Asset Tagging has become a necessary tool to run construction projects — and now it often means the difference between a growing company and a dying company.
Did you know, more than 60% of contractors recognize that better asset management is the key to more efficient scheduling. Yet, less than 20% of contractors are using basic asset management tech such as barcoding/RFID/tracking devices, according to the 2019 JB Knowledge ConTech Report.
The construction industry may have held up longer than many sectors once the pandemic hit, but the recovery will also take much longer. While outcomes remain uncertain, dealing with disruption means rethinking operations and investing in the technology necessary to up productivity and efficiency. Asset management is one of the most cost-effective investments contractors can make. That’s because efficiencies often have a ripple effect when spread across all assets — and implementation costs are surprisingly low.
There are benefits for hotel operators too in terms of accurate asset registry for accounting and depreciation purposes, also tracking during maintenance and repair of items.
TKHS customizes Asset Labelling depending on the needs of the project.
As an integral part of our comprehensive Hospitality Services, we provide various and different types of Asset Labels so that our customers are optimized with their final selection. Our scope is to supply the tags, place them onto the items after installation and provide the asset register showing the tag IDs, locations and any other customizable information they want to see such as vendor details, cost, etc.
Here are four reasons asset tracking is more vital than ever:
- Improves productivity. Construction’s two major cost centres are labour and assets. Nearly 60% firms are using project management software, according to the JB Knowledge report. But currently only 13% of contractors are using equipment tagging, according to the USG Corporation + U.S. Chamber of Commerce Commercial Construction Index . The index notes that more than half of contractors point to asset tagging technology as key to improving productivity.
- Provides insights on operational efficiencies and performance. As noted, many companies lack asset management technology tools, which leaves them with little understanding of how assets are being used and how to more efficiently schedule their use.
- Increases competitiveness. In an industry with razor thin margins, contractors are always looking for competitive edges. Effective asset management tools will be a “must have” to compete in a market with more dollars but thinner margins. With accurate utilization data, asset management yields more accurate, more competitive bids, an edge that can make or break bids and maintain margins no matter what the market conditions. Even something as simple as better maintenance tracking can have big impacts.
- Reduces capital expenditures. Many firms without asset management systems may be buying and renting more equipment than they need simply because they don’t know what they have or how it’s being used. With asset management, contractors can eliminate under-utilized assets, enact better preventative maintenance, prolong asset lifespans and get better visibility and accessibility into owned assets versus rented.
With average project margins hovering in the 7 or 8% area, the 1 or 2% margin uplift from simple things like better equipment management have graduated from just nice to have technology, to a must-have. In this disruption, Asset Tagging has become a necessary tool to run construction projects — and now it often means the difference between a growing company and a dying company.
For more information about our Asset Management Solutions, and to find out which spec would be most suitable for your project, feel free to contact us at email@example.com