10-10-2012, 01:14 PM
SWOT Analysis of Construction Sector in India
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SWOT ANALYSIS :
SWOT Analysis is the foundation for developing tactics & strategies that become the road map for writing or planning business operating plans or strategies.
SWOT = Strengths + Weaknesses + Opportunities + Threats
Strength is defined as an internal asset, technology, motivation, finance business links etc. that can help to exploit opportunities and to fight off threats.
Weakness is an internal condition which hampers the competitive position or exploitation of opportunities.
Overview of Construction Sector in India:
Indian construction Sector consists of two major verticals :
Non-Residential Construction:
Residential Construction:
Construction sector is the second largest industry of the country after agriculture, accounting for around 11% of India’s GDP & employing 32 million people, 18 million people directly & 14 million indirectly.
Proposed investment by Planning Commission of India is of around US $ 1 Trillion in the 12th 5 year plan (2012-2017) i.e. double that of 11th.
STRENGTH
Employment and training opportunities in the field of construction.
Private sector housing boom and commercial building demands & construction of the multi building projects on the feasible locations in the country.
Good structured national network facilitates the boom of construction industry.
Low cost well- educated and skilled labour force is now widely available across the country.
Sufficient availability of raw material, manpower and natural resources in the country is supportive for the industry.
WEAKNESS
Distance between construction projects reduces business efficiency.
Training itself has become a challenge in today’s competitive environment.
Changing skills requirements and an ageing workforce may emphasize the skills gap.
Improvement in long-term career prospects is highly required to encourage staff retention and new entrants.
External allocation of large contract becomes difficult.
Lack of clearly defined processes and procedures for construction and its management lead to higher risk and uncertainty.
Huge amount of money needs to be invested in this industry.
OPPORTUNITY:
Continuous private sector housing boom will create more construction opportunities.
Public sector projects through Public Private Partnerships will bring further opportunities.
Developing supply chain through involvement in large projects is likely to enhance the chances in construction.
Renewable energy projects will offer opportunities to develop skills and capacity in new markets.
More flexible training delivery techniques are now available.
Financial supports like loan and insurance and growth in income of people is in support of construction industry.
THREAT:
Long term market instability and uncertainty may damage the opportunities and prevent the expansion of training and development facilities.
Current economic situation may have an adverse impact on construction industry.
Political and security conditions in the region and Late legislative enforcement measures are always threats to any industry in India.
Infrastructure safety is a challenging task in construction industry.
Lack of political willingness and support on promoting new strategies.
Natural abnormal casualties such as earth quake and floods are uncertain and can prevent the construction boom.
CONCLUSION:
In the years ahead, the construction industry in India has to overcome various challenges with respect to housing, environment, transportation, power or natural resources and hazards associated.
Technocrats associated with the Indian construction industry need to employ innovative technologies and skilled project handling strategies to overcome these challenges.
The outstanding performance under demanding situations in the past will stand in good stead and give confidence to the Indian construction industry to bring about an overall development in the infrastructure of the nation.