Construction Industry Economic Situation : The construction industry is very important to the UK economy – and of course to the world economy. In the UK, it accounts for more than 10% of the country’s gross domestic product and employs around 2.5 million people. In the last three years, an additional £33 billion has been provided to the sector to improve public services. Included in this figure are large investments in transportation, health and housing.
As the industry is investment driven, it is subject to economic ups and downs; during the recession of the mid-1980s and early 1990s, there was a significant decline. However, in the late 1990s, there was a sharp shift in the opposite direction.
Our construction industry, by virtue of its geographical location, is not subject to the full influence of the proven cross-border competition on the European mainland. However, the construction industry around the world has been affected by the current economic climate and rising fuel prices.
For the beginning of 2008, the German construction industry showed a marked improvement, but this slowed down and declined at the end of the year, due to rising oil prices and slowing economic growth in many industrialized countries. In addition to economic factors, there are also ecological factors of tidal waves.
In America, the number of people who cite Global Warming as the most important environmental problem increased from 11% in 2003 to 35% in 2006. The construction industry is facing new challenges in replacing and renovating buildings with minimal environmental impact. At the same time, the costs of these precautions must be measured against the potential benefits.
However, despite the factors that seem to conspire against it, the industry moves at a very fast pace and is an ever-changing entity. While laws are constantly changing, new techniques, technologies … Read more