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Deputy Asst Secretary Tara Sinclair and Asst Sec Van Nostrand and Special Asst Gupta discuss the ongoing boom in manufacturing construction. Here's one graph: Source: Van Nostrand, Sinclair, Gupta (2023). One doesn't see movements like this in response to a non-macro policy. I wondered what this was in the context of overall private nonresidential fixed […]

For many manufactured goods, the output can be produced in many different places–including other countries–and then shipped to where it is needed. Moreover, manufacturing jobs in industries around the world are being challenged by the rise of automation: in particular, high-tech industries like, say, semiconductor manufacturing, are extremely capital-intensive, with relatively few jobs. In comparison, … Continue reading Construction Jobs: A (Partial) Substitute for Manufacturing Jobs?
The post Construction Jobs: A (Partial) Substitute for Manufacturing Jobs? first appeared on Conversable Economist.

In construction, the goal of commercial projects is to turn a profit. This is achieved by minimizing inputs and maximizing outputs while building a product that meets the customer's perception of value. Value is determined through pre-negotiated specifications, plans, and material quality. Even in U.S. military construction, the unit executing the construction wants to complete the task on time and on budget, which can be difficult to do. Studies on project completion showcase a surprisingly high rate of failure in reaching the aforementioned "on time, on budget" goal. It is important to understand the nuances and details of U.S. Army engineering and construction because the method used to test the viability of integrating Lean World Class Manufacturing (LWCM) into a construction project involved an Army Engineer Company. The purpose is to make a company more competitive in the marketplace; in the same way the Japanese automotive industry came to dominate American car manufacturers during the 1980s. This approach to manufacturing requires a firm's complete dedication to the implementation of the philosophy. The objective of this research is to determine the economic viability of applying LWCM techniques to a traditional construction methodology using a real world construction project. Application of LWCM precepts to a U.S. military construction project during a training exercise proves beneficial when compared to a project that did not use them; however, definitive savings in time, labor, and material costs could not be obtained to definitively state a case for their economic viability in the private sector.