The construction industry is one of the most important drivers of any economy. In order to boost an economy for a longer-term, increasing construction activity is the surest way to go about. Governments all over the world prefer building infrastructure to give an impetus to a slowing economy.
The way construction boosts the economy is manifold. Primarily, the increase in a number of construction activity results in great employment opportunities for skilled labours as well as unskilled labours. Direct employment generated by any construction activity surely boosts the economy by generating newer opportunities.
Impact on the economy
The construction industry revival will help in creating a state-of-the-art structures and projects. This, in turn, will give the young skilled & engineers employment. The labours, Architects, Engineers, Surveyors, engineering consultancy companies, etc will get direct benefits and direct high pay jobs. The increase in the use of fuel to manufacture steel has a considerable effect on the overall economic growth of the company as well. The direct impact of this will cause an increase in economics & trade business. The use of the Building construction material will make the material companies run thereby creating employment opportunities. This can range from the Steel companies to the engineering companies, technological companies.
Engineers make use of the different diameter High-Grade TMT steel bars of the various diameters for the strengthening purpose of the building when used in combination with the concrete i.e. Reinforced cement concrete RCC. There are various trusted Steel companies of the Steel manufacturing such as Confab steel, Bhuwalka Steel Industries etc. which offer every variety and quality of 8mm, 10mm, 12mm, 16mm, 20mm, 25mm, 32mm diameter TMT bars.
- Almost 45% of the construction demand in Sri Lanka comes from the infrastructure sector whereas, Industrial activities, residential and commercial construction, etc. contributes the rest.
- Construction sectors provide 3.5 million employment and attract second-highest inflow of FDI.
- The construction sector has a strong impact on the overall economic growth and development of Sri Lanka since last 25 years.
Significance of the construction sector
By development of the infrastructure projects, the Cement industry (building material) will flourish along with the logistics industry and relating people. The residential and commercial development will have an impact on the area of the city or place thereby improving the macro and microeconomics. The other related sectors also automatically start to develop as the construction industry is one of the most prominent and ever-growing industries.
The IT industry, which is the new sensation in the world these days also improves as the software required for the designing of the building, infra projects, commercial projects, etc. is developed. The educational sector also gets a boom as every department offers its services for the construction industry directly or indirectly.
The Financial sector of the country improves by increasing the cash flow of the currency & employment opportunities for the finance, management students, etc.
The construction industry requires the auto-instruments, automobiles, latest materials machines so that the construction work smoothens without hazards. The revamp of the construction industry will have a direct impact on the GDP of the country. The banking sector, leading Steel companies, institutional financing companies, also will improve due to the growth in the construction industry. The transportation will indirectly improve by the revival of the construction industry due to the mobilization of the men & material required from one place to another.
Undoubtedly, Construction industry is the backbone of economics. It contributes tremendously in multiple ways. Over the years, this industry has grown considerably and has adopted environmental friendly ways to raise the standard of living of the society as a whole. There is a strong correlation between the economy and the construction sector. The growth, development, and improved infrastructure are one of the greatest benefits of this industry. However, the tremendous development and continuous improvement are reviving the economy considerably.