Study: Increased productivity could add $5.4B annually to US, Canadian construction industries
- Researchers at Aarhus University in Denmark have put a price tag on how much the construction industry’s lack of productivity is costing U.S. and Canadian contractors — about $5.4 billion annually according to a study published in the Journal of Construction Engineering and Management.
- When compared to other industries, the study points out, construction has lost productivity during the last 40 years and by increasing direct-work time — craftsmen efficiency — by just 36 seconds per hour, the sector could gain billions of dollars. While the data is based on construction in North America, the report authors said their research could be applied to Europe and Scandinavia as well.
- The results, the researchers said, provide a rationale for investment in methods that can increase efficiency and effectiveness like lean construction’s Last Planner system, location-based scheduling and integrated project delivery.
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