Get free samples written by our Top-Notch subject experts for taking online Assignment Help services.
The construction industry plays a massive role in the economic development of a country. The economic growth of a country depends on the level of development and contribution of the construction industry in several industries such as tourism, businesses, and education. The construction industry provides a base for countries all over the world to make substantial changes to their investment policies. Due to the i9ncrorporation of appropriate construction, countries can attract foreign investments in their country. Due to foreign investments, the overall economic growth of a country is increased considerably.
However, the covid-19 pandemic created turmoil in the construction industry. Fieldwork is an integral part of the industry and workers need to be working continuously to make continuous progress according to the project schedule. Ensuring the health and safety of employees became a massive challenge for companies. Several companies had to abandon ongoing projects to ensure the safety of employees. This report will provide a detailed discussion of the importance of the construction industry for the UK and the global economy. Furthermore, Construction industry challenges will be discussed within this report to understand the sustainability and procurement solutions for this industry. This report will discuss two construction professionals associated with the industry and several Construction professional institutions inside this report.
Importance of the Construction Industry in the UK and Global Economy
The construction industry is one of the crucial sectors in developing a country's economy. The construction industry in the UK is one of the largest industries in the UK with around 913 thousand construction businesses (Clark, 2021). The figure below shows that the industry is at the top of the list in having the maximum number of businesses. This signifies the importance of the industry for the UK economy. This industry in the UK employs people from all sectors including non-construction people such as IT and other in-office-based employees. It is an industry that will employ around 2.7 million people in the year 2020 in the UK making it the largest employer (Best, 2021a). It is even forecasted that by the end of 2023, the industry would employ around 2.8 million. This signifies the potential of the company in the future.
This industry has a great contribution to the UK economy, as it not only helps to provide new infrastructure but also provides shelter to citizens. The construction industry is hugely dynamic and diverse at the same time. Moreover, the sectors involved in this industry have a varied range of interests, however, are united with the purpose of healthy development of land. The construction sector had been growing since 2003, however, has been facing huge risks as well (Advisory Centre for Affordable Settlements and Housing, 2022). One of the major risks that this industry had been facing since its advent is safety. However, the UK Government is working towards providing a safe environment for construction workers to protect them from accidents.
The construction industry of the UK is divided into both public and private sectors where the private sector enjoys the maximum share of the industry. It involves the residential, non-residential, and engineering construction sectors. Private housing has made up the largest share of the overall revenue of the UK construction industry (Best, 2021b). Thus, it can be stated that the construction industry is one of the most important industries in the UK, which is not only contributing to the economy but is also providing a healthy lifestyle to its citizens.
The construction industry is considered to be of huge importance for the overall development of the world. Ruddock, Gruneberg, & Ruddock (2019) have mentioned that the construction industry not only provides economic value but also provides environmental and social value. This is because the industry has been focusing on creating both human and natural capital and using them to attain sustainable development. The industry has employed a system to measure both these capital systems to assess the value it has provided to the environment. The global construction industry suffered a lot during the outbreak of the pandemic and countries like Latin America and Europe’s construction industry suffered drastically (Businesswire, 2021).
Countries across the world had been spending trillion of money since the advent of this industry. In the year 2015, the market size of North America had been $1.9 trillion and China's construction industry was worth $3.3 trillion (Best, 2020). Moreover, the development of countries is giving rise to the requirement for more and more buildings, which is contributing to the growth of this industry. For example, developing countries like India have experienced significant growth in their construction industry with the increase in the demand for new residential places. India's construction industry contributed about ?2.7 trillion in the year 2019, which had been the highest (Statista Research Department, 2021). Thus the increase in the revenue of the construction industry can be attributed to the rate of development. Moreover, with rapid urbanization and an increase in population, the demand for places to live has increased, which has significantly increased the revenue of the industry.
The major trends that have been identified in the global construction industry are business information modeling (BIM), advanced building materials, and construction robotics. These have helped the industry to develop and bring innovative ways to not only increase its revenue but also to ensure safety. This has provided a huge prospect for the industry to grow sustainably in the coming years and provide value to citizens worldwide. The construction industry at the global level is anticipated to reach US$15.2 trillion by the year 2030 (Robinson, 2019). This shows that the future of this industry is quite secure and with new techniques, it can reach newer heights.
Construction Industry Challenges
The construction industry is an industry that is constructed with several complex processes. Design, Industrial construction, and commercial construction are different variations associated with the construction industry. Mokhtariani et al. (2017) have described the construction industry as a highly volatile industry where business environments are determined by the level of competition and high-risk decisions. Organizations need to adopt business policies that are sustainable and effective to make an immediate impact within the organization. In acquisition to the already existing problem in the construction industry, the Covid-19 pandemic created an inhospitable working environment in the industry. Problems in the supply chain and social distancing rules and regulations made it harder for organizations to continue their different projects.
The construction industry across the UK suffered major problems in recent times. Due to covid-19 pandemic, UK’s construction output fell by 1.8% in 2021 (Ons.gov.uk, 2022). Following are several challenges associated with the UK construction industry
Shortage of supply.
Get Better Grades In Every Subject
Submit Your Assignments On Time
Trust Academic Experts Based in UK
Your Privacy is Our Topmost Concern
Copyright 2023 @ Rapid Assignment Help Services
offer valid for limited time only*