Today, data is increasingly important in nearly every industry. In construction, even the smallest slip-up or miscalculation can lead to millions of dollars lost or not finishing a project on time. For example, companies like as Autodesk state the potential of these tools can reduce construction costs by 10-15%, a substantial impact given typical industry margins.
Luckily you don’t have to be a Fortune 500 company to take advantage of big data and cloud technology. The information is available to you, you just have to learn how to use it!
What is Predictive Analytics?
Simply stated, predictive analytics is looking at both current and past data to predict future outcomes.
Predictive Analytics for Resources Managing
Materials significantly impact the bottom line in the construction industry. Predictive analytics can help more accurately forecast how much of a particular input you’ll need for a job. In larger projects, something as simple as over-ordering nails could be what throws the whole budget off. This is why it’s so important to keep good records of purchase orders for every project that you do. Additionally, analytics can optimize supply chain management and material placement. Managing the placement of the goods not only increases efficiency but it decreases the cost of transportation from site to site.
RELATED READING: How Materials Purchasing Can Minimize Supply Chain Uncertainty
Predictive Analytics for Managing Financials
Predictive analytics can also help you create your yearly budget. Using multiple sources, you can more accurately determine when you will be the busiest depending on climate and region. This can be especially useful in industries that are seasonal like construction, which can easily lead to running out of money during the off months of winter where there is less work to be had. This seasonal disparity is even more pronounced in northern climates, where adverse weather can delay or even damage projects mid-construction. If cash flow becomes constrained, accounts receivables factoring can be a useful tool to pay your employees and start new projects before you would normally be paid.
Predictive Analytics for Project Risk Management
By analyzing historical data, market trends, and specific project requirements, predictive analytics provides valuable insights into potential project risks. This helps contractors identify potential red flags early, like supply chain disruptions or labor shortages, which can cause cost overruns or schedule delays. Proactive risk management allows teams to develop contingency plans and adjust resources, ultimately streamlining the project lifecycle.
Predictive Analytics for Enhanced Equipment and Maintenance Scheduling
Downtime due to equipment failure can cripple productivity, making predictive analytics invaluable in maintenance scheduling. By monitoring equipment usage, predictive models anticipate wear and tear, reducing unexpected breakdowns and associated costs. Proactive maintenance not only minimizes project interruptions but also extends equipment life, offering substantial long-term savings.
Predictive Analytics for Labor Demand Forecasting
Labor shortages can severely impact timelines, and predictive analytics aids in anticipating workforce needs. By analyzing past project data and current market conditions, contractors can foresee labor demand spikes and plan accordingly. This approach minimizes costly overtime and ensures teams are staffed appropriately, enhancing efficiency without straining budgets.
Comparing Predictive Analytics Tools for Construction:
Selecting the right predictive analytics tool is crucial for maximizing insights. Tools like Procore and Autodesk Construction Cloud offer robust analytics for construction, from project tracking to risk assessment. Evaluating features like integration capabilities, ease of use, and data visualization options helps contractors pick solutions that best fit to their operational needs and project objectives.
To help you get started here’s a list (in no particular order) of some of top predictive analytics tools in construction along with their pros and cons:
- Autodesk Construction Cloud
- Pros: Comprehensive integration across the project lifecycle, including BIM, project management, and analytics. It uses predictive analytics for risk management, tracking safety issues, and identifying potential project delays.
- Cons: Pricing can be high for smaller contractors, and it may require training for full utilization due to its robust features.
- Procore
- Pros: User-friendly interface, integrates with various accounting, scheduling, and estimating software. Offers predictive analytics that help streamline scheduling, risk assessment, and labor forecasting.
- Cons: Limited functionality in budgeting and cost forecasting; additional modules may increase costs.
- Oracle Primavera
- Pros: Strong focus on large-scale project planning and risk analytics, often used for high-complexity projects. Excellent capabilities in scheduling, resource allocation, and delay analysis.
- Cons: Requires significant training and is often seen as less intuitive than newer tools. Pricing may be restrictive for smaller companies.
These tools offer varied solutions for predictive analytics in construction, making it possible to choose based on project size, budget, and specific needs for risk management, scheduling, or budgeting.
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