Characxteristics of the construction industry

Mobility of workers and companies

- THe industry is remarkable for the great mobility of its companies and workers : from one site to anoter , one region to another , and , for workjers , one company to another .

- Unlike the manufacturing sector , where the product is amde in a plant , the companies and workers in the construction industry make the client's product ( house , shcool , hospital , road , etc ) , on the site where the client will take possession of it .

Cyclical and seasonal instability 

- The construction industry is also characterized by its cyclical and seasonal instability . In fact , construction activity may vary considerably due to investm,ents ( cyclical instability ) or climatic conditions ( seasonal instability ) . That is why the industry is very flexible and adaptable . These qualtities are also put to advantage to deliver the range of projects required , which are as varied as the number of clients to satisfy .

Variation in investments , both public and private , lead to periods of strong activity during which large-scale projects are started , which may be followed by calmer times .

• Each project is a unique one-off product . THe industry is characterized by the limited duration of projects . 
• Low productivity , heavy reliance on a large pool of unskilled and foreign labour and labour intesnive construction techniques . 
• The industry is dominated by a large number of relatively small firms . 
• The general state of the economy influences the demand . Prices are determined by the tendering . 
• Malaysia's construction industry is hghly fragmented and dominated by a large number of small firms .