Construction Industry

The Economic Situation of the Construction Industry



The construction industry is very important to the UK’s – and indeed to the world’s – economy. In the UK, it accounts for more than 10% of the country’s gross domestic product and employs an estimated 2.5 million people. In the last three years, an extra ?33 billion has been made available to this sector to increase public services. Included in this figure are major investments in transport, health and housing. As the industry is investment-driven, it is subject to the strictures of economic upturns and downturns; during the recessions of the mid 1980′s and the early 1990′s, there were significant downturns. However, in the late 1990′s, there was a marked swing in the opposite direction.

Our construction industry, by very nature of its geographical location, is not subject to the full influences of cross-border competition that are in evidence in mainland Europe. However, construction industries worldwide have been affected by the current economic climate and the increasing rise in fuel prices. For the earlier part of 2008, the German construction industry showed a marked upturn, but this slowed and tailed off later in the year, due to the increase in oil prices and the slowing economic pace of many industrialized countries. In addition to economic factors, there is a turn in the tide of ecological factors. In America, the number of people citing Global Warming as the most important environmental issue rose from 11% in 2003 to 35% in 2006. The construction industry faces new challenges in replacing and renovating buildings with minimal environmental impact. At the same time, the cost of these precautions has to be measured against potential profits.

However, despite the factors that seem to be conspiring against it, the construction industry moves at a very fast pace and is an ever-changing entity. Whilst legislation is forever altering, new techniques, technology and methods are developing to keep up. With the development of new practices, new jobs in construction are perpetually being created. In the UK, the Home Office has released figures stating that the three construction jobs that are most lacking in applicants are those for transportation and highways engineering, ground engineering and contaminated land specialists. With major infrastructures and building developments taking place in the South East of the UK, such as the 2012 Olympics and the Thames Gateway regeneration, construction recruitment in this area is set to soar. Britain’s Olympic Games will have 30 venues and a budget of ?2.3 billion. It also has a non-negotiable, absolute completion date. As that date draws nearer, the construction industry will find itself heavily in demand as pressure and expectation rise. 2012 promises to be an important year for this industry and many are looking upon it as a chance to showcase its talents.

Of course, construction takes place across the globe and this gives workers a chance to travel as well as work. Construction jobs require large teams of people all working to a common goal and, while the lifestyle can be quite temporary, many get used to it and find it a liberating existence. Some projects are short-term, whilst others can last for years – such as the construction of an oil refinery.

Jobs in The Construction Industry

There are numerous jobs available in the construction industry. Many people work in the construction industry at some stage during their lives as it offers a wide range of job possibilities.

 

A Field Engineer is responsible for daily inspections on a building site; they must ensure that all plans are being properly followed and that all building regulations are being adhered to. They also need to monitor the progress of the construction work to ensure that the project is completed on time. In the event of difficulties presenting themselves during building work a field engineer will often have to think of a quick effective solution that doesn’t risk the integrity of the building structure or endanger the health of workers.

 

An Inspector may be present at one site for the entirety of the building work or may travel between many different sites to monitor progress at different stages of development. They need to be aware of all relevant local zoning laws and must be capable of giving advice to contractors in order to rectify any problems that arise.

 

A Marketing Manager is responsible for maintaining good relations between the developers and the investors in the project. They must ensure that investors are kept aware of any relevant progress or setbacks that have taken place on site. They may also be required to find additional investors and may need to place advertisements in various media outlets and place promotional signage around the site to make people aware of what the development will look like when completed and that investment opportunities are available.

 

A Planner or Scheduler is responsible for planning when various building crews will need to be present on site. They will also need to arrange deliveries and organize building materials. They must also report on the development’s progress at a regular basis.

 

A Safety Supervisor is responsible for ensuring that all health and safety regulations are adhered to on the building site. They implement safety programs and enforce regulations on employees to ensure that no one is injured. A safety supervisor will need an extensive knowledge of construction concepts in order to be able to effectively do his or her job.

