How construction is essential in business
Construction is a general the process involve in constructing buildings, infrastructure and industrial facilities and associate activities through to the end of their life. The construction industry is highly fragment.
It is an integral part of the business and is prepare for growth on account of industrialization, urbanization, and people’s rising expectations for improved quality of living.
It is an important sector that contributes greatly in the economic growth of a nation. This industry is an investment led sector where government shows high interest. Government contracts with construction industry to develop infrastructure related to health, transport as well as education sector.
It is divided into three major segments like building contractors, general contractors, build residential, commercial and other buildings. Civil contractors build roads, highways, bridges, tunnels and other projects.
India’s capital expenditure on projects is the second largest industry in India after agriculture. Cost structure is dominate by raw material and sub-contracting cost.
Unprecedented rise in prices has a direct impact on the cost of the project and in turn margins of construction companies. Profitability also depends upon the diversity of the projects a business can execute. Companies having strong presence in segments like power and industrial segment which are tend to enjoy higher margins.
The private sector offers wide employment opportunities particularly for those trained in architecture and construction or project management. The banking and housing finance sector also take in qualified to handle construction finance and project appraisal activities.
All the estimates work out to make a strong case for higher home loan GDP ratio so that population is able to keep a pace for meeting the demand for housing units.
The construction business is expect to grow at strong rates over the next decade will draw upon increasing government and private sector investments. The growth of economy are increasing day by day because of the growing infrastructure.