Press release

Software Advice Reports That Labor Shortages and Supply Chain Bottlenecks Are Hurting Small Construction Businesses, But Tech Can Help

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Software Advice, which provides 1-on-1 help and personalized software recommendations to small businesses, released its latest findings on construction trends and how COVID-19 has impacted the industry. Survey respondents say labor challenges related to the pandemic and supply chain issues have shifted the way teams handle inventory management. Estimation and construction-specific project management software continues to be important to control costs, with over half (53 percent) of small construction companies implementing new PM software to support their business.

The study shows that investing in software can save money for many, with 34 percent of those surveyed saying it reduced their operational costs. 42 percent of respondents report that software improves estimation accuracy, and better estimates mean less rework and lost revenue.

Key Findings

We asked small construction businesses about the procurement delays they’ve been experiencing and how they’re managing, here are the highlights of their responses.

  • 63% report much longer time frames to produce raw materials for projects
  • 46% report 6-10 projects having been delayed in the past 12 months, with 62% saying this number is higher than pre-pandemic levels
  • 45% of respondents are shifting inventory management temporarily in house. 41% are moving to a third party

“If you haven’t already reconsidered how you’re managing inventory, you’re missing out on a possible opportunity to address procurement delays,” says Olivia Montgomery, Sr. Content Analyst at Software Advice.

Almost overnight, the supply and demand for construction of every type changed due to the pandemic. And while some aspects are slowly starting to return to normal, the construction industry is still experiencing new trends never seen before. Read through the full research report here to find out more about what the construction industry looks like today and in the years to come.

About Software Advice

Software Advice™ helps businesses navigate the software buying journey. Industry-specific advisors guide people through the selection process and provide personalized software recommendations. Founded in 2005, Software Advice has helped more than 700,000 businesses find the right software for their specific needs through 1-on-1 advice, objective research and actionable insights. Software Advice also features over 770,000 verified user reviews to ensure people feel confident in their technology decisions.

Survey methodology

Software Advice conducted the Small Business Construction Survey in April 2021 of 538 U.S.-based workers in the construction/contracting industry in small business. Respondents were screened for employment status (employed full time), annual business revenue (<$100mil), and number of employees at respondent’s company (1-250).