ToolTime, a provider of job management software for tradespeople, has published research into the use of digital tools by small and micro UK trade businesses.
The findings reveal that 88% of tradespeople (91% of electricians) consider digital and software tools to be important for successful operation, with 89% using them to help with day-to-day business operations.
Of the tradespeople using digital tools and software day-to-day, 39% use them to save time on admin for business growth, 36% to compensate for shortfalls in skilled workers, and 34% to strike a better work-life balance or spend more time on their trade.
These figures were similar for electricians, although using digital and software tools to achieve a better work-life balance was on a par with saving time for business growth (both 36%), while making up for the shortfall in skilled workers ranked second (33%). Being able to spend more time on their trade, achieving more efficient backend processes and better organisation also featured highly.
The challenges driving tech adoption
The rising cost of supplies emerged as the number one challenge for 29% for tradespeople (32% amongst electricians), and was particularly significant for one-person and micro businesses of less than five people.
“Rising costs make finding ways to maintain profitability, manage costs and ensure prompt invoice payments critical elements of small business management,” comments ToolTime CEO and Co-Founder, Marius Stäcker.
“Investing in digital and software tools offers tradespeople the opportunity to create a resilient business model by streamlining and optimising operations for greater efficiency, enabling them to focus on increased revenue generation and profitability even with limited resources and in the face of higher operational costs.”
Roofing company, ZafBuild, points to the use of the ToolTime business management platform to grow profit by 20%. Meanwhile, home emergency services business, Generational Homes, reports savings of four to six hours every day, helping them to complete an additional 20-25 jobs every week to bring in additional revenue.
Social media, messaging platforms such as WhatsApp, and mobile apps for time tracking, job sheets, and scheduling were the top three digital tools named by the 1,000 tradespeople surveyed. Social media was also named as the most commonly used tool by electricians, with messaging platforms such as WhatsApp, accounting specific and job management software representing the other top digital tools.
The utilisation of these tools and platforms reflects some of the other major challenges identified by UK trades, such as managing time and jobs (23%), managing a team (22%), keeping up with customer communications (21%), talent and skilled worker shortages (21%) and marketing the business (20%).
For electricians specifically, marketing the business was the biggest challenge next to rising costs (25%), closely followed by being asked for ‘freebies’ or ‘mates’ rates’ (23%). Managing time and jobs and stress or burnout due to overwork also followed closely (22%).
Marius continues, “As tradespeople face rising supply costs and a shortage of skilled workers, digital solutions are becoming essential to survive and thrive in this environment. Technology is rapidly filling the gaps created by challenges like time constraints and labour shortages, allowing businesses to operate more efficiently than ever before.”
How business management software drives professionalism
23% of electricians use job management software, compared to 20% of tradespeople overall. The top three greatest perceived benefits of use for electricians were business growth potential, better team management and making the business more attractive to young or skilled workers, all chosen by 35%.
Time savings and better customer communications were the second highest ranked benefits, while better business operations oversight and a more professional image followed, named by 26% of respondents.
The top named benefits of job and field management software by tradespeople overall were better oversight of business operations (37%), time savings or better customer communications (36%), and business growth potential (32%).
Lewis Sweenie, ToolTime’s UK Account Executive, comments, “The link between professionalism and business growth chimes with what we hear from customers. Neat and tidy digital processes will generally win business over crumpled paper and pen in today’s digital society.
“The need to spend less time on business admin also strikes a chord. Business owners often represent their company’s information bank, meaning they can never switch off. The ability to centralise key business information and relinquish that control offers the key to business growth.”
Marius concludes, “Business management software and mobile apps are not just streamlining admin and communication – they drive business growth, improve work-life balance, and enhance professionalism. Our mission is to empower tradespeople with the right tools to optimise resources, win more customers, and spend more time on generating income, not handling admin.”
