What we have learned from MYOB’s 2022 Bold Ambition report
As the financial year draws to an end and mid-market construction businesses prepare for the fast-approaching future, it can be easy to imagine a rocky road ahead.
With materials, energy, and labour costs expected to rise, decision makers are looking for the best way to increase their competitive advantage while keeping a firm grip on the bottom line.
How will mid-market construction businesses rise to the challenge? That’s the question posed by MYOB’s Bold Ambition report, which offers insights into the recent successes and future plans of mid-market businesses across Australia and New Zealand.
The report endeavoured to take a peek into the construction industry and found that 60% of mid-market construction businesses in Australia reported an increase in revenue throughout 2021 despite significant market challenges.
While this statistic may look positive, these same businesses also highlighted further challenges for 2022, with 42% in New Zealand indicating their biggest challenge would be implementing new technology to manage their business. Meanwhile in Australia, 35% of respondents said maintaining a steady revenue was their primary concern.
“Despite coming out of an incredibly solid year and with bold ambitions very much in frame, there’s understandable awareness that it’s not going to be all sunshine and roses in 2022,” said MYOB’s General Manager of Enterprise, Kim Clarke.
“Local mid-market firms are planning for the challenges that lie ahead.”
Digging into the unpredictable nature of the construction industry today
While following the state of the construction industry closely, we’ve seen that border restrictions and disruption to general nationwide manufacturing has created an increase in overall costs and wait times for materials. COVID-19 has also contributed heavily to employee absences impacting project timelines, and subsequently, incurring associated costs. Natural disasters like flooding also created setbacks that take extra work and money to resolve.
With this level of instability in the construction industry, mid-market Australian businesses indicate they’re planning to commit to operational changes to adapt. Overcoming these will require businesses to better understand their business data. This also helps them focus on the systems they need to improve customer relations, support, and workforce empowerment, along with streamlining compliance and financial oversight.
The building blocks of change
MYOB’s Bold Ambition report showed that based on experiences in 2021, 76% of mid-market businesses in Australia plan to make changes to their business operations this year. And while COVID-19 accelerated digitisation, the insights in the report demonstrate that businesses are ready to invest in technology that supports greater productivity and accelerated growth.
The Bold Ambition report found that 37% of mid-market businesses in Australia were intending to invest in technology, with priority construction admin areas including people management, customer relationship management, and enterprise resource planning.
Selecting the right technology mix to manage construction admin is set to become a staple part of smoothly operating a business throughout 2022. With 21% of Australian mid-market businesses indicating that their IT systems capability has the biggest influence over whether they will achieve business goals, it's clear that the construction industry is gearing up to change how their businesses are operated and their data is handled.
Dig deep this new financial year
If you believe your business would benefit from construction admin technology that will assist in managing the turbulent demand that your business may face in 2022, businesses like MYOB offer leading solutions.
Over the last five years, MYOB’s targeted research has noted a significant push across the construction industry in Australia and New Zealand toward the adoption of new technology and services. This includes digital tools like construction admin technology that help improve customer relationships and provide informed insights to businesses.
With 29% of Australia’s mid-market construction businesses describing themselves as hopeful for the year ahead, it's evident that the best way to prepare is to secure your business through a transition to systems that support growth.
“When it comes to digitalisation and the opportunities technology presents … A/NZ mid-market businesses have made it clear that they’re not about to stop at the changes made over the last two years in response to COVID-19,” said Clarke.
“In fact, with a significant proportion planning to increase their investment in upgrading or implementing new tech in their business, our latest findings demonstrate there is clear recognition of the role digital solutions will play in helping secure their success.”
Safeguard against the unexpected by ensuring your finances and administration are always in order, no matter how the rest of the unpredictable year may go. MYOB offers construction admin technology, including ERP, Payroll and Workforce Management software, to mid-market construction businesses who are looking for a strong start to the new financial year. Visit the MYOB website to find out more.