With the current depression showing the glimpse of its mouthful of teeth it might be the right time to think what construction, my beloved industrial sector, might look like once the economic volcano settles down. One outcome is certain. We shall see far less companies floating around and the survivors will have to change their business model whether they like it or not. Mind you, this is not your typical crisis of 1970's, 1980's or 1990's. We are closing in on the bifurcation point where the system will simply slip into a different state and things will never be the same any more. My view of the construction future, Construction 2.0, thus surrounds the following main changes:
- Multiskilling will once again prevail over current insane specialisation; yes, companies will be forced to optimise their operation and the cheapest way of doing this is by creating an environment where highly committed and motivated people can flourish
- As a result reorganisation into talent-friendly environment will transform Human Resources function; HR people will no longer be hire and fire officers because their will be a real and threatening reality - create a stimulating and supporting environment or face losing your best people
- Contrary to a common belief specialist companies will be hardest hit and the ones that offer complete whole-package in-house service will be much more resilient; it has long been believed that specialist construction companies have better chances in downturns but evidence from the collapse of former Yugoslavia (e.g. Slovenian construction companies) and elsewhere shows that medium size construction companies employing their own workforce, plant and equipment, and delivering a complete-package service in-house are more likely to survive the current depression
The coming years will be a tremendous test for the economy as a whole but for the construction sector in particular. Skill shortage will not ease up considerably during the depression because of the huge deficit of highly skilled and motivated people in construction. The sector is unattractive to top performers, does not collaborate with Higher Education institutions nowhere near the way it should and is appalling at recruiting let alone retaining employees.
