construction@future2change

by George Hedley

In the next 10 years, things will not be what you expect!

Construction hasn't really changed much in the last 50 years, or has it? Only a few years ago, a handshake, a builder's set of blueprints, a yellow pad, a pencil, a calculator, a tape measure and a pickup truck was all contractors needed. Today, everyone uses fax machines, computers, email, cell phones, cad and websites. Now we have labor shortages and design-build is as common as the old 'handshake' way of doing business. As a famous person once said: "The future ain't what it used to be!".

The construction industry today is in a challenging position:

1. Productivity has declined 20% in the last 20 years

2. The average construction worker only works 4.8 hours per day

3. Most contractors spend little or no money on training

4. The construction labor shortage is a nationwide problem

5. Customers now expect low cost and fast schedules with impeccable quality

6. Competition is more intense and tougher than ever

7. Profit margins are at an all time low

8. Traditional suppliers and wholesalers are disappearing

9. Major manufacturers are bypassing subcontractors and selling direct to builders

10. Contractors and subcontractors are not keeping up with technology

If you're in the same place today as a year ago, you're worse!

Today, if you aren't constantly improving, updating and trying new ideas, you can't keep up with your competition or your customers. Change is fast and continuous. New technology changes every month. Computer software only lasts 18 months. Training is required on an ongoing basis. New equipment requires technical skills once reserved only for the specialists. What will be on this list in the next 10 years?

In the next 10 years, construction will be very different!

1. The labor shortage will stabilize at 25%

2. College graduates entering construction will fall 35%

3. Everyone will communicate over the internet

4. Project management will be done on extranet software

5. The field will carry small portable wireless computers

6. 75% of all current wholesale suppliers will be gone

7. One national building code will be universal

8. 75% of all paperwork will be replaced by electronic mail

9. Over 50% of all construction will be performed 'design-build'

10. Blueprints will be replaced by CD-Rom disks and CD Readers

11. All invoicing, payments, contracts and correspondence will be paperless

12. Most construction equipment will be computer operated

13. File cabinets will be eliminated

14. Quantity take-off estimating will be integrated with the plans

15. 50% of materials will be purchased over the internet

16. Robots will do 20% of all construction field work

17. Owners will request contractors to joint venture with them to reduce risk

18. Everyone will have teleconferencing capabilities

19. Projects will take 20% longer to build due to shortages

20. Stress levels will be up 25% & fun down by 25%

I hope you are not waiting for your competitors to leap ahead of you. The winners of tomorrow will be the ones who are the leaders, not the followers. Keep your eyes on the new economy and your values embedded in the past. A balance of both economies will emerge your company as the innovative leader in your market.

George Hedley, owner of $100 million construction and development company and recipient of the nationally recognized "Entrepreneur of the Year" award. He also owns HARDHAT Presentations and speaks to companies on building profitable businesses, leaders and loyal customers. For information or his free e-newsletter, visit www.hardhatpresentations.comor call (800)851-8553. To share your ideas with George, email him at gh@hardhatpresentations.com.

George Hedley
HARDHAT PRESENTATIONS
3189-B Airway Ave.
Costa Mesa, CA 92626
(714)437-1122 Fax (714)437-1125
gh@hardhatpresentations.com
www.hardhatpresentations.com

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