Drivers and Issues Influencing Competitiveness in the Global Construction Market

This study explores the drivers and issues influencing competitiveness in the global construction market, including globalization, advanced technology, increasing demand for green or sustainable construction, and demographic changes in the UK. It discusses the interconnectivity and interdependence of these drivers and issues, as well as the importance of creating awareness of the changing nature of competitiveness in the construction industry.

International Business,
organizational
Management
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Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................4
Drivers and issue which influence competitiveness in the global construction market..............4
Interconnectivity and interdependence of drivers as well as issues of competitiveness.............5
Creating awareness of the changing nature of competitiveness in construction.........................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
2

INTRODUCTION
International business can be defined as a process of operating business or trade of products,
technology at a global level or international (Meyer and Peng, 2016). This study is based on the
UK which has an effective and strong construction contracting industry. UK is also considered
one of the largest in Europe measured by number of enterprises and employment. This study is
going to show importance of construction industry which is increasing rapidly, This study will
also show some drivers which are influencing competitiveness in this industry. These drivers are
creating some problems for developing countries such as unequal distribution of products.
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MAIN BODY
Drivers and issue which influence competitiveness in the global construction market
In the context of construction sector of the UK, it can be said that it is one of the main
contributor in the UK economy. This sector is being divided or can be defined into these terms
such as: provision of construction related professional services and construction related products
and materials. Construction is one of the industries who is becoming competitive rapidly. There
are several factors or drivers which is increasing competition such as: advanced technology,
globalization, increasing demand for green or sustainable construction and demographic changes
in the UK.
Globalization: Globalization and capabilities of countries of operating in international market is
one of the main drivers which is influencing competitiveness in the global construction market.
Globalization has made improvement in global transport infrastructure as well as in
communication technologies (Said and Bartusiak, 2018). Companies who have strong financial
capabilities has became themselves able to separate different parts of manufacturing value chain.
Green and sustainable construction: People and companies are now becoming and focusing on
making their products sustainable and it is forecast to grow. It is also increasing requirement of
low carbon regulatory for greenery products. It is also considered one of the main driver which is
influencing competitiveness. There are several engineers, architectures, building owners also
believe that their work will be green in 1-2 years. So, by becoming energy efficient, companies
want to take several external opportunities which is increasing competition.
Rather, drivers, there are several issues are also being identified related to construction
market such as: new rules which are being controlled by World trade organization, unrestricted
international capital flow and influences of stakeholders on strategies of companies.
Globalization is one of the main driver which are creating several problems related to
construction market such as: unequal distribution of services, goods which are increasing poverty
for developing countries. So, it can be said that all drivers somehow creating some problems or
issues as well.
So, from the above discussed drivers which are influencing competitiveness, it can be said that it
is important for global construction companies and UK construction industry to make an
effective use of technology and focus on greenery products for being in the competition (Sayed
and et.al., 2019).
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Interconnectivity and interdependence of drivers as well as issues of competitiveness
All drivers which are increasing competition in construction industry of the UK and of
developed countries has interrelation with each others. It can be said that some drivers such as
technology, globalization, and demand for sustainable products have interrelation with each
others such as:
Globalization and technology: In the context of globalization and technology, it can be said
that these both terms and drivers of competitive are interrelated with each others. There are
several companies of developed countries who are going global and performing their day to day
operations in international market. One of the main reason and factor which made them able to
trade globally is advanced technology. Technology is one of the main key driver which is
interrelated with all other drivers of competition. With the help of technology they are making
growth and expanding their business (Lai and et.al
., 2017).
Technology and sustainability: Sustainability and technology are also interrelated with
each others. There are several tool are available which are making able t companies to reduce
wastes and improve quality of their products. These tools or technology has great impacts on the
performance and productivity. For example: There are several companies such as Tesla, Tesco
and others who make an effective use of total quality management six sigma approach and other
technological tools in order to decrease wastes and making their business sustainable.
So, from the above it can be said that driver of competitiveness ha interrelation with each
others (Meng and Brown, 2018).
Creating awareness of the changing nature of competitiveness in construction
Competition in the construction industry is increasing and changing day by day.
Competitiveness is all about related to having better ability, efficiency and performance than
competitors and others which can make themselves unique. In the context of construction
industry, it can be analyzed at several levels such as: firms, industry countries etc. At firm level it
is important to create awareness and making people able to understand the actual meaning of
competition as well as drivers which are increasing competition, At form level, it is possible for
companies to identify 2 variables such as: factors which determine competitive performance of
an organization and indexes which can help companies in measuring competitiveness position
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reached by them (Cui and et.al., 2019). It can also makes companies more able to make a strong
position in the market.
So, one of the main reason of creating awareness is to take competitive advantages and
supporting companies to become more effective than before.
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CONCLUSION
From the above file it can be concluded that competition has played a vital role as it made
companies of construction industry makes able to use innovation and different ways of
performing. These new ways and innovation contribute in developing economy. This study has
further discussed several drivers which are increasing competition in construction industry such
as: Globalization, advanced technology, increasing use and demand of greenery products and
sustainability. All these drivers have both positive and negative impacts on the performance of
companies. Some negative impacts and issues which this study has shown are increasing poverty
due to unequal distribution of products because of globalization etc.
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REFERENCES
Books and journals
Cui, C. and et.al., 2019. Relationships among Value-for-Money Drivers of Public–Private
Partnership Infrastructure Projects. Journal of Infrastructure Systems. 25(2).
p.04019007.
Lai, X. and et.al., 2017. Driving forces for low carbon technology innovation in the building
industry: A critical review. Renewable and Sustainable Energy Reviews. 74. pp.299-
315.
Meng, X. and Brown, A., 2018. Innovation in construction firms of different sizes: drivers and
strategies. Engineering, Construction and Architectural Management.
Meyer, K. and Peng, M.W., 2016. International business. Cengage Learning.
Said, H.M. and Bartusiak, J., 2018. Regional competition analysis of industrialized homebuilding
industry. Journal of Construction Engineering and Management. 144(2). p.04017108.
Sayed, A.M. and et.al., 2019. Drivers of e-bidding implementation in the Saudi Arabian
construction industry. Built Environment Project and Asset Management.
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