The size and quality of houses have been changing over time, but the overall growth in the housing construction sector has been flat for 50 years. In the construction business, there is competition during the bidding process, but once a job is secured, attention shifts to the next bid. This creates a problem of labor shortage and slower progress on previous jobs. Most sectors would hire more people with more orders, but the construction industry often reallocates existing workers to new projects.
Most industries have become more productive over time. But not construction! We identify the causes — and possible solutions. (Can you say ... “prefab”?)
RESOURCES:
EXTRAS:
SOURCES:
- Vaughan Buckley, founder and C.E.O. of the Volumetric Building Companies.
- Carrie Sturts Dossick, professor of construction management at the University of Washington.
- Ed Glaeser, professor of economics and chair the economics department at Harvard University.
- Michael Hough, director of MJH Structural Engineers.
- Ivan Rupnik, professor of architecture at Northeastern University.
- Chad Syverson, professor of economics at the University of Chicago.