Case Studies of U.S. Construction Labor Productivity Trends, 1970-1998

Abstract

Construction productivity trends carry immense consequences for the economy as a whole. However there is little scholarly consensus concerning even the direction of such trends. The main objective of this paper is to present an approach to studying long term productivity trends in the U.S. construction industry. A preliminary indication of such trends over the past 25–30 years using the described approach will also be presented. Subsequent, extended statistical studies are suggested that may be based on the approach of the selected work presented here. Labor cost and output productivity trends are tracked for tasks that represent different trades and differing levels of technological intensity within the building construction sector. Specific tasks dealt with range from a zero technology impact task, hand trenching, to compaction with a Sheepsfoot Roller. Means' Cost manuals were used to trace the benchmark values for these tasks. These values reflect productivity trends. The combined data indicate that productivity has increased in the 1980's and 1990's. The paper suggests that depressed real wages and technological advances may have been the two biggest reasons for this increase. Subsequent studies, which can be based on the approach presented here, are required to substantiate these observations.