Labour shortage in India is pegged
to go up by 65 per cent by the next decade with more workforce moving from
traditional brick and mortar industry like the construction and real estate
sectors to more lucrative sectors such as IT, ITeS, banking and telecom, according
to a report.
The acute labour shortage in the
construction sector is going to drive developers to go in for large-scale
mechanization and also project management, according to a report ‘Indian
Construction Sector – The Great Leap Forward’, by Synergy Property Development
Services, the Global Project Management Consulting & Turnkey Solution
Company.
The report has clearly indicated
that the future of the construction sector will hinge on project management,
mechanization and pre-cast or prefabricated technology, to meet the challenges
of cost, quality and time.
Sankey Prasad, Chairman and
Managing Director, Synergy Property Development said, “The last decade was very
interesting. We witnessed high and low of all aspects of the construction
sector, the demand supply of materials, the housing market, labour availability
and geographic shifts. Overall it was a honeymoon period. The next 10 years
will be a period of caution and uncertainty, with innovation and technology
adoption being the guiding force. Further cost rise of construction materials
and inflation will remain a concern.”
The report highlights the
industry’s constant struggle to manage cost, quality and time in construction
projects. It has pointed out that with
the cost of material expected to double in the near future, the sector in India
has no other option but to adopt and blend in global best practices. In order
to survive and sustain, the sector has to go in for large scale ‘mechanization’
and ‘outsourcing of project management services’.
It said that the rate of
mechanization in India at 20 per cent was low compared to the developed
countries where it was between 60 and 70 per cent. With India at the cusp of
rapid urbanization and development, there was ever-increasing demand for
commercial and residential space and it could be met only through adoption of
mechanization and project management practices.
The report gives a multi-faceted
industry perspective on compulsions and circumstances that have resulted in the
sector come to the present crossroads. The report, which is timely and
incisive, reiterates the potential of the construction sector to propel India
to becoming the country with the third largest GDP in the world in just two
decades.
Labour Shortage
With rapid development across Tier
II & III cities, India will witness acute labour shortages in the coming
years. It is here that project management services will provide the customer
with a one-stop professionally trained and proven solution that will enable
integrated and supervised project implementation, from design to delivery. The
report there was distinct labour trend. In 2002, the number of labourers
required to build half a million sq. feet was about 700-800 construction
workers and in 2012 with gradual mechanization it had come down to about 200
workers and by 2022, it would reduce further.
Time is Ripe to Investment in Residential & Commercial
Property
The report said that the present
times were appropriate for those wanting to invest in either in their ‘dream
house’ or commercial property, as there are indications of increase in prices
by nearly 50 per cent, based on RBI projections.
“Investment in real estate now
would be timely and save the buyer the pangs of acquisition, compounded by
inflationary trends,” said Sankey Prasad – Chairman & MD - Synergy Property
Development Services.
No comments:
Post a Comment