The literature review is aimed at covering the study of the research related to labor productivity calculations performed to evaluate the performance of the United States construction industry and the development of formulae used to perform the labor productivity calculations.
Attempts at the quantification of labor productivity of the construction industry
Considering the magnitude of construction industry, any research is not only critical in improving the nation’s economy but it will also assist in improving the productivity of construction work force (Chapman and Butry, 2008). But studies related to the accurate measurement of the productivity of the construction industry has been limited (BFC, 2006). Many researchers have made efforts in identifying the factors, which drive the construction labor productivity, and in developing robust methods for its measurement. According to one of the first studies conducted in terms of analyzing labor productivity of the construction industry, from 1968 to 1978 the productivity of the construction industry has experienced a decline because of delayed growth in capital per worker (Stokes, 1981). Another study supported this finding that construction industry has declined from 1968 to 1978 and regarded the shift in the output between commercial projects to residential projects as the contributing factor (Allen, 1985). Another attempt at measuring labor productivity found that the productivity has increased from 1980 to 1990 due to depressed real wages and technological advances (Allmon et al. 2000). In 2004, a study suggested that although construction industry has significantly adopted the technological advances, the productivity of the industry experienced a downfall from 1964 to 1999 and less training for laborers, the entry of new and younger work force were regarded as the contributing factors (Teicholz, P., 2004). However, this assessment was contradicted by a report, which concluded that U.S construction industry has shown signs of improved productivity by adopting innovative technologies (Young and Bernstein, 2006). It was also reported that when productivity was measured for a long period by considering various construction related activities, it was found that long term productivity was experienced with a significant improvement in the equipment technology (Goodrum and Haas, 2002). Although many studies have been attempted to measure the performance of the construction industry there exist no reliable data, which confirms that the productivity has either increased or decreased for both construction industry and its sub-sectors (Chapman and Butry, 2008). Two studies in the areas of labor productivity focused on studying the trends of labor productivity at an industry-wide level.
Study – 1, Allmon Study
In the year 2000, a study was conducted to analyze the trends in labor productivity of the construction industry in the United States.
Objectives of the research: