The Value Builder

Fall 2003



What’s the buzz? Wireless beams in on construction industry

 

Contractors may be adept at installing high-tech equipment for other businesses, but the construction industry has been slow to embrace technology for its own operations.

Part of the reason, it must be acknowledged, is that construction workers — even those who use computers at home — have been reluctant to trade the paperwork they’ve always done by hand for electronic records they may find cumbersome and difficult to trust.

Equally problematic, however, is getting the necessary equipment to job sites and then linking it to computer systems at home offices that may be hundreds of miles away.

For contractors focused on setting up new job sites, running cable and phone hookups for computers may be low on the priority list — particularly since cell phones and pagers make phone hookups unnecessary on many sites.

Scarce software
In addition, software developers have largely ignored the construction industry, leaving enterprising construction firms to adapt the few available off-the-shelf programs as required or to devise their own programs if they wanted them enough. Most didn’t, and the computer and construction industries stayed on paths that rarely connected.

The times may be changing, however, as wireless technology becomes more affordable and convenient and software developers begin to think they’ve missed a market.

Wireless technology uses radio waves, infrared waves or microwaves to communicate, rather than signals carried through cables. Portable computers, networks, satellite systems, handheld digital assistants and location devices — as well as cell phones and pagers — all can connect users without tethering them.

Access on the run
Wireless systems are ideal for construction site crews, because the devices can be used anywhere and everyone on the network can access and share the same information from remote locations. That means, for example, that with the right program subcontractors could monitor progress on a job and be ready to begin their portions of the work as soon as the work in progress was complete.

Such scenarios are becoming reality as software developers begin to exhibit a newly awakened interest in the $800 billion construction industry. Companies such as IBM and Receptive Technologies are recognizing the potential for programs that give contractors real-time access to information from the field, and are starting to introduce project management programs for contractors.

The few such programs already available vary from basic setups that allow site supervisors to submit payroll and similar records without leaving the site to those that allow subcontractors, suppliers, architects and clients to communicate, change delivery and work schedules and monitor progress from wherever they may be.

But as wireless technology continues to advance — the next generation will begin to support mobile Internet access and real-time video applications — it is likely that software developers will begin to offer more advanced and flexible programs for construction project management, as well.

Saving time and money
Companies that have used this software have reported significant time savings and even more significant reductions in the number of phone calls project managers must make. In addition, when they use systems that link billing and supply chains, they can reduce paperwork and administrative time.

Finally, when customers can access the database they can track progress and relay comments and concerns electronically, without tying up time and phone lines at the site.

Such programs are just beginning to prove their worth, but it seems likely that savvy construction companies will be looking closely at their possibilities — particularly as wireless technology continues to give users greater freedom to move about.

If contractors like what they find, the era of the low-tech construction industry could be on the brink of extinction.

 

Perisho Tombor Loomis & Ramirez
901 Campisi Way, Suite 250
Campbell, CA 95008
408-558-0500
info@ptlr.com

 

The articles in this newsletter are general in nature and are not a substitute for accounting, legal, or other professional services. We assume no liability for the reader's reliance on this information. Before implementing any of the ideas contained in this publication, consult a professional advisor to determine whether they apply to your unique circumstances.

© 2003