 

 

Trends in the Commercial Construction Industry



Mayor R. T. Rybak’s 2011 budget address on August 17, 2010 must have brought cheer to the Minnesota commercial construction industry. The mayor, speaking from Minneapolis City Hall, put a lot of stress on “growth.” He also rejected the popular belief that Minneapolis, locked in by other municipalities on all sides, is fully developed.He listed many areas capable of absorbing extensive growth.

Earlier in the year, John K. McIlwain, Senior Resident Fellow, Urban Land Institute, in a presentation to the trustees said, “The old ‘normal’ will not return. Over time, a new mode of metropolitan development will emerge, presenting opportunities and stiff challenges. Those who fail to understand these new trends will find themselves building what is no longer in demand.”

While one is showing the way forward and pointing towards potential growth for the Minnesota commercial construction industry, the other cautions with words to be well-marked by Minnesota building contractors. The future will clearly be won by those that have taken advantage of the recession to reinvent themselves to a “new normal.”

Consumer Behavior and Demographics

Trends indicate that the major drivers for new real estate development will be consumer behavior and demographics. At a time of scarce resources and increased competition, extensive planning with emphasis on aggressive workforce training are the areas that the Minnesota building contractors should focus on.

Transit-oriented development

With the proposal to appoint a new director of transit-oriented development, Mayor Rybak re-emphasized the emerging trend of developing real estate along current and future transit lines. Though past experience has shown that employers, and therefore commercial buildings, do not necessarily follow this trend, there is a need to market transit-oriented job locations to private companies. The Minnesota commercial construction industry could use innovative ideas to develop the large expanses of undeveloped commercial property lying adjacent to light rail stations.

Nanomaterials

Nanotechnology materials and applications can be used by the construction industry to enhance material properties and functions. Considering that 41 percent of all energy used in the United States is consumed by commercial structures and residential homes, nanotechnology can help enormously in energy conservation.

Some Benefits from Manufactured Nanomaterials (MNMs) And Nanocomposites:

Structural strength enhancement Self-cleaning surfaces Corrosion resistance Abrasion resistance Biocidal activity in coatings and paints Improved thermal management Antimicrobial properties Harvesting solar and other forms of renewable energy MNMs can substitute for harmful environment pollutants such as lead and mercury

However, research is still underway on the potential pollutant risks from MNMs. The industry is still gaining insight into the life cycles of these new materials and weighing the risk factors workers are exposed to. The Occupational Safety & Health Administration hosted a Web Forum (August 16, 2010) to identify hazardous chemicals most in need of agency action. Still, one thing is clear — progressive companies who stay current with new, safe technologies will come out ahead.

The words of Earl Bakken, who in the early days of the Second World War launched Medtronic from a garage in northeast Minneapolis, should inspire Minnesota building contractors. “The greatest ideas, the greatest innovations and the greatest reforms,” he said, “have come out of times of great challenge.”

Construction Health And Safety Regulations

Fatal and injury accidents in the construction industry within the UK are reported annually, making the construction industry one of the most dangerous industries to work in. Although various construction industry occupation health and safety measures have been put in place, the ever-changing construction dangers make it difficult to effectively mitigate against the same. This leads to unforeseen accidents, which result in loss of life and serious injuries amongst construction workers.

The common dangers, which lead to loss of life and injuries amongst construction workers are falls from high points, accidents in excavation areas, falling objects, construction machinery and construction motor vehicle crashes within construction sites. To minimise dangers and risks that construction laborers face in the course of their work, various construction health and safety regulations have been legislated. Such legislations are same to those across Europe, especially in EU member countries since they are directives made up the relevant organs of the EU. The varied safety regulations are specific, targeting the inherent dangers and risks that pertain to every section of the construction industry. The Management of Health and Safety at work regulations of 1999 specifically explain how safety systems at a construction site are managed. Other regulations that target specific areas include the Provision and Use of Work Equipment regulations of 1998, Manual Handling Operations regulations of 1992, Workplace Health, Safety and Welfare regulations of 1992 and Personal Protective Equipment regulations of the same year.

