Why construction companies are ditching spreadsheets for cloud software
As the construction industry becomes more competitive, could it be time to start thinking about optimizing your internal operations?
Gone are the days when manual data entry sufficed. As projects become more complex and internal teams expand, more construction leaders are leveraging technology to maximize their output.
If you’re still hanging on to your spreadsheets, you could be falling behind in a tech-first industry.
The introduction of cloud computing, AI, and other digital integrations is driving the next era of construction management. If you’re yet to make the switch, here’s why you should ditch Excel for the cloud in 2025.
Are construction companies holding on to Excel?
Did you know that 85% of the construction industry is still hooked on Excel? From finance tracking to inventory management, many US construction companies continue to rely on manual data input in 2025.
While Excel has proved helpful in the past, a new era of software development is on the horizon, leaving those manually handling data open to security risks, a lack of scalability, and prone to human error.
Data plays a vital role in a construction company’s success. As the core driver behind financial planning, inventory forecasting, and project monitoring, business owners can not afford to rely on ‘legacy’ spreadsheets that are passed from employee to employee.
For many, a single error can lead to significant headaches and hours of rework.
Limitations of spreadsheets in construction:
When it comes to using spreadsheets to manage internal operations, there are plenty of limitations to consider.
Some of these include:
- Increased risk of error: Spreadsheets rely on human data input. Inaccurate data entry leads to formula errors, costly mistakes, and hours of rework.
- Collaboration limits: Most spreadsheets are stored locally. This makes it difficult for multiple users to collaborate on data entry and update information in real time.
- Prone to security breaches: Spreadsheets have little to no protection from security breaches. This is especially dangerous when shared across multiple platforms and users.
- Lack of scalability: Legacy spreadsheets are difficult to scale. As your team takes on more projects, managing multiple tabs at once can become challenging, making it difficult to deliver project insights on time.
“Manual data collection remains a major drain on productivity, consuming hours of labor that could be spent on more value-added tasks,” claims Pete Khanna, CEO of TrackVia.
The question is, what can construction leaders use instead?
The rise of cloud software in construction
If you’re looking to make the switch, it could be time to start looking into cloud software. Representing 45% of the construction software market, cloud-based solutions are becoming increasingly popular amongst internal construction teams.
This shift is being driven by this technology’s ability to streamline data input, improve collaboration, and reduce costs.
While traditionally internal data could have been stored on local computer drives, the rise of remote field collaboration has made manual collaboration almost impossible while protecting sensitive information from security breaches.
The cloud is the smarter option for most teams. With the ability to provide teams with instant, reliable access to project data, cloud-based construction management tools have gained traction for a reason.
In fact, a recent Flexera State of the Cloud Report found that 29% of large-scale enterprises in the US reported their use of the cloud being significantly higher than planned.
With this in mind, let’s take a closer look at some of the benefits of cloud software for the construction industry:
Efficient collaboration
Cloud-based construction management software is more efficient to manage. With the ability to provide users with real-time visibility from multiple devices, cloud-based management platforms allow for easy collaboration, enabling all team members to access and update data input simultaneously.
This leads to greater efficiency. For example, if a team of field engineers are on the road, they can quickly access and update project data without needing to head back to the office to amend the project status.
Error-free decision making
Cloud-powered management platforms automate much of the data input process. This reduces the risk of human error and ensures that data collection remains consistent.
Better still, cloud software provides access to real-time data and analytics. For businesses still unsure about the benefits of AI in the construction sector, imagine forecasting the following year’s budget with the touch of a button or predicting inventory levels ahead of schedule based on historical use of supplies.
The bottom line is that AI and cloud-based management systems help business leaders make smarter decisions and prepare effectively for the future.
Powerful security features
Spreadsheets are easily hackable. Construction firms that rely on manual data input open themselves up to cyber attacks, phishing scams, and data loss if sensitive information is improperly stored.
According to a 2023 survey by Dodge Construction Network, 59% of US construction firms have faced a cybersecurity threat in the past two years.
Cloud solutions offer a robust alternative to manual data input, with most cloud-powered management platforms equipped with strong security features such as multi-factor authentication and data encryption to protect sensitive information.
Cloud software for the win?
The era of cloud computing is only just beginning. As the construction sector continues to adapt, it won’t be long before legacy spreadsheets are laid to rest, and data management becomes a fully automated affair.
The only question left is how fast your team can adapt to stay competitive in an increasingly digital industry.