48%
of pros said investing in technology is a high priority for their business over the next 12 months *
42%
of finance professionals believe a lack of tools/technology is somewhat of a barrier to their development and career advancement *
1.5M
jobs are expected to be added per year over the next 10 years from the infrastructure bill. **
With more organizations adopting modern technology to help streamline processes in the back office, account payable (AP) automation will continue to change business processes. By reducing redundant and time-consuming workflows, staff can be freed up to take on more strategic initiatives like scaling the business and processing more AP volume as a result of more construction projects. Let’s take a closer look at the three trends construction AP staff should watch in 2023.
1. Investing in Technology to Improve Subcontractor and Supplier Relationships
All the opportunities available in today’s market have created limits to the volume of work that can get done, so subcontractors can be selective in the projects they perform and choose the general contractors they want to work for. In simple terms, they pick the most profitable projects with the least amount of risk; projects they are familiar with, and general contractors that treat them well and pay quickly.
Prompt, accurate payments are crucial in maintaining strong relationships. Financial, project management, and AP software solutions can help contractors pay subcontractors and suppliers on time and accurately, leading to stronger relationships.
Sometimes the best way to build relationships is by bringing intangibles into the relationship. Simple things like making speedy payments can add up to a better way of doing business — it’s a win for all involved.
Troy Guevara
Sales & Business Development, Digitek Solutions
2. Finding New Ways to Attract and Retain Talent in a Tight Labor Market
The skilled labor shortage continues to be a challenge for construction companies due to aging workforce choosing to retire or transition into other industries that appear more suitable for them, often leading to project delays. Construction businesses are rethinking how they operate with a lighter workforce by finding efficiencies and giving employees what they want, especially to attract and retain talent in the back office.
Investing in a cloud-based AP automation platform can drive career satisfaction by reducing manual, repetitive tasks. AP automation also provides the platform flexibility required for today’s workforce with mobile access and “work from anywhere” capabilities.
AP employees show an increase in job satisfaction when companies invest in the AP automation tools they need. The paperless AP processes can increase productivity without necessarily adding employees, which can be significant when it’s difficult to find skilled candidates even in the back office.”
Jim Campbell
Vice President & Business Line Executive, Construction, AvidXchange
3. Managing an Increase in Work from the Infrastructure Investment Bill
The Infrastructure Investment and Jobs Act is a historic investment that will provide $1.2 trillion in funding to help build better roads and bridges as well as upgrade airports, ports, and rail systems. As a result, Moody’s Investors Service predicts U.S. construction spending will grow from 5% in 2022 to 5.5% in 2023.
Large infrastructure projects are expensive in terms of the financial, material, and human resources needed to complete the job. For those preparing for an increase in work because of the infrastructure bill, there’s an immediate need to find tools that can help create efficiencies in the payment and invoicing processes.
Technology such as an automated AP system, can help your financial department scale and take on more work when the opportunity arises without adding additional overhead.
Ultimately, these new infrastructure investments will provide a needed boost for the construction industry while making our economy more efficient.
Stephen E. Sandherr
Chief Executive Officer, Associated General Contractors of America
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This post originally appeared on AxidXchange.com
* AvidXchange survey
** Press release from the White House
