How Digitization Helps Trade Businesses Through Challenging Times

In August 2022, Oracle Homes in Queensland went bankrupt. Once-profitable construction companies such as Probuild, Pivotal Homes, Next and Snowdon Developments were unable to complete fixed-price contracts in the face of rising material and labor costs. .

Desperately searching for skills and supplies

The Australian housing industry sounded alarm bells late last year. His November 2021 trade report shows the fact that the construction sector is facing the most acute skills shortage since the start of his 2003 report, with all skilled occupations Significant shortages were seen in all regions.

Materials are also in short supply, from timber trusses to tiles. Therefore, prices increase across the board. According to Master Builders Association NSW, in the year to March 2022, steel beams and sections will be 41.5%, structural timber 39%, plastic pipes and fittings 26.5%, metal roofs and rain Drainage increased by 19.9%.

cash flow crunch

If money is hard to make, it can be even harder to collect it. The Australian construction sector has a reputation for not paying bills on time, and payment times have worsened since the pandemic hit, according to analytics provider Ilion.

And when a construction company goes bankrupt, customers and subcontractors share the dire situation. The latter are sometimes tens of thousands of dollars. Companies that struggle with payments and cash flow can be pushed to the wall, and all new customers must be risk-assessed as potential defaulters.

Enhance your operations

These are certainly tricky times, and as trade business owners, there is little you can do to alleviate them. Material and skill shortages are out of control, as are broader economic factors such as interest rates, exchange rates and consumer confidence.

But being more organized and having better financial visibility can strengthen the company’s position.

Many tradie types have a lot of room for improvement on this front. Usually they are guys and girls who have learned how to provide small businesses with the tools skills and good work ethic to operate on the fly.

Lack of insight into how work is being tracked financially until tools go down and bank balances are checked is common. is.

Tools that make your task easier

It’s possible to overcome all this and run your trading business like a true boss with our earth-friendly construction job management software.

It can be configured to automate quoting, timesheets, job scheduling, invoicing and back costing, and seamlessly links to Xero, MYOB and QuickBooks (the accounting package of choice for most Australians).

Eliminate the heavy lifting and hassle of running your business by making it easier to price profitably, control costs, and maintain compliance and financial control.

It’s user-friendly, well-priced, no lock-in, and monthly subscriptions for most trade businesses come in at the cost of a case of beer.

A solid foundation for success

Having a better view of how work is tracked operationally and financially can help you avoid cost explosions and cash flow crises. And the hours of administrative work that you save each week can be spent on value-added work, such as on-site hardships or winning new contracts.

At a time when it’s harder than ever to turn a profit on your tools, it’s an investment in your business that will surely pay off.