Many of my articles speak about the pace of change in our industry. We all know it is happening rapidly. Our projects keep getting more complex; schedules are so tight that the instant the job is awarded, we are told we are behind; and our customers are expecting precision, a new level of transparency and accountability at every stage. For many SMACNA members, the struggle is no longer adopting new technology; now it is connecting the tech stack they’ve built.

Most of our members use a range of software tools, including estimating, CAD and CAM modeling, project management, field reporting apps and ERP systems, which are common today. They often talk about having a single source of truth, and we used to talk about having that in a single system. They also talk about how all these solutions create silos of data, causing more work and using up more time to find information and make informed decisions.

Many companies are working to connect the data to change that. The single source of truth is not having all the data in one system, but rather using application programming interfaces and other integrations to paint a unified picture of the business. Gaining new visibility helps contractors reduce wasted time or effort, make better decisions faster and manage risk. The overarching goal is to become a proactive business instead of reacting to problems. Being a data-empowered contractor with connected data is a superpower.

Estimated vs. actual: Early detection of issues

If having connected data is a superpower, then those data silos I mentioned before are the kryptonite. If everyone in the project chain works from their own view of the project data, inconsistencies will appear, much like the classic game of telephone. There is also the added effort, often manual, of reconciling numbers and passing (outdated) data from office to shop to field. 

When the disconnected systems are tied together, we start to see the whole organization singing from the same sheet of music. Manual handoffs are eliminated. Project data can be fed back to estimating to update productivity numbers. Shop and field data can be linked to the ERP and accounting with systems using cost codes. Dashboards begin tracking performance in real time. The project truly can become aligned.

There is a key differentiator, though, when becoming a data-empowered contractor. Using data effectively creates true separation from good and great. When information lives in isolated systems, it’s hard to identify patterns or trends. With all the data surfaced, insights can be gained. Each labor hour can be traced to see if it was used efficiently. Materials can be tied back to the original estimate. 

This comparison between estimated versus actual enables early detection of overruns or delays. A window into labor efficiency and waste becomes a tool managers can use to get ahead of issues. This data can also be used to improve future planning, helping to smooth out the labor curves often felt as jobs finish and then new ones start.

Boosting fabrication efficiency

One of the biggest benefits is improved fabrication efficiency. BIM-to-fab systems keep drawings up to date all the way down to the shop floor. Exactly what needs to be cut, burnt, assembled and bent can be driven from the model to the tooling. This avoids mistakes caused by outdated information and delays caused by fabrication information managed in paper or other manual processes. 

These tools also enable real-time shop productivity tracking, as well as allow field teams to see where their materials sit in the process. With that information flowing back to project management and accounting, leadership has a live view of job performance. When used properly, this data and connectedness allow us to do more volume with the same number of resources. 

The field also experiences benefits. Field supervisors have renewed visibility into the job. Seeing what will be fabricated, having a say in how jobs are broken up and then accessing the information to lead their crews from laptops or mobile devices brings newfound efficiency in communication. Connected data bridges the gap between installers and the office. In turn, crews can flag issues as they occur, report what has been installed and capture as-built conditions in real time. 

This continuous feedback loop enables improved coordination and helps to reduce the evil word of rework. Delays and those hidden costs of errors are eased when you have systems that allow workers to collaborate and share openly. 

Preserving institutional knowledge

Bringing in financial systems adds another layer of benefit. Having time and materials linked to job cost codes greatly improves the tracking of economic component accuracy. Instead of waiting until a job is finished to see if you won or lost, variances between budget and actual costs are now visible at finer levels, while there’s still time to make corrections. Integration helps to simplify the process of creating reports and doing job reviews. These time savings cannot be understated, nor can the errors that are inherent in manually building this data.

As our workforce changes, these integrations can also help codify institutional knowledge. This connected data brings continuity. Getting workflows documented and allowing information to flow automatically means this knowledge gets trapped in complex and confusing spreadsheets, file structures or someone’s brain. Data is easily found by new hires, and how the organization runs is more easily understood. 

Also, experienced employees can focus on improving processes rather than chasing paperwork or shuttling information between systems. This can be key when growing the workforce; new recruits want to work for companies with digitized processes.

Scaling through standardization

Getting all the data connected and flowing properly is the foundation for growth. Manual workflows are difficult to scale. They work with a handful of projects, but the only way to grow with a manual process is to add more people and more overhead. Connecting data makes it possible to standardize processes, cost structures and take on multiple projects without losing visibility or control. It is also the first important step if a contractor wants to use this new thing called artificial intelligence to analyze and make sense of company data.

General contractors and sophisticated owners are also increasingly expecting incredible transparency and data-backed accountability. Connecting these systems enables contractors to share highly accurate, up-to-date information. 

Given that this is still a relationship industry, transparency builds trust and serves as a differentiator in competitive markets. Clients will want to work with companies that not only deliver quality work, but also easily show performance data as the project progresses. Delivery methods such as integrated project delivery also make these connected systems a must-have.

This is an industry where mitigating and managing risk is paramount. Connected systems help reduce risk. Manual handoff of data or managing data hand-entered into disconnected spreadsheets creates the possibility of error. Isolated workflows harbor uncertainty. Savvy contractors mitigate these risks and gain insight and predictability by integrating systems across their organizations. Connected data brings confidence and certainty.

The important thing to keep in mind is that this is not a one-and-done project. Building a connected data ecosystem is an ongoing process. It should also not be tackled all at once. Focus on one solution, one department and one workflow at a time, then keep building on it. Do not try to boil the ocean.

Precision and coordination define success in our industry. Getting your data connected is no longer optional; it can be the difference between just surviving and thriving, between getting by and making record margins. It is the difference between reacting and predicting. Several cliches come to mind, but one seems fitting: Data is indeed the new oil. We are still going to build projects, but we have the opportunity now to do so even more safely, with higher quality and better margins because we have data.

Travis Voss is the director of innovativetechnology and fabrication at the Sheet Metal and Air Conditioning Contractors National Association. In this role, he aids member contractors in identifying the critical technological trends within the industry and assists them in remaining at the forefront of these developments.