Change Will Come
The fact that the construction industry is broken should be sufficient to support a change, however, the following five facts about the industry further elaborate why there is a necessity of change.
- Considering that building a house takes six months, then only two activities of fixing the mistakes and waiting for the next trade is taking up at least 85 percent of the time.
- An analysis of the construction industry and its productivity was performed by Clemson’s professor Roger Liska. As per the analysis, an average construction was reported to be operating at an efficiency of only 40 percent.
- It has also been predicted that the shortage of skilled and qualified workers is destined to worsen in the years to come.
- As per the Investment Outlook Report of Business Week’s 2007, even after the construction boom of 2006, the return on equity (ROE) for all industries within the United States of America was indicated to be 17.9 percent which is remarkably higher than the ROE of 9.7 percent for the construction industry.
- Customers of the industry are widely frustrated for a number of reasons which include poor quality, excessive change in dollar value and subsequently orders in quantity, confrontation, litigation, and scheduling delays.