Construction Industry in the UK - Research Paper Example

Assessment 3: Research Paper This paper talks about the construction industry in the UK. It gives us a brief overview of the industry and an introduction to communication. The theme we have chosen from the module. A wide variety of issues such as health hazards and corruption existing within the industry have been covered. Statistics such as the number of people employed, contribution towards the GDP and the GVA are provided as well as the output of the industry and its ranking. Furthermore, my personal experience of the industry has been explained in detail, while the issues mentioned have been discussed as well. Issues discussed include the condition of the industry and where it needs to go from here. In the end some recommendations such as, the government trying to stabilise the economy will help the industry prosper in the upcoming future, the industry focusing on not only building structures but diversification and more research and development. Introduction The theme that I have chosen from the leadership module is communication. Communication is the process through which we can assign and convey meaning to create shared understanding. It is basically exchange of thoughts and ideas from one person to another. The built environment/construction industry sector is a vital part of our economy. Human beings need houses to live in and that need to be built or constructed. Houses or structures have evolved through time. Today the structure of a building is more contemporary than. The industry is divided into three main sectors: the construction of building, heavy and civil engineering construction contractors and specialty trade contractors. The construction industry in the UK is quite large; it employs 2.2 million people and is Britain's largest industry. The industry is quite dangerous to work inn because of the large number of accidents that take place in the working environment. The industry accounts for 5 per cent of the UK GVA i.e. Gross Value Added. UK has the second highest level of construction value added per capita. The industry is worth 65 billion per annum and its total output in 2002 was 81.9 billion. It comes in the top ten construction industries in the world. The industry is skewed towards small firms, but these firms contribute a small share to the output and employment of people. Apart from all of this, the construction industry in any part of the world not only UK, is highly dependent on the business cycle. Any change in the environment affects the industry and decisions related to the industry. Thus, the better the economy is doing the better the environment for the construction industry to thrive in. Aims/Objective In this paper we will discuss the construction industry and we will see how the communication theme of the module affects the industry. Also, communication is a vital part of any industry or business environment, we will see the part that it plays in this particular industry. Literature Review The name of the literature is mentioned in the bibliography, but I will give a brief overview of all the literature that I went through in this section. According to the Fatal statistics released by Health and Safety Executive (HSE) for 2006/07 show there was a 28% increase in the number of fatal accidents to workers in the construction industry. Tragically 77 workers lost their lives in construction up from 60 in 2005/06, which was the lowest figure on record. (HSE Construction: Live Issues). Thus there are many health hazards in the industry. Corruption is also an issue even though the people involved in the sector have differing views about it making the problem very complex. A council has been developed to represent the professional bodies, research organisations and specialist business associations within this industry. This council is the Construction Industry Council (CIC). Internet has made a profound impact on the business communication in the construction industry. Free flows of information, open collaboration and diminishing international boundaries have made it possible to hire international contractors, machinery and technical consultancy. Related industries such as software houses are trying to come up with a communication system which can develop a system to enable efficient communication within the industry. Discussion Port Elizabeth is a company which has developed a new communication network especially for the construction industry; it is called the Construction Communication Network - CCN. According to the company it will change the way the industry carries out its daily activities. The purpose is to make structured, searchable data simple and standardised. The industry leaders from around the world have made some comments about the network, "I am totally committed to CCN; it will make architects more efficient and improve the quality of service we can offer our clients. Am I investing in CCN What a question!" - Durban architects Trish Emmet, who is a former president of the South African Institute of Architects. (Port Elizabeth) EMAP is another way the communication process is improving, as they provide not only information that they have but also from other sources such as New Civil Engineer, Construction News, Architects Journaland Interbuild (to name but a few). According to the EMAP- Glenigan they pick up information at the very first stage and confirm it before making it available to the industry. Although this does not improve communication within the industry, it does provide it with the latest news and helps it interact with its consumers. There are eight processes performed by the construction industry. All these processes were initially performed by three different organisations. The eight processes are: Project Definition; Evaluation; Design Management; Cost Management; Project Execution; Procurement; Construction Management; and Facilities Management. From this we can assess how vital communication is to the industry. All three of the companies need to communicate and collaborate to make sure that the end result is what they wanted and what their client wanted. Project focused teams are coming up in the construction industry. This helps in removing internal barriers and reducing the levels of hierarchy within the organisation. These teams usually consist of professionals from the main contracting organisation, the sub contractors and the client's consultants. Reflection on Personal Experience All the things that we have discussed above have given me an insight of the structure of the industry and how it operates. We all live in houses and do have some basic idea as to what is required and how the whole thing works out. The layout is usually designed by the architect and chosen by the client. Once the design has been approved, they start working on the structure. It takes time to build a structure whether it is a house or a building. In my opinion structures do not have to have walls they can be open parks just bounded by a fence. Communication, as I have mentioned many times is very important for a successful business. For the industry as a whole to be successful, all the construction companies need to collaborate and cooperate. Associations need to be made to enable the industry to voice their opinions and negotiate with the government on a one-to-one basis. Recommendations Newer systems and the latest technology should be adopted by the industry as a whole. This will enable inter-organisational communication to take place easily and the industry as a whole can move forward together. Desktop video conferencing should be used. This helps geographically dispersed organisation to communicate effectively and quickly. No organisation is using this technology in the UK at the moment. 31% stated that they would consider installing a DVC system in the next five years, but at present there were other restrictions. (Jamieson et al). Apart from this agencies should be developed which can help with the research and development for the industry. Through research, new methods of building structures can be found which can be quicker and make the process simpler. New material can be used which make the structure more strong and long-lasting. Conclusion There are some major issues which are of concern in the industry. The industry itself is a major part of the economy and needs to be developed further so that it can contribute more to the economy. This would help reduce the drops in the industry's output, which we have seen in the past few years. Better communication will help make the industry more efficient. Newer communication devices are being developed, the industry should make use of these if it wants to move towards the future with a global prospective because that is the way the world is moving. Everything is becoming more global and without borders. The types of buildings people want are not the classic type buildings that the industry is used to making. Diversity is affecting the architecture and lives of millions of people in the UK. Bibliography 1. Construction: Live issues, Health and Safety Executive, http://www.hse.gov.uk/construction/live.htm#fatal 2. Construction Industry Gets Net Savvy, Port Elizabeth, http://www.portelizabeth.co.za/index.phpoption=com_content&task=view&id=477&Itemid=27 3. Communication and Leadership, 2005, http://www.nwlink.com/donclark/leader/leadcom.html 4. Corporate Watch http://www.corporatewatch.org.uk/lid=277 5. EMAP Glenigan, http://www.glenigan.com/asp/emap.asp 6. M.J. Jamieson, A. Thorpe and A. Tyler, Refocusing Collaboration Technologies in the Construction Value System, http://itc.scix.net/data/works/att/w78-1996-297.content.pdf 7. U.S. Department of Labour Bureau of Labour Statistics, (2007) http://www.bls.gov/oco/cg/cgs003.htm Read More