Digital marketplaces in the construction industry are not as popular as one may think. The construction industry is one of the largest sectors in the global economy yet, according to MGI’s Digital Index it is one of the largest sectors that lacks digitization. Digitalization and technology have become a way of the world and for many businesses, have made life easier and allowed time-consuming tasks to no longer be that.
So, why is this large sector not there yet? Luke Fleury, the CEO, and Founder of Dibbs is a General Contractor himself and expresses how he doesn’t love technology and often would shy away from it because he knew he could do it manually. This is often the thought of other contractors as well. Technology is a tool that should be utilized by businesses but is sometimes overlooked due to uncertainty.
One example of a process that could benefit from technology is the construction bidding process. The current bidding process for construction contractors is time-consuming and paper-heavy. Often, you will need to complete multiple searches if your job has more than one aspect.
Here is what the current bidding process looks like:
- Create your job and submit it to multiple vendors. This means you need to re-create the same information and submit it to multiple vendors.
- Wait to receive all bids from multiple vendors.
- Compare the bids to the others you have received.
- Pick a winner and contact who you will be working with.
- Create a contract and get it signed by all parties.
You may be thinking, there has to be an easier way to do this. There is but before we dive into that let’s first look into the benefits of a digital marketplace.
Benefits of Digital Marketplaces in the Construction Industry
A marketplace such as Dibbs allows day-to-day processes to become seamless and no longer a paper-heavy process. With the Dibbs marketplace app, you can save time and money by reaching a larger network of professionals. While other services help with the bidding process, many act as a lead generation tool rather than an all-in-one marketplace. Not to mention, the Dibbs app makes it easy for those who don’t have the time to learn new technology (we have templates that make it seamless).
A marketplace allows your network to expand and for you to reach professionals that you may not have known of without the use of technology. For example, let’s say as a contractor, you typically purchase supplies from 2 suppliers at what you think is an okay price. Using the Dibbs app, you input the materials you are looking for, and your posts reach an entire network of vendors. This means that more vendors can bid on your project. Now, because of this expanded network, you have three new suppliers who are outbidding the previous suppliers you were using. This helps you to save money, time and choose who you want to work with.
How else can a marketplace help a business? Let’s take a look at how the COVID pandemic has influenced technology use.
The Impacts of COVID-19:
In the past two years, the global pandemic has had a tremendous impact on the construction industry. Not only has COVID made it more difficult to get the materials needed at the price required but, many companies have taken the necessary steps to ensure the safety of their employees, contractors, and homeowners. This includes replacing some processes with technology. Zoom calls are an example of a change that covid brought that almost every industry now uses. Additionally, many companies are now utilizing marketplaces to enhance their work from home as opposed to traveling.
All in all, every industry is taking a step forward and utilizing technology in more ways than one. In order to keep up with the growth of the construction industry and to stay competitive, businesses will need to use technology to benefit their bottom line.
If you are tired of spending countless hours manually placing bids for construction jobs and materials, download the Dibbs app and learn how Dibbs can help you save time and money.