Principles of Construction Economics Construction industry strategies world

Principles of Construction Economics

Construction industry strategies world economic crisis

Introduction �A situation in which the economy of a country a sudden downturn brought on by a financial crisis. An economy facing an economic crisis will most likely experience a falling GDP , a drying up of liquidity and rising/falling prices due to inflation/deflation

Economic crisis �Its mean an economic recession is primarily attributed to the actions taken control the money supply in an economy �Inflation is the increse in the prices of goods and services over the period.

Factors for Financial Crisis �Sub-prime lending �Originate and distribute model �Financial engineering, derivatives �Credit rating agencies �Lax regulation �Large global imbalances

Effect for construction industry �Contrctor not interest to invest the large money in the construction industry �Credit conditions are tightening and obtaining credit insurance is increasingly difficult � Construction companies face financing difficulties and, in some extreme cases, even bankruptcy. �The contraction in the new housebuilding segment is continuing and even deepening.

Contin. . �The non-residential market is influenced by the business climate, � In general, civil engineering works have fallen back compared to previous year although it helped to sustain construction activity in many countries.

How to face economic crisis by construction industry �Government decrease the taxes on the construction firms and will give the more benifits �Handle limit project �Try to control inflation, interest rate and unemployment �Find new oppurtunatity to produce product and sell in a new market �Manage the team with the contractor �Use the new techniques

Conclution �In order to effectively solve the current eeconomic crisis sufficient control over inflation, interest rate and unemployment is vital �Try to find new oppurtanities to produce new product or try expand the market �Try to reduce imports from other countries �Motivating the construction wor ks by given loan at lower interest rate �Reducing the staffs turnover by giving a higher salary

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