(Still) the construction industry in Portugal

(Still) the construction industry in Portugal

2021-03-31

(Still) the construction industry in Portugal
The construction industry in Portugal, as in other countries, has a significant importance in the national economy as a whole. The construction and public works sector is a very differentiated sector from other sectors of activity, both in productive terms and in terms of the labour market. It is a sector that presents a very extensive value chain, because it makes use of a wide network of inputs (subcontracts, ...), provides the emergence of positive externalities to other activities and generates significant multiplier effects upstream and downstream. Construction is an economic activity with its own specificities characterised by a great diversity of clients, with demand ranging from the State (central and local) to private individuals wishing to build, from large multinational companies to small traditional developers, of projects where each work generally presents different characteristics, which hinders the development of standardised products and manufacturing processes, of products covering both traditional housing and more complex works, (e.g. This makes it difficult to develop standardised products and manufacturing processes, products that cover both traditional housing and more complex works (e.g.: roads, intelligent buildings or dams), production operations in which the end product is the result of interaction between various specialities with different degrees of demand and technology, technologies, as a result of the intervention of various specialities in a construction project and the coexistence of old and new production technologies, production units in which companies with great resources and capabilities and technologically advanced work alongside companies with limited use of the available technologies and with abundant use of the labour factor.
The impact of the construction sector on output can be felt both upstream, in enterprises producing construction materials and equipment (e.g. various types of machinery, cement, steel, glass, paint, plastic, windows, doors, cabling, heating and ventilation appliances, etc.) and services (consultancy, architecture, engineering, transport, etc.), and downstream, in enterprises producing equipment (furniture, domestic appliances and office equipment, etc.) and services (energy supply, maintenance and decoration, insurance, legal services, etc.).
Consequently, construction activity has a major impact on employment, to the extent that each direct job created by the construction sector is estimated to generate three jobs in the economy as a whole (not including the impact on aggregate income of the additional investment in construction).
The demand for this sector depends directly on the degree of development of the economy, the economic situation and the amount of public expenditure, i.e. more than in any other sector of activity its evolution depends on the amount and stages of investment in other sectors.
We are therefore faced with an activity that tends to be pro-cyclical, i.e. with more marked expansions than the overall economy in positive phases of the cycle and deeper recessions in negative periods, and for this very reason its dynamics is often considered as one of the main indicators of an economy, or one of its barometers.
In recent years in Portugal this sector has shown strong dynamism. The next ones are still uncertain. In the midst of uncertainty and this web of partners and processes, it is crucial to ensure that the response respects the quality standard agreed with the client, without forgetting that it is urgent to rethink efficiency and productivity in the sector (for example: Portugal EUR 14/h/person vs. Spain EUR 43/h/person).
Remember that today is the tomorrow for which you prepared yesterday and that 'when we prepare for change and make it our way of being and being everything becomes easier. This is being ahead of the future', so take up the challenge.
Start, Go, Walk, Run, Drive...

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