Lecture 3: Construction Industry

By:
Dagnachew A. (PhD)

19 Nov 22 1
 Contents of the presentation

The construction Industry

The construction industry – Global perspective

The construction industry – Ethiopian perspective --- Ass #1

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 Brainstorming
• What is construction?

• Construction industry (CI) vs employment opportunities?

• CI contribution vs country’s GDP?

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 The construction Industry

Animation Video

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 3. Construction Industry
3.1. Introduction
Construction is a process of construct
ing something by
man for one purpose or another. It may
be a road, bridge,
dam, dwelling place, an airport,
commercial building, etc.
Construction types:
– Residential buildings;
– Institutional and commercial buil
dings;
– Specialized industrial construction
; and
– Infrastructure and heavy construct
ion.
• Construction Industry is an
industry which is
involved in the planning, execution
and evaluation of
all types of civil works.
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 Project is some form of human activity that
has:
a beginning,
a productive phase &
an end,
creating something that did not exist before.
Construction Project: is an investment of
scarce resources with a definite objective, time horizon
& geographical boundary.
Construction projects are mostly constructed
on the
ground and exposed fully to the local environment.
A construction project has different scale &
complexities.
It ranges from improvements to large investments.
But, every project is:
an investment of resources, and
a cause of irreversible change.

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Common characteristics of construction projects:
• They have specific starting and finishing time.

• They have geographical and sometimes organizational

boundary.

• They have clearly defined set of objectives.

• they entail the investment of scarce resources in the

expectation of future benefits.

• they may be planned, financed and implemented as a unit.

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 The Construction Industry: Global Perspectives

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Construction industry growth

The Asia-Pacific region will

continue to account for the
largest share of the global
construction industry,
however the pace of growth
will slow given the projected
slowdown in China’s
construction industry to an
average of +4.2% between
2018 and 2022, offset by an
acceleration in construction
growth in India.
 The contribution of CI to the Ethiopian GDP

https://www.salini-impregilo.com/en (Nov. 25, 2019)

ID parks
 The construction Industry – Global perspective

World Urban Population is increasing by 200,000 per day requiring:

Affordable Housing, and
Social, Transportation, Utility Infrastructures
Eight Themes for CI Transformation
Technology, Materials and Tools
Processes and Operations
Strategy & Business Model Innovation
People, Organization and Culture
Industry Collaboration
Joint Industry Marketing
Regulations and Policies
Public Procurement
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 Industry Transformation Framework
(Future) Best Practices

Source: World Economic Forum; The Boston Consulting Group (2016)

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 The Construction Industry: Global Perspectives

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 The Construction Industry: Global Perspectives

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 The Construction Industry: Global Perspectives

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 The Construction Industry: Global Perspectives

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 The Construction Industry: Global Perspectives

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Thank you for your attention