The construction industry has always been slow to change.
Contractors have used spreadsheets, paper timesheets and heaps of disparate tools to operate multimillion-dollar businesses for years. Recently, however, something has changed. Construction companies are starting to realize the value of ERP software.
And here’s the kicker…
Results that will revolutionize your business. NetSuite ERP is at the forefront of this movement, providing construction companies with precisely the tools they need to compete in today’s rapidly evolving marketplace. Transforming how bids are won, jobs tracked and projects delivered. Companies that embrace this technology now will leave others behind.
Here’s what’s inside:
- Why Construction Fell Behind on Tech
- What NetSuite ERP Actually Does
- Real Benefits for Contractors and Trades
- Digital Transformation for Trades in Action
- How to Get Started
Why Construction Fell Behind on Tech
Construction has been playing catch-up for a long time.
The reasons become fairly obvious when you understand how the industry REALLY works:
- Every project is different
- Job sites move constantly
- Margins are razor thin
- Change feels risky
Okay. That last item is important. Deciding what software to use on intricate builds on limited budgets is always a gamble. A majority of owners will choose to play it safe and use what they know.
But there’s a huge problem with that approach…
Using legacy systems is costing the industry $177 billion a year. Not billion with a B, that’s annual. Legacy systems are devouring billions from the construction bottom line each year.
Contractors are starting to learn the hard way that the “old way” isn’t less expensive. It’s actually way more expensive once you account for wasted time, duplicated data entry, and lost opportunity. That’s precisely why working with a NetSuite expert like Accrete is such a wise decision for construction firms that are serious about digital transformation for trades. Having the right partner to show you the way matters.
What NetSuite ERP Actually Does
So what makes NetSuite ERP different from the tools contractors are used to?
Basically it consolidates all the moving pieces of a construction company into one seamless platform. Rather than five different disconnected tools you operate everything from one platform.
Here’s what can be managed under one roof:
- Job costing and estimating
- Payroll and workforce data
- Procurement and supply chain
- Financial reporting
- Project management
- Customer relationships
Cloud access is another massive advantage. Foremen in the field, accountants in the office, executives on the road can all see the same information at the same time. No more sitting around waiting for someone to email you a spreadsheet or dig up last week’s figures.
Did you know… 73% of construction firms use cloud construction ERP now. Whether you get in on it or not…the industry is changing.
Real Benefits for Contractors and Trades
Time for reality! Here’s what really happens when a construction company implements NetSuite ERP.
1. Better Project Visibility
Contractors get real-time data on every job. That means:
- Instant updates on budget vs. actual spend
- Live labour tracking across every crew
- Immediate alerts when a project starts to slip
No more discovering cost overruns three weeks after the fact. That level of visibility is what separates a profitable job from one that silently drains your bank account.
2. Fewer Costly Mistakes
Keying information is cumbersome on construction sites. Every keystroke of the same number into a new system creates opportunity for error.
ERP solves that problem. Information from one department flows automatically to another. Less mistakes means less arguments with customers and MUCH less time spent correcting paperwork.
3. Faster Cash Flow
Cash flow is the lifeblood of construction companies. NetSuite ERP accelerates invoicing by linking project progress to billing. Upon reaching a milestone, the system automatically bills. Easy.
4. Smarter Bidding
Contractors who have historical data available make smarter bids. They know how much things actually cost them in the past. They know precisely where they underbid and lost money. They know where they made money. Information like that is valuable. Valuable enough to change the game in a market where one lost bid can erase an entire quarter’s profits. Guessing is no longer necessary. Welcome to data-driven bidding.
Digital Transformation for Trades in Action
Digitization of your trade does not simply mean buying new software. It’s changing how your business operates.
Trade contractors — think electricians, plumbers, HVAC installers — have unique challenges:
- Mobile workforce spread across sites
- Small margins on service calls
- Constant scheduling changes
- Complex compliance requirements
ERP solutions designed for the trades can do all of this, and more. Technicians can pull up jobs right from their phone. Dispatchers can reassign work as needed from anywhere. Owners can track profitability by tech, by service, or by region.
Tech has overlooked the trades for years. The industry is now entering a period of rapid change, and the companies that embrace it now will position themselves to dominate in the next decade. Tools that were once only available to large GC’s are now accessible to smaller trade focused shops as well.
How to Get Started
Feeling ready to make the switch?
Slow down. ERP implementations are large undertakings and should be done properly. Here are some fundamentals to remember:
- Start with clear goals — figure out which problems need solving first
- Pick the right partner — a good consultant saves time and money
- Train the team — the best software fails without proper training
- Roll it out in phases — don’t try to change everything at once
Selecting a consultant with construction experience AND NetSuite expertise is critical. They understand how construction companies operate and will design a NetSuite application that flows with a contractor’s processes. A general consultant won’t have this deep industry knowledge.
Poor execution can set a company back decades. Proper execution can pay for itself in months.
Bringing It All Together
The construction industry is just starting to embrace technology. NetSuite ERP lies at the epicenter. Contractors and tradespeople can finally have the tools they’ve been asking for.
The benefits are hard to ignore:
- Better project visibility
- Fewer costly mistakes
- Faster cash flow
- Smarter bidding
- Real digital transformation for trades
Surviving on spreadsheets and siloed tools was fine for awhile. But the companies that are thriving today are the ones who invested in real systems. It’s not if you should implement ERP, it’s how quickly can you get it up and running.
Times they are a changin’. The only option left is to be on top of the change or watch it from below.
