As the construction industry continues to evolve, developers are constantly looking for ways to improve their logistics and make their operations more efficient. One of the most effective ways of achieving this is through the use of innovative software solutions like ProcureSite.

At FixFirm, we understand the challenges that housing developers face when it comes to managing the procurement of construction, engineering, mechanical and electrical products. That's why we created ProcureSite, a leading software provider, to provide our clients with leading procurement software.

In this blog post, we will highlight the current challenges housing developers are facing, what the future looks like in housing developments, and how ProcureSite can alleviate issues surrounding increasing costs and decreasing productivity.

Challenges facing housing developers.

Some of the key challenges that are currently facing Britain’s housebuilding industry are: 

A declining workforce 

Over the past five years, the size of Britain’s construction industry workforce has shrunk by 3%, falling from 2.27m in 2017 to 2.21m in 2022.

This decline can be attributed to several factors, but a major cause is an inability to attract new, young people to the industry. To solve this challenge, the industry needs to work on attracting new people to the sector through more appealing career options, an increased number of apprenticeships, and better skills development.

Increasing costs 

Brexit and Covid have teamed up to make it much more difficult to source primary construction materials. To overcome this challenge, the industry needs to consider more flexibility in the stock it holds and begin to fastidiously plan for impending demand to avoid falling victim to supply chain shortages. The practice of establishing supplier loyalty also has a role to play and is even more important today than ever before.

FixFirm can help with increasing costs due to using our 50+ years of experience in working with construction and engineering industry partnerships to provide the most extensive product range and industry-leading advice around. 

Low productivity  

According to the ONS, productivity levels in the construction industry are consistently below the UK national average, based on factors such as low output, late project delivery, and reduced profits.

What’s more, labour wages and worker compensation in construction sit below that of the rest of the economy.

ProcureSite can help boost productivity by offering a streamlined ordering process to make ordering supplies a breeze. Our 555 service can also help increase productivity:

• Order up to 5 pm over the phone

• Delivered the next day within 5 working hours by noon (80% of orders delivered by 10 am)

• Giving you 5 hours to get the job done 

What Does the Future Look Like?

In 2023, there are new energy-efficient schemes to be aware of as well as key updates on the price of building materials for those taking on a new year extension or renovation project. Here are some of the predictions for the future:

The eco+ scheme could face early pressure.

The Eco+ Scheme is a £1 billion scheme which will see hundreds of thousands of homes across the country receive new home insulation, saving consumers around £310 a year. It is expected to launch in April to reportedly provide homeowners with up to £1,500 to install insulation that could lower their energy bills.

The scheme is set to run for 3 years and is primarily intended to benefit hundreds of thousands of homes in the lower Council Tax bands with an Energy Performance Certificate (EPC) rating of D or below. However, the number of homes with an energy efficiency rating of C or above is only 46%, meaning the scheme could face early pressure.

Low-carbon heating will move closer. 

The Boiler Upgrade Scheme launched in April to provide homeowners with up to £6,000 off the cost of a heat pump, and interest in low-carbon heating systems is understandably on the rise given the increase in energy costs, which Ofgem expects to continue in 2023. 

Hydrogen heating will not be used to heat our homes until 2026 at the earliest, but the move to hydrogen-ready boilers edged closed in December 2022. However, the government is moving closer towards trialling its ‘hydrogen village’ in 2023. 

Building materials will continue to rise. 

This Is particularly impacting aggregates, bricks, timber, cement and concrete. 

Tradespeople are feeling the pinch too. A recent Federation of Master Builders (FMB) survey revealed that 90% of its members have faced higher costs this year, and 88% expect material costs to increase in 2023.

How ProcureSite Can Alleviate Cost and Productivity Issues.

The procurement process can be a complex and time-consuming task for housing developers. Many pain points can arise during this process, including delays, errors, and miscommunications.

ProcureSite is an advanced software solution that is designed to streamline the procurement process for housing developers. We have over 10,000 products in stock and on-site, allowing fast, nationwide delivery. It has many more advantages which will help alleviate these pain points surrounding cost and productivity issues, including:

Streamlined process 

ProcureSite offers a streamlined ordering process to make ordering supplies a breeze. With our unique 555 service, you'll rest assured that your supplies will be with you the next working day, allowing you time to complete the task at hand. This means that work will be done faster, and you will not have to wait days or weeks for items to arrive before you can start working with them. 

Control spending 

Delegating control to the site enables buyers and other stakeholders to focus on more pressing tasks. By setting control spending, site managers can easily access products available to them for sign-off, in line with internal approval and purchasing processes bespoke to your organisation. Control of spending will help to reduce issues surrounding costs. 

Set up multiple users

ProcureSite helps eliminate cost and productivity issues by enabling the set-up of multiple users with different settings and preferences enabling certain features such as:

- Budget allocation per project/site 

- Restrict products availability

- Purchasing, Finance and Cost Control features for invoices and delivery updates

Save time with ‘lists’ 

Our 'List' feature enables you to create and save lists for future repetitive orders. This will help save on costs surrounding orders and also increase productivity as it means the correct amount of items will be bought, meaning no building delays. Lists are also a great feature for various requirements such as:

- New site setup

- Amenities

- H&S (PPE) requirements

- Stocking the cleaning cupboard

- Weekly tea and coffee duties

In conclusion, the procurement process is a critical component of the housing development industry, and the use of advanced software solutions like ProcureSite is essential for developers who want to succeed in today's competitive market. By providing greater control, visibility, and efficiency, ProcureSite can help developers to overcome the challenges they face and build a better future for the housing development industry.