Gain control of your finances and growth
Construction is moving fast. Leaders are navigating increasing complexity and costs while trying to innovate paths to growth and a more sustainable business. Wipfli delivers holistic, practical guidance that helps you overcome barriers to growth and position your firm for long-term success.
Labor productivity remains one of the biggest threats to profitability, and with persistent workforce shortages, organizations can’t hire their way into growth anymore.
Real progress comes from developing people and building a workplace where top talent wants to stay. Wipfli’s talent support can help you create high-performing teams and elevate leadership readiness to support your long-term growth.
If your firm is still relying on dated systems or manual workflows, you’re sacrificing efficiency and insight.
Our construction consulting team understands how organizations like yours work and the technology you depend on. We help you streamline processes, modernize your tech stack and move confidently to the cloud so you can make decisions faster and operate with greater accuracy.
As ownership transitions accelerate and investors show increasing interest in modern, scalable construction firms, you need a clear plan for what comes next.
Wipfli brings extensive, industry-specific experience in transaction advisory, business succession and performance management to help you protect your firm’s value and plan for the next generation. Whether you’re exploring an ESOP, preparing to sell or planning a transition to family members or key employees, we help you chart the right path and safeguard your future.
Explore our construction services
Wipfli’s construction business consulting services are built on our 75-year legacy as a trusted advisor to the construction industry. We understand the barriers leaders face when building and sustaining a growing organization. That’s why our engagements are delivered by advisors dedicated to construction, who can provide solutions tailored to your industry and business.
Insights for construction leaders
ARTICLE
Cybersecurity in construction: How CIOs can better protect their firms
Construction firms face a rising level of cybersecurity risk. But too many firms still don’t have a proper cybersecurity strategy in place, which is likely why Wipfli’s survey of 308 construction executives found that 80% reported experiencing at least one data breach within the past year. However, there are proven steps and processes you can implement to strengthen your defenses. Done thoughtfully, a cyber strategy will not only protect your business, data and infrastructure but also give you an opportunity to modernize your systems to meet the changing demands of the industry . Let’s explore further. Why does cybersecurity matter for construction firms? For construction firms, investing in modern cybersecurity and IT infrastructure, whether as an internal capacity or through outsourcing, carries clear business benefits. Beyond mitigating the risk of a cyberattack , stronger cybersecurity also creates business opportunities and even makes it easier to recruit top talent. Key benefits include: Reduced risk of attack: This is obviously a big one. With better defenses and more modern systems in place, you’ll be less likely to experience a major (and majorly expensive) cybersecurity incident or suffer significant ripple effects if an attack does get through. DoD contracts: If you meet CMMC requirements, you’ll be able to bid on DoD and other government contracts. Data center bids: Strong cybersecurity is also often necessary to compete for complex private sector projects like data centers. Competitive advantage: If you get ahead of competitors in upgrading your systems, you’ll be able to move faster, with a lower risk of being slowed by an attack. Recruiting: You’ll have an easier time recruiting talented employees who want to work for innovative companies. Top cybersecurity challenges faced by construction firms Every industry is vulnerable to cyberattacks, but construction may be especially so. The construction business tends to be fairly traditional, with an emphasis on following proven processes rather than chasing new ideas — a tendency which has left firms more exposed than their counterparts in other industries. Here are some of the top reasons that construction firms are vulnerable to cybersecurity incidents: Underinvestment: Construction companies have historically underinvested in IT and cybersecurity. Manufacturers, for example, spend 3% to 5% of revenue on IT, while construction typically spends closer to 1% to 2%. Large financial transactions: Construction firms buy large amounts of materials and expensive equipment. They also receive large draw payments from their clients. This makes them lucrative targets for cybersecurity attacks due to their historically poor security investments. Rising insurance premiums: Insurance providers are now charging construction companies higher cybersecurity insurance premiums because of the higher risk those firms face. Cyber requirements in contracts: The Department of Defense and other federal agencies now require construction firms to meet cybersecurity maturity model certification (CMMC) requirements in order to bid for contracts. Private data center contracts will often have similar rules. National Institute of Standards and Technology (NIST) security requirements are also appearing in many contracts. Disconnected systems: As many construction firms still rely heavily on older software and technology, they frequently don’t have integrated, cloud-based systems in place. This usually leads to fragmented, siloed data and a larger footprint for an attack. Slowed productivity: Companies using outdated tech systems are often less productive than their peers. From a cyber-specific perspective, consider the impact an attack could have on your ability to conduct day-to-day operations. Limited IT talent: Construction firms using legacy tech solutions may struggle to hire skilled IT employees, as talented candidates typically prefer to work for businesses that use the latest tech. All of these elements either increase the risk of a cyberattack, prevent your business from bidding on certain contracts or otherwise limit opportunities. Fortunately, there is a relatively straightforward solution to this problem. Cybersecurity best practices for construction companies Implementing a