Building construction industry is essential to us all. We benefit from high quality housing, hospital or transport infrastructures that are constructed efficiently. Oyefeko (1991) said that Construction in Nigeria is one of the pillars of the domestic economy. According to national housing policy (2006), the industry has an output of roughly 11% of GDP and employs around 1/3% of employment nation wide. This research work deals with the challenges facing building construction in a depressed economy, challenges of non availability of building construction Engineers, poor economy, depressed economy, non-compliance with building codes and regulating bodies and government policies and support. These topics are made in other to improve our construction industry.http://gistareaventures.com
Depressed economy is a period of time when there is a lot of unemployment and poverty because there is very little economic activity example the world depression of the 1930s Macmillan school dictionary (2004).Krugman (2010) Depressed economic is a rare and extreme form of recession, a depression is characterized by its length by abnormally large increases in unemployment, falls in the availability if credit for building developers and other Business man often due to some kind of banking or financial crisis, shrinking output as buyers dry up and supplier cut back on production, and investment, large number of bankruptcies, these including sovereign debt defaults, significantly reduced amounts of trade and commerce, especially international as well as highly volatile relative currency value fluctuations, most often due to devaluations. Price deflation, financial crisis and bank failures are also common elements of a depression that are not normally apart of a recession.
Ruhl et al (2005) an economic depression is a severe economic downturn that lasts several years. It is indicated by two consecutive quarters of a falling GDP of a country or collective world economy. An economic depression is more severe than a recession.
Broemmel (2012) an economic depression is an extreme type of recession. There is a good deal in economic depression. A commonly applied standard that is utilized to as certain if an economic depression exists is an actual decline in the Gross domestic Product (GDP) that exceeds 10 percent. The uour- Dictionary website defines an economic depression as a prolonged period of recession, or a significant and prolonged downturn in the economy. Characteristics of economic depressions include declining business activities, falling prices, rising unemployment, increasing inventories, public fear and panic. It also moves the country’s economy to enters a period of negative growth, real income declines, unemployment rises, and industrial production wavers. If a recession continues for a long time, the economy moves into an economic depression.
Egan (1998) it is not easy to sustain radical improvement in an industry as diverse as construction but we must do so to secure the future of the Nigeria construction industry, Nigeria institute of building (NIOB) Cooperate Register Builder of Nigeria (CORBON) and the construction professionals in the industry must also challenged itself to change, so that working together, we can create a modern industry ready to over come the economic melt down or depression and face the new millennium.
Rezgui (2007) Building Organizations are currently facing important and unprecedented challenges in an ever dynamic constantly changing, and complex environment several factors, including the pace of technological innovation and the globalization of the economy have forced business and industry to adopt to new challenges triggered by an ever sophisticated society characterized by an increasing demand for customized and high quality services and products in various segments of building industry.
Rezgui and Zarhi, (2006) the construction industry is renown for its complex project-based structure, reflected in its virtual enterprise like modus-operandi.
Rezgui and Miles (2009), it is currently facing some major challenges in terms of climate change and sustainability, including the need to reduce green house gas emission from existing and new builds.
Hopfe (2009) said “this is reflected in increasing complex regulations (environmental, energy, waste etc). That must be assessed and addressed by specialists to satisfy planning consents and public concerns. Also, the current financial downturn and the concerns for quality, timely and to budget delivery against the threat of financial penalties is causing the major building industry players to reduce their circle of specialists and sub-contactor represented by a large proportion. Moreover, the construction industry is dominated by small and medium entrepreneur (SMES) that exhibit a wide divergence in their capabilities.
The functions of a Building determine the (forms of construction) or what the building is to be use for such as shelter, commercial, domestic, industrial, institutional or public buildings. According to Agbataekwe (2004) said Building are now designed and constructed to meet the ever complicated needs of man than in the olden days.
Agbataekwe (2004) the efficiency, convenience, life span, economic viability, appearance and aesthetic value if any building depends solely on quality of materials and workmanship used. In a depressed economy clients want to use low standard materials and cheap labour to build.
Orenuga (1986) look at the building industry, since the time we had political independence show that a lot of many Nigerians have made attempts to establish companies engaged in building construction business but they have either failed or frustrated out.
According to Wikipedia, the free encyclopedia. The stock market crash of 1929 marked the start of the greatest depression in modern history with some effects felt through 1945. In Economics a depression is a sustained, long-term downturn in economic activity in one or more economics. It is a more severe downturn than a recession, which is seen by some economists as part of the modern business cycle. Mendel (2009) economic depression is a rare and extreme form of recession theme is also differences in duration of depression across all definition. Some economist refers only to the period when economic activity is declining. The more common use, however also encompasses the time until economic activity has returned close to normal levels. In the United States the national Bureau of economic research determines contractions and expansion in the business cycle, but does not declare depressions.
- Generally, periods labeled depressions are marked by a substantial and sustained shortfall of the ability to purchase goods relative to the amount that could be produced using current resources and technology (potential output).
- Another proposed definition of depression includes two general rules; (a decline in real GOP exceeding 10% or (2) a recession is briefly defined as a period of declining economic activity spread across the economy. In other words each depression is always a recession, sharing the same starting and ending date and having duration (According to National Bureau or Economy Research NBER (2010)
The question posed is what are the challenges facing building construction in a depression economy especially now that there greater emphasis on mass housing development.