Les Ruddock

The construction sector and economic development: the 'Bon curve'

The complexities of the relationship between a countrys level of construction activity and its stage of economic development are considerable. Studies over the last three decades, based on macroeconomic analysis, have attempted to model the relationship but have usually been hampered by problems of data quality and availability. Nevertheless, paradigms have emerged (usually based on Keynesian philosophy), which are concerned with the dynamics of construction activity as an agent in the promotion of economic growth in economies at different stages of development. One such is the ‘Bon curve’. An examination of the data issues of attempting to assess the validity of the proposition is made and then the role of the construction sector in highly developed economies is considered.

Measuring the global construction industry: improving the quality of data

In the context of a truly global market for construction, an international strategy is required to ensure that national and international statistical systems are able to provide accurate and valid information. In many parts of the world the collection of reliable national information on construction activity is not an easy task, and the measurement of comparable, cross-national data can be problematic. This paper considers possible strategies for the improvement of data collection systems in the context of user needs.

Adoption of sustainable retrofit in UK social housing

Purpose – The study was designed to assess the knowledge, adoption and perceived effectiveness of sustainable retrofit technologies within the UK social housing sector.Design/methodology/approach – The study was undertaken using a structured questionnaire that was completed by 130 providers of social housing.Findings – The study showed that social housing providers were evenly split in their reliance on internal or external information for sustainable retrofit knowledge. In terms of adoption identified that this was strongly driven by government‐funded programmes, leading to widespread adoption of low technology solutions. The respondents identified that many leading edge technologies were perceived to be less effective.Research limitations/implications – The study represents a snap‐shot of adoption and effectiveness issues, therefore does not show the trajectory of adoption which should be addressed in a follow‐up study.Practical implications – The social housing sector has been viewed as a market maker ...

Evaluation of trends in the UK construction industry using growth and productivity accounts

For an assessment of the productivity performance of construction at the industry level, the quality of any analysis can be improved by the availability and use of detailed data on the basic components of the industry’s production function. The EU KLEMS Growth and Productivity Accounts comprise a dataset that provides a rich source of information on the sources of growth by industry, one of which is the construction industry (ISIC 45), since the 1970s for European Union countries and other major economies. The database allows a breakdown of factor inputs by the categorization of capital inputs into asset types and labour inputs into components such as skill levels to provide more precise measurement of sources of growth at industry level. The UK construction sector forms the focal point of the analysis and the results of this analysis provide evidence of a steady increase in the growth of ICT and improved labour skills usage and a relatively high rate of total factor productivity for the UK construction industry.

Reassessing productivity in the construction sector to reflect hidden innovation and the knowledge economy

With the development of a knowledge economy, it is reasonable to assume that the level of innovation should be particularly high and that it should have a major effect on investment and productivity across all sectors, including the construction industry. For a valid assessment of the economic performance of the construction sector in terms of its productivity, it is important that the economic benefits for the sector from technological change are properly recognized but the impact of such benefits may be ‘hidden’ due to measurement issues, as innovative activity and investment in intangible assets have both gone unrecognized in official statistics. Much of the innovation in the construction sector is hidden from conventional measures and, for the UK economy, there is evidence that investment in intangibles may be even greater than tangible investment, if a definition of intangible assets incorporating spending on a broad range of knowledge‐based assets including organizational capital, human capital, etc. is taken. While accurate data are difficult to determine, an appraisal of the potential for utilizing existing data sources and for improved measurement is presented.

Low carbon retrofit: attitudes and readiness within the social housing sector

Purpose – The study was designed to assess the attitudes, strategic readiness and drivers and barriers to the adoption of sustainable retrofit within the UK social housing sector. Design/methodology/approach – The study was undertaken using a structured questionnaire that was completed by 130 providers of social housing. Findings – The study showed that social housing providers were aware of the sustainable retrofit agenda, but with varying levels of strategic readiness. Immediate benefits to residents were seen as important drivers, as opposed to more remote issues such as climate change. The emerging nature of the sustainable retrofit market was seen as a major potential risk for residents. Research limitations/implications – The study represents a snap-shot of adoption and effectiveness issues, therefore does not show the trajectory of adoption which should be addressed in a follow-up study. Practical implications – The social housing sector has been viewed as a market maker for the sustainable retrofi...

