problems facing the global enterprise while offering a solution to construction industry 

problems facing the global enterprise while offering a solution to construction industry

Introduction

The construction industry is a major of the leading contributor to the global economy. With technology development and skills enhancement that has resulted in the faster growth of the industry, various challenges or problems are facing this industry. The actual picture painted of the global construction industry is very concerning in nature. While the growth of this industry is stills forecasted on the sector as whole different countries such as the US, UK and the South Africa, for example, have inexperienced upsets in the domestic industries which have negatively impacted on the comprehensive picture of the sector (Wzorek et al., 2015). This one initially lucrative industry is facing some of the challenges that keep on compromising the growth of the entire sector and reducing its contribution to global economic participation. The nature of the challenges faced by this industry varies depending on the various factors, among them the country, policies, and technological innovation. This report examines some of the problems facing the global enterprise while offering a solution to the specific issues facing the sector (Arain, 2014).

Low productivity

There are considerably several issues and barriers to the global construction industry. This means that it is very much of a saturated market. With a stiffer kind of competition, the profit margin of the industry has tremendously declined over time. Unlike other industries, the construction industry has witnessed little to no improvements in the line of productivity in the past decades. A recent report from McKinsey & Co. did find that while various US sectors such as agriculture and manufacturing have in the latest time increased productivity to 10 or 15 times since he later 1950s, the overall productivity of the construction remains relatively low (Wzorek et al., 2015).

Those findings are troubling, particular as the construction industry projects are becoming more complex nature increasingly. There have been some factors that have resulted in relatively poor productivity on construction projects.  This reduced productivity can be a result of inadequate planning and scheduling. Lack of collaborations and communication between the actual stakeholder on the project, idle time wasted by having to wait on materials and suppliers to be delivered, or for prior work to be completed is a problem (Skitmore et al., 2015).  The element of labor shortage in the global construction industry and various places across the world is the key hindrance to productivity in recent years. Workers in the construction industry across different countries all over the world do have low skills and experience that is necessary or needed by companies trying to do more work with fewer workers. The fragmentation of this industry from working in silos is also another constructing factor that has resulted in the relatively lower levels of productivity in the sector (Gardezi et al., 2014).

To address this problem of poor productivity in the construction industry, there is needed for the companies to focus on the means of reducing poor labor productivity through better planning and work critical processes. Other than this reinvestment in improving or bettering the efficiency with technology should be done at the first actual opportunity. All construction businesses, mainly this concerned with the ordering of materials and receiving of the ordered articles, need to streamline the process of the construction companies to increase the productivity of these companies globally.  The application of the newly developed technology and software is one fundamental way of reducing the barriers that are associated with the productivity level in the global construction industry (Teuteberg et al., 2016).

Labor shortage

Construction is the most labor-intensive sector of any economy. Globally, the construction labor faces a severe challenge because most people have inadequate skills and knowledge, which is necessary for the appropriate construction. The aspect of the shortage of energy in the construction industry is not a new thing globally, before 2008, the global construction industry labor market was filled with traditionalist and the baby boomers. Now, the generations X individuals and the millions are joining this mix (Skitmore et al., 2015). The NLB notes that with baby boomers ad eh traditionalist retiring, the two newcomers represents an exceedingly kind of differences in behaviors and actual attitudes to massive industry sector and labor in general. The government of the various countries across the world has also failed to acknowledge the need for practical training of their citizens to strengthen the energy which is needed for the construction industry to thrive (Kumari et al., 2015).

The global labor industry is if there is a factor which is a uniting factor yet very harmful to the construction sector globally is the lack of skilled workers. From Canada to the UK to Australian and South Africa, the issue of shortages of labor repeats itself time and time again.  This problem has worsened in recent days as it felt that those in the millennial generation would make up 50% of the global workforce in the construction industry by 2020 (Wzorek et al., 2015). Most do not consider the construction industry as a serious opportunity and construction career.  Most people who are working in the various countries’ construction sectors do view it as a means of survival and do not take it seriously to acquire the needed skills for the industry. As a result, the industry has little skilled personnel because most people have failed to appreciate the role that this industry plays in the entire global economy (Gardezi et al., 2014).

Currently, about 21% of employees in the construction industry are above the age of 55 years and above. Workers in the construction industry are presently getting old and retiring at a rate that is considerably faster the young people are getting into the industry. Tech Savvy millennials are not flocking to a career in the construction in the construction field as a compared to the past, which will continue to result in f as they seek to meet the several growing demand of labor in the industry (Teuteberg et al., 2016).

As a solution to this problem, there is the need for a global push from the construction industry to adequately try and sell the idea of the construction sector to the millennials and the newcomer generation who will take over the industry in time to come. Companies who are ay this time are struggling to recruit people in the industry might find it rewarding to survey their local populace to understand which the industry has failed from the favors as a career (Wzorek et al., 2015). Companies in the construction industry need to improve their employment strategies by working with colleagues and schools to encourage skilled craftwork. They can also incentivize individuals considering the sector with excellent training, rewards, and other elements such as security. There is a need for more training in the institution of learning to encourage young people to start looking at the construction industry as a one rewarding industry worth investing in (Pasha et al., 2016).

Safety issues

The element of safety is paramount in the construction industry. Workers in the construction industry globally continue to be a victim of the dangers on the industry. For many years, the constructions have resulted in the number of deaths of the workers. With most companies in the sectors failing to follow the recommended guidelines and set policies of the construction site safety, the number of injuries of workplace injuries and illness has remained one constant for years. Keeping workers safe and protecting them against accidents ad injures should be the number one priority for all construction sites and company owners (Pasha et al., 2016).

