Wealth measurement and the role of built asset investment : an empirical comparison

PurposeThe purpose of this paper is to assess the role of investment in built assets in the achievement of economic growth as part of a wealth measurement approach and to undertake an analysis of the relative importance of such investment as part of a country’s overall capital asset portfolio. Research ApproachPanel data on capital asset investment are used to compare groups of countries at different stages of development. Statistical Sources Data sets on investment and capital levels from the Penn World Tables (PWT) 9.0. Population and GDP data are taken from the same source and the UN Statistics Division. World Bank reports provide data on countries’ income group classification. FindingsThere is confirmation of the view that, as economies grow, a pattern of investment based on developing a different structure of capital asset portfolio occurs. Investment patterns similar to those found in advanced countries arise as low income countries move to higher income classification groups even though built assets remain the most valuable capital asset group. Value The study provides time series evidence on the nature of changing capital investment patterns in countries’ economies and demonstrates the value of a wealth measurement approach

Investment in infrastructure as a key to sustainable economic recovery: the role of the building industry

The focus of this paper is the role of the building industry in post-COVID-19 economic recovery plans. Investment in infrastructure forms a major part of many countries’ strategies to engender economic growth and construction is the pivotal industry in enabling the implementation of the plans in a sustainable manner. This study looks at the effects of investment in infrastructure on the economy with reference to the role of the construction industry in delivering this investment. Basic issues are considered, particularly concerning how relevant investment can be measured and how the contribution of the construction sector can be realistically assessed. A review of data sources and empirically peer-reviewed papers is undertaken. Based on longitudinal time series data from national statistics agencies and international organizations, analysis is undertaken to discover the relationship between infrastructure investment and economic growth. The study focuses on the UK, but comparisons are made with other countries to consider alternative approaches to stimulus investment policies with digitalization, and sustainability and green investment being a growing feature of investment plans. Potential issues of these approaches are examined and the main barriers to their achievement are identified. Emerging trends and a set of policy agendas are proposed to guide future directions. First published online 18 January 202

Comprehensive macro-information systems for the construction industry: an international perspective

In order to fully understand the functioning of the construction industry, it is necessary to place the industry in perspective vis-a-vis the overall economy of a country. A necessary requirement is that a comprehensive information system exists. In many countries, a critical review of currently available data, their sources, processes and accessibility shows significant deficiency. This paper reports on the proposed work of the CIB (International Council for Building Research Studies and Documentation) Task Group on 'Macroeconomic Data Related to the Construction Sector', which is undertaking a study of the process of development of macroeconomic information systems in a selected group of countries world wide. In this paper, the need for a comprehensive information system is determined, as well as the current relevance of such a system and its appropriateness in the current stage of development of different countries. Additionally, the extent to which the construction industry, professions and client organisations utilise the available data is assessed

CIB International Conference 2014: W55/65/89/92/96/102/117 & TG72/74/81/83 Construction in a changing world: Book of Abstracts

It is no exaggeration to say that CIB is the world's foremost platform for international cooperation and information exchange in the area of building and construction research and innovation. What takes place at CIB events is the very essence of CIB's raison d'être and, outside the triennial CIB Congress, an unprecedented number of CIB working commissions and task groups are represented at this Conference and we have worked to facilitate interaction with a rich mix of specialist streams, opportunities for informal networking and a series of challenging keynotes. With its focus of “Construction in a Changing World”, the Conference provides a forum for researchers worldwide to debate and exchange ideas and experiences on a broad range of issues. Driven by technology innovation, demographic growth, environmental change, a new economic order and a strong undercurrent of social and political desire for change, the world is changing quickly. Construction doesn’t exist in isolation and, in a fast-changing world, the sector has the vital role of providing the requisite built environment to meet the challenges presented by these changes. In order to deliver value, maintain competitiveness and address the needs of society, the construction industry will need to develop its capabilities for managing innovation and technical change. The Conference will bring together resources and knowledge across different fields, technologies and disciplines to deal with the major challenges that construction professionals will be confronted with in the coming years

