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.
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