The construction industry relies on enterprise resource planning (ERP) technology to overcome routine challenges relating to complex projects, tight margins, and constantly evolving compliance requirements. Yet the legacy ERP systems that many rely on simply have not matched the pace of the industry’s evolution. Companies may think they’re saving money or the headache of transitioning key software by overlooking upgrades to their ERP, but that oversight can lead to inefficiencies, limited visibility, and mounting frustration across teams.
Here are the top five signs that it’s time for your construction firm to invest in a more modern and capable ERP system.
Sign #1 – Reporting Takes Too Long
Consolidating financial information is an essential function of any ERP. If finance leaders are spending their time sourcing information, they’re wasting time that could otherwise be better spent on strategic analysis. Similarly, if your finance professionals are manually attending to tasks like job costing and work-in-progress schedules (WIP), they may be introducing errors or delays that compromise the timeliness or accuracy of insights. That can make it difficult to quickly generate profitability calculations as projects change.
Providing owners, lenders, and regulators with the reports they need can bog down outdated or less capable ERP systems. That can have a material impact on your business by forcing employees to redirect their efforts or otherwise leading to missed opportunities.
Leaders need accurate, detailed data from across the organization to make informed, strategic decisions. If your ERP is unable to provide key information on demand, it can be more difficult to identify trends, control costs, and generate accurate forecasts.
Sign #2 – You’re Relying on Workarounds
Temporary fixes can quickly turn into ongoing problems when your ERP doesn’t support your operations fully. Teams without sufficient ERP tools may have to develop homegrown tools, rely on third-party apps that may not be secure, or create manual processes just to keep things moving. If employees are improvising just to make progress, consider investing in an ERP that can help them focus on achieving results rather than troubleshooting.
Disconnected systems and fragmented workflows often lead to miscommunication and duplicated efforts. A capable ERP can link back-office systems with project management in the field, centralizing information into one system to reduce errors and improve efficiency.
Sign #3 – Lack of Scalability
ERP systems are particularly valuable in supporting growth initiatives. Executives and owners struggle to generate the reports required by finance and compliance partners when their ERP isn’t built with that purpose in mind.
As businesses grow, even mundane reports relating to multi-entity projects, joint ventures, and compliance can overwhelm legacy systems unsuited for a high volume of output. If business opportunities are hampered by manual processes relating to subcontractor payments, compliance tracking, and other growth-oriented tasks, a new ERP may remove limitations hamstringing your ability to scale.
Sign #4 – Mobile Access and Field Connectivity Are Limited
Mobile capabilities allow information sharing in real-time, linking developments in the field with reporting and analytics on the back end. These features are typically only available with modern, cloud-based ERP systems that support secure, remote access. If your field team is struggling to enter or retrieve data outside of the office, you could be experiencing delays or suffering from incomplete documentation and lost productivity. Seamless mobile access provides decision-makers with accurate, up-to-date data, helping to ensure timelines and budgets remain on track.
Sign #5 – Upgrades and Integrations Are Difficult or Costly
Your ERP should support other forms of technology, even those just emerging. Essential tools and applications for equipment tracking, document management, payroll, and other key functions should integrate seamlessly with your ERP. To accommodate technological developments, legacy ERP systems may require extensive customization that can be expensive, time-consuming, and potentially unsupportable. The resources spent updating and maintaining old systems can stymie innovation, increase costs, and distract from other efforts that may be more valuable.
Evaluate Your ERP
If any of these challenges sound familiar, your current ERP system may be limiting your team’s efficiency and working against your growth goals. Don’t let outdated technology become a costly roadblock. Evaluate your ERP strategy and explore solutions that can streamline operations, improve reporting, and help you scale your business.
Discover the Right ERP Solution for Your Construction Business
CBIZ helps construction companies like yours modernize their ERP systems to eliminate inefficiencies, break down data silos, and support long-term growth. Our team will guide you through every step of your ERP transformation, ensuring you get a solution that fits your unique needs.
Contact CBIZ today to start your journey toward a more efficient, scalable, and profitable future.
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