Volumetric and concrete pumping companies may serve a vital function in society, but it’s fair to say they’ve never been at the cutting edge of technology. As digital transformation swept across countless industries, concrete, and especially construction at large, has moved slower. However, that doesn’t mean that excellent software hasn’t become available to them, or that they should allow their hesitance to hold them back. To explore the state of digital transformation in the industry and why this can be such a powerful change, Tough Commerce sat down with industry experts Zach Kirkham and Joe Sostaric.
Why Owners Hesitate to Adopt New Technology
Concrete service providers have been largely overlooked by the tech industry. And despite how much technology could support them, they’re not clamoring for it. Plus, the few digital solutions on the market are limited at best, with dispatch, billing and few other functions. What you get is an audience who isn’t thrilled to embrace something that could ultimately maximize profits and tighten operations.
The barriers to digital transformation include:
Pride in Established Processes: Companies can have a strong attachment to legacy processes, viewing technology as a disruption to “trusted” practices rather than something useful and supportive.
Limited Industry Demand: A lack of proactive demand for technology within the industry has resulted in minimal development of specialized solutions. Kirkham and Sostaric see companies request technology that just replicates existing functionality, without ever considering more innovative possibilities.
Intimidation and Perceived Complexity: Implementing new tech can be daunting; change always is. One bad experience with technology, even when it was in the 90’s/2000’s, can linger, reinforcing that resistance.
Emphasis on Cost: Owners are prone to zeroing on the cost of technology, rather than what it would save them in the long run. The benefits make it one of the most sound investments they could make, but they aren’t convinced of it yet. This is especially true when you consider that they typically aren’t quantifying the cost of human error from not using technology.
Loss of Control: Plenty of owners think their current way of doing things is the only way to keep a finger on the pulse of the business. They feel the need to manually review every tag, every day. What they often don’t realize is how much easier this is to do from an automated dashboard. Not only that, but they still have autonomy, even when they allow technology to take some of the work off their shoulders.
As Kirkham and Sostaric put it, it’s hard to argue with people who’ve built skyscrapers “using pen and paper,” and convince them that there’s a better way to do it. But in many cases, a 30-minute human task could’ve been done in two minutes with the right technology. That’s what executives need to internalize.
How Digital Transformation Changes the Game for Concrete Service Providers
Kirkham and Sostaric have seen firsthand how embracing digital transformation has had a profound impact on the companies they’ve worked with. The positive changes are far-reaching, and include:
Minimizing Human Error:
Every day, small mistakes happen. Someone writes down 8am instead of 7am – a concrete pump doesn't show up on time, and it delays a 20-person crew, waiting around for a pump to get to the jobsite. This is because so many companies rely on manual processes, especially amongst their operators. That manual nature makes them vulnerable to human error. According to Kirkham and Sostaric, “there’s a mentality that if something is done wrong, somebody should be punished or fired.” Not only does this hurt employee morale, it can be easily avoided by arming the employee with the right tools. Well-built software can make it nearly impossible for employees to make certain mistakes, shoring up the gaps left by human error. So rather than trying to punish employees into perfect workflows, employers could be perfecting their processes with technology. In this regard, technology lays the groundwork for a powerful cultural change as well.
Speeding Up Operations:
Think about it, if you have an operator doing work in the middle of nowhere on paper tickets; there’s inevitable lag time before those tickets reach the office. This slows down billing, which slows payment collection and strains cash flow over time. Why do this when you could have it all accessible from one dashboard right away?
Cutting Down on Phone Calls:
In this industry, many orders are strictly verbal. A customer calls in, gets no confirmation number, and simply hears “See you in the morning.” They phone in for updates and questions, with an average of 8-9 calls per order. One of the biggest benefits of software is simply that it cuts down on all of these phone calls. When customers can see the information they need from an app or customer portal, they no longer need to call in to get spoon fed information. When owners start using a software like Tough Commerce, one of the first things they notice is the dramatic decrease in phone calls coming in. Call it the “quiet office KPI.”
Improving Customer Satisfaction:
The human error discussed earlier can also damage customer relationships. You might have been late, but your competitor wasn't. The right software helps companies provide more consistency, because if there’s one thing a computer is good at, it’s consistency. If you master that, you’re the one customers want to rely on. And if errors do occur, technology allows you to have greater visibility into how and when they happened.
Cutting Down Costs
Errors cost money. And since they happen in volumetric/pumping businesses all the time, you lose a great deal of money to those mistakes. Unfortunately, many owners aren’t quantifying the cost of these mistakes. According to Kirkham and Sostaric, many transactions in this industry have relatively small margins, but mistakes can cost you thousands, shaving down those margins further. For that reason, technology makes you more profitable in the long run.
Attracting and Retaining Workers
The entire industry is enduring a labor shortage. Boomers are retiring, and everyone is having a hard time recruiting. Younger workers expect companies to have a strong technological framework to make their lives and jobs easier. This is why you need systems in place that make it easier for new hires to succeed, and to give you insight into their performance. This way, you set new hires up to succeed.
The Best Software Option for Volumetric and Concrete Pumping Companies: Tough Commerce
Built by experts who understand the nuances of this industry, Tough Commerce helps executives enhance, not replace, their existing processes. We want to understand how you already work, and strengthen that workflow with our platform. Together, we’ll help you tighten up operations, reduce costly errors, and boost profitability, without a complete overhaul of how you do business.
Tough Commerce capabilities include everything from quote to cash, helping you streamline job management:
Schedule & Dispatch Jobs in Minutes - Stop using Google Calendar for scheduling and WhatsApp for dispatching. Schedule your operators and assets with ease using our drag-and-drop calendar feature, and optimize both in a platform designed specifically for construction.
Real-Time Invoice Updates at Every Stage of the Job - Ensure your invoice is updated in real-time as changes are made on the jobsite, guaranteeing you’re paid for all of the work that you deliver — all with complete accuracy.
Use Smart Pricing to Customize Rates However You Want - Smart pricing lets you customize product pricing by job type, order size, specific customers, and more without having to manually adjust invoices. Automatically factor in travel time, wait times, COD orders or government jobs, all tailored to your needs.
Empower Your Contractors to Submit Orders Anytime, Anywhere - The Contractor App, branded with your colors and logo, empowers your contractors to submit orders directly through the app. Once an order is placed, it’s pushed into the Tough Commerce platform, with contractors receiving real-time updates and automatic notifications.
A Wake Up Call for Volumetric and Pumping Companies
When companies feel hesitant to adopt technology, all they need to do is look at other industries. Nearly every industry under the sun has already modernized and embraced technology. It’s time for your company to follow suit. Business growth and higher profits are on the other side of technology adoption. According to Kirkham and Sostaric, one concrete company who made the switch saw a 27% decrease in phone calls despite a 40% increase in order volume. They also saw fewer people touching orders, allowing employees to focus on their respective specialties.
Amid the challenges that concrete service providers face, technology is a resource they can’t afford not to lean on. Kirkham and Sostaric emphasize, “If you always do what you’ve always done, you’ll always get what you’ve always got.” Companies need to be receptive to change, because technology is by far the best way to confront challenges and scale.
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