Construction software company Procore partnered with research company Censuswide to survey more than 1,000 construction professionals across the U.S. and Canada. The results of this recent survey form the basis for the How We Build Now Report that sheds light into construction leaders’ priorities in 2024.

Five key messages summarize the report’s findings and reflect construction C suite construction industry respondents’ perspectives as they plan for the next 12 months.

1. Remain strategic and optimistic.

Ninety percent of survey respondents reported feeling confident about market conditions over the next 12 months, with 50 percent feeling very confident. Despite economic uncertainty and inflation across the U.S. and Canada, 74 percent of respondents expect both the number and value of projects completed by their organizations to increase in the next 12 months. This significant business confidence is unique in light of the weak overall economic outlook and may be the result of investments in government infrastructure and public transportation across the two countries.

2. Use data to drive business decisions.

Having access to historical project data would help construction professionals make better decisions, according to 43 percent of survey respondents. Those surveyed also reported that an average of 13 percent of total spending on projects can be saved by capturing and standardizing data more effectively. Investing in solutions to remove data from silos and make it more accessible to decision-makers is critical when considering what technologies will be implemented in the future.

3. Tackle project performance and profitability challenges head-on.

Rework remains an issue on jobsites. Construction professionals said that 28 percent of total project time is spent on rework, while 18 percent of project time is spent searching for data. These factors significantly impact performance, as nearly half of the projects are reported to be behind schedule and over budget, creating waste and leaving clients dissatisfied.

With project performance in sharp focus, construction professionals are looking at technology to help them improve productivity and profitability. When asked about the factors that would improve productivity within their organization, one of the top answers from respondents was adopting tech to make teams more efficient, along with bringing in contractors earlier in the preconstruction and planning stages of a project and up-skilling employees.

Similarly, when asked about the factors that would improve profitability within their organization, the top responses were: 1) simplifying existing tech and processes; 2) making improvements to the way projects are priced to improve the accuracy of estimates; and 3) adopting tech to make teams more efficient.

4. Review and optimize your tech stack.

Owners, general contractors and specialty contractors all reported that they are reviewing their tech stacks and business needs in light of industry unpredictability. A full 32 percent of respondents said they need new technology to help drive operational efficiencies and cost controls in reaction to the economic conditions. Meanwhile, 22 percent of respondents said they are examining their existing technology to understand what’s working and what’s not.

As construction leaders seek to adopt technology to help them navigate difficult times, digital transformation is on the rise, with owners leading the way. While many seek to become a digital-first business, 26 percent of respondents noted that they still use paper-based records or non-digital processes as part of their workflows. Looking to 2024, it’s expected that many organizations will continue to make a concerted effort to spur on their digital transformation.

5. Address cash flow and insurance hurdles with data and tech.

Delayed payments have long plagued the construction industry – resulting in cash flow challenges, especially for specialty contractors who have to finance their materials upfront. In fact, 47 percent of specialty contractors and 39 percent of general contractors reported experiencing cash flow problems arising from delayed payments. Additionally, 36 percent of owners said that delays from not getting payments made quickly have cost them money.

While payments are part of the equation, insurance is the other. Fifty-five percent of respondents said the industry can do a better job of leveraging existing data to simplify payments and improve insurance programs.

Managing risk also continues to be a challenge. Thirty-six percent of respondents reported frustration with the time it takes to get construction insurance quotes.

To dive into the details and learn more about how the U.S. and Canadian construction markets are building in 2024, download the full How We Build Now Report.