Why haven’t construction companies demonstrated any notable improvement over the last 20-30 years?
-Stephanie Pretorius, Intent Group Globally, labour-productivity growth in construction has averaged only 1 percent a year over the past two decades, compared with growth of 2.8 percent for the total world economy and 3.6 percent in the case of manufacturing. McKinsey Report – Reinventing Construction through a productivity revolution.https://www.mckinsey.com/business-functions/operations/our-insights/reinventing-construction-through-a-productivity-revolution The construction industry has been quite resilient to the continuous improvement philosophy that has made large inroads in manufacturing. The pattern that emerged from the McKinsey report of lagging construction productivity will continue until the industry takes productivity improvement seriously. The industry cannot keep growing the way it is with more resources being tipped in to create poor or suboptimal outcomes, often for all of the parties involved. Striving to be the best is a wide-open field in construction and is going to generate huge opportunities for those who take action in coming years. What are the impacts if construction don’t make a significant change? The costs of an inefficient construction sector are already becoming more burdensome, for all parties including society in general. Poor planning processes create and enable disruption which affects large communities. The workforce who are working in an environment that accepts poor performance and is inefficient, or doing things because they have always been done that way, creates a workforce that is not engaged and not able to perform at their best. Infrastructure is not on time to meet the needs of the population. Value add delivery is constrained by mis-aligned processes, inadequate contracts and dysfunctional organisational relationships. Sub-contractors struggle to survive. The project mentality of ‘just get it done and move on to the next project’ means an ongoing cycle of reliving the same performance – different projects; the same issues. Why is the sector so resistant to improvement? From procurement through to planning and delivery, […]