboration across all production stages, and urge minimal manning at site offices. Industrial equipment and building materials manufacturers can also ensure business continuity by capitalizing on e-commerce channels and digitally-enabled remote sales.
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Augment supply-chain resilience
In the post-pandemic phase, businesses must look at options for fortification of the supply chain. It may include building inventories, finding alternate distribution channels, and employing a direct workforce to replace contractual roles. These strategies can lead to more significant consolidation and vertical integration of the value chain while minimizing risks and driving productivity within the construction industry.
Identify and respond to resource allocation needs
In today’s highly dynamic business world, resource allocation poses a significant challenge for global construction and building materials manufacturers. Addressing this issue will require businesses to keep a close watch on shifts in the construction industry and make trade-offs between assets and projects. To overcome this challenge, businesses must deploy a centralized monitoring system to identify and respond to resource-allocation needs, gain real-time visibility into project processes, inventory, and costs.
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Redefine priorities and capital allocation
Strategizing business priorities will play a crucial role in reshaping businesses and creating new revenue streams after the crisis. In many cases, responding quickly to disruptions and shifts in the market could present new opportunities to make lucrative moves. And while these aspects will differ across the value chain, redefining business priorities will enable construction and building companies to deploy capital, resources, and capabilities in the most cost-effective manner.
Resilient, productive construction industry is vital for immediate crisis response and overall economic recovery. Given the rapid shifts and changes in customer preferences, it is evident that the construction industry will witness permanent changes in business operations post the crisis. Hence, now is the time for construction and building companies to prepare themselves for success in a more complex and resilient industry.
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