The new construction industry

This chapter deals with the creation of the 'new construction industry', a part of the construction industry that is as different from conventional construction as to constitute a separate, totally new industry. The driving force behind the development of this new industry is the tendency of large firms to grow larger aided by globalization and progress in communication technology. The result is a high technology oligopoly developing out of, but separate from, the tradition construction industry. It consists of a small number of very large firms operating in the global market, competing with technology and products, offering a complete project from material to design, finance, construction and operation. In this chapter we will first look at why and how firms grow, how the environment in which the building industry is operating is changing and how construction firms are responding. Finally, we look at the rheoretical and empirical implications of these responses in the form of the new construction industry.