The increasing use of technology by heavy highway and civil contracting companies is defining a new level of success. Heavy highway companies, which are often referred to as heavy or civil contractors, manage large-scale infrastructure projects such as roads, bridges, tunnels, ports, and airports. With significant resource demands and increasing operational challenges, integrating advanced technology, specifically Construction Cloud systems, is proving to be a game-changer.
What Is Heavy Highway Construction and What’s at Stake?
Heavy highway and civil construction projects are challenging because of their vast scope and intricate requirements. Unlike commercial construction, which focuses on buildings or structures used in business, heavy highway and civil projects usually involve detailed engineering activities and heavy machinery. These projects—ranging from bridge and tunnel construction to major excavation and underground work—require meticulous management of costs for equipment, materials, and labor to maintain project profitability.
Critical Labor Shortages Affect Heavy Highway Companies
According to Associated Builders and Contractors, the broader construction industry faces a critical labor shortage, with projections indicating a potential shortfall of up to half a million skilled workers in 2024. This shortage is already having significant impacts, with more than 88% of construction companies reporting difficulties finding sufficient workers, and 60% of construction companies say these shortages are directly delaying project timelines, ultimately costing companies money. More than a quarter of construction workers are over the age of 55, raising concerns that the shortage will worsen as fewer younger workers enter the trades.
Why Does Technology Make Sense for Heavy Highway Contractors?
With low margins for error, long project timelines, the need to closely track and manage project materials and available equipment, software can help heavy highway construction companies meet scheduling and budget goals. Here are some of the challenges software can address:
- Labor management: Efficient payroll processing, timecard tracking, and compliance with regulatory requirements are critical. ERP (enterprise resource planning) systems provide robust solutions for managing labor costs, tracking hours, and handling payroll for both union and non-union workers.
- Materials and equipment oversight: Managing the lifecycle of materials and equipment—from procurement to maintenance—is complex and costly. ERP solutions streamline these processes, offering tools for plant sales, bill of materials, equipment accounting, and scheduling maintenance.
- Financial and job costing: Precise job costing, budgeting, and financial forecasting are fundamental to profitability for heavy highways and civil projects. ERP systems offer detailed tracking and analysis of project costs, which help contractors operate efficiently and stay on top of their project’s financial performance.
Benefits of ERP Systems for Heavy Highway Contractors
Implementing a comprehensive ERP platform designed for the needs of heavy highway contractors can revolutionize operations. Here’s how:
- Unified information system: An ERP solution consolidates project data into a single source of truth, which provides realtime updates for your entire team and reduces data duplication. What’s more, this integration improves reporting accuracy and decision-making.
- Mobile integration: Your field staff benefit from mobile-enabled, cloud-based ERP solutions, which allows them to easily and quickly enter data and access realtime updates. Mobile connectivity helps heavy highway companies bridge the gap between field operations and office management.
- Enhanced collaboration: ERP systems facilitate digital collaboration by sharing documents and project information seamlessly between departments and across teams. This enhances coordination, speeds up approvals, and supports proactive project management.
- Advanced analytics: ERP platforms equipped with analytics tools enable contractors to track performance, manage change orders, and forecast costs more precisely. These insights help leaders make informed decisions and address potential issues proactively.
Future Trends in Heavy Civil Construction Technology
Looking ahead, here are several trends that will impact the heavy highway and civil construction sectors:
- Telematics and GPS: These technologies offer realtime tracking of equipment and performance metrics, providing actionable insights into operational efficiency.
- Modeling and 3D printing: Advanced modeling techniques and 3D printing will transform design and construction processes, as well as enhance project precision and efficiency.
- Drones: Drones can transform project monitoring by capturing progress, documenting project status, and integrating with ERP systems for comprehensive data management.
- AI (artificial Intelligence): AI is emerging as a transformative force in construction. AI-powered analytics can predict safety issues, analyze material price trends, and identify supply chain disruptions, providing valuable foresight and improving project management.
In summary, the integration of Construction Cloud ERP software and other advanced technologies is becoming essential for heavy highway and civil contractors. By embracing these innovations, contractors can enhance their operational efficiency, streamline project management, and maintain a competitive edge in an evolving industry landscape.