Principles of Construction Economics

Construction industry strategies world economic crisis

IntroductionA situation in which the economy of

a country a sudden downturn brought

on by a financial crisis. An economy

facing an economic crisis will most

likely experience a falling GDP ,a

drying up of liquidity and rising/falling

prices due to inflation/deflation

Economic crisis

Its mean an economic recession

is primarily attributed to the

actions taken control the money

supply in an economy

Inflation is the increse in the

prices of goods and services over

the period.

Factors for Financial CrisisSub-prime lendingOriginate and distribute modelFinancial engineering, derivativesCredit rating agenciesLax regulationLarge global imbalances

Effect for construction industry

Contrctor not interest to invest the large money in the construction industry

Credit conditions are tightening and obtaining credit insurance is increasingly difficult

Construction companies face financing difficulties and, in some extreme cases, even bankruptcy.

The contraction in the new housebuilding segment is continuing and even deepening.

Contin....The non-residential market is influenced by the

business climate, In general, civil engineering works have fallen back

compared to previous year although it helped to sustain construction activity in many countries.

How to face economic crisis by construction industryGovernment decrease the taxes on the

construction firms and will give the more benifits

Handle limit projectTry to control inflation, interest rate and

unemploymentFind new oppurtunatity to produce product

and sell in a new marketManage the team with the contractorUse the new techniques

ConclutionIn order to effectively solve the

current eeconomic crisis sufficient control over inflation, interest rate and unemployment is vital

Try to find new oppurtanities to produce new product or try expand the market

Try to reduce imports from other countries

Motivating the construction wor ks by given loan at lower interest rate

Reducing the staffs turnover by giving a higher salary

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