Lecture 1 - Construction Industry

8/3/2019 Lecture 1 - Construction Industry

1/24

LECTURELECTURE -- 11

BoeingLaishram


2/24

Priv l r

EPC Contracts

Real estate developers

2


3/24

????

3


4/24

n l r n mi ivi

Influence of industry spans across several sub-

sec ors o economy Main characteristic feature of construction

industry

sectors right from construction workers to

suppliers etc.

4


5/24

Amount (in multiples of Rs.100 Crores)

1998 1999 2000 2001 2002

Residential Construction

Private 47 49 85 100 103

Total 90 95 150 175 180

Non-residential Construction

Public 56 58 55 60 65

Total 160 165 150 170 185

Civil En ineerin Construction

Public 1350 1480 1690 1900 2155Private 500 530 640 755 880

o a

Note:Investmentinconstructionsectorcontributes6.5%ofGrossDomesticProduct5


6/24

B in r ni i n

Engaged in direct construction

Medium size companies

Small construction firms (urorganised)

Distribution of contractors b em lo ment size

6


7/24

employment quantum

Status of HRD

Engineering/Graduate

level Sub-graduate level

Unor anised

Supervisory Workers/advisors

7


8/24

n r i n In r n E n mi D v l m nn r i n In r n E n mi D v l m n

B kw r link

Forward linkages

8


9/24

Backward linka es industries Building materials

Expansion of construction industry can simulate

Significant impact of backward linkages Unskilled labour-intensive domestic resources

Value added through backward linkages can

account for a considerable proportion of GDP Value added throu h backward linka es could be u

to 55% of the value of construction purchases ofmaterials and services from other industries

9


10/24

--

M ni f m l m n

1.2 million citizens per year (organised)

Major employment generator

It absorbs rural /seasonal labour

I r n kill w rk r in i i n mi-skilled and some skilled)

It supplements the workers seasonal income from.

10


11/24

r lin r n

11


12/24

Buildin materials manufacturin industr Cement

Bricks/tiles

Fixtures/fittings

Construction equipment

Timber

nera pro uc s

Aluminum, glass & plastics

12


13/24

m n n l in ri h r n linkwith construction

o cemen pro uc on s consume nconstruction

60-65% of steel production goes to construction

13


14/24

14


15/24

F rw r link f n r i n wi h h rsectors

Housing and other assets building activities

Proportion of project cost towards construction

cost infrastructure ro ects like roads housinetc

-

15


16/24

n r i n in n i

16


17/24

Link f n r i n in r wi h h rsectors

backward linkages

agn u e o n age s s gn can

Demand for construction outputs is derived demand from all

Impacts of forward linkages on the economy

Reduction in costs of intermediate inputs frominfrastructure services

Increase in productivity of other factors of production

17


18/24

Av il ili f infr r r rvi

Profitability of production, levels of returns, output,

Supply of roads & electricity can have a positive effect ona re ate a ricultural out ut & rowth of farm investments

Enhance international competitiveness

lack of access to infrastructure services

Multiple economic costs Direct costs of production delay Loss of perishable raw materials

Costs of under-utilisation of productive capacity

18


19/24

n an onstruct on n ustryn an onstruct on n ustry a ora orII

19


20/24

Inv m n n R D in n r i n T hn l iInv m n n R D in n r i n T hn l i

20


21/24

21


22/24

22


23/24

23


24/24

24

Lecture 1 - Construction Industry

Documents

Transcript of Lecture 1 - Construction Industry