Top 5 Reasons Why Your Construction Company Resists Technology

In today's fast-paced construction sector, if you're not actively working to improve your construction processes and embrace advances in construction, you risk falling behind on job sites and construction projects.

One of the most critical areas where commercial construction companies need to embrace change is technology. Adopting new construction technologies can be essential for growth, innovation and staying competitive.

According to the Deloitte Research Center for Energy & Industrials, more than three-quarters of construction organizations believe technology will be required to stay competitive, particularly as real-time data becomes crucial for managing the complexities of construction projects.

Additionally, the number of businesses anticipating growth from implementing new technologies for internal processes has increased significantly, reaching 43%.

However, many organizations struggle to implement technological changes and make the digital transformation.

Here are the top five reasons why technology adoption in construction doesn’t happen and how you can overcome these obstacles.

Key Takeaways for Construction Contractors:

• Modern construction software can significantly improve operational efficiency in tasks like estimating and job costing. Training sessions and a clear leadership vision can help contractors embrace innovation and move away from outdated processes.
• Employee pushback is common when introducing new tools. Contractors should involve employees early in the adoption process, provide hands-on training, and create mentorship programs to ease the transition.
• A cost-benefit analysis and phased implementation of new systems can minimize disruption and show long-term savings through increased efficiency and reduced errors.
• The best time to implement new technologies is when the business is stable and profitable. Regular reviews of current processes, combined with a forward-thinking mindset, can help ensure continued growth and prevent stagnation.

Reason #1: Resistance to Change

Some construction managers and business owners may not fully understand the benefits of adopting new technology or understand how new technology can address the challenges of construction and barriers in construction they face daily. While it’s tempting to stick to what has worked in the past, times and tools evolve, and so must your processes.

For example, construction firms relying on spreadsheets for estimating, job costing, and financial reporting may not realize that modern construction accounting software can produce these reports much more efficiently.

Continuing to use outdated tools can waste valuable time and resources, putting your company at a disadvantage.

Overcoming resistance to new technology in construction begins with education. Companies can invest in training sessions to demonstrate how new technology enhances workflows, increases productivity, and reduces costs.

Leadership should also set a clear vision for the long-term benefits and create a culture that values innovation and improvement.

Reason #2: Employee Pushback 

It’s not uncommon to encounter construction employees who are resistant to change. Some team members may feel comfortable with their current tools and fear that new technology could threaten their job security.

On construction sites, where traditional methods have long been the norm, implementing new technology requires careful consideration of existing workflows. The key is demonstrating how new tools can simplify complex construction tasks while improving labor productivity.

To overcome this, it’s essential to involve employees in the technology adoption process. Be sure to listen intently to employees' concerns and share the benefits of modern technology in construction.

Offering hands-on training and development for construction workers, mentorship programs, and open communication channels can build confidence and ensure that staff feel supported through the transition.

Reason #3: Perceived Cost or Time Barriers

Many business leaders believe they don’t have the time or budget to invest in new technology. While this is a common concern, it’s often a short-sighted view.

For instance, a contractor who manually prepares a construction estimate may spend hours on each job. This leaves them little time to explore software solutions that could streamline the process.

Investing in technology often results in long-term savings by improving efficiency, reducing errors, and saving time for more important tasks.

While the initial cost of construction technology may seem high, the return on investment becomes clear when considering how it improves the construction process and helps manage limited resources more effectively.

To overcome cost concerns, businesses should perform a cost-benefit analysis to understand the long-term savings that new technology can offer.

Additionally, phased implementations of new systems allow companies to spread out expenses and minimize disruption to daily operations, making the transition more manageable.

Reason #4: Fear of the Unknown

Fear of the unknown can be a significant barrier to adopting new technology for the construction industry particularly when dealing with the complexities of construction projects that require new technological solutions. Unfamiliar systems and processes may seem intimidating, but allowing fear to prevent change can lead to stagnation.

Technology can bridge the gap in construction efficiency; the key, however, is to take a strategic approach. Start by researching construction technology solutions that align with your company’s needs, consulting with industry experts, and gathering input from trusted sources.

One way to combat fear is to pilot new technologies on a smaller scale before a company-wide rollout. This allows teams to experience the benefits firsthand without overwhelming them.

Partnering with a trusted technology provider that offers ongoing support can help ease the transition and reduce uncertainty.

Reason #5: Success Leads to Complacency

Ironically, companies that have been successful in the past may become complacent and resistant to change.

When a company is doing well, it’s easy to fall into the trap of thinking that no further improvements are necessary. However, this mindset can lead to stagnation.

The best time for construction companies to adopt new technologies is when business is thriving, as proactive decisions made during stable times are more likely to be goal-oriented and produce better long-term results than those made in response to a crisis.

To prevent complacency, companies should conduct regular reviews of their processes and systems to identify areas for improvement.

Current construction trends indicate that organizations that don't adapt to technological changes risk falling behind. With advances in construction happening rapidly, even successful companies need to stay current with real-time data capabilities and modern project management tools.

See How FOUNDATION® Can Help Your Company

Successful technology adoption in construction is essential for remaining competitive and efficient. Embracing technology should not be viewed as a temporary program but as an ongoing commitment to growth and efficiency.

As the construction sector continues to evolve, the ability to effectively manage construction sites and improve labor productivity through technology becomes increasingly crucial. By addressing these common barriers in construction and embracing new solutions, construction organizations can better handle complex construction tasks while optimizing the cost of construction."

While there may be initial challenges, such as resistance to change, cost concerns, and fear of the unknown, these obstacles can be overcome with strategic planning, effective communication, and a commitment to innovation.

By taking proactive steps to integrate technology into your operations, your company can remain competitive and positioned for future success.

And if you’re looking for technology that can help, check out FOUNDATION construction accounting software!

We understand the challenges of implementing new technology in construction. Our software solutions are designed to help companies streamline processes, improve accuracy, and drive profitability.

Whether you're looking to improve your budgeting and forecasting capabilities, streamline job costing processes, or enhance your financial reporting, FOUNDATION provides the tools and resources you need to succeed.

Chat with a specialist today to learn more!