This coupled with data released this week on the UK’s 10.1% inflation figure caused the pound to drop again in value which will further increase the cost of imported goods. In terms of salaries, the growth rate in average regular pay is rising to 6.7% with historical unemployment rates in the last 3 months of 2022 hitting a low (3.5%).
Suffice to say, profit margins are under pressure more than ever, so rooting out underperforming projects as soon as they start to go wrong/start overrunning could be the difference between growth and administration this year.
All the above have a similar root cause which can end in administration if there were one too many underperforming projects that year. In the last 3 months alone, 72 construction companies went into administration. With rising material costs, a shortage of labour, and inflation adding to project financing costs, company directors need to be on top of their project’s performance more than ever.
Projects rarely take a turn for the worse overnight. Rather, issues tend to accumulate over time and early warning signs can be spotted. Unfortunately, the dashboards we use are copied & pasted together with data that is up to 6 weeks out of date by the time it (directly or indirectly) reaches the boardroom. This is assuming it's the right and complete data in the first place.
To be able to address issues & spot opportunities, decision-makers need real-time data to reduce commercial risk and improve profit margins. Nonetheless, current admin-heavy processes with legacy cumbersome software stop this from happening, despite digital natives increasingly taking senior decision-making roles. Why? because we’re stuck with gaps in our business oversight. The time gap between site and boardroom, the information gap between client’s project team and the SME supply chain feeding it are too wide to be bridged with existing systems and processes.
We have lived this and have seen how reducing these gaps makes for better performing projects. By bringing data closer to decision makers, bringing onboard the supply chain, and most importantly not burdening anyone with unnecessary paperwork. We have built a tool to support our clients through tougher trading conditions, to ensure they have the right data to hand to make the best decisions to ensure their business's success. Linking the site team to the boardroom is how our clients can protect their business in the year ahead.
