This article is sponsored by Sage.
The construction industry has always dealt with unpredictable challenges, but today’s landscape presents an unprecedented level of volatility. From persistent labor shortages and economic instability to looming tariffs and material cost fluctuations, construction companies are grappling with a reality where uncertainty isn’t temporary — it’s the new normal.
The question facing construction companies today isn’t when these challenges will disappear, but how to build resilience and maintain competitive advantage despite them.
I recently moderated a panel discussion on this topic at the TUG National Users Conference in Nashville. My guests, John Moran, CCIFP, CFO at W.R. Newman and Associates, a GC located in Nashville (and CFMA’s Vice Chair), and Zachariah Merschdorf, a solutions architect at Accordant, a top value-added reseller in the enterprise resource planning (ERP) space that serves clients across all of Canada and the U.S., explored how construction companies are adapting to this challenging environment.
The Current Reality
While construction businesses are facing uncertainty from many different angles, material and labor concerns are top challenges across the industry. The skilled labor shortage has impacted the industry for years, and inflation and impending tariffs have added even greater uncertainty around material costs.
Developers face additional pressures from fluctuating interest rates, while companies working across borders encounter added complexity with volatile foreign exchange rates, all adding to budget unpredictability.
Technology as a Business Imperative
In response to these pressures, construction companies are discovering that technology isn’t just helpful — it’s essential for survival.
“Really the shift I’ve been seeing technology in general with construction leaders is they’re going from seeing technology as just a cost to an actual investment in the company.” Zachariah Merschdorf explained: “10-20 years ago, many businesses would see their accounting software or back-office project management software as something they had to have to be compliant. Now, many are shifting their mindset to ‘oh, this is an investment, this is going to give me a return.’"
For John Moran, CCIFP, implementing a top-tier construction management solution delivered measurable results: “We saw a big boost in the management of the projects: better budgets, better commitments, and more timely requests for information (RFIs) and submittals.”
The key isn’t just selecting good technology, it’s ensuring company-wide adoption. “You could get the best product out there, but if the employees aren’t buying into it, it’s just not going to work,” Moran emphasized.
From Reactive to Proactive Financial Management
Perhaps the most significant advantage of modern construction technology is the ability to shift from reactive problem-solving to proactive planning. Real-time data and automated alerts allow businesses to catch issues and course correct before they become costly problems.
“We’re able to see the profit on the jobs better and calculate where the risks are, whether it’s sitting in a subcontract or from not bidding the project correctly,” Moran explained. “Being able to recognize that helps us project out how that project is going to go.”
This operational agility extends beyond individual projects to company-wide forecasting. The ability to reforecast and rebudget quickly has become crucial. “Historically, for anybody who’s done a budget, it’s the bane of somebody's existence. They’re passing around spreadsheets and emailing things back and forth,” Merschdorf noted. “By having better financial software tools in place, they can do that more collaboratively within the system, with versioning, sharing data back and forth, and seeing updates in real time.”
The result is faster decision-making when problems arise. “You can’t wait two weeks, a month, or two months to make a decision — you have to be able to see that data right away,” he continued. “A lot of times if you can catch the problem quicker, then you can do something about it and mitigate the effect.”
Strategic Relationships
While technology provides crucial operational advantages, construction remains fundamentally a relationship-driven industry. In uncertain times, the quality of these relationships becomes even more critical.
Merschdorf notes that taking a long-term approach to relationships builds trust that pays dividends when challenges arise. He adds, “Customers feel more comfortable with that too, because they know you’re on the ball and that you’re watching things. And that’s going to lead to stronger relationships and more repeat business.”
The Evolution of Financial Leadership
The combination of technological advancement and persistent uncertainty is reshaping the role of financial leaders in construction businesses. Traditional finance leadership focuses on managing people and ensuring accurate reporting. Today’s finance leaders are technology-centered strategic thinkers.
“Finance leaders have traditionally managed people, workflows, and processes,” Merschdorf explained. “Technology is making these roles less about people leadership and more about leaning into technology.”
Moran confirmed this shift from personal experience: “Our volume’s grown drastically over the last four years or so, and we haven’t added any more people, so it’s the technology that’s allowing us to do it."
Embracing Uncertainty as a Catalyst
Forward-thinking construction leaders recognize the potential benefits of uncertainty — it can drive innovation, force companies to become more efficient, and ultimately strengthen relationships as teams work together to overcome challenges.
The key to thriving in this environment includes combining technology with adaptive strategies and building strong relationships. Businesses that embrace this approach aren’t just surviving uncertainty — they’re using it as a competitive advantage to build more resilient and efficient operations that position them for long-term success.
Watch the full conversation with John and Zach here.