Competitive Advantage in the Construction Industry
To succeed in the construction industry, it is imperative to develop a competitive advantage. This means achieving a strategic resource, such as operational capabilities, efficient organization and management, and a strong market position and growth potential. In this article, we’ll discuss the most important components of a strategic resource. The following paragraphs will describe some of the most important strategies that construction companies can use to boost their competitiveness.
The ability to attract and retain quality craftspeople is the most challenging aspect of the construction industry. High turnover rates are costly and stressful. Keeping good staff is one of the most important elements of a competitive advantage. In addition to being skilled, a construction company should monitor the number of hours the staff works for the public and for private use. This is crucial for regulatory purposes. While this may not seem like a strategic advantage, it can make the difference between success and failure.
In addition to reducing the amount of change orders that a construction firm receives, it must also invest in technologies that make it more efficient. A successful construction company will be able to apply the latest materials and technologies, based on continuous knowledge transformation and exchange of information. Furthermore, a strong construction company will be able to optimize its processes and make use of standardized items that increase its competitive advantage.