practical, up-to-date cybersecurity strategy will help mitigate your company’s cyber risks and reduce the likelihood of suffering a costly cyberattack. Think holistically In many cases, you’re often better off upgrading your cybersecurity and IT infrastructure over one defined upgrade period rather than doing it piecemeal over several years. This holistic approach allows you to modernize your entire tech stack to not only strengthen your cyber defenses but also transition to cloud-based, integrated systems that will help you remain competitive with your peers. Do a cybersecurity assessment An effective cybersecurity risk management strategy should be tailored to your specific threats and vulnerabilities. Start by working with a cybersecurity advisor to do an IT health and cybersecurity assessment , which will often be based on the NIST Cybersecurity Framework (NIST CSF) assessment. This will help you identify high-priority weak spots that need to be addressed, as well as which vulnerabilities may be lower-priority. Create a roadmap Based on the results of your assessment, create a roadmap for strengthening your cybersecurity and IT capabilities. When developing your roadmap, also consider tech trends within the construction industry , the age of your own systems, and any critical control gaps you’ve identified. Establish a budget Once you know what needs to be upgraded, put together a budget based on criticality. A full tech and cybersecurity upgrade might take over a year, although this can vary depending on your organizational needs, so your budget can help you plan out how to make good use of that time by deciding which systems to upgrade first. You can use the priority ranking from your assessment to good effect here. Leverage outsourcing If upgrading your cybersecurity and tech stack on your own sounds like a lot to handle, consider outsourcing and managed services support . Outsourcing is especially useful for construction firms because modern cybersecurity typically requires more resources than a single, in-house IT person can bring to bear. An outsourcing relationship can allow you to access top-tier cybersecurity talent without needing to hire your own larger internal team, and can also include strategic leadership like a vCIO or vCISO. Train your team An outsourcing partner can’t do everything for you. You’ll still need to train your own team on how to limit cybersecurity risks by avoiding phishing attempts or other common attacks. For maximum effect, this training should be ongoing, not just a one-time event. What are the key barriers to change that construction CIOs must overcome? Construction leaders who want to spearhead a cybersecurity and IT upgrade may first need to overcome several barriers to change. These include: Lack of clarity around risks: Some leaders may not realize just how vulnerable their business is. To create buy-in around an upgrade, you can ask an advisory firm to conduct penetration testing of your existing systems. Cultural resistance: Construction firms that still rely heavily on legacy systems and processes may also be culturally resistant to change. Confusion around regulatory requirements: Construction isn’t used to being a regulated industry, so many firms may be unaware or not fully under CMMC or similar requirements. Communications: Your internal IT person may struggle to articulate the business case for tech upgrades because they don’t have the knowledge and background. Transition or succession complications: An owner who is preparing to exit may see cybersecurity upgrades as something that the next owner can worry about — but should consider that implementing an effective, modern tech stack will actually boost the value of the business in a sale. Learn how 308 construction leaders are deploying technology to deliver impact Wipfli interviewed 308 construction executives to find out how firms are deploying technology today. Read the full report, “The state of technology in the construction industry” to gain fresh insights on cybersecurity, AI, data strategies and growth. Get the original research report Read more Cybersecurity is a financial issue, not just an IT problem AI in construction 101: How to keep your firm competitive How to improve performance with smarter construction technology management
ARTICLE
Construction technology ROI: Maximizing your investments
Construction companies are facing a challenge: How do they justify and measure their technology spends return on investment (ROI)? For an industry that has faced numerous challenges, such as labor shortages and supply chain disruptions, technology helps firms adapt to these challenges by improving efficiency and enabling new business models. The benefits of digital transformation are clear, but firms often struggle to quantify the impact of their tech investments. This hesitation can put them at a competitive disadvantage. With the right approach, though, even modest technology budgets can make an impact. Forward-thinking construction firms recognize that strategic technology investments can drive efficiency, improve project outcomes and ultimately increase profits. The key is to understand how to measure and maximize the ROI of these investments. What is construction technology ROI Construction technology ROI measures the financial and operational return a firm gains from its technology investments relative to the costs of acquiring, implementing and maintaining them. In construction, a “return” is not limited to direct revenue. It also encompasses reduced expenses, time savings, risk mitigation and improved project outcomes. Unlike a simple profit calculation, technology ROI accounts for both tangible gains, such as reduced labor hours or fewer change orders, and intangible gains, such as improved client satisfaction or stronger data visibility. Understanding ROI gives decision-makers a structured way to evaluate whether a technology investment is delivering value and where future spending should be directed. How to measure the ROI of construction technology To measure the ROI of their technology investments, construction companies need to identify the most important KPIs before adopting new tech. Measuring construction ROI helps justify spending and guides future decisions. Construction companies should focus on these key areas: Cost savings The most straightforward way to measure ROI is by calculating the cost savings achieved through technology