Recall the spring of 2000, when dotcom startups were all the rage. Stock prices of tech companies with no earnings were through the roof. It seemed that everyone from venture capitalists to “day traders” was making a killing.

A downturn followed and companies began slashing costs, laying off employees and consolidating to stay alive. Most didn't survive. But for those that made it through, the downturn was a chance to increase efficiency, streamline processes and take market share. What didn't kill them, made them stronger.

Although commercial construction is doing okay, the dramatic slowdown amongst homebuilders can be approached with lessons learned in 2001. Amidst a contraction, it's natural for companies to consider a retreat. But for those that aspire to emerge from the rubble as a stronger, more efficient market leader, it may be time to invest.

Invest? Yes…and in software systems in particular. Properly implemented and adopted systems can play a critical role in improving efficiency. Here are three ideas of how to invest for competitive advantage in a slowing market.

1. Go on-line. Software-as-a-service construction project management systems let you pay as you go and not pay large upfront costs. Therefore, you can get a system live without a big up-front investment. If it doesn't work, turn it off. Chances are you won't, given the improved collaboration and accountability.
   
   
2. Bid selectively. With fewer projects to go around, the temptation is to take what you can get. Just remember, with unprofitable jobs you can't make it up on volume. It might be time to standardize your estimating and bidding process with packaged estimating software applications. More accurate bids lead to more profitable jobs.
   
   
3. Close books regularly. In a downturn, contractors will have to walk a thin line between profit and loss. The more often you can close the books and keep income and expenses up to date, the better chance you have of quickly correcting jobs that are producing a loss. A modern accounting and job costing system will offer more advanced reporting to spot those issues early and often.

It may be tough to justify new software when business is slow. But by streamlining projects, improving preconstruction processes and keeping better track of financials, you'll improve you chances of survival. When the market comes back around, you'll likely find yourselves one step ahead of the competition.