Is construction an industry?

Abstract

There has been a frequent misconception in analyses of construction sectors of the national economy: the tendency to describe these activities as ‘an industry’ or a small and stable set of ‘industries’. This has led to confusion. Construction was inappropriately assimilated to various forms of manufacturing industry. Characteristics of the construction process were treated as ‘problems’, to whose solution substantial energies were unnecessarily diverted. There has been muddle about the extent to which macro-level planning is appropriate, notably on R&D strategies and innovation for improved industrial efficiency. Construction projects increasingly use unfamiliar technological bases, comparable to ‘technology fusion’ in other sectors. A more fruitful emphasis may be to regard construction as organized as agglomerations of projects - rather than as a discrete industry or a fixed constellation of firms. The idea of the ‘demand chain’ is introduced. The paper concludes that a ‘technological paradigm’ should replace the ‘industry paradigm’ and that an enduring question remains to explore what is meant by construction ‘capacity’.

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