South African construction companies will be looking for ways to improve construction profits in 2023.
The industry has taken a hard knock over recent years – but forecasts suggest that it’s heading for more stability and some growth ahead.
This is positive news, but economic conditions remain challenging. For construction businesses of all sizes, sustained profitability will depend on being efficient and innovative, while minimising unnecessary costs.
1. Pay attention to site planning
Poor site planning can lead to delays and costly mistakes. Good communication and collaboration are vital to ensure a site runs smoothly and everyone stays on task.
Appoint a competent, trustworthy site manager to develop procedures for communication and workflows.
Technology can also help you manage a site properly. Don’t discount the value of IoT solutions for automation and communication.
2. Use the right equipment
Buying or renting equipment can be expensive. However, trying to complete a job without the right tools tends to lead to delays, mistakes and subpar work.
Building trust with clients is a vital part of securing future profits. It depends on doing jobs right the first time, and by agreed deadlines.
Investing in the right tools can save time, prevent mistakes and help ensure that end results meet expectations.
3. Hire the right people
Similarly, don’t skimp on talent. Specialised skills come at a higher wage – but hiring people without the necessary skills can be much more expensive in the long run.
Asking insufficiently qualified or inexperienced workers to take on specialised jobs typically results in delays. Jobs may also have to be redone because of poor workmanship.
Hiring unskilled or inexperienced workers can also add to the hazards on construction sites. It makes accidents and injuries more likely.
4. Shop around for materials
Typically, materials make up a significant percentage of the upfront costs required to complete a job.
One way to improve construction profits in 2023 is to find the best possible deals on materials.
Even if you have an existing account with a supplier, research what competitors are charging. This puts you in a position to negotiate a better deal.
Depending on your needs, it may be worth buying construction materials in bulk to benefit from lower prices per unit.
It might also be possible to use alternative materials that cost less, while still meeting requirements in terms of quality, strength and durability.
5. Minimise theft on construction sites
High risk of theft is an unfortunate reality on South African construction sites. Even heavy equipment is at risk if proper security measures aren’t implemented.
Investing in site security takes money upfront. However, it may prevent potentially crippling losses of equipment and materials. These losses can happen overnight – or take the form of small on-going thefts that add up to a significant financial loss over time.
For measures that can improve site security, see our article on ways to minimise the risk of equipment theft on construction sites.
Some examples are access control systems, CCTV monitoring, secure storage and satellite tracking.
6. Minimise fuel costs where possible
With massive increases in fuel costs, saving on fuel is an increasingly important way to improve construction profits in 2023.
Fuel is an unavoidable cost on most construction sites, but there are ways to reduce fuel consumption.
Some simple examples include:
- staying on top of maintenance for large machinery
- reducing machinery idling time
- keeping tyre pressure optimal
- careful workflow planning.
It’s also a good idea to keep a detailed log of fuel consumption. This may help uncover opportunities to cut fuel costs in the future.
7. Invest in a rebuilt motor grader from KH Plant
A motor grader is an invaluable workhorse for a construction business – but heavy equipment like graders comes at a high price.
Buying second-hand is less expensive but risky. There’s no guarantee that you won’t end up with defective machinery. You’ll have little or no recourse if there’s a problem.
A better solution is to opt for an expertly rebuilt grader.
An expertly rebuilt grader looks, performs and lasts like a brand new machine, but is available at a fraction of the price.
At KH Plant, we rebuild Caterpillar 140G, 140H and 140K motor graders and grader components to as-new condition, and each grader comes with a full warranty. Contact us for more information about our rebuilt motor graders and improve construction profits in 2023.
