Wednesday, August 26, 2009

 

CONSTRUCTION INDUSTRY AND NATIONAL DEVELOPMENT

Behind the magnificent buildings that glitter our cities, the bridges that connect people from different sides, road networks that necessitate easy travel from one point to another, air terminals where planes land at, is the construction industry.

Behind the growth of infrastructural development that are improving the well-being of people through the provision of goods and services, silently hides the construction industry which can as well be termed as the backbone to national development. Infrastructure is indispensable to achieve the main development targets such as urbanization, industrialization, export promotion, equitable income distribution, and sustainable economic development. The construction industry, the main player in the infrastructure development, should as well be accredited with silently advancing national development agenda.

The construction industry has a remarkable impact on the GDP of a country, personal earnings and creation and sustaining of employees. The Associated General Contractors of America, projected that in 2009 in Maryland an additional of US$1 billion in nonresidential construction spending would add about US$2.2 billion to the state’s GDP, about US$660 million on personal earnings and create or sustain 17,000 jobs. The analysis on the jobs created was on the basis that 5,800 jobs would be direct construction jobs located within Maryland, 2,700 would be indirect jobs from supplying construction materials and services, and 8,500 jobs would be induced when workers and owners in construction and supplier businesses spend their incomes locally and nationwide.

It is obvious that construction industry is the pivotal element in infrastructure development. Byoungki Kim in the article ‘infrastructure development for the economic development in developing countries: lessons from Korea and Japan’ stresses that infrastructure development is one of the most integral parts of the public policies in developing countries. Good infrastructure such as road construction helps to lower productivity costs hence contributing to economic growth. The construction of relevant infrastructure like roads in rural areas has a considerable impact on national wealth distribution. In South Korea, extensive road networks in 1960s and 1970s led to rapid growth of vegetable production and other cash crops designed for the urban markets.

Numerous construction projects carried out in the country highlights the positive impact of the construction industry on socio-economic development. Roads that have been paved in rural areas linking them to cities have boosted trade in agricultural products as the cost of transportation of agricultural products has gone down.

The country is expected to benefit from probably one of Malawi’s mega-construction project: the Shire-Zambezi waterway. All benefits to be accrued out of the project will be as a result of construction activities carried out by the construction industry. The drenching of the waterway, the building of a port and an air strip are all expected to revolutionise business in Nsanje so too raise the socio-economic levels of the people surrounding the port in particular and nationwide in general.

In accordance with the project proposal for the Shire-Zambezi waterway, when the project is completed it will reduce costs of goods and services for landlocked countries like Malawi and Zambia by at least 60 percent of the current costs. This will certainly have a positive effect on the livelihoods of Malawians as the cost of living will likely go down. It is imperative however to note that underneath this wonderful dream has to be the construction industry.

Apparently as the government is geared to enhance rural development in its development agenda, the construction industry faces the daunting task to be part of the development philosophy. The construction industry has to ensure that it has the capacity to deliver development projects as per the needs of the government and in the time scale specified.

Many a development projects are in the pipeline, most notable, road projects, schools, police and teachers’ houses, boreholes, among many others. The construction industry would add value to the country’s development agenda through successfully undertaking the said projects. Certainly, the construction industry loses credibility, trust and reputation in the eyes of the publics if projects it undertakes do not live to the expectations of the people.

The government’s rural development project could further spur the growth of indigenous construction companies which will in the end trickle-down economic benefits to the country and the citizens. The mushrooming of indigenous construction firms with capacity to handle large scale jobs will save the country from losing forex as most projects will be handled locally, hence requiring no need for forex to pay international construction firm.

This could certainly write a new chapter in the history of the construction industry in the country. As the small construction firms will be developing they will certainly be competing for construction jobs in other countries within Africa and possibly beyond. This could make the construction industry a reliable partner in bringing into the country the required forex. The exposure of the construction industry abroad could as well play the ambassadorial role of marketing services that Malawi can offer in Africa and beyond. If one sector successfully storms the international market, other sectors stand an easy chance as they actually ride on the success of the pioneer service provider.

It is time that our construction industry becomes a force worthy reckoning on the international scale. We could learn from the Norwegian building and construction industry which has attracted international attention for its innovative design and exceptional products. Norwegian architects have won international acclaim for their modern approach to traditional materials such as wood, stone and metal. Norway has cutting-edge expertise in building large timber structures, tunnelling, and cavern excavation, as well as in road and bridge construction. Norwegian manufacturers export first-class timber and wood products like parquet flooring, prefabricated houses, and other building components worldwide. Glued, laminated timber (“glulam”) is a specially-developed, lightweight, and extremely strong product that has added a new dimension to the design of homes, large public and commercial buildings, and even bridges. The main terminal building at Oslo Gardermoen Airport is the largest laminated wood structure in the world. The Norwegian classic example is a precedent that our industry should set benchmarks on.
Meanwhile, as the economic development programme of the country has embraced Public private Partnerships, the construction industry could cement its backbone position in national development if it takes a crucial role in the provision of infrastructure that can support the initiative. As housing scarcity threatens our cities, the construction industry can, through Public Private Partnerships, construct houses. Not only that, the construction industry, by nature of its services, is well poised to take a leading role in some of the potential projects earmarked for Public Private Partnership agreements.
Apparently, the house construction boom provides investment opportunities in forestry and paper. As the online allafrica.com edition of 8 November 2008 reports Malawi's construction industry is experiencing a boom which has made investment in commercial forests a profitable venture. However, the report continues, current production levels don't meet demand in the local and foreign markets, hence the invitation to exploit commercial potential. It is noticeable therefore that the construction industry is giving rise to the growth of the timber industry hence providing a lucrative business and employment opportunity to many Malawians. This could further lead to a possibility of establishing private forests to satisfy the construction demand. Not only that, the construction industry has also been leading to tree seedling production becoming a vibrant economic activity practiced by both small and large scale entrepreneurs though at present the government is the largest buyer of seedlings.
In as much as we are proud that the construction and building industry has played a crucial part in the socio-economic development of the country, we can only hope that the industry will not be contented with its remarkable success but further polish some of its grey areas.

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