The international construction industry issues
Bernard C. Capellan
1st Assignment
CM 609, International Issues in Construction
July 13, 2014
____________________________________
The Main Drivers of the International Construction Industry, Global Economy and Its Role in Developed and Developing Countries including the Philippines (Answers to Questions 1 and 3)
The construction industry is one of the largest in the whole world. This industry contributes about 10 percent of the total Gross Domestic Product (GDP) of the entire global economy. Construction has been potentially an employment generator and currently provides jobs for at least seven percent of the world’s workforce.
The construction industry as viewed from the international perspective has grown so huge that the energy (fuel and electricity) consumed by this industrial sector amounts to around twenty percent of the total energy consumption of the world. All other resources utilized by construction is a staggering fifty percent of the total resource output of the entire world.
Historically, the construction industry has been the base of the global economy as an offshoot of a well-established agricultural economy of the ancients. This is evident from the Pyramids of Giza, the Forbidden Temple in Beijing, the Hanging Gardens of Babylon, the Angkor Wat, the mountain top cities of Peru, Mexico and Bolivia, and all the roads that lead to Rome. From this perspective, it lead to the establishment of new world centers of development due to the coming of the industrial age, creating new economic superpowers in Europe and eventually spilling-over to the new world, central asia and the middle east. Although in these periods, international development due to the construction industry has not been fully realized, until near the end of the 20th century where territorial boundaries were transcended by trade due to the opening up of world markets to the international community.
In the past, the construction industry has limited itself to terrestrial
1st Assignment
CM 609, International Issues in Construction
July 13, 2014
____________________________________
The Main Drivers of the International Construction Industry, Global Economy and Its Role in Developed and Developing Countries including the Philippines (Answers to Questions 1 and 3)
The construction industry is one of the largest in the whole world. This industry contributes about 10 percent of the total Gross Domestic Product (GDP) of the entire global economy. Construction has been potentially an employment generator and currently provides jobs for at least seven percent of the world’s workforce.
The construction industry as viewed from the international perspective has grown so huge that the energy (fuel and electricity) consumed by this industrial sector amounts to around twenty percent of the total energy consumption of the world. All other resources utilized by construction is a staggering fifty percent of the total resource output of the entire world.
Historically, the construction industry has been the base of the global economy as an offshoot of a well-established agricultural economy of the ancients. This is evident from the Pyramids of Giza, the Forbidden Temple in Beijing, the Hanging Gardens of Babylon, the Angkor Wat, the mountain top cities of Peru, Mexico and Bolivia, and all the roads that lead to Rome. From this perspective, it lead to the establishment of new world centers of development due to the coming of the industrial age, creating new economic superpowers in Europe and eventually spilling-over to the new world, central asia and the middle east. Although in these periods, international development due to the construction industry has not been fully realized, until near the end of the 20th century where territorial boundaries were transcended by trade due to the opening up of world markets to the international community.
In the past, the construction industry has limited itself to terrestrial
References: Global Construction and The World Economy, Hazelton, Scott, Senior Principal and Director, Construction Services, Global Insight Achieving High Performance in the Construction Industry, Accenture Construction Industry Market Report, Peter Morris, The Construction Industry in Developing Countries, Moavenzadeh, Fred, M.I.T World Economic and Financial Surveys, World Economic Outlook 2013, International Monetary Fund (IMF) The Philippine Construction Industry Report, National Statistics Coordination Board Positive Infrastructure – A Framework in Revitalizing the Global Economy, World Economic Forum 2012 Industry Trends, FMI