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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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