investments. This can include reductions in labor costs, material waste and project delays. Productivity gains Mobile apps and cloud-based tools allow for real-time data collection and sharing , reducing delays and improving decision-making. To measure productivity gains, compare the time taken to complete tasks or the number of projects completed in a given time frame before and after implementing new technology. Revenue growth Digital tools that improve bid accuracy or allow a firm to take on more complex projects can win more contracts and lead to higher-value work. Track your bid win rate and the average value of contracts before and after implementing new technology to gauge this impact. Quality improvements Tools like Building Information Modeling (BIM) systems can catch design flaws early, preventing expensive rework down the line. Monitor metrics like the number of change orders, rework instances and client feedback to assess quality improvements. Safety enhancements Wearable devices, sensors and AI-powered analysis can significantly improve job site safety. The ROI here comes in the form of reduced accidents, lower insurance premiums and less downtime due to safety incidents. Track incident rates, insurance costs and lost time due to accidents to quantify these improvements. Customer satisfaction Satisfied customers are more likely to return for future projects and refer your company to others. Surveys and feedback forms can help quantify customer satisfaction levels. Data-driven decision-making Access to real-time data and analytics can lead to better project management and resource allocation. By tracking metrics in these categories, construction firms can gain a comprehensive view of their ROI. For instance, cost savings might be reflected in reduced labor hours or decreased material waste. Productivity gains could be measured by comparing project completion times before and after implementing new tools. Revenue growth may be evident in an increased bid win rate or higher-value contracts secured. The construction industry technology spending standard can vary widely depending on company size, project scope and specific technology needs. However, construction companies typically allocate a percentage — around 1% to 5% — of their annual revenue to technology investments. Spending usually covers project management software, customer relationship management (CRM) systems, enterprise resource planning (ERP) systems and other digital tools. How to calculate construction technology ROI The standard formula for calculating ROI on a technology investment is: ROI (%) = [(net benefit − total investment cost) ÷ total investment cost] × 100 In this equation: Net benefit = the total value generated by the technology (cost savings + productivity gains + revenue increases + risk reduction) Total investment cost = all costs associated with the technology, including software licensing, implementation, training and ongoing maintenance A positive ROI indicates the technology is generating more value than it costs. A negative ROI signals that the investment has not yet paid off, though some technology investments, particularly large platform implementations, may take more than a year to reach a positive return. Here’s an example A contractor invests $50,000 in a cloud-based project management platform. After 12 months of use, the firm documents the following measurable outcomes: Benefit Value Reduced rework costs (fewer change orders) $30,000 Labor hours recovered through automated reporting $15,000 New contract value from improved bid accuracy $20,000 Total net benefit $65,000 The formula gives us the following result: ROI = [($65,000 − $50,000) ÷ $50,000] × 100 = 30% This means for every dollar invested, the firm returned $1.30 in measurable value within a single year. While not every benefit will be this straightforward to quantify, even partial measurement gives leadership a defensible basis for technology decision-making. How to maximize the ROI of construction technology Construction companies with limited budgets can still make impactful technology investments. Consider the following strategies: Prioritize essential tools: Focus on technology that addresses critical needs first. Project management software, CRM systems and accounting software provide the most immediate benefits. Embrace cloud solutions: Cloud-based software typically offers lower upfront costs than on-premises solutions and can be scaled as the company grows. Invest in training: Ensure your team can effectively use new tools. Proper training maximizes ROI by helping ensure tools are used effectively. Outsource IT services: This can be more cost-effective than hiring full-time IT staff and can provide access to expertise that might otherwise be out of reach. Seek vendor discounts: Some technology vendors offer discounts for industry-specific solutions. Plan for incremental upgrades: Rather than overhauling all systems at once, plan for incremental upgrades. This approach spreads costs over time and gradually improves your technology infrastructure. Monitor and evaluate: Regularly monitor the performance of your technology investments and evaluate their impact on your operations. This ongoing evaluation helps inform future decisions and ensures you are getting the best return on your tech spending. Even modest technology investments can yield significant benefits in efficiency, productivity and profitability. By carefully selecting and implementing the right tools, small firms can position themselves for growth and success. State of technology in construction report How are other construction firms utilizing technology? To get answers, Wipfli surveyed 308 construction and real estate executives to understand their technology progress, pain points and strategic priorities. Download our 2026 state of technology in the construction industry report to gain insights from other construction leaders. Read more The AI data center construction trends shaping the next decade Data lakehouses: The key to scalable AI in construction AI Agents in construction: The new path to operational efficiency
Reach out to our team
Our experienced advisors can help you navigate complex business challenges, strengthen operations and build for the future.
LET'S CONNECT
Wipfli’s construction advisory services combine decades of industry experience with a team that can provide clarity on the decisions that shape your future.
