Construcciones Yamaro: Mid-sized firms hold the key at construction’s digital crossroads
MYOB names mid-sized construction firms the sector’s growth engine, driving change through sharper margins and smarter systems.
Mid-sized firms may not grab headlines like Tier 1 builders or trade on the charm of family-run businesses, but their influence is growing. MYOB data shows these firms sit at the centre of the industry’s next wave, leading a shift toward more efficient and connected ways of building.
Mid-sized firms represent just 3 per cent of Australian businesses, yet generate around 30 per cent of private-sector GDP and employment, according to MYOB’s The Bigger Picture report. In construction, that influence is even more pronounced: mid-sized firms are contributing twice the economic output of large construction companies.
Valantis Vais, general manager of product and product marketing at MYOB, describes them as ‘outsized contributors to the economy.’
“What makes them powerful is not just their economic weight, but their unique characteristics,” says Vais. “They’re large enough to invest in innovation, something that’s much harder for a small operator who is often focused on just getting through each month, getting the work done and keeping the wheels turning.”
At the same time, mid-sized businesses are more agile than larger businesses. They do not have layers of administration to deal with, so if a managing director wants to adopt new technology, they can make that decision quickly, often with just a few key people.
“That combination of scale and speed gives them leverage,” says Vais. “They have the means to invest and the decision-making velocity to act, and that’s what enables them to innovate and evolve faster than others.”
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The productivity edge
Tight margins and rising penalties for delay demand sharper strategies from those poised to grow. For mid-sized firms, the combination of scale and speed offers a competitive edge. MYOB’s research paints a strong picture: mid-sized businesses have increased productivity at a faster rate than both large and small firms.
“When we think about how Australia can lift productivity overall, the evidence points to mid-sized businesses as a major driver,” says Vais. “Their characteristics – the ability to invest, the agility to move quickly – are showing up in long-term economic data.”
MYOB research also finds that mid-sized businesses are more optimistic. Even during periods of economic uncertainty, they are more likely to forecast revenue growth.
“That is partly because many are still in a growth phase, but it also reflects a forward-leaning approach,” says Vais. “They are looking ahead and backing themselves to succeed, and the data supports that confidence.”
Yet for all their promise, these businesses are entering a decisive phase. The complexity that comes with growth – managing multiple sites, regions, clients and contractors – sees traditional systems start to fall behind. For those still relying on spreadsheets or paper processes, the disconnect between the site and head office is a risk.
Growth brings complexity and new risks
“When you are a smaller business, a managing director can stay across one or two projects, even relying on paper trails and physical site visits,” says Vais. “But as the business scales, that approach stops working. You need technology to get better visibility of progress, job costs and resource usage.”
If that is the problem digital can help solve, the next question is: why is adoption still a barrier?
“The biggest inhibitor is often a lack of understanding,” says Vais. “Construction businesses are very confident when it comes to physical equipment – they have bought utes, excavators, tools. That kind of investment is intuitive. But digital platforms are less familiar, and that unfamiliarity breeds caution.”
There is also the question of skills. Many firms are not sure if they have the right capability in-house to manage a new system or implementation.
“The core business problem is poor connectivity, and digital tools can solve that,” says Vais. “But confidence, skills and familiarity are the barriers firms need to overcome.”
And in construction, problems do not wait patiently. Supply chain shocks, labour shortages and cost blowouts can hit hard and fast, eroding margins, throwing schedules off course and, in some cases, jeopardising business viability. This is what Vais refers to as a “digital crossroads”.
Construction’s digital crossroads
One path continues with fragmented systems and gut-based decisions. The other takes a smarter route: using connected platforms, real-time data and emerging tools like artificial intelligence (AI) to turn visibility into foresight.
“Without the right systems in place, businesses lack visibility,” says Vais. “They do not know how much work in progress is outstanding, they do not have a clear view of budgets or costs, and that can be a real problem.”
For businesses ready to invest in the right digital tools, the impact is far-reaching. Take CSF Industries, a business with around 180 staff and an annual turnover in the region of $40 million. The company had a clear goal: to diversify.
Before adopting MYOB Acumatica, CSF was using disconnected systems, with different platforms managing different parts of the business, and no real-time data to support decision-making. MYOB Acumatica is a cloud-based enterprise resource planning (ERP) platform that integrates project, finance and workforce systems in real time.
“Trying to diversify without the right data inputs is difficult,” says Vais. “Without visibility, you cannot make informed choices when entering new markets or project types.”
