Overview of Construction Industry

Construction is the oldest and one of the largest industries in the world with its market size of about ten trillion US dollars. Construction is traditionally a contracting business right from the good old days, the industry comprises of a very large number of small firms. Now the construction industry is one of the largest industries in any economy. It makes a significant contribution to the national economy and provides employment to a large number of people.

Let us understand what we mean by the construction industry and how it has been defined by professionals and regulatory bodies. Learn the various dynamics and challenges in the domain knowledge for the Engineering and Construction Industry.

Definition of Construction Industry

Construction is a general term meaning the art and science to form objects, systems, or organizations. Construction is an industry that includes the erection, maintenance, and repair of buildings and other immobile structures, and the building of roads and service facilities that become integral parts of structures and are essential to their use. In its most widely used context, construction covers the processes involved in delivering buildings, infrastructure and industrial facilities, and associated activities through to the end of their life. Construction includes structural additions and alterations but excludes the building of mobile structures such as trailers and ships. It typically starts with planning, financing, design, execution, builds, and also covers repairs and maintenance and improvement work.

The United States Department of Labor defines the construction industry as companies that are engaged in the construction of buildings or engineering projects, such as bridges and roads. Construction work also takes place when renovating existing buildings.

History of Construction Industry

Construction is as old as history as humankind has been constructing structures for centuries. The first huts and shelters were constructed by hand or with simple tools. Most of the earliest buildings have not survived to this century because they were made of nonpermanent materials. As cities grew during the Bronze Age, a class of professional craftsmen, like bricklayers and carpenters, appeared. From the architect's dream and the engineer's endeavor to final satisfaction of user, construction represents many of our civilization’s noblest achievements. The formal construction industry itself formally began as early as 3,000 years ago, when Egyptians first began organizing and building large structures from stone and baked brick. The 3,000-year-old Egyptian pyramids are assembled from mammoth stone blocks; the 2,500-year-old Mayan temples in Guatemala are hand-carved stone. In North America, the origins of the construction industry coincide with the rise of agriculture and the need for residences as more settlers arrived in the colonies.

Some structures that were made of stone and baked brick have survived and builders from history have left lot many structural wonders for us. Among the classics of the past may be mentioned the pyramids of Egypt, Taj Mahal, and China’s Great Wall. The earliest buildings in North America were grist mills, water mills, windmills, and residences.

During 1796, major breakthrough in building design occurred, when the industry started using cast-iron pillars that allowed architects and builders to construct buildings higher than 10 stories. By the 19th century, buildings were being constructed 14 and 15 stories high and equipped with mechanical elevators, precursors to modern skyscrapers that raise more than 100 stories.

Now days, throughout the world, construction has become a leading industry in all market economies. Construction industry accounts for more than 10% of global GDP (6-9% in developed countries) and employs around 7% of the global workforce (around 273m+ people). The output of the global construction industry was worth an estimated $10.8 trillion in 2017.

Today, the construction industry is still testing new materials and new methods of building with metals and synthetic products. Lighter, stronger materials allow the construction of larger, more open structures with less support. These new products are designed to withstand natural disasters, such as earthquakes and hurricanes. Fast-track construction has been increasingly popular in the 21st century. Some estimates suggest that 40% of construction projects are now fast-track construction Fast-track construction has been increasingly popular in the 21st century. Some estimates suggest that 40% of construction projects are now fast-track construction.

It is assumed to be the first indicator of health of the economy. Its acceleration starts a buoyant economic growth and vice-versa. Korea, Taiwan and Hong Kong, have used construction sector to lift themselves into vibrant economics. Malaysia and China are using the same strategy, by rebuilding their cities and highways etc. to become major players in global economy.

Each type of construction project requires a unique team to plan, design, construct and maintain the project. In general, there are three types of construction:

Building construction which is the process of adding structure to real property.
Industrial construction processes require highly specialized expertise in planning, cost estimating, design, and construction.
Infrastructure Construction, also called heavy civil or heavy engineering, includes large public works, dams, bridges, highways, railways, water or wastewater and utility distribution.

Large scale construction is normally managed by a project manager, and supervised by a construction manager, design engineer, construction engineer or project architect.