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Correlation Analysis of Key Influencing Factors to the Total Factor Productivity of the Hong Kong Construction Industry

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Proceedings of the 21st International Symposium on Advancement of Construction Management and Real Estate

Abstract

Productivity is an endemic issue that challenges the Hong Kong construction industry. Studies addressing labour productivity abound; however, few have investigated and analysed the key influencing factors that affect the Total Factor Productivity (TFP) by using correlation analysis. This paper aims to identify the key influencing factors to the TFP growth and provide insights and solutions to enhancing construction productivity at industry, organisation, and activity levels. The results reveal a downward trend of construction productivity in Hong Kong with a negative average TFP growth rate of −2.15% per annum over the period from 2003 to 2014. Through correlation analyses this trend was found to be shaped by the factors including manpower issues and low material technology progress. A number of important measures were identified to improve the TFP growth, including young workers engagement and motivation, research & development investment in automated or semi-automated installations, assembly, and building industrialisation, lean thinking, and project development incentives at industry level. Additional ones include addressing labour management, training and education at organisation level, as well as labour co-operation and on-site learning at activity level. The findings contribute to a better more comprehensive understanding of construction industry productivity.

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Acknowledgements

We acknowledge the support from the Construction Industry Council for our research into the productivity of the construction industry.

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Correspondence to W. Zhan .

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Zhan, W., Pan, W., Javed, A.A., Chau, K.W. (2018). Correlation Analysis of Key Influencing Factors to the Total Factor Productivity of the Hong Kong Construction Industry. In: Chau, K., Chan, I., Lu, W., Webster, C. (eds) Proceedings of the 21st International Symposium on Advancement of Construction Management and Real Estate. Springer, Singapore. https://doi.org/10.1007/978-981-10-6190-5_51

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