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Manufacturing vs. Construction Labor Productivity

Page 31

“This differing path results in way more efficiency and productivity, as seen in many of the analyses comparing nonfarm industries to the construction industry. A while back we overlaid two productivity graphs, one from the National Bureau of Economic Research (NBER) and another from Paul Teicholz of Stanford University, on a timeline of innovations in both manufacturing and construction. What we observed was very telling: (1) for the most part, beginning in the early 1900s, the construction industry has shown no material improvement in productivity, and (2) other industries have shown significant gains in productivity. The net impact over the forty-eight-year period shows that manufacturing productivity ended up about 3.6 times higher than construction productivity at the end of the period.”

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