Importance of the Construction Industry to the Economy

Both directly and indirectly, one of the prime contributors to the modern economy is the construction industry. The construction industry is one of the prime partners and drivers of economic growth in every country. It is not an exaggeration to say that the level of development in the construction industry is an indicator of the economic health. Let us examine this statement:

Firstly, the most important contribution the construction industry makes to the economy is infrastructure. Infrastructure is the very soul of today’s development. It is at the very core of modern nation states. The soundness of a country’s infrastructure has a direct bearing on the economy, because infrastructure is the crucial cogwheel that makes business possible.

Infrastructure, the all-important foundation for development

Infrastructure facilitates business like no other mechanism. The better the infrastructure, the more developed the business sector is, because infrastructure is the vital artery of the economy. The importance of the construction industry to the economy can be judged by the speed at which it enables business. Good infrastructure is a highly important factor in leading to lesser time spent on peripheral activities. The proportion of time spent on mundane and nonproductive activities like travelling is directly linked to the level of infrastructure.

Greater speed of travel means faster decisions on business. One of the major differences between developed and developing economies lies in the level of development of infrastructure. Lower rated economies suffer the handicap of less developed infrastructure, which affects the speed at which business is done, while the reverse is true of developed economies. Thus, construction, being at the core of infrastructure, plays a pivotal role in the economy.

Construction has a role in health delivery and overall economic growth

The role of the construction industry to the economy is also direct in many ways. The importance of the construction industry to the economy can also be judged by the fact that poor infrastructure leads to reduced health outcomes in a number of ways. A major portion of the day’s work spent on the road in bad conditions leads to factors like irritation and exasperation, leading to poorer health in the long run.

Well-planned and well-constructed healthcare centers are a major source of contribution to good health. The presence of good facilities at nursing centers, a direct result of good construction standards, contributes to good health.

The role of the construction industry to the economy in bringing this about can never be overstated. The presence of hospitals and other care giving centers in remote parts of the countryside ensures good health to citizens in far-flung parts of a country.

Likewise, development of shopping facilities in remote areas of a country can also mean better business, because products reach out to the farthest areas of a country, engendering more consumption and better living standards.

No matter from which perspective it is seen; the fact of the vitality of the role of the construction industry to the economy is something that can never be overlooked.

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