It is estimated that over the past three decades alone, the number of injuries that have been accounted for in the construction industry is about 82,760 accident injuries. The number of accidents at the various construction industries all over the world continues to increase with a more significant danger being on those who do not observe the recommended safety measures which have been put in place. More and more people are becoming victim of accidents in various Global construction sites. This problem has increased in the latest days where the development of the accident-prone site in the construction have become common. With other sides all over the world mot meeting the standards of creation set by the authorities responsible, the challenge of the accident continues to be a significant concern in the various places (Kumari et al., 2015)

As a solution to this, there is a need for construction companies all over the world to observe the set safety regulation and guidelines for safe construction. There is a need for the companies to insist on their workers wearing the recommended protective and safety gear to reduce the injuries associated with construction sites (Wzorek et al., 2015). Besides, there is a need for the industry to train the workers on the safety measure at the construction site; this is also key in reducing the accident cases which are common at the current construction site. Proper identification of the risk factors at the construction sites is critical in ensuring that the accidents and injuries which occur at the construction site are minimized. As a last resort to this problem, there is a need for the various bodies concerned with the construction management in the multiple countries to implement more stringent rules that much be adhered to at the construction sites (Teuteberg et al., 2016).

Training is another most essential way of ensuring that the workers are safe. Safety training should not be a one-time event for the companies, but rather one essential and everyday element of any construction company as such ongoing training is required throughout the worker’s careers to emphasize the importance of a safe working environment and practices. This would reinforce the lesson they have been taught. Accidents are, in this way, preventable when safe work activities and practices mitigate the hazard that surrounds the construction industry. A committed towards a safe work environment can go a long way in improving the construction industry’s reputation and attract some of the top talents are showing he interest of the employees (Gardezi et al., 2014).

Lack of new Technological adoption

The construction industry as a whole is notoriously slow in the adoption of the latest and the new technologies. Various studies and surveys over time have shown that business owners continue to underinvest in the construction industry globally. This impacts on global construction negatively. Despite most people’s acknowledgment of the role that the construction industry plays in the global economy, most people have not fully invested in the technological sector. BIM and mobile devices and software applications have been used in the construction industry over the years. However, the application of technology in this industry has not been to the levels and standards, which are expected. Emerging technologies such as VR, AR and robotics, 3D printing, and the internet of things of instances have been underutilized in the construction industry globally (Arain, 2014).

Adoption of the latest and new technology globally is the new way of ensuring that this problem is solved.  The application of the lasts technology necessary for construction, such as the use of drones, wearable gadgets to monitor workers and keep them safe. VR is, in this way being used to train workers in ensuring safe environments and robots and autonomous types of equipment are allowing working through alleviation of some of the more strenuous tasks that are needed to undertake while at the same time removing them from of the more hazardous areas on the construction zones. Construction companies also need to employ more of millennials who are very aware of the lasts technology to ensure that the application of technology in the various areas of construction is made possible (Pasha et al., 2016).

Adversarial culture

The construction industry globally is one very complex one. The essences are normally based on the contemporary relationship that exists between the concerned parties or stakeholders. As explained, the problems of fragmentation in the global construction industry are not only in the kind of connection of the project but also in the operations of the actual projects. Whether through the use of the traditional methods and in the modern ones in the construction industry. The current global construction industry contains potential conflicting points where the different stakeholders or parties involved to transfer the risks to others. The issue is clearly shown among all the various stakeholders who are concerned with the construction (Wzorek et al., 2015).

To consolidate the construction industry there is a need for the global construction companies to integrate their operations and have a conventional procedure for conducting their services to have a simple understanding and a uniform method of performing their construction procedures. This would go a long way in ensuring the element of culture variations does not negatively impact on the quality of the construction globally. Besides, having a uniform construction procedure would me the labor can be shared over considerably a wider area and have the areas which have relatively lower construction procedures advance in the same way.  Besides, Ionizing the differences or the conflicting elements of the construction companies is one of the leading methods of ensuring that the organization makes it a routine in ensuring that it improves and delivers to its full potential (Wzorek et al., 2015).

Underperforming projects

Often the construction industry is expected to meet specific quality standards. Most of the construction companies all over the world have shown challenges in meeting the expected quality project. Often, as a result of either financial constraints of poor skills most organization globally that deals in constructions always fall short of the expected standards making construction project poor and vulnerable project which are a problem to accidents. The most construction industry, especially in the developing countries, have had the problem of poor project planning that leads most of the projects in states which are not complete (Gardezi et al., 2014)

Because construction is a labor-intensive sector, most projects are ever properly planned to result in unsatisfactory project completion. However, this problem can often be mitigated by proper project planning. There is a need for the planner to properly develop a project or construction plan before the start of the project. This would help the construction companies globally to be able to effectively plan for their project in terms of finances and labor and have the project effectively delivered (Gardezi et al., 2014). Proper planning would make it possible for various companies all over the world to enhance their quality. In the long run, this would generally improve the condition of the construction industry. The project which is underperforming in the global construction industry can be elevated to have a better construction using this particular method.

Conclusion

The Global construction industry is one very volatile yet essential sector of the global economy. Over the recent years, this sector has faced various challenges ranging from low productivity, safety issues, technological adoption, and shortage of labor for the industry, among others, which has negatively impacted the growth as well as the richness of the sector. Due to these challenges, the global construction industry has been able to explore its full potential and contribute the optimal revenues to the global economy that is expected of it.  There exist a various solution to the challenges ha faces the global construction industry. This solution to the multiple problems identified will make it possible for this one significant industry of the global economy to achieve its best potential and benefit the world.

References

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