Case for Buying Construction Software in 2012
By Sheldon Needle
Consulting is pretty strong right now. Consultants are sending out a lot of proposals and getting new business. My associates report that there is a high level of interest in upgrading their clients’ systems. This is supported by improved demand for their services whether they are a General contractor, highway heavy or specialty contractors doing commercial and/or residential work.
Contractors who invest in consultants
When contractors retain a consultant, they are serious prospects. It is also a statement that they are willing to invest in their success. One current observation is that now that contractors have come most part way through a business downturn, they now have a much better idea of how valuable software (or lack of) is to their business and the future of their company. Consequently, more of them are willing to spend for a consultant in order to help insure they make the right decision.
Flat organizations, limited resources
Due to downsizing over the past few years, many contractors no longer have the staff to do what the construction software should be doing by using Excel/Access or a basic software product like Quickbooks for Contractors. They now understand they must either have a better solution or get more from what they have through more training on their current construction software solution. Many are realizing that in order to work effectively with their suppliers and customers they need to be in the sweet spot of software technology and connectivity through the Internet.
Enough with the Excel worksheets!
One of the easiest ways to justify a software purchase is to eliminate all the ancillary Excel worksheets used to supplement inadequate systems. One consultant did a revealing exercise with a client recently. They run legacy software with a lot of Excel worksheets. It is a $30M mechanical contractor that now has 5 people whose primary/secondary role is to just track purchases, inventory and do custom reports. Once they implement a new ERP, he estimates all these tasks can be handled by just 2 people with much greater accuracy.
Sheldon Needle is President of CTSGUIDES.COM, a free web site offering a Free Construction Software Selection Kit which includes unbiased reviews, software selection tools, and expert advice to help companies select software. Sheldon is a former CFO, consultant and software designer who has published more than 20 guides on software selection. Sheldon can be reached at 800-433-8015.
