For a Firmer Grip on Project Cost and Profit, Try These Three Tools
Feed Media client, Unanet, is one of the top ERP providers for the architecture and engineering industries. In this most recent thought leadership article in PSMJ Resources, Unanet expert Lucas Hayden describes how these A/E firms can control project costs, and increase profit.
"As the Covid-19 crisis approaches its sixth month, the damage continues to mount. In a June survey by Appleseed Strategy of principals and owners at more than 30 architecture, engineering and construction (AEC) firms across the U.S., about two-thirds said they had experienced a drop-off in billings, and a similar share were forecasting a decrease in pipeline. A large portion of surveyed firms — more than 40% — expect the action in their pipelines to dwindle by 20% or more. What’s more, in excess of 90% indicated they were experiencing project shut-downs or holds.
These findings help to explain what we are currently observing among the AEC businesses we serve, many of which are looking internally to relieve some of the financial pressures they face. As timely and helpful as government aid has been for some firms, more AEC businesses are realizing they can’t rely on stopgap government programs forever, and thus must find sustainable ways to manage their businesses and their resources more efficiently to counter the unprecedented level of disruption and uncertainty they face.
One of the most important internal steps AEC firms can take to run more efficiently is to get a clearer, real-time picture of project cost and profitability. In particular, the right ERP and analytic tools can help firms gain a better handle on key factors like overhead and job costing so they can more accurately track and predict the profitability/financial performance of specific projects. That, in turn, enables firms to more efficiently manage their resources and plan for the future," writes Lucas Hayden of Unanet.
Read the full article in PSMJ Resources here.