With the previous discussion of the productivity challenges in Part 1 where time and manpower resources are the main challenges for a lot of local SMEs. There are a lot more challenges facing to different businesses and become a blocking stone to step forward to increase the productivity. Singapore government has been increase and expanding the incentive for the business to tap in and helping to overcome the challenges. However, by understanding their challenges and providing solutions and immediate problem solutions have become a main concern of the local builders.
- Lack of Local Staffing interested on Construction Industry. The pace of local interested on the field has been decreasing and unable to cope with the increasing contract that created.
- High investment on Automation & machineries and insufficient of contract in future. Small builders are unable to commit the high investment items solely for single project. Without assurance of the continues of the secure job, there is high risk and high commitment for the business sense if there is no support.
- Incentive and grants mainly for big company instead of benefit the small local builders.
- SMEs or micro enterprises are mainly involved labour intensive ( labour supply) work. With tighter schedule, high worker levies, shortage staffing, high turnover labours have been heavily problem solving instead of innovation of process and reluctant to increase training for the staff/ workers due to high turnover issues.
- Tight budget for the contract. A lot of innovation method and machineries will definitely high price in the initial stage for the businesses, however, with the cost competitive and budget constraint, there is always loosing up unless the builders are able to absorb the cost and wait for longer break even cost in the long run. This is relative challenge for the SMEs in todays context. With the government grant it will benefit those enterprises that be able taking up the risk.
Unclear grants and incentives provided by the government is always blamed by the builders. More talks and demonstration by the industrial player will benefits a lot SMEs to exploring the measures to increase the workers and process productivity. With various effort and team work from each government department to reduces the impact of workers and staffing challenges by the SMEs, we can see more direct improvement in near future. Local builders are required to bear with challenges and making tough decisions during these transition periods, these consolidation cycle may create opportunity for someone and become a threat for the other one.