Macro Environmental impact on Construction industry
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Transcript of Macro Environmental impact on Construction industry
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Environmental impact on Construction industry
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contentIntroduction to the construction industry.
Evolution of the construction industry.
Impact of the changes of business environment on industry.
Recommendations.
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Introduction to the construction industry
The branch of manufacture and trade based on the building, maintaining, and repairing structures.
This includes drilling and solid mineral exploration.
Standard Industrial classifications.
Building Construction Industry.
Heavy Construction Industry.
Special Trade Construction Industry.
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Public work department (1876)
Building Department
Irrigation Department
Road development Department
Boot impact to the industry as a GDP share is 2009(6.6),[CBSL annual report].
Peak of the industry as a GDP share is 2014(7.2), 2015(6.8).[CBSL annual report].
Evolution of the construction
industry
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Macro environment forces.
Macro environment refers, the major external and uncontrollable factors that influence and organization’s
decision making, and affect its performance and strategies.
We analyse six different forces, They are…………,
Technological environment.Natural environment.Political and Legal environment.Economical environment.Demography environment.Culture environment.
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Macro environment
forces
Technological
environment
Natural environm
ent
Political and Legal
environmentDemography environment
Economical environme
nt
Culture environm
ent
Cultural environment
A cultural environment is a set of beliefs, practices, customs and behaviors that are found to be common to
everyone that is living within a certain population.
(Ministry of Rehabilitation Resettlement & Hindu religious Affairs., ICTAD, CBSL Annual Report 2014) sources.
Rehabilitation of LTTE carders.Reluctance of Young Generation to join the Industry.Social infrastructure Development
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2011 2012 2013 2014 20150
2000
4000
6000
8000
10000
12000
GTV schools PVT schools hospitals
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Increase the population of women than the population of men. The effort is decrease the workforce of men.
increase the 55 above age people , not enough skill labors.
Increase the number of students, Not enough schools and increase the number of schools. Mainly in rural areas.
Demographical environment
A demographic environment is a set of demographic factors such as gender or ethnicity.
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2010 2011 2012 2013 2014 2015Mid-Year Population,
’000 20675 20869 20424 20579 20771 20966
Male 10273 10357 9888 9963 10056 9875
Female 10402 10512 10536 10616 10715 11091
By Age Groups,’000 0 – 14 Years 5434 5488 5147 5187 5235 5288
15 – 54 Years 12512 12625 11680 11768 11879 14030
55 Years and Over 2729 2756 3597 3624 3657 1648
Total Pupils 4119525
4157885
4194336
4231422
(Sri Lanka Socio Economic Data 2014)
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Economical environment The economic environment consists of external factors in a business' market and the broader
economy that can influence a business.Economy
Government
Business firms
House hold
Foreign sector
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Relatively higher Investment in Economical infrastructural Development• Highways• Airports• Seaports• Road Development Project
Reducing Taxes on Construction Equipment's and Materials• Importation of Construction Equipment's and materials Increased
Relatively High Number of Investments in Construction Related Industries• 48 New Hotels Approved
Increment of Per capita Income • Number of permanent houses increased
Investments increased• Port City
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USD RS. Millions % of GDP
Year Inflation Interest rate
Imports Building
Materials
Import Machine & Equipment
Construction growth rate
2010 6.2 113.06 92905 151223 9.3
2011 6.7 110.57 118935 236857 14.22012 7.6 127.6 157437 300138 21.62013 6.9 129.11 175054 286631 14.42014 3.3 130.56 1,308.9 2,131.0 9.72015 5.3 140.95 1,352.0 2,278.1 6.8
(CBSL annual report)
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• Aluminum Formwork System
PositiveCost Effective.Zero wastage.Shorter period.
NegativeHigh initial cost
Technological environment Changes in technology affect how a company will do
business. A business may have to dramatically change their operating strategy as a result of changes in the
technological environment.
(Department of Civil Engineering, University of Moratuwa)
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• Precast Beam Mover in bridge construction.
PositiveTransport long beams without
overrun the vehicle at bends to the construction site. Negative
Need high skilled labors.
(Road Development Authority)
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• Triple Glass
PositiveReduce heat transfer.Reduce sound transfer.
NegativeHigh maintenance cost.
(Medical Acupuncture Research institute of America)
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Political and Legal Environment
Changes Change in Legislature and ExecutiveGovernment Implement New Plans & Government BodiesIndustry Development Act No.33
Effect The Government suspends work to review the projectsIncensement of Government investments of Roads, BridgesEstablishment of,
National Adv. Council on Construction.Construction Industry Development Authority.
The political environment refers to the actions taken by the government, which potentially affect the
daily business activities of any business or company.
(Chamber of Construction industry, CBSL Annual Report)
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Natural Environment
Changes Scarcity of the raw material.Increment weather with adverse to construction industry.
EffectIncrease price of Sand, Lime, Timber, Rubble, Bricks.Portion of GDP decreases.
The natural environment encompasses all living things and non-living things occurring naturally on
Earth
(CBSL Annual Report , institute of construction training and development)
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Collaboration.
A Child Care Plan.
Reduce migration of Skilled labors.
Use latest technologies of the world.
Recommondation
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Kavindu.Chalendra.Sandani.Clashani.Nadeesha.
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