The construction industry’s productivity problem

EVER since the financial crisis, the world has been plagued by weak productivity growth. One explanation is that in uncertain times firms are keener to take more people on to the payroll than to invest heavily in new equipment. The construction industry has been afflicted by such problems for decades. Since 1995 the global average value-added per hour has grown at around a quarter of the rate in manufacturing. According to McKinsey, a consultancy, no industry has done worse.