The use of the UK benchmark model to develop a standard global approach to construction data

The use of the UK benchmark model to develop a standard global approach to construction data

Gruneberg, S.

2011-06-20

The human population of the world has grown rapidly in the last fifty years. The impact of the population explosion has also had a dramatic effect on the built environment. Yet it is difficult to find a source of statistical information on a global scale that combines the data that is available. Unless there is a measure of construction activity throughout the world there is no way of gauging the scale of the issues involved. There is a need to know the location of activity, the types and quality of output, and the numbers and skills employed in the construction workforce. Only when these measures of the construction industry are found, policies to deal with construction problems, such as homelessness, migration, health and safety, training and skills, trade in materials, carbon emissions and many other issues can be assessed by the international community. Setting these issues to one side, a benchmark model of construction based on the UK construction industry is considered. Such a model might be used to calculate the size and growth rate of the global construction industry and this can be used to compare to other estimates of global construction. It is suggested that the global construction industry, using the benchmark model as an international standard, can itself then be used as a benchmark to compare more detailed national construction statistics. The benchmark model uses Gross Fixed Capital Formation (GFCF) taken from National Accounts. This is then applied to a breakdown of construction using UK Construction Statistics Annual (CSA). The model establishes the breakdown of construction for any country on the assumption that the breakdown in any country will be approximately similar to the breakdown in the UK and the UK breakdown represents a typical national construction industry. In particular this paper deals with the issue of the most appropriate variable to use to relate GFCF available in every country’s national income data to the detailed analysis of UK construction data for the sake of building the benchmark model. There are three options, namely: total GFCF, the total construction element in GFCF or all new work in the CSA. No statistically significant differences are found between any of the variables but for theoretical and operational reasons the preferred option is the total construction element in GFCF.

global construction data
UK benchmark model
gross fixed capital formation
all new work

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Conference proceedings

conference paper

(c) 2011 Gruneberg, S.