Moving from production to services: A built environment cluster framework

The construction industry is no longer focused on providing a single product ‐ i.e. a building or a physical infrastructure, but a variety of services and improvement to the human environment. Major trends such as Performance‐based Building as well as Sustainable Built Environment are calling for major changes. These changes mean additional roles for the industry as well as the need for new indicators to measure its performance and its economic impact. This paper proposes a new approach based on the development of a framework for the analysis of the entire construction and property sector ‐ the “built environment cluster”. It extends the analysis of an international study based on nine countries ‐Australia, Canada, Denmark, France, Germany, Lithuania, Portugal, Sweden, and the United Kingdom. The need for improving statistical data is stressed particularly in the context of enlarging the scope of the industry. This new approach provides an excellent starting point for developing new performance indicators that will take into account the changing nature of the industry, for an integrative perspective providing a basis for strategic management, for studying sustainable development in construction and for understanding innovation processes and changes. A comprehensive perspective of the industry performance is crucial for policy initiatives as well as for strategic analysis of firms.

UK construction companies’ strategies in the face of business cycles

Firms in the construction industry have always had to deal with the challenges of the economic cycle and develop strategies to deal with the resulting fluctuations in their business environment. In the context of the 2008-2011 double-dip recession in the UK, the results of a survey targeting the top one hundred construction companies in the UK are reported here. This research is particularly intended to assess whether the strategies of large companies in the construction sector, when faced with the issues associated with the variation in the economic cycle, have changed since the previous business cycle (i.e. the 1986-1990 boom followed by the 1990-1991 recession). The survey reveals the challenges that companies have faced, reports on company behaviour and on the policies adopted. While there are many similarities between policies adopted during the recessionary periods of the two cycles, the research found notable changes in attitudes towards diversification, human resource management and price bidding.

The financial and economic challenges of housing provision for an ageing society

Purpose The purpose of the paper is to assess the critical financial and economic issues associated with the provision of adequate housing in the UK in the face of current and future demographic change. Design/methodology/approach The review is based on an investigation of the current state of preparedness of the housing market and its various stakeholders based on recent reports and secondary statistical evidence. Findings The findings emphasise the need for a multi-faceted approach to tackle the challenges that need to be addressed. Unless measures are initiated to influence the market, the requisite increase in the stock of appropriate housing in the face of rapid demographic change will not occur. Originality/value The value of the study is that it identifies the issues based on the current state of provision and makes recommendations for meeting the challenges arising from these issues. These recommendations have strong implications for policymakers and other stakeholders.

Economic value determination as a strategy for building resilient communities in the Niger Delta region

In a novel approach to disaster resilience that embodies a multidisciplinary problem solving process in determining the value of damaged property, a framework has been developed for determining the economic value of damages to property due to contamination from human-caused oil spill disaster in the Niger Delta. The framework will result in a reduction of the recovery process of affected communities following an oil spill as they know in advance what will be done and result in standardisation of the valuation process. it will enable the polluter to know the cost of their malfeasance and provide the property owners with the economic value of their polluted property to enable them to continue their livelihood. Professional valuers and property owners are very dissatisfied with the current practice without a standard framework and oil company operators hardly realise the economic cost of disasters imposed on the communities. Reviewing the theory and practice of economic value and ecosystem valuation, a mixed-methodology was employed using questionnaires and expert interviews to ascertain how contaminated wetland property is valued, the professionals involved and their respective roles. The proposed framework will provide a systematic process leading to the determination of the economic value of damages due to contamination of wetlands property.