New Report Highlights Top Business Issues for Trade Contractors
October 17, 2022 | By Logan Caswell
Dodge Data & Analytics surveyed 537 trade contractors (mechanical, electrical, plumbing, steel and concrete) from four regions (Canada, U.S., UK and Australia/New Zealand).
Canadian specialty trades contractors report lost profits due to unpaid change orders and rework, while a lack of workers is also affecting their ability to complete projects. These findings are part of new report from Dodge Data & Analytics, “Top Business Issues for Specialty Contractors” sponsored by Procore.
With the goal of helping trade contractors better understand the key trends impacting their businesses, Dodge surveyed 537 trade contractors (mechanical, electrical, plumbing, steel and concrete) from four regions (Canada, U.S., UK and Australia/New Zealand) with a focus on three key business issues: profitability, workforce and technology.
The report highlights issues impacting specialty contractors, such as workforce management, technology and profitability to help businesses better understand industry trends.
Key Canadian findings include:
- Canadian subcontractors report that 40% of their margin erosion can be tied to rework
- an average of 39% revenue loss is due to change orders that are not invoiced—this is above the global average of 30%
- 42% of Canadian subcontractors report that more than 20% of workers’ time is currently spent on low-productivity tasks
- Canadian contractors expect 38% of their company’s workforce to retire in the next five years and are amongst the ones most severely impacted by labour shortages
- Overall 39% of respondents say that they still use whiteboards, spreadsheets and other outdated processes
On a global scale, research found that over 90% of specialty contractors report their projects have been negatively affected by a shortage of skilled labour. Experts anticipate the current shortage to worsen: on average, 33% of the current workforce is likely to retire in the next five years.
Additionally, specialty contractors reported that 20% of workers’ time is currently spent on low-productivity tasks, such as tracking down information or documenting information on paper.
For more information on the report, click here.