TECHNICAL PAPERS
Jan 15, 2003

Is Construction Labor Productivity Really Declining?

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Publication: Journal of Construction Engineering and Management
Volume 129, Issue 1

Abstract

Macroeconomics data suggest that labor productivity declined significantly in the construction industry during the 1979–1998 period. However, microeconomic studies indicate the contrary. This paper critically examines the construction labor productivity macroeconomic data in the United States from 1979 to 1998 to determine their validity and reliability. Data collection, distribution, manipulation, analysis, and interpretation are reviewed and problems are identified. The paper also presents a comparison of construction and manufacturing labor productivity during this period. The main conclusion of the study is that the raw data used to calculate construction productivity values at the macroeconomic level and their further manipulation and interpretation present so many problems that the results should be deemed unreliable. The uncertainty generated in the process of computing these values is such that it cannot be determined if labor productivity has actually increased, decreased, or remained constant in the construction industry for the 1979–1998 period.

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References

Allen, S.(1985). “Why construction industry productivity is declining.” Rev. Econ. Stat., 67(4), 661–669.
Allen, S.(1989). “Why construction industry productivity is declining: Reply.” Rev. Econ. Stat., 71(3), 547–549.
Allmon, E., Hass, C. T., Borcherding, J. D., and Goodrum, P. M.(2000). “U.S. construction labor productivity trends, 1970–1998.” J. Constr. Eng. Manage., 126(2), 97–104.
Arditi, D.(1985). “Construction productivity improvement.” J. Constr. Eng. Manage., 111(1), 1–14.
Christian, J., and Hachey, D.(1995). “Effects of delay times on production rates in construction.” J. Constr. Eng. Manage., 121(1), 20–26.
CICE: The next five years and beyond. (1988). Business Round Table, New York.
Dean, E.(1999). “The accuracy of the BLS productivity measures.” Monthly Labor Rev., February, 24–34.
Pieper, P.(1989). “Why construction industry productivity is declining: Comment.” Rev. Econ. Stat., 71(3), 543–546.
“Productivity in civil engineering and construction.” (1983). Civ. Eng., 53(2), 60–63.
Tucker, R. L.(1986). “Management of construction productivity.” J. Manage. Eng., 2(3), 148–156.
U.S. Census Bureau. (2000). Value of construction put in place, U.S. Department of Commerce, Washington, D.C.

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Published In

Go to Journal of Construction Engineering and Management
Journal of Construction Engineering and Management
Volume 129Issue 1February 2003
Pages: 41 - 46

History

Received: Nov 13, 2001
Accepted: Jan 29, 2002
Published online: Jan 15, 2003
Published in print: Feb 2003

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Authors

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Eddy M. Rojas
Assistant Professor, Dept. of Construction Management, Univ. of Washington, 116 Architecture Hall, Seattle, WA 98195-1610.
Peerapong Aramvareekul
Graduate Student, Dept. of Civil, Structural, and Environmental Engineering, State Univ. of New York at Buffalo, 212 Ketter Hall, Buffalo, NY 14260.

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