UK construction companies’ strategies in the face of business cycles

Firms in the construction industry have always had to deal with the challenges of the economic cycle and develop strategies to deal with the resulting fluctuations in their business environment. In the context of the 2008–2011 double-dip recession in the UK, the results of a survey targeting the top one hundred construction companies in the UK are reported here. This research is particularly intended to assess whether the strategies of large companies in the construction sector, when faced with the issues associated with the variation in the economic cycle, have changed since the previous business cycle (i.e. the 1986–1990 boom followed by the 1990–1991 recession). The survey reveals the challenges that companies have faced, reports on company behaviour and on the policies adopted. While there are many similarities between policies adopted during the recessionary periods of the two cycles, the research found notable changes in attitudes towards diversification, human resource management and price bidding

The financial and economic challenges of housing provision for an ageing society

Purpose The purpose of the paper is to assess the critical financial and economic issues associated with the provision of adequate housing in the UK in the face of current and future demographic change. Design/methodology/approach The review is based on an investigation of the current state of preparedness of the housing market and its various stakeholders based on recent reports and secondary statistical evidence. Findings The findings emphasise the need for a multi-faceted approach to tackle the challenges that need to be addressed. Unless measures are initiated to influence the market, the requisite increase in the stock of appropriate housing in the face of rapid demographic change will not occur. Originality/value The value of the study is that it identifies the issues based on the current state of provision and makes recommendations for meeting the challenges arising from these issues. These recommendations have strong implications for policymakers and other stakeholders

Perception versus reality: The portfolio allocations of UK property companies

The property portfolio allocation of property companies could be determined through a risk and return analysis of each sector considering an acceptable level of risk. This study applied a constrained multiple regression model to the examination of property portfolio exposure. An asset class factor model namely return-based style analysis (RBSA) was developed by Sharpe (1988, 1992) to measure the exposures of each component of a mutual fund’s portfolio to movements in their returns. Total returns from ten public-listed property companies (PLPCs), based on their share price movements, were used to estimate the style exposures of three commercial property types - retail, office and industrial. The data used for share price movements are from the first quarter of 1987 to the fourth quarter of 1998. The study examined the relationship of the return for three commercial property types to each portfolio of PLPC. The effective portfolio allocations that are derived by RBSA are then compared with the actual average portfolio allocation of the property companies. RBSA is seen to be a particularly effective tool in the explanation of the returns of PLPCs pursuing growth or income strategies. This study also found that other aspects of portfolio allocation determinants such as gearing, the features of the property portfolio and the property market cycle were worthy of consideration

The Impact Of Portfolio Strategy On The ‘Style’ Performance Of U.K. Property Companies

This study applied a constrained multiple regression model to the examination of property portfolio exposure. An asset class factor model namely return-based style analysis (RBSA) was developed by Sharpe (1988, 1992) to measure the exposures of each component of a mutual fund’s portfolio to movements in their returns. Total returns from ten public-listed property companies (PLPCs), based on their share price movements, were used to estimate the style exposures of three commercial property types - retail, office and industrial. The study examined the relationship of the return for three commercial property types to each portfolio of PLPC. The effective portfolio allocations that are derived by RBSA are then compared with the actual average portfolio allocation of the property companies. RBSA is seen to be a particularly effective tool in the explanation of the returns of PLPCs pursuing growth or income strategies. This study also found that other aspects of portfolio allocation determinants such as gearing, the features of the property portfolio and the property market cycle were worthy of consideration. Keywords – Commercial property, Portfolio allocation, Portfolio strategy, Portfolio Performance, Return-based style analysi

Reassessing productivity in the construction sector to reflect hidden innovation and the knowledge economy

With the development of a knowledge economy, it is reasonable to assume that the level of innovation should be particularly high and that it should have a major effect on investment and productivity across all sectors, including the construction industry. For a valid assessment of the economic performance of the construction sector in terms of its productivity, it is important that the economic benefits for the sector from technological change are properly recognized but the impact of such benefits may be ‘hidden’ due to measurement issues, as innovative activity and investment in intangible assets have both gone unrecognized in official statistics. Much of the innovation in the construction sector is hidden from conventional measures and, for the UK economy, there is evidence that investment in intangibles may be even greater than tangible investment, if a definition of intangible assets incorporating spending on a broad range of knowledge‐based assets including organizational capital, human capital, etc. is taken. While accurate data are difficult to determine, an appraisal of the potential for utilizing existing data sources and for improved measurement is presented.Economic performance, innovation, intangible investment, knowledge economy, productivity,