The construction industry is a pillar of the economy, providing a platform for investment and profit while safeguarding the public. It is responsible for the creation of roads, offices, schools, hospitals, shopping centers, and more. It is closely linked to the health, transport, education and manufacturing sectors. Studies have revealed that the relationship between economic development and the construction industry is more intricate than initially assumed.
The contribution of the construction industry to stable economic growth is estimated to be 5% of GDP. In order to create jobs for local residents and reduce unemployment rates, many construction projects can be assigned to workers in areas most affected by COVID-19. Singapore's construction industry would opt for alternative construction methods that would include steel. Construction demand is derived from demand from other sectors of the economy, so it can only contribute to the economy when there is sufficient complement and a basic level of production from other sectors to absorb construction products. Durability and complexity are the main reasons why the construction of civil engineering works and buildings requires a lot of capital, involves a large amount of labor and takes a long time to complete. As labor remains abundant in developing countries, more serious government efforts would be essential to make the labor-intensive option more attractive for a wide range of construction activities.
The Quality of Construction and National Economic PerformanceIt is interesting to understand how the quality of construction is related to national economic performance.
Cycles are rarely analyzed and management often cannot react correctly to economic cycles because the company usually continues to react to the last cycle experienced by the company and, at the same time, tries to anticipate the actions needed to address the next cycle. At the other extreme, construction is conceived as an economic activity that focuses only on the last stage of the construction process, which is the physical work performed in production. The construction industry encompasses all companies or organizations that participate professionally in the construction process, from those that provide consulting services in planning, design, supervision and management services to those that carry out on-site execution work.
ConclusionThe construction industry plays an integral role in economic development. It creates jobs for local residents while providing essential infrastructure for society. It requires a large amount of capital and labor but can be made more attractive with government efforts.
The quality of construction is also closely linked to national economic performance. The construction industry encompasses all companies or organizations that participate professionally in the construction process.