International comparisons of construction industry performance: further investigations

While there have been many attempts at comparisons of construction performance over the past 50 years, the results have generally been inconclusive and/or contradictory.

Such comparisons are of great interest to industry, governments and theorists alike but there is little agreement as to how they are best done. A variety of methodologies have been used, however, the lack of satisfactory outcomes has been due largely to one factor, the lack of a truly reliable method for comparing construction costs in different currencies

Exchange rates are recognised as being unsuitable, and while purchasing power parity (PPP) has a long history, the method still has many critics. In addition, the nature of the building industry and its products makes the establishment of reliable construction PPPs very difficult. Both the UN’s International Comparison Program (ICP) and the European Union gather data for the production of construction-specific PPP indices, but neither body publishes them, as there is too much doubt about their reliability.

New approaches are being developed and some are soon to be trialled. This paper looks at the problems, describes and discusses some new approaches, and assesses their potential.

Drivers for adopting reverse logistics in the construction industry : a qualitative study

Purpose - The purpose of this paper is to investigate and analyse the perceptions of South Australian construction practitioners on drivers affecting the implementation of reverse logistics (RL). In this context, RL is defined as the process of moving goods from their typical final destination for the purpose of capturing value or ensuring proper disposal.

Design/methodology/approach - Semi-structured interviews were conducted with eight practitioners to collect data and the interview transcripts were analysed using the NVivo (version 10) package. Cluster analysis was used to cross-validate the findings and provide an in-depth insight into the findings.

Findings - The findings indicate that most of the drivers identified in earlier research are relevant for the construction industry. In addition, the study identified some new drivers that are categorised as "targeted demands by an exclusive clientele". These drivers were found to be complementary to the economic, environmental and social drivers as previously conceptualised. In addition, a set of factors affecting the strength of drivers that had been overlooked in previous studies emanated from the interview analysis. These include the type of project and the attributes of clients, both of which strongly affect the drivers of RL implementation in construction.

Research limitations/implications - The major limitations are the relatively small size of the sample of interviewees and having interviewees from one geographic area with specific socio-economic characteristics.

Practical implications - The identified drivers and the clustering of RL themes could be used by practitioners as a "road map" for the development of appropriate solutions to successfully promote RL within the construction industry. Organisational energies could thus be channelled towards the drivers that need the most improvement.

Originality/value - The study contributes to this research sphere by employing cluster analysis to customise and contextualise the drivers that were previously identified. The study goes beyond the extant literature by discovering the prominent effects of these drivers on the impact of targeted demands by an exclusive clientele. This could be of great value in terms of creating avenues for future investigations on the topic.

Incentive or deterrent: which encourages greater focus on health and safety in the Victorian construction industry?

The Australian Government commissioned a Royal Commission into the building industry in Australia that reported to Parliament in August 2002. Volume 6 of this report, released in February 2003, discussed certain aspects in occupational health and safety in Australia and leaned toward deterrents as a means of achieving reform. This research defines both incentives and deterrents used to increase awareness of, and improve safety on, building sites in Victoria, a state of Australia. A pilot survey questionnaire was developed following a literature review and industry employer representatives were invited to participate. Industry awareness of Government incentive programmes was found to be low, with less than a quarter stating they read Government strategies. One fund that provides actual research monies into health and safety was known to very few of the respondents. Of the employers surveyed, the majority agreed that financial fines do act as a valid deterrent. Increases in worker compensation premiums were seen as the greatest deterrent due to the effect on company overheads and thus competitive tendering bids. Deterrent programmes were more readily acknowledged by employers as they had an element of self promotion with employers attempting to avoid their application.

Validation of the use of input-output data for embodied energy analysis of the Australian construction industry

This paper evaluates a recently developed hybrid method for the embodied energy analysis of the Australian construction industry. It was found that the truncation associated with process analysis can be up to 80%, whilst the use of input-output analysis alone does not always provide a perfect model for replacing process data. There is also a considerable lack in the quantity and possibly quality of process data currently available. These findings suggest that current best-practice methods are sufficiently accurate for most typical applications, but this is heavily dependant upon data quality and availability. The hybrid method evaluated can be used for the optimisation of embodied energy and for identifying opportunities for improvements in energy efficiency.

A comparative study of construction industry size and structure between the UK and Australia and the significance of industry fragmentation

While comparing both the size and structure between the UK and Australian construction industries, this study reveals that the UK construction industry is about two and a half times larger than the Australian construction industry, and both industries are dominated by the proportion of small firms. The issue of fragmentation is characteristic of the construction industries in these two countries, and beyond. This study then develops a self recruiting-subletting cost indifference point model to explain why fragmentation occurs. Although the high proportion of small firms in the construction industry has been criticised as it prevents the exploitation of economies of scale, the self recruiting-subletting cost indifference point model theoretically proposes that subletting is usually profitable for construction firms. Thus the size distribution of the construction industry has a propensity to skew towards small firms.

Are employment effects of gender discrimination important? Some evidence from Great Britain

Interpreting the unexplained component of the gender wage gap as indicative of discrimination, the empirical literature to date has tended to ignore the potential impact wage discrimination may have on employment. Employment effects may arise if discrimination lowers the female offered wage and the labour supply curve is upward sloping. The empirical analysis employs the British Household Panel Study and finds evidence of both wage and associated employment effects.

Anticipating the uptake and possible implication of digital imaging within the construction industry

Photography within the construction industry is merging into a new form of image capture and output that is a mix of conventional photography and digital imagery. As this transition takes place it is anticipated that the credibility of the image may also change within in the communication chain that links the various disciplines within the building industry. The following paper presents the development and results of a pilot survey of building professionals, which addresses the quality, content and authenticity of both conventional photography and digitally produced images used within the construction industry.

Recent global trends in the Chinese construction industry and its market

The rapidly increasing construction demand in China, particularly spurred by the coming 2008 Beijing Olympic Games and the 2010 Shanghai Expo, provides challenging opportunities for overseas construction enterprises. Therefore understanding the structure and dynamics of construction industry in China is crucial, particularly the potential changes of the market after the China's entry into the World Trade Organization. This paper analyses the development of construction economics and institutional regulations in the construction market, and provides a comprehensive image on the Chinese construction sector in the global environment.

Assessment of embodied energy analysis methods for the Australian construction industry

Environmental assessment of buildings typically focuses on operational energy consumption in an attempt to minimise building energy consumption. Whilst the operation of Australian buildings accounts for around 20% of total energy consumption nationally, the energy embodied in these buildings represents up to 20 times their annual operational energy. Many previous studies, now shown to be incomplete in system boundary or unreliable, have provided much lower values for the embodied energy of buildings and their products. Many of these studies have used traditional embodied energy analysis methods, such as process analysis and input-output (1-0) analysis. More recently, hybrid embodied energy analysis methods have been developed, combining these two traditional methods. These hybrid methods need to be compared and validated, as these too have been considered to have several limitations. This paper aims to evaluate a recently developed hybrid method for the embodied energy analysis of the Australian construction industry, relative to traditional methods. Recent improvements to this hybrid method include the use of more recent 1-0 data and th.fl inclusion of capital energy data. These significant systemic changes mean that a previous assessment of the methods needs to be reviewed. It was found that the incompleteness associated with process analysis has increased from 49% to 87%. These findings suggest that current best-practice methods of embodied energy analysis are sufficiently accurate for most typical applications. This finding is strengthened by recent improvements to the 1-0 model.

Projections of the future path of the gender wage gap in Great Britain

Purpose – The paper attempts to project the future trend of the gender wage gap in Great Britain up to 2031.
Design/methodology/approach – The empirical analysis utilises the British Household Panel Study Wave F together with Office for National Statistics (ONS) demographic projections. The methodology combines the ONS projections with assumptions relating to the evolution of educational attainment in order to project the future distribution of human capital skills and consequently the future size of the gender wage gap.
Findings – The analysis suggests that gender wage convergence will be slow, with little female progress by 2031 unless there is a large rise in returns to female experience.
Originality/value – The paper has projected the pattern of male and female skill acquisition together with the associated trend in wages up to 2031.

An industrial organisation economic supply chain approach for the construction industry : a review

Understanding industries in terms of the concepts of chains, clusters and networks is becoming increasingly important in economies around the world. Supply chain management for an individual organization is an
emerging field of research in the construction management discipline, but less attention has been devoted to investigating the nature of the construction supply chains and their industrial organizational economic environment. This selected review of construction and mainstream management supply chain literature is organized around four themes; distribution, production, strategic procurement management and industrial
organization economics, and highlights the need to develop an industrial organization economic supply chain framework for construction. The merging of the supply chain concept with the industrial organization model
as a methodology for understanding firm conduct and industry structure and performance is an important contribution to both construction supply chain and construction economic theory. Much of the industrial organization supply chain literature has tended to focus upon manufacturing industries, where typically firms are permanent organizations. This raises issues as to the differences between industries founded upon temporary compared with permanent organizations. There is potential for the development of an industrial organization methodology applicable to the project based industry. Ultimately industrial organization research seeks to have direct implications for industry performance and government policies.