Why Construction Businesses Should Bother About Asset Management

By Guest Author | construction | May 27, 2021

Construction is a capital-intensive domain, where a significant part of investment goes into expensive assets and equipment. However, businesses are more than happy to invest in them because these assets and equipment are the cornerstones of success. Beyond the initial investment you make in them, the maintenance and management of these assets require due attention because you cannot just take a set-and-forget approach. The investment is huge indeed, but there are more reasons why you should bother about asset management. Let us explain them in detail.

Track assets and equipment in real-time

Tracking what you own is perhaps the biggest challenge you face during typical construction projects. After all, even the smallest sites are likely to span over miles, and maintaining visibility can be a big deal. Investing in an asset tracking solution helps you keep an eye on equipment across multiple sites and buildings. Knowing the exact location can go a long way in boosting labor productivity and reducing the lead times of jobs. Moreover, there is hardly a chance of wastage when the workforce and managers are always one step ahead with asset tracking.

Reduce the risk of theft and vandalism

When you spend a fortune on expensive tools and equipment, protecting them should be your top priority. Unfortunately, theft and vandalism are rampant risks in the industry because projects are often too large to monitor constantly. Additionally, you have to leave them in isolation at some point. Investing in Asset and Equipment management software for Construction projects is the smartest way to curb these risks in the long run. It ensures constant monitoring of vehicles, equipment, machinery, and building materials, so you can rest assured that they are safe at all times.

Record the asset life cycle

Another reason for construction businesses to have an asset management solution in place is that it facilitates tracking and recording data related to assets throughout their lifespan. Right from acquisition through to disposal, you know exactly about the productivity and performance of the investment. It enables project owners, contractors, and managers to have a fair idea of the typical operational lifespan of the assets. The information can be of great help to understand the maintenance issues that need to be addressed so that you can steer clear of costly repairs and unplanned downtime.

Identify high-profit assets

An asset management initiative is worthwhile for construction companies because it offers an extensive view of equipment performance. You can easily identify the performing assets and segregate them from the laggards. It is easy to make decisions when you have facts based on real-time data at hand. For example, if a backhoe digger at your site fails to operate correctly even after extensive maintenance, it is clearly an unprofitable asset. The manager can request a replacement without second thoughts. It will be a wise choice for your business in the long run.

Asset and equipment management is a crucial aspect of construction operations, and no business owner should go slack with it. After all, they keep your projects up and running and ensure timely completion.