Technology
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In the construction industry , multiple resources must be managed to ensure a smoothly running system . Construction organizations tend to be fragmented , comprising various projects and stakeholders - each facing unique challenges .
The pace of change is immense due to internal factors , including labor shortages and material costs , and external factors , such as Brexit , supply chain issues and economic uncertainties . Alongside the boom in digital transformation , construction firms are operating in a climate of rapid change , which requires a multifaceted , holistic approach to operations management .
The current landscape
Construction organizations across the board have had to adapt and make challenging operational decisions . Recent data by Credit Safe found that 15 UK construction firms went into administration in January 2023 . As economic and geopolitical uncertainty lingers , experts predict that two in five UK SMEs are likely to close in 2023 .
Everyone in the construction value chain is impacted by the uncertainty of supply chain issues - disrupted by the pandemic and political unrest , including the war in Ukraine . The resulting depletion of stock , coupled with rising material costs , has created the perfect storm for suppliers , distributors , builders , and clients . Most construction organizations also face an increase in labor costs and ongoing skills shortages , which further affect their operations and ability to deliver value for money . The looming risk of recession across Europe makes it difficult to plan investments , too , for buyers and builders .
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