Even with modern methods of construction, the industry lags in productivity.
You probably know this more than most. Working on the house after house, you can see where the bottlenecks are and where significant gains can be made.
Despite this, the sector remains firmly fixed in place with its approach.
While sectors such as retail and manufacturing manage to reinvent themselves, through the likes of automation and advances in technology, McKinsey reports that ‘construction is behind the curve.’
The problem is more than that though.
Low productivity results in a financial black hole. Problems that could have been solved from the get-go become financial burdens. Site revisits, additional materials and underskilled workers all mean more money needs to be spent to finish projects.
With the market as it is, that’s easier said than done.
This blog will explore the productivity issues in the construction sector and present how working with the right partner can you help you offset them.
The Productivity Problem In Housebuilding
Globally, productivity growth in the construction sector has averaged 1% a year in the past 20 years according to a recent McKinsey report.
When compared with growth for the global economy (2.8%) and manufacturing (3.6%), it’s clear how big the gap is.
The UK isn’t alone either.
Prior to 2008, UK productivity was dragged down significantly, and despite labour productivity increasing since then, the general levels of productivity in the construction sector are below the UK average. There’s been little change since the 1970s.
The reason comes from a range of avenues. The McKinsey report states:
“[there are] many reasons for this persistently poor performance, including stringent regulations and dependence on public-sector demand, informality and sometimes corruption, industry fragmentation, and mismatches in risk allocations and rewards.”
Other publications also cite a range of issues, highlighting design development, inefficient procurement procedures and logistic issues. This list of 12 factors all contributes to the stagnated productivity in the sector.
But what does this all mean for your business?
Problems Productivity Woes Cause
Your level of productivity has a direct correlation with your profitability.
If an installation should take you half a day, but it’s taking half a week, then time and money is bleeding away. Multiply this across all of your developments, and you can see the rising bottom line snapping at your heels.
The opportunity here is to work with suppliers who have figured out ways to increase their own productivity. Then, by choosing the right partners, your own efficiency increases, and you start turning over projects faster than your competition.
Are you considering this when talking with suppliers and deciding on your partnerships?
Addressing these concerns can not only ease the pressure on your business but can contribute to wider success in the construction’s productivity growth.
Success & Productivity Gains: Choosing The Right Partner
Tackling the productivity challenge can deliver significant competitive advantages by driving down costs, improving profit margins and enabling your business to scale easier.
It’s a complex issue, and certainly not one that can be fixed overnight. But focusing on marginal gains such as ‘off-site manufacture’, modular building or modern methods of construction can contribute. Here are a few things to assess your partner's choice against.
· Do they have delivery guarantees? Nothing kills productivity like subs waiting on-site (and on the clock) for deliveries. Delivery guarantees give you control over your schedule to make sure it keeps moving forward.
· Do they have a delivery checklist? A delivery checklist makes sure everything is in the truck. If the delivery is right the first time you save repeat delivery trips.
· Do they do site surveys? Off-the-shelf products seem like quicker options, but bespoke products save time because they fit right the first time.
· Is there a quality control measure to make sure the product works before shipping? Some manufacturers assume the product works according to the design. But there is always room for error. Find a supplier who spends the extra time to make sure each product is fully functional.
· Do they offer phased delivery? Work with a supplier who works to your schedule, not theirs. Getting deliveries according to your timetable means you don’t have stock on site that’s not being used. This protects against damage.
Finding suppliers who focus on these approaches will help your project progress swiftly.
Staircase Success With Multi-Turn
This is the foundation with which Multi-Turn has built its reputation, supplying high-quality staircases to housebuilders in Southern England.
Ensuring success on all projects is achieved through high-quality products and craftsmanship, Multi-Turn works with dependable local supply chains.
With over 30 years of experience and knowledge, offered through a service called staircase success, Multi-Turn can help you to meet the demands of the housebuilding sector through bespoke staircases with a Fit-First-Time guarantee.
Find out more by speaking to our team at 01962 712299 or emailing us at web-enq@multiturn.co.uk.