Construction industry achieves sharp increase in productivity

A major boost in construction-industry productivity during 2009 is revealed in the latest key performance indicators for the industry, issued by the Department for Business Innovation & Skills. The figures show a 15% increase in average productivity per employee, the sharpest for five years.

However, the increase has come at the cost of over 200 000 jobs and a fall in median profit margin from almost 10% a year ago to 7.7%. These figures exclude companies that succumbed to the recession.

Despite the pressures faced by the industry, construction clients reported a marked increase in projects delivered to costs. Clients also believed that the industry was improving the impact of its activities on the environment.

The KPIs are used as a benchmark to improve client satisfaction and by Government to measure the effectiveness of contractors. Glenigan conducts the survey of clients, consultants and contractors to deliver the KPIs in partnership with Constructing Excellence for BIS and the Office of National Statistics