Procore Announces Innovations to Address Challenges Associated with Payments, Preconstruction and Labor Shortage

Rhea-AI Summary

Procore Technologies, Inc. (NYSE: PCOR) announced new innovations leveraging predictive analytics to enhance construction management efficiency. Key highlights include the upcoming launch of Procore Pay in 2023, aimed at addressing payment delays in the construction industry, which averages 83 days for invoice processing. Collaborating with Goldman Sachs, this new service will streamline payment processes. Additionally, Procore is enhancing its single platform capabilities, integrating predictive analytics for smarter project planning, amid ongoing labor shortages.

Positive

• Launch of Procore Pay in 2023 to expedite payment processing in construction.
• Partnership with Goldman Sachs to improve payment functionalities.
• Enhanced predictive analytics to aid in project planning and labor efficiency.

Negative

• Construction industry averages 83 days for payment processing, indicating a significant challenge.
• Ongoing labor shortages may hinder project execution and efficiency.

Updates leverage predictive analytics to make construction more efficient

CARPINTERIA, Calif.--(BUSINESS WIRE)-- Procore Technologies, Inc. (NYSE: PCOR), a leading global provider of construction management software, today announced innovations and new solutions that will leverage the value of predictive analytics to connect everyone on a project team. The latest solutions will drive efficiencies to solve some of the industry’s most pressing challenges: payments, labor, preconstruction, communication and more.

Procore Announces Innovations to Address Challenges Associated with Payments, Preconstruction and Labor Shortage (Graphic: Business Wire)

“Procore is designed to help solve our customers' greatest challenges so they can manage risk and grow their businesses,” said Tooey Courtemanche, Founder, President and CEO of Procore. “For example, construction is one of the slowest paying industries. According to Levelset’s 2021 Construction Cash Flow & Payment Report, it takes an average of 83 days to get paid after an invoice is sent. For this reason, we are excited to announce that Procore Pay will launch in 2023.”

Payments

Procore is working with Goldman Sachs Transaction Banking to embed payments functionality into its platform. The result is Procore Pay, a new service launching in 2023 designed to solve one of the industry’s largest issues. According to the 2020 National Construction Payment Report, 80 percent of companies report spending a significant amount of time chasing down payments. Key benefits of Procore Pay include:

• Reducing payment friction by expediting invoice review and providing payment options powered by Goldman Sachs.
• Saving time by removing a point solution and associated data entry, integration and payment process friction.
• Streamlining lien waiver collection via an automated lien waiver exchange.

Single Connected Platform

“Procore has been building for the construction industry for 20 years, and is the only unified, end-to-end technology platform that supports everyone on a jobsite, from preconstruction to pay, across mobile and web,” explained Wyatt Jenkins, senior vice president of product at Procore.

In Preconstruction, Procore Connect on Drawings will enable teams to securely connect to projects in other stakeholders’ accounts and synchronize data to reflect the most up-to-date drawings. According to FMI and Procore’s State of Preconstruction survey, investing in preconstruction can provide tangible returns on profit, schedule and client satisfaction. Additionally, it can alleviate the burden of the ongoing labor shortage by minimizing rework and optimizing the current workforce.

“Procore Connect is a great start to being able to connect across platforms on Procore. It strengthens our ability to connect with the customer and utilize a single source of truth for drawings, so we’re all working the same revision,” said Brad Mohler, virtual construction manager, ColonialWebb.

Predictive Analytics

“Data and predictive analytics will power the next generation of projects. As the current workforce begins retiring, job sites are losing seasoned superintendents and project executives with 30 plus years of experience. To keep building safely and efficiently, we need to arm the next generation of construction leaders with the knowledge and insights captured from every project built in Procore,” said Jenkins. “This creates smarter planning while easing the pains of the labor shortage by arming teams with previous experience and knowledge from similar projects.”

Procore continues to evolve construction intelligence by unlocking data, analytics and artificial intelligence, allowing users to run projects smarter, safer and more efficiently. Examples include:

• Insights provides high-level information on the trends of RFI’s and General Conditions budgets in comparison to historical projects within your instance.
• Automated-Area Takeoff in the Estimating tool gives teams the ability to bid more efficiently and accurately for concrete and roofing trades.
• Quick Capture helps field teams significantly cut down time to log items with voice-enabled input technology.

To learn more about these platform enhancements, register for Groundbreak Live.

About Procore

Procore is a leading global provider of construction management software. Over 1 million projects and more than $1 trillion USD in construction volume have run on Procore's platform. Our platform connects every project stakeholder to solutions we've built specifically for the construction industry—for the owner, the general contractor, and the specialty contractor. Procore's App Marketplace has a multitude of partner solutions that integrate seamlessly with our platform, giving construction professionals the freedom to connect with what works best for them. Headquartered in Carpinteria, California, Procore has offices in the United States, Canada, and around the globe. Learn more at Procore.com.

www.procore.com

PROCORE-IR

View source version on businesswire.com: https://www.businesswire.com/news/home/20221108005157/en/

Media Contact

Elizabeth Locke

press@procore.com

Investor Contact

Matthew Puljiz

ir@procore.com

Source: Procore Technologies, Inc.

FAQ

What is Procore Pay and when will it launch?

Procore Pay is a new service set to launch in 2023 aimed at reducing payment delays in the construction industry.

How is Procore addressing payment issues in construction?

Procore is collaborating with Goldman Sachs to embed payments functionality, aiming to expedite invoice processing.

What role do predictive analytics play in Procore's innovations?

Predictive analytics will enhance project planning and efficiency, helping to manage labor shortages and improve workflows.

What challenges does the construction industry face regarding payments?

The construction industry experiences an average delay of 83 days for invoice payments, creating significant cash flow challenges.