Construction Industry Trends all over the world show a rise in its rate of growth. This industry is composed of many components including construction of heavy and civil engineering (highways, bridges, railway tracks, airports, etc.), real estate (both residential as well as commercial) development, and specialized construction products (such as architectural products, electrical connections, decorative items, etc.). All these segments cannot be expected to show similar trends and in fact are showing differential growth pattern all over the world.
Facts about Construction Industry Trends
- Construction industry contributes a huge chunk to the world GDP amounting to 1/10th of the same.
- This industry has immense potential in generating huge amount of employment. It has been found out that construction industry offers employment to around 7% of the total employed work force around the globe.
- Construction Industry is the largest sector in respect of consumption of energy. It consumes around 2/5th of the total consumed energy through out the world.
- Resource utilization in case of construction industry amounts to half of the total resource used all over the world.
The most significant aspect associated with the construction industry trends is increased use of the latest IT technologies for pacing up the work. Cutting edge technology is being adopted by world's one of the biggest industries for leveraging purposes and is mainly being used in raising the efficiency level of engineering and designing of construction industry. It has been found out that the paper oriented format of operation in the construction industry is not at all a cost effective approach because it eats around sixteen billion US dollars in US real estate sector only. Construction Industry Trends show that the utilization of information technology has helped the industry to save a lot of fund which could be channelized in more fruitful directions.
One of the latest technologies used in construction industry is Building Information Model (BIM). This technology helps all the factors of a project to work in a collaborative and concerted manner solely based on the platform of Information Technology. BIM helps the different members of a project to communicate information among themselves which consequently leverages the productivity and at the same time minimizes the error along with cost.
Construction Industry Trends can be stratified in accordance with the different segments and countries.We would mainly discuss about two countries for giving an overview of the construction industry trends.
- In USA, heavy engineering construction sector has increased at the rate of 5.2% in the financial year 2005. Residential and commercial residential real estate sector has respectively grown at the rate of 15% and 7.5%. But this upbeat mood lost its shine in the fiscals 2006 and 2007 especially in the residential real estate one. A glut can be evidenced in this segment because of fall in the sales of the homes which is expected to continue till 3rd quarter of 2007.
- India is seeing a boom in the construction sector mainly due to the government initiative in expansion of the developmental facilities. Economic upsurge has also generated enhanced generation of demand in the real estate sector (both residential as well as commercial). Construction Industry in India is rising at a phenomenal rate of 7 to 8% p.a.