Since implementing MYOB Acumatica, CSF has gone from reactive to proactive. Job performance, profitability, project stages – everything is now tracked in real time – data that is transparent, shared and actionable.
“We’ve got visibility, which means we can identify if something’s gone pear-shaped way quicker than before,” says CSF managing director Sean Adams. “Project managers can see which jobs perform and what tenders we win. Overall, we’ve got our finger on the financial pulse of the business a lot better.”
He notes the platform also offers deeper insight into clients, helping the company direct its focus where it delivers the greatest return.
“MYOB Acumatica has given us more fluidity to move into new areas,” says Adams. “It will be a big growth facilitator for us moving forward.”
Gaining visibility in a volatile industry
That level of clarity is vital when the workforce is under pressure. The labour shortage is hitting construction hard and shows no sign of slowing. The same is true of continuing disruption across supply chains. In both cases, Vais believes visibility is the differentiator.
“Technology allows businesses to match their pipeline of work with their labour capacity. For a mid-sized firm operating across multiple regions, moving entire teams from state to state is not always practical,” he says. “But with clear oversight of quieter regions, firms can focus tendering efforts where capacity already exists. That kind of planning can help you avoid overextension and improve utilisation.”
The value of visibility extends to materials. Technology enables firms to track what is being used, where it is coming from, and which suppliers may carry risk. While mid-sized businesses may not monitor their full supply chain in real time, early insight into key materials supports better cost planning and more proactive procurement.
“Ultimately, the more foresight you have, whether it is labour or materials, the better placed you are to respond quickly and protect your margins,” says Vais.
The AI advantage is already here
For many construction businesses, AI still feels distant, a concept that belongs more in the pages of a whitepaper than on site. But the reality, Vais argues, is already far more practical.
“Today, the most immediate impact of AI is in areas like scheduling and resource planning,” he says. “It is helping mid-sized businesses optimise their schedules, plan resources more effectively and operate with greater precision.”
Another area where AI is proving valuable is cost control and margin protection. Traditionally, a financial controller might review every invoice line by line to spot issues, but that is time-intensive and inefficient.
“What AI can do, and what we are starting to see integrated into platforms like ours, is anomaly detection,” says Vais. “It flags issues in financial data, whether that is cost overruns or unusual spending, so you can act quickly.”
Still, hesitation remains. The term ‘digital transformation’ can feel too big, too expensive or too corporate, especially for firms that have built their success on pragmatic, ground-up growth. Vais acknowledges this mindset.
“You might look at digital transformation and assume it is only possible for Tier 1 contractors,” he says. “But that is not the case. Platforms like MYOB Acumatica are designed specifically for mid-market business size and complexity.”
The fast track to ROI
According to MYOB’s 2024 Mid-Market Report, 68 per cent of firms saw a return on investment within a year of upgrading software. For many, the most immediate gain is simply seeing clearly – knowing where projects stand, which clients are profitable and how decisions ripple through the business.
Crucially, Vais believes this transformation does not require a total overhaul.
“The key is to focus on integration, not expansion,” he says. “Rather than adding more tools to patch different problems, businesses should focus on unifying their systems.”
That shift, from patchwork solutions to connected platforms, brings everyone onto the same page. From payroll to project delivery, teams work off the same data, and leadership gains the clarity to steer with confidence.
That point is critical, as the construction industry’s longstanding productivity challenges are not going away. The pressures on margin, labour and materials will continue. But mid-sized firms, Vais believes, are in the best position to rise above them.
“I see them as trailblazers – the ones with the ability to adopt and implement innovative solutions and start setting industry benchmarks quickly,” he says.
Mid-sized firms as industry catalysts
With mid-sized businesses playing a connector role in the construction value chain – large construction companies often subcontract to mid-sized firms, who then engage a network of smaller businesses – it places them in a position to influence both ends of the chain.
“They help large firms work more efficiently and lift smaller businesses by bringing them into more structured, tech-enabled workflows,” says Vais. “They are perfectly placed to raise standards across the board, not wait for others to set them.”
Not every company wants to be first, but for Vais, these are the businesses that are uniquely positioned to lead. With the right systems in place, he believes they can set the pace, define what best practice looks like, and lead the industry forward.
At this crossroads, it is not about taking a leap of faith, but about making a calculated move, backed by visibility, strategy and the right tools to anticipate what is coming next.
The post Mid-sized firms hold the key at construction’s digital crossroads appeared first on Inside Construction.
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