According to a study by McKinsey, the construction industry seriously lags behind other industries in terms of real gross value added per hour worked -- a key measure of productivity. As reported in Construction Briefing, the study identified seven industry-specific factors that constrain construction productivity growth.
These range from the lack of skilled workers and proliferation of complex and risky projects to a tendency to view technology as a tool to enhance control rather than improve productivity. Other factors include difficulties in scaling productivity improvements that are achieved, low margins, passing the financial results of productivity improvements to suppliers and/or customers rather than reinvesting them and failure to make productivity a primary performance metric.
Continuing the current trend, the report says, will result in a 40 trillion USD shortfall in industry output by 2040. To prevent this, the report recommends four fundamental changes at the policy level and a series of operational initiatives to improve productivity.
A recent article in Compact Equipment magazine explored the difference and offered some guidelines for selecting the best balance for various applications.
Read moreThe Construction Index reports that April marked the third consecutive month of construction output growth in Great Britain according to the Office for National Statistics.
Read moreAccording to a recent Construction Briefing article, the Hamburg Commercial Bank Purchasing Managers’ Index declined to 45.6 in May from April’s 46.0, with any score under 50 representing a decline in activity.
Read moreA recent article in Compact Equipment magazine explored the difference and offered some guidelines for selecting the best balance for various applications.
Read moreIn an article in Construction Briefing magazine, Ace Construction Equipment (ACE) executive director, Sorab Agarwal, cited India’s 6.5 percent annual GDP growth rate and expanding domestic and international markets for the company’s success.
Read moreRental attachments are an often-overlooked profit builder, and smart management is the key to a better return on your investment. A recent article in Pro Contractor Rentals magazine offered four suggestions for running a smarter rental yard.
Read moreExecutives at major North American lift manufacturers anticipate product demand to soften moderately in 2025.
Read moreThe event will allow industry experts to share insights on a range of issues, OEM trends and current and emerging technologies.
Read more
