Impact with General Environment Factors

1. Environmental impact on
Construction industry
.....*.....

2. Introduction to the construction industry.
Evolution of the construction industry.
Impact of the changes of business environment on
industry.
Recommendations.
.....*.....

3. Introduction to the construction industry
The branch of manufacture and trade based on the
building, maintaining, and repairing structures.
This includes drilling and solid mineral exploration.
Standard Industrial
classifications.
Building Construction
Industry.
Heavy Construction
Industry.
Special Trade
Construction Industry.
.....*.....

4. Public work
department
(1876)
Building Department
Irrigation Department
Road development Department
Boot impact to the industry as
a GDP share is 2009(6.6),[CBSL
annual report].
Peak of the industry as a
GDP share is 2014(7.2),
2015(6.8).[CBSL annual
report].
Evolution of the construction
industry
.....*.....

5. Macro environment forces.
Macro environment refers, the major external and
uncontrollable factors that influence and organization’s
decision making, and affect its performance and strategies.
We analyse six different forces, They are…………,
Technological environment.
Natural environment.
Political and Legal environment.
Economical environment.
Demography environment.
Culture environment.
.....*.....

6. Macro
environmen
t forces
Technological
environment
Natural
environment
Political and
Legal
environment
Demography
environment
Economical
environment
Culture
environment
.....*.....

7. Cultural environment
A cultural environment is a set of beliefs, practices,
customs and behaviors that are found to be common to
everyone that is living within a certain population.
(Ministry of Rehabilitation Resettlement & Hindu religious Affairs.,
ICTAD, CBSL Annual Report 2014) sources.
Rehabilitation of LTTE carders.
Reluctance of Young Generation to join the
Industry.
Social infrastructure Development

8. 0
2000
4000
6000
8000
10000
12000
2011 2012 2013 2014 2015
GTV schools PVT schools hospitals
.....*.....

9. Increase the population of women than the population of
men. The effort is decrease the workforce of men.
increase the 55 above age people , not enough skill labors.
Increase the number of students, Not enough schools and
increase the number of schools. Mainly in rural areas.
Demographical environment
.....*.....
A demographic environment is a set of
demographic factors such as gender or ethnicity.

10. .....*.....
2010 2011 2012 2013 2014 2015
Mid-Year Population,
’000
20675 20869 20424 20579 20771 20966
Male 10273 10357 9888 9963 10056 9875
Female 10402 10512 10536 10616 10715 11091
By Age Groups,’000
0 – 14 Years 5434 5488 5147 5187 5235 5288
15 – 54 Years 12512 12625 11680 11768 11879 14030
55 Years and
Over
2729 2756 3597 3624 3657 1648
Total Pupils
411952
5
415788
5
419433
6
423142
2
(Sri Lanka Socio Economic Data 2014)

11. Economical environment
.....*.....
The economic environment consists of external
factors in a business' market and the broader
economy that can influence a business.
Economy
Government
Business
firms
House hold
Foreign
sector

12. Relatively higher Investment in Economical infrastructural
Development
• Highways
• Airports
• Seaports
• Road Development Project
Reducing Taxes on Construction Equipment's and Materials
• Importation of Construction Equipment's and materials
Increased
Relatively High Number of Investments in Construction Related
Industries
• 48 New Hotels Approved
Increment of Per capita Income
• Number of permanent houses increased
Investments increased
• Port City .....*.....

13. .....*.....
USD RS. Millions % of GDP
Year Inflation
Interest
rate
Imports
Building
Materials
Import
Machine &
Equipment
Construction
growth rate
2010 6.2 113.06 92905 151223 9.3
2011 6.7 110.57 118935 236857 14.2
2012 7.6 127.6 157437 300138 21.6
2013 6.9 129.11 175054 286631 14.4
2014 3.3 130.56 1,308.9 2,131.0 9.7
2015 5.3 140.95 1,352.0 2,278.1 6.8
(CBSL annual report)

14. • Aluminum Formwork System
Positive
Cost Effective.
Zero wastage.
Shorter period.
Negative
High initial cost
.....*.....
Technological environment
Changes in technology affect how a company will do
business. A business may have to dramatically change their
operating strategy as a result of changes in the
technological environment.
(Department of Civil Engineering, University of Moratuwa)

15. • Precast Beam Mover in bridge construction.
Positive
Transport long beams without
overrun the vehicle at bends to
the construction site.
Negative
Need high skilled labors.
.....*.....
(Road Development Authority)

16. • Triple Glass
Positive
Reduce heat transfer.
Reduce sound transfer.
Negative
High maintenance cost.
.....*.....
(Medical Acupuncture Research institute of America)

17. Political and Legal Environment
Changes
Change in Legislature and Executive
Government Implement New Plans & Government Bodies
Industry Development Act No.33
Effect
The Government suspends work to review the projects
Incensement of Government investments of Roads, Bridges
Establishment of,
National Adv. Council on Construction.
Construction Industry Development Authority.
.....*.....
The political environment refers to the actions taken
by the government, which potentially affect the
daily business activities of any business or company.
(Chamber of Construction industry, CBSL Annual Report)

18. Natural Environment
Changes
Scarcity of the raw material.
Increment weather with adverse to construction industry.
Effect
Increase price of Sand, Lime, Timber, Rubble, Bricks.
Portion of GDP decreases.
.....*.....
The natural environment encompasses all living
things and non-living things occurring naturally on
Earth
(CBSL Annual Report , institute of
construction training and development)

19. Collaboration.
A Child Care Plan.
Reduce migration of Skilled labors.
Use latest technologies of the world.
Recommondation
.....*.....

20. .....*.....
Kavindu.
Chalendra.
Sandani.
Clashani.
Nadeesha.

21. .....*.....