Not all construction health and safety regulations address construction companies only. Some, such as the Personal Protective Equipment regulations of 1992 specifically target construction laborers, requiring them to always undertake work with appropriate protective gear to enhance their safety. Failure on the part of either construction employees or company managers to follow to these regulations amounts to criminal offense punishable by conviction, fine or both.

The construction health and safety regulations need all construction companies to ensure that their buildings and construction sites are safe through regular maintenance in case of buildings. The buildings need to be properly lit with safe drinking water for the benefit of laborers. The temperatures within the buildings should be tolerable enough with rest facilities given. Employees also need to be provided with toilet facilities. With all these however, accidents are still bound to happen and the regulations require employers to make available first aid facilities. Above all, the provision of education and safety information is essential and all construction employees are required to have their laborers undergo safety training.

Under the construction health and safety regulations, all workers are expected to be aware of all the health and safety laws relating to their work and ensure that they work in safe work environments. The regulations do not only target safety issues affecting construction laborers but public safety as well. Construction companies have the obligation to guarantee that members of the public are protected from any dangers and risks brought about by construction projects.

Construction Industry Risk Management, The Right Approach Part 1



Risk management?

What do I mean by risk?

Simple, something that impacts the smooth running of the project.

Imagine you go to site as usual with your day planned out, with work that will be achieved during the day. On your arrival you are met with one or more of the following:

The quantity surveyor has made an error of judgement and something shown on the drawing doesn’t fit. The designer has drawn a ‘hop-over’ step on the roof for access over a duct, but the duct is a metre tall and there’s no space for proper steps. The floor tiles specified on the drawing, that have just turned up, don’t conform to the customers latest grip / slip standards. There are tolerance stack up issues on the fixing for the glass and some panels don’t fit.
Is this part of everyday life?

I would imagine that if this is the case, and if it isn’t lucky you, then there are whole range of consequences that now kick in. Getting the surveyor back to site, and the designer… waiting for them to turn up. ‘Discussing’ what the best solution is to overcome the problem and during that conversation hopping you don’t lose too many hours determining who is to blame and who’s going to pay. Then of course there’s the planning authority who will want to know about any changes… more delays while you wait for them to come to site and hopefully agree the changes, and there’s always another fresh day tomorrow!

Does it have to be like this?

No.

If the above are representative of your day then you’ll be pleased to know that when it comes to the ‘design’ letting you down this happens in most sectors and the automotive industry probably lead the way in having a structured approach to analyse and predict the ‘short comings’ of the design at the design stage before you start the purchasing and build phase of the project, while there is still time to make changes at minimum cost with maximum benefit.

What is this approach?

The approach is known as ‘design failure modes and effects analysis’ or DFMEA. It is a tried and tested structured approach that has been around for several decades. It has been developed and refined over time to its current form. It is already deployed in multiple sectors.

What will it do for me?

DFMEA will highlight precisely the aspects of the design that will let you down, the various reasons why they happen and draw your attention to all of the consequences of that weakness in your design. Through thorough analysis you will see all of the aspects of your selected design which can malfunction and give rise to subsequent problems. Most importantly your DFMEA will highlight which issue is most urgent and the biggest risk to your business, the project and your customer.

This technique when applied to its full is one of the most powerful and effective tools available to designers and project teams to demonstrate that what they have designed and planned will deliver as intended without the ‘usual’ surprises.

Summary

DFMEA is an ideal tool to highlight weaknesses in your design and is particularly helpful at highlighting any problems early in a projects life at the design stage thus avoiding costly and lengthy delays. It magnifies core problems thus drawing them to your attention and guiding you as to when you should take action on them.