Macroeconomics in the construction industry

Rising incomes stem from a self-reinforcing cycle of rising demand -- people spend more as they have more money to spend, resulting in increased business revenue that can be shared with employees. Aspiring entrepreneurs take advantage of this trend by opening new businesses. Demand and supply Depends on National income, financial status of the family to invest, stability of the job, location of the place of works, means of transportation.

The Economy's Effect on Construction Companies

Monopoly and Oligopoly In the building industry, there is no monopoly. Lower incomes lead to more conservative spending and investing habits in families, and entrepreneurs are less encouraged to open new businesses.

Even people and businesses less affected by economic downturns than others can be reluctant to invest in new construction projects during these times, preferring to delay capital investment until macroeconomic trends shift upward.

Discuss The construction industry tends to be a quite volatile sector of the economy. Higher raw material prices such as steel and oil will increase the cost of business.

Pollution Control Construction industry works with calculations and within the framework of carbon credits. It involves numerous clients like property builders, property developers, material suppliers and contractors. An article from The Association for Union Constructors TAUC gives an example of this by pointing out opportunities for inner-city and close-suburb construction projects following the housing crash.

Also as house prices fall, the return on building new houses decreases. The scope of Construction Industry is too broad and HHI Lifting is making its valuable contribution for expanding it further.

Also, attractive construction of the infrastructure attracts many inward investors for business deals. Since construction is often financed by borrowing or using savings, the interest rates will be an important determinant of investment.

Firms have uncertainty about future prices and costs and there is a general economic uncertainty. If there is a depreciation in the exchange rate, exports become more competitive and the exporting sector will generally do better.

There is oligopoly in the building industry i. As another example, when a struggling economy slows production of new office buildings, savvy contractors can find opportunities to renovate and repair older facilities. The Construction Industry brings cost-effective building solutions where in all these clients play an active role to make the contract a success.

Government policy can play a role in influencing the construction industry. Housing Market A significant sector of the construction industry is the housing sector. Strong Economy A strengthening economy has the general effect of raising individual incomes and encouraging entrepreneurship.

Performance of Firms in UK Construction Industry

In a weak economy, focus on counter-cyclical opportunities while remaining ready to take advantage of a future upswing.

In a strong economy, protect against a possible economic downturn by diversifying your services into a range of segments that do not all rely on economic strength.

As a small-business owner, Ingram regularly confronts modern issues in management, marketing, finance and business law. Also high inflation rates are usually a sign that interest rates will have to rise, something that may discourage investment because higher interest rates increase the cost of borrowing.

The exchange rate has a bearing on the exporting sector. Contribution of Construction Industry in Economic Growth Construction is an important sector that contributes greatly in the economic growth of a nation. Building of a dam, road, monument, wooden structure, real estate assets, etc.While construction is generally a cyclical industry, meaning it gains strength during economic upswings, small construction businesses are uniquely positioned to take advantage of counter-cyclical.

demand in the construction industry The determination of demand for goods and services produced by the construction industry is a complicated process due to longevity, cost, size and investment nature of the products and partly due to what constitutes construction industry.

Economic indicators: construction Economic indicators for the construction industry are available from a number of sources, including government and professional bodies.

On this page you can access reports and online resources providing statistics and.

Aug 17,  · Brazilian construction firms: Knock ’em down, build ’em up May 21stfrom Print edition Government cuts and a bribery scandal will prompt a shake-out in the industry.

Performance of Firms in UK Construction Industry Tejvan Pettinger May 9, economics The economic performance of a UK Construction PLC will be affected by many factors, including the role of government, exchange rates and inflation.

The macroeconomics are responsible to estimate of the productivity of construction industry in many countries such as UK but the micro economy are the economy's section which studies and analyzes the behavior of the market for individual consumer and firms, and the macroeconomics considered a study in the national scale but the micro .

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Macroeconomics in the construction industry
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