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The divergence in aggregate and activity estimates of US construction productivity

Author

Listed:
  • Paul Goodrum
  • Carl Haas
  • Robert Glover

Abstract

Discrepancies exist between aggregate and activity productivity measurements in the US construction industry. Multiple studies using aggregate industry measures suggest that construction productivity has declined over the long term. A longstanding problem with the aggregate measures concerns the difficulty of controlling for inflation so as to accurately measure real output. As an alternative, average activity productivity, measured by individual work activities, indicates that construction productivity has increased over the same time period. Activity measurement data have been collected for 200 construction activities over a 22-year time period from commercial estimation manuals used by contractors and owners to estimate the cost and time requirements for construction. This paper examines the discrepancies between aggregate and activity measurements and suggests possible reasons for their existence.

Suggested Citation

  • Paul Goodrum & Carl Haas & Robert Glover, 2002. "The divergence in aggregate and activity estimates of US construction productivity," Construction Management and Economics, Taylor & Francis Journals, vol. 20(5), pages 415-423.
    • Handle: RePEc:taf:conmgt:v:20:y:2002:i:5:p:415-423
    DOI: 10.1080/01446190210145868
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    Cited by:

    1. Xueqing Wang & Yuan Chen & Bingsheng Liu & Yinghua Shen & Hui Sun, 2013. "A total factor productivity measure for the construction industry and analysis of its spatial difference: a case study in China," Construction Management and Economics, Taylor & Francis Journals, vol. 31(10), pages 1059-1071, October.
    2. Le Ma & Chunlu Liu, 2014. "Did the late-2000s financial crisis influence construction labour productivity?," Construction Management and Economics, Taylor & Francis Journals, vol. 32(10), pages 1030-1047, October.
    3. Daniel Garcia & Raven S. Molloy, 2023. "Can Measurement Error Explain Slow Productivity Growth in Construction?," Finance and Economics Discussion Series 2023-052, Board of Governors of the Federal Reserve System (U.S.).
    4. Diane Coyle & Rehema Msulwa, 2023. "Digital Concrete: Productivity in Infrastructure Construction," NBER Chapters, in: Technology, Productivity, and Economic Growth, National Bureau of Economic Research, Inc.

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