Competition in the Construction Industry

The recession had a major impact on the construction industry in BC. In 2007, the value of non-residential and residential building permits issued in BC was approximately $12,544 million.In 2008, the the value dropped to $10,577 million. In 2009, the value again dropped to $7,629 million.That is a drop of nearly $5000 million or $5 billion in 2 years.

Figure 1: Statistics Canada - http://www40.statcan.gc.ca/l01/cst01/MANUF15A-eng.htm (2010-11-19)

The number of companies of operating in the construction industry in 2007 was just over 48000. The number has grown to over 50000 in 2009.

Figure 2: BC Stats - http://www.bcstats.gov.bc.ca/data/bus_stat/bus_ind.asp (2010-11-19)

Therefore, organizations in the construction industry are operating in an increasingly competitive environment. With less work and more companies, you have to stick out from the crowd. Since it is more difficult to find work you have to improve your marketing and sales strategies in order to get jobs. This is a process that creates awareness of your company in the industry. Also, when you get a job, you have to produce quality work in order to get more jobs through referrals and future work the contractor may provide. This is a process of building your reputation within the industry.