The last two years have been tough for the construction industry. Lockdowns, labour shortages, housing booms, and now supply chain problems have made keeping on top of work difficult.
The Housing Industry Association (HIA) expects the current boom in construction to sustain itself throughout 2022. Here are a few ways construction businesses can capitalize on that growth this year.
Be prepared for construction material hikes
According to the HIA, construction for detached housing is predicted to remain stable in 2022. While this is good news, building materials have also risen by 8% over the past year. Material shortages, shipping cost increases and delays of imported goods can cause massive problems for small firms. Having enough cash on hand to weather these inconsistencies can help.
With so much volatility in the market, having the funds to purchase materials ahead of when you need them is crucial. Many businesses have gaps in their payments between payment deposits, project demands, up-front costs, machine repairs, and other expenses.
An unsecured business loan can help bridge the gap between payments and ensure you can buy the materials you need to keep projects running.
Hire and train skilled talent
With skill shortages predicted for the construction industry, your crew is one of your most important assets.
Investing in skilled workers, like surveyors, crane operators, drivers and safety operators, could benefit your business in the long term. According to Infrastructure Australia, these roles are expected to see mass shortages as workers age out of these roles in the next 15 years.
Competitive wages and opportunities to upskill is one way to attract these workers to your firm. This investment in your staff could make all the difference. Firms that have skilled workers on staff can take on projects immediately and save money by not having to hire specialist contract workers who are on a much higher hourly wage.
Invest in systems that help productivity
In the construction sector, many firms focus on updating their construction equipment and tools and forget about the administration side of the business.
The right technology can help boost productivity, cut down on paperwork, and make your internal processes more efficient.
There are now digital solutions for bid management, project management, and data collection, which allow on-site employees to submit documents like timecards, expenses, work requests, records and other documentation into an app rather than fill out paperwork.
Investing in some of these digital solutions can save your administration staff hours and help keep mistakes to a minimum. It goes without saying that if you’re not yet using modern accounting software or need systems for better communication between staff, invest in these basics systems first.
Get your reputation out there
One of the biggest mistakes SMEs can make is failing to market their business. It doesn’t matter whether you’re run off your feet or experiencing a downturn, every business should always have a marketing strategy.
This doesn’t mean you need to book newspaper ads or arrange for a billboard on the busiest road in your city. Small, affordable things you can do that make a big difference to your reputation include:
- Keeping your social media accounts updated
- Asking your best clients for reviews
- Publishing client testimonials on your website
- Starting a Google My Business account
- Running digital ads on Facebook
Whether you’re a B2B or B2C business, clients are more likely to work with companies they are familiar with and who can give social proof that other people value their work. Getting your reputation out there is vital to attract new clients.
Upgrade equipment before you need it
Investing in your equipment means investing in your business. If you need heavy machinery, equipment or new tools to get future projects completed to a better standard, don’t wait until your old equipment is on the brink before it’s replaced.
Replacing old equipment has several benefits:
- Newer models come with better technology, allowing you to do more, faster.
- Some models are also easier to operate and can be a good asset for training new staff.
- A warranty will also cover your equipment should it need to be repaired after purchase.
- Outdated equipment is also a safety risk and can lead to a higher rate of accidents.
- Clients get the benefit of better, more accurate results and feel you take pride in your work.
How an unsecured loan can help grow your business
While it often takes money to make money, not every business has the cash on hand to invest back into their growth. An unsecured business construction loan can help you keep your business on track and get cash in your hand as soon as you need it.
With ThinkCap, getting access to cash flow doesn’t have to be stressful. We can help you secure up to $300,000 for expanding your business in as little as two hours and no more than 24 hours after application.
Talk to us today about a loan and keep your construction business moving.
