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Construction companies prepare for better times forward thinking construction companies are investing in systems now in order to capitalise later. Special report by Veronica Alcobio
JUST AS an athlete must prepare rigorously in order to win an event, Australian construction companies preparing to lead the building industry into its brighter future are training up to be fighting fit now – in the down times. One currency all companies have equally is time – and it is the construction companies who are using these slower times to implement best-practice, scalable, streamlined systems who will be the ones to watch out for as the industry improves, suggests Mark Gravolin. “We’re seeing a notable increase in eRP system sales at present,” said Mark Gravolin, owner of the constructionfocused software company leVeSYS. “it’s been tough going for construction companies of late, but in true Aussie style business owners are staying resilient and implementing smart systems that will mean greater profit margins, less risk and intelligent business practices going forward.” large-scale software system sales appear to be on the rise as construction companies realise that the best preparation for better times comes from within the company. Having the right systems in place can make your projects more profitable, increase productivity and increase competitive advantage. leVeSYS is an example of an eRP (enterprise Resource Planning) system. Construction-specific eRP systems integrate the project, financial and business aspects of a construction company so that information flows from end to end, minimising duplication and error and delivering decision makers the information they need in real time. Reasoning behind implementing a company-wide software system in the down time is twofold. firstly, it takes time to choose your system, implement it and train your people. Secondly though, tough times force business owners to look analytically and critically at where the leaks in their businesses are. When revenue and profitability are healthy or abundant, it is easy to miss the inefficiencies. When times are tough, fixing the leaks and streamlining your business can make a world of difference to business viability.
And the research backs the reasoning of these savvy Australian construction companies. Aberdeen research from 2009 found that companies who implemented an eRP system saw between a 6-19 percent reduction in operational costs and an 8-22 percent reduction in administrative costs. Wayne Carter, Managing Director of Williams electrical Service in Perth explains, “leVeSYS has helped us track service and, in capturing all chargeable costs, has made us more profitable. Plus we have reduced our risks as we now know which jobs to choose and which to let go.” “it pleases me to see such a steep adoption of technology within Australian construction businesses. Contraction is physical by its very definition, which i believe makes investment in intangibles such as software and systems traditionally a difficult purchase to justify,” explained Mr. Gravolin. “Research and experience are proving the value of such systems now though, and this is definitely showing in the number of implementations we are completing. My company alone has increased new system sales significantly this financial year – as much a testament to intelligent construction business owners as to my team here at leVeSYS.” Yes, we’ve been in a difficult and trying time recently. The future is looking brighter though, with the Australian Construction industry forum and Master Builders Australia both forecasting improvements across most sub-industries in the not too distant future.
For more information contact: Phone: 07 3004 6100 Email: info@levesys.com Website: www.levesys.com
WA Master Builder
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