ABSTRACT
The construction industry is really a collection of subindustries which produce a varied set of products. At first glance the construction of a house, a shopping centre, or a hospital may all be regarded as broadly similar operations. But to understand the rate of production of these various buildings, their quality and their cost to the user we need to focus on the production cycle of the industry. In terms of the model M -3> C -3> C1 -3> M1 (see p. I) it is relevant to consider why any given pattern of investment occurs in construction (whether from public or private sources), who determines the level of the initial amount invested (M) and what sort of capital this is. In the commodity assembly stage M -3> C we need to know something about the supply of building machinery and materials and the ways that land is assembled. The production process itself C -3> C1 brings all these inputs together in ways that evolve with new developments in technology. Finally, the realization of the monetary value of the building C1 -3> M 1 can take one of a number of forms depending upon the nature of the development. As well as considering these various conversions in the production chain, some attention will be given to the adaptations made by the industry as it seeks to protect profitability (the M1 - M increment) in changing, and latterly very difficult, trading conditions.
