Build your professional network on facebook via our app Go to app
 
<< Prev  2 of 16 in Topic  Next >>
 
Industry : Construction
Functional Area : Business Processes
Activity: Question posted: 04 10 2009 11:23:41 +0000, 7 answers, 287 views, last activity 07 06 2010 20:18:08 +0000
 
 Refer 16
Share
 
 
 
 

We read and hear the "R" word just about everywhere we turn lately, but what impact might a recession — if we're in one or if we slide into one — have on construction industry?

 
 Top Answer :
Rating : +1 

               My opinion about the recession is just because of impact of the economy of US is indirectly effecting the IT sector of INDIA. Many people losing their jobs who are already taken huge house loans taken from banks. They are not in a position to repay the loans. In Hyderabad itself about 4 lakhs homes are about to auction for not paying of the housing loans. Once the IT sector is downtrodden,then the building projects very badly effected. Most of the companies taking extra precautions to minimise the investments particulary on infrastructure.But this is the temporary phenomenon.The construction industry is a even green field.Only the thing is there will be ups and downs of temporary nature.Truly speaking the raise in the construction cost abnormally raised upto the break even point. Naturally there will be some recession after break even point. But the recession will come to a constant state again it will raise in short period.

N.S.Rao

Assistant Engineer,

CPWD



  Answer modified by     Mallaya Pandravada, Project Leader/Managing Consultant, Sheladia Associates Inc  | 04 15 2009 08:07:59 +0000
[ Delete ]
[ Edit ]
Not Rated

Many countries of this world had suffered recession for 23 times till date.Beacause of globalization we in India are percieving the results of recession. It is an innocculation to the economy.It is like famine condition prevails. In my opinion thrift and self sufficiency are the mantras to be adopted in these hard times.We should concentrate more on production be it food grains essential commodities nad reduce spending on luxuries.

  Answered by     Shaju George, Facilities/Construction Manager, IBS Software Services (P) Ltd  | 04 14 2009 16:38:28 +0000
[ Delete ]
[ Edit ]
Rating : +1 

Let me tell you.. the IT sector being seriousely affected by recession, most of the campus construction projects are on hold. Attraction of  towards SEZ, own campus etc. are not visible in the current scenario. Now the trend is to re-negotiate rentals with builders and landloards.

But the other side is that now it is easy to get workers from any field since every one related is affected as Pragya said. Materials are also available at lower prize compared to last year. This is helpful for all projects which are under construction now.

  Answered by     Devarajan Venkataraman, Construction-Heavy, DLF  | 04 14 2009 08:13:25 +0000
[ Delete ]
[ Edit ]
Rating : +1 

To answer this simply as possible. Most everyone will be impacted in some way but should be able to adapt.
When the vast majority of people are hurting a little, it won't last that long. If everyone is feeling the pain, then something will eventually happen by nature to improve the economy. This is cyclical of course.

The point I am making, is that this will be self correcting. It won't last much longer. Remember this is a great time to pick up stocks and items from stores at a bargain.

  Answered by     Pragya Kothari, Construction-Heavy, DLF  | 04 14 2009 07:55:11 +0000
[ Delete ]
[ Edit ]
Not Rated

When it comes to the current construction recession everyone involved in home building is feeling the crunch. The sub prime crisis that we currently find ourselves in may take quite some time to recover. This construction recession is definitely hitting new home builders hard. And when the home builders are hurting everyone down the line is hurting as well. There are so many different companies that are involved with building a home that you really don't realize it until you actually see those businesses start to suffer. Everyone from the carpet supplier to the plumbers and electricians to those who install the precast septic tanks all feel the strain of this recession.

  Answered by     Anjali Bhatia, Construction-Heavy, Sobha Developers  | 04 14 2009 07:24:04 +0000
[ Delete ]
[ Edit ]
Not Rated

I feel it is clear from the dramatic downturn in the housing sector is now being followed by sharp falls in the commercial and industrial sectors and all these happened due to recession.Its impact is more painful because contractors are caught in a pincer movement between falling demand and rising costs. The inevitable result is lower margins.Construction suppliers caught between falling demand and rising cost as construction suppliers are being squeezed by increasing costs and falling sales,

  Answered by     Venkatesh M, Warehouse Manager, Larsen and Toubro  | 04 14 2009 06:46:40 +0000
[ Delete ]
[ Edit ]
Not Rated

According to me the effect of the sub prime mortgages is affecting everyone even though they probably weren't even involved with buying a new home anyway. This recession is touching everyone's lives; either directly or through someone that we know. For those construction workers out there who don't really know how to do anything else besides work in the construction industry, this is an especially hard time.

 
Leading Recruitment firm
Sales Executives jobs in Bangalore
Area Sales Executive jobs in Bangalore
Corrugator Specialist jobs in Bangalore
Viewers also viewed
Due to the unique nature of construction projects and the accompanying uncertainties and risk...
 
1 referals 9 votes, 1812 views
subletting of activity other than excavation,structural work like flooring, painting and other...
 
0 referals 5 arguments, 128 views
Real estate is also not recession proof. Many real estate firms like prestige group are seeing...
 
0 referals 4 arguments, 131 views
more...  
Unanswered Questions (151)
hi Ananth, i would like to know what would be the cost of construction of 1km concrete road for...
 
5 referals 0 answers, 0 views
As I know, Business model is about what a business does and how it makes money. Business Model...
 
21 referals 0 answers, 0 views
Who is there to safeguard my business??? There is nothing in the world which can run without...
 
0 referals 2 answers, 42 views
More From Author
Please elaborate more on the subject Mr. Badrish.
                     640 crore bridge develops crack in just 13 days Barely two weeks ago, it was inaugurated with great fanfare by the Minister for Public Works in UP. Now, the Rs. 640-crore bridge has developed a massive crack - five feet long...
more...