The report will also examine the global market relative to marketing situation, including an industry-scoped PESTLE analysis. The report will follow with a recommended framework for change management and continuous improvement. The goal of this report is to serve as an informative analysis that can be utilized from its general structure to develop more specific strategies within the management of the construction industry market.
According to the Department for Trade and Industry's (DTI 2007) annual report on the construction industry, there are over 250,000 individual firms operating in the UK construction sector which primarily operate within the residential, non-residential and civil engineering sectors. The construction industry employs two million persons. The focus of the construction industry is the acquisition of construction materials, management of suppliers and manufacturers, building design, service, and installation. This includes private contractors, sub-contractors and advisors in design, building, operation and refurbishing of buildings (DTI 2007). It is important to note that the construction industry is the second largest industry in the EU and contributes to slightly over eight percent of the national gross value (DTI 2007).
The nature of t
Nature Of Construction Market
The nature of the construction industry market is that it is based on the national, and sometimes global, economy. The construction industry exists because the individuals within a community desire the building of certain constructs based on factors such as income, interest rates, value of money (in or EU), and thus the construction industry is at once a good indicator of economic health and subjected to the slowing or increasing of a nation's economic health.
The construction market can exist on a local or global scale, increasingly the construction company must be able to function on multiple market levels. In 2005, there were approximately 15,000 million new housing orders in both public and private sectors (DTI 2007), not including refurbishment or maintenance of old houses. In the same year, 25,000 million was requisitioned for contracted infrastructure in private, industrial, and public buildings. According to Market & Business Development (MBD 2007) the construction market is expected to reach its peak in development and sales in 2006 with a growth rate of 4 %. Further market analysis by MBD (2007) shows that the construction industry output has an overall growth rate of 35% between 2002 and 2005, yet the construction market is foreshadowed by the upcoming industry pressure due to earnings growth continues to pick up and energy costs increase, combined with a slowing of public sector contracts.
Analysis Of The Global Market
The EU construction sector is a