Month: April 2021

Has Recession Hit Construction Industry in Past 3 Years

Yes, the construction sector has been hit hardest due to recession in past 3 years. In 2009, construction sector was seen to be much affected by recession particularly in Government sector. It is expected about the construction industry to be emerging out of recession by period from 2010-2014. Survey says that in UK construction industry there was a drastic fall of employment particularly in construction sector. Almost around 300000-400000 workers and employers lost their jobs and many of them were found jobless between the period of 2008-2010. The above figure is expected to be reduced to 100000 by 2014. During the period of 2009-2011 there was decline of number of huge construction projects and there was sudden drop down in the productivity too.Survey says that between the periods of 2010-2014, the growth rate in the construction sector is to be increased by 1.5-2% per year. Thus period between2010-2014 can be called as recovering years for construction industry.

In 2009, the recession in the construction industry crossed all limits and was the toughest period for the civil engineers and contractors. Thus in 2009 the recession hit the hardest and was on heights particularly in the construction sector. The government sector was affected the highest compared to private sector construction firms. We can say that in past 3 years 2009 was the most difficult and struggling year for civil engineers, architects as civil contractors. The initiative for the recovery of recession was taken by the Private Sector construction firms and thus resulted in to burn of recession to some extent. Due to recession there was a deep fall in employment which further resulted in fall of output. Thus greater efforts were put towards skill development and trainings for graduates to make them familiar through the latest technologies.Finally Construction Industry is found to be coming out of most struggling years of recession by advancement to newer technologies like Building Information Modeling in the construction sector.

Shortage and lack of skills was also considered to be the major contributing factor towards the recession which occurred in past 3 years. In other terms recession was considered to be a plus point as it served to enhance the prediction of skill requirement as well as understanding of construction market. During 2009-2010, the Gross Domestic Product (GDP) rate was declined by 4-5 %, thus making 2009 to be the largest economic recession since Second World War. Finally it is expected that construction sector will be out of recession completely by 2014.