CONSTRUCTION INDUSTRY

Introduction: Construction industry in Oman like most of the GCC countries is enjoying the boom. The huge rise in oil prices during 2003 to 2008 enable the construction industry to rise to its peak due to effort of Omans government to diversify oil based economy more to sustainable economy. This strategy of economy diversification led the government of Oman to invest heavily on infrastructure which not only include construction of roads, airports and railway tracks but also includes a lot of tourism projects as well as construction of commercial and private buildings.

The data published by Oman Ministry of National Economy shows that the construction industry has grown by 34.7% in 2007 when compared with 2006. The growth in construction sector is most likely to continue due to increasing oil prices in world market as oil and gas sector accounts 49.7% of Omans economy. However due to the global economic crisis of 2008 as well as fall in oil prices during that period slowed down the growth of construction industry in Oman but due to steady recovery of Oman the construction sector started to grow at rapid pace again. This growth will increase furthermore due to significant increase in Oman population and huge amount of government spending on infrastructure projects. 2. Economic Trends, Patterns and Consistencies The trend, pattern and consistencies of economic environment are discussed in this section. Oman economy is continuing to grow swiftly. According to the eight five year development plan published in 2011 which aims to achieve the average economic growth rates not lower than 3% and to increase the investment by 113% compared to previous plan periods. Furthermore oil revenues during the period of 2011 to 2015 are forecasted to reach R.O 25.5 billion, which is 100% more compared to the oil revenues in the past plan period of 2006 to 2010. Government revenues generating from activities other than during the period of 2011 to 2015 are also expected to be approximately R.O 12 billion which again is 109% more compared to the revenues generated during the period of 2006 to 2010. Similarly an increase in government revenues to by approximately R.O 37.5 billion to finance government projects which again is 101% increase when compared to past plan. This clearly shows that government will be having more revenues to spend on infrastructure projects which will allow the construction industry to grow more and more.

Due to the recession in 2008-09 which had severe effect on GCC economies the construction sector also got effected. However construction sector is starting to recover but the growth of construction sector in some of GCC countries is still far away from pre-crisis level. The growth of construction sector is not even among all the GCC countries. Qatar construction market growth forecasts looks the most optimistic due to strong GDP growth and successful bid to host 2012 FIFA world cup. Similarly in Saudia Arabia and Bahrain the construction market is also

growing due to government focus on providing cost efficient homes to poor and low income people.

Construction industry in Oman and GCC region continues to grow and flourish compared to more mature markets of Europe and US due to strong GDP and high oil prices. According to construction growth summary, the growth of the construction industry in Middle-east and Africa is approximately 5% whereas in US and Latin America and Asia it is 6% but in European markets the construction industry growth is declining by 2%.

Social Trends, Patterns and Consistencies: According to trading economics, population of Oman is increasing with each subsequent year. Population of Oman in January 2001 was 2.19 million whereas the population in January 2013 is expected to be 3.31 million. This growth in population represents the increase in demand of new buildings, roads and other basic infrastructure needs. Furthermore most of the Omanis families do not prefer joint family systems which further prove an increase in demand of new residential units. It clearly shows that the population of Oman is increasing with each coming years.

According to the index mundi the median age of people in Oman is 24.7 years and the average age of Omanis to get married is 24 years and almost 65 percent of Omani population is between 16-45 years old. Hence by analyzing this data one can predict the golden period for the construction industry in future. Furthermore the literacy rate of Omani population in 2003 was 96.7% which increased to 97.6% in 2008. With this increase in literacy rate more and more people are getting aware of green buildings and hence demand of green building is expected to rise in Oman.

GCC population also saw an increase at a rapid pace. The population of all GCC states which includes Saudia Arabia, UAE, Bahrain, Kuwait, Qatar and Oman reached approximately 46.8 million from 33.2 million in 2004 and this population is expected to hit more than 50million in 2013. The more the population increases the more the demand of the houses will be as well as infrastructure has to be further developed.

According to the recent statistics, the world population in 2012 was approximately 7 billion and it is expected to reach 8 billion mark in 2025. With the increase of population the demands for new building, hospitals, schools and other basic infrastructure needs is also going to rise.

Technological Trends, Patterns and Consistencies: Technological trends, pattern and consistencies are discussed in this part. Construction materials such as cement, blocks, concrete required for the construction projects are mostly produced within the country. The technology used to prepare these materials is not up to the standards and hence an upgrade of technology is required not only in manufacturing construction material but also in different construction activities. Furthermore the use of cutting edge and latest technology will not only enhance the quality of the materials produced but it can also enhance the productivity capacity of different manufacturing plants which manufacture these construction materials.

Another important technological trend noticed in Oman is the rare usage of ready mix concrete. Concrete production at the site requires a lot of time and sometime the quality is not up to the standard. Use of ready mix concrete will not only assure better quality but it also saves time, site storage space, reduces plant and machinery hiring at site as well as reducing the wastage of basic materials, dust and noise at site. This can improve the speed at which construction works and infrastructure is built in Oman.

In 2010, the use of ready mix concrete in construction projects in GCC is approximately 40%. The more usage of ready mix concrete in GCC region not only allows them to complete their infrastructure and construction project at swift pace. Furthermore a lot of GCC countries unlike Oman are starting to use concrete made with recycled products which not only lowers the concrete cost but it also has positive effect on the environment.

Most of the developed markets in the world prefer to use ready mix concrete instead of concrete made on site. Approximately 70% of the concrete used in the construction projects in the international market is ready mix concrete. A lot of countries are trying to use more enovironmental friendly concrete by not only utilizing waste products like fly ash and coal ash as replacement to cement but effort is being made to find the substitute of aggregate also in order to produce more green concrete with less cost.

Important Synergies and Convergences among the Economic Trends Due to increase of oil prices the government of Oman will not have increased revenue but it will also enable Oman government to spend more on its infrastructure development and other sectors which are required to be developed in order to diversify the country economy for oil and gas to other sectors. Important Synergies and Convergences among the Socio-Cultural Trends

Important Synergies and Convergences among the Technological Trends

REFRENCES http://www.indexmundi.com/oman/median_age.html http://www.tradingeconomics.com/oman/population http://www.indexmundi.com/facts/oman/literacy-rate http://www.gulfinvestmart.com/EcoDiary/Omandoc.htm http://www.constructarabia.com/wp-content/uploads/downloads/2012/09/The-GCC-CementConcrete-and-Stone-Market-Update-2012.pdf

Business Environment Analysis Rubric

Total 150 points

Criteria

Unacceptable

Acceptable

Proficient

Student Points and Comments

Provides an orientation to the industry.

Vaguely addresses and develops an orientation to the industry or completely off the topic.

Addresses and develops an orientation to the industry of the company and, for the most part, fulfills assignment requirements.

Addresses and develops an orientation to the industry and demonstrates solid ability to accomplish the assignment.

(8 points) (0-7 points) Discusses the key trends, patterns, and consistencies for three environments that impact the industry and a rationale why. Vaguely addresses and discusses the key trends, patterns, and consistencies for three environments that impact the industry or completely off the topic. Addresses and discusses the key trends, patterns, and consistencies for three environments that impact the industry and, for the most part, fulfills assignment requirements. (9-10 points) Addresses and discusses the key trends, patterns, and consistencies for three environments that impact the industry and demonstrates solid ability to accomplish the assignment.

(18-20 points)

(0-15 points) Discusses the synergies and convergences among the trends. Vaguely addresses and develops the synergies and convergences among the trends or completely off the topic.

(16-17 points) Addresses and develops the synergies and convergences among the trends and, for the most part, fulfills assignment requirements. Addresses and develops the synergies and convergences among the trends and demonstrates solid ability to accomplish the assignment.

(0-7 points) Discusses three trends, patterns, and consistencies that will affect the future of the industry and a rationale why. Vaguely addresses and develops three trends, patterns, and consistencies that will affect the future of the industry or completely off the topic.

(8 points) Addresses and develops three trends, patterns, and consistencies that will affect the future of the industry and, for the most part, fulfills assignment requirements.

(9-10 points) Addresses and develops three trends, patterns, and consistencies that will affect the future of the industry and demonstrates solid ability to accomplish the assignment.

(16-17 points) (0-15 points)

(18-20 points)

Discusses the impact that the identified three trends, patterns, and consistencies will have on the industry over the next 5 years.

Vaguely addresses and develops the impact that the identified three trends, patterns, and consistencies will have on the industry over the next 5 years or completely off the topic.

Addresses and develops the impact that the identified three trends, patterns, and consistencies will have on the industry over the next 5 years and, for the most part, fulfills assignment requirements.

Addresses and develops the impact that the identified three trends, patterns, and consistencies will have on the industry over the next 5 years and demonstrates solid ability to accomplish the assignment.

(14-15 points) (0-11 points) Discusses at least one major issue that the industry is facing each of three environments you selected to research. Vaguely addresses and discusses at least one major issue that the industry is facing each of three environments you selected to research or completely off the topic. (12-13 points) Addresses and discusses at least one major issue that the industry is facing each of three environments you selected to research and, for the most part, fulfills assignment requirements. Addresses and discusses at least one major issue that the industry is facing each of three environments you selected to research and demonstrates solid ability to accomplish the assignment.

(12-13 points) (0-11 points) Integrates established management principles into the discussion. Rarely integrates established management principles into the discussion. For the most part, does a good job of integrating established management principles into the discussion.

(14-15 points)

Consistently does a good job of integrating established management principles into the discussion.

(0-19 points)

(20-22 points)

(23-25 points)

Uses concrete language.

Inadequate or minimal use of proper terminology in the field(s). Provides no specific examples or uses inadequate examples.

For the most