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INDUSTRY INSIGHTS
No Innovation Department? How Mid-Size Contractors Navigate Tech Adoption

When it comes to understanding how mid-sized construction companies adopt technology, few people have the depth of insight that Ryan Rademann brings to the table. As a partner at Wipfli, a CPA and consulting firm, he has spent his career working with construction firms across the United States and beyond, focusing particularly on companies with revenues between $100 million and $500 million.

What makes Ryan’s perspective particularly valuable is his position at the intersection of finance, technology, and construction operations. 

He regularly works with CFOs and financial technology teams, but he's equally comfortable on job sites, thinking about how emerging technologies like robotics and AI might transform construction work. This dual perspective allows him to bridge the gap between the financial imperatives that drive technology decisions and the operational realities of implementing new systems.

Today we unpack Ryan’s extensive experience from working with a large number of mid-sized companies.

David Vs Goliath - Technology In Mid-Size Versus Large Contractor’s

The construction industry stands at a technological crossroads. While industry giants invest millions in dedicated innovation departments, mid-sized contractors - those with annual revenues between $100-500 million - face a different reality.

These companies must navigate the complex landscape of technology adoption without specialized innovation teams, yet their success in doing so may determine their future competitiveness.

This personal experience sparked what would eventually become EarlyTrade, though the path wasn't as straightforward as it might seem.

Current State: A Complex Web of Legacy and Modern Systems

The technology landscape in mid-sized construction firms reveals a fascinating contradiction. These companies often manage projects worth tens of millions of dollars, yet their internal systems can range from cutting-edge to surprisingly antiquated. In many cases, you'll find cloud-based project management software sitting alongside paper-based purchase order systems, creating an operational environment that spans decades of technological progress.

What makes this situation particularly complex is the organizational structure.

Unlike larger firms with dedicated technology leaders, technology decisions in mid-sized contractors typically fall under the CFO's purview. This arrangement made sense when technology primarily served financial functions, but today's construction technology extends far beyond accounting software.

The result is often a disconnected technology ecosystem. Field operations teams might adopt specialized tools for project management, safety monitoring, and quality control, while back-office systems remain largely unchanged. This creates what Ryan Rademann calls "shadow IT" - where frustrated employees implement their own solutions outside the company's official systems.

The Democratic Path: A New Approach to Technology Adoption

Successful technology adoption in mid-sized construction firms requires a fundamentally different approach from the top-down implementations common in larger organizations. The key lies in creating what Ryan calls "democratic technology adoption."

This process begins with understanding that resistance to change often stems from lack of involvement rather than opposition to technology itself. When employees feel they've been consulted and their needs considered, they're more likely to embrace new systems. This means creating weighted scorecards for evaluating options, conducting thorough RFPs, and ensuring all stakeholders - from field superintendents to office administrators - have a voice in the decision-making process.

More importantly, this democratic approach helps identify the real pain points that technology needs to address. Often, what leadership perceives as the primary problem differs significantly from what front-line workers experience daily. By involving all levels of the organization, companies can better target their technology investments to solve actual rather than perceived problems.

Data Strategy: The Foundation of Modern Construction Technology

Perhaps the most crucial insight for construction firms looking toward technologies like AI and robotics is this: without a solid data strategy, no advanced technology initiative can succeed. This means ensuring your company's data is not just stored, but accessible, accurate, and properly structured.

The journey typically begins with moving from on-premise servers to cloud solutions, but this is just the first step. The real challenge lies in creating a connected environment where data flows seamlessly between systems. This might mean implementing integration platforms that allow your estimating software to communicate with your project management system, which in turn connects to your financial software.

Moreover, companies need to think beyond structured data (like costs and schedules) to include unstructured data - emails, photos, daily reports, and safety observations. This comprehensive data approach creates the foundation for future AI and analytics capabilities.

The AI Horizon: From Back Office to Job Site

Whilst the construction industry's attention often focuses on dramatic innovations like robots and autonomous equipment, the real AI revolution is already happening in the back office. Mid-sized contractors are increasingly using language models to analyze project documentation, automate routine communications, and extract insights from historical project data.

What's particularly exciting is the emergence of Retrieval Augmented Generation (RAG) systems. These allow companies to combine the power of AI with their private company data, creating tools that understand not just construction in general, but your company's specific experience, relationships, and past projects. This means AI can help with everything from bid preparation to risk assessment, drawing on your company's unique history and expertise.

The Technology-Talent Connection

One often overlooked aspect of technology adoption is its impact on talent retention. Today's construction professionals, especially project managers and engineers, expect modern tools that allow them to work effectively. Having to deal with outdated systems or manual processes isn't just inefficient - it can be a significant factor in employee turnover.

This creates a compelling argument for technology investment beyond pure efficiency gains. When evaluating technology investments, companies need to consider not just the direct ROI in terms of time and money saved, but also the indirect benefits of improved employee satisfaction and retention.

The Path Forward: Strategic Steps for Mid-Size Contractors

Success in construction technology adoption isn't about having the biggest budget or the latest tools. It's about creating a culture that embraces technology change while maintaining focus on the fundamentals of good construction practices. This means starting with basic but critical steps:

First, ensure your core systems are cloud-based and connected. This provides the foundation for future innovation.

Second, build a culture of data curiosity among your team. Encourage experimentation with new tools, even if it's as simple as using AI to analyze project schedules or draft project updates.

Third, focus on integration. The value of technology often lies not in individual tools but in how they work together.

Finally, remember that technology adoption is a marathon, not a sprint. Success comes from sustained, methodical progress rather than dramatic transformations.

The future looks promising for this construction fintech innovation. With strong growth in North America, where payment terms are particularly challenging, and an impressive product with strong financial metrics, EarlyTrade is proving that sometimes the best solutions come from unexpected places—like a frustrated accountant who just wanted his holiday back.

Check out the full episode with Ryan Rademann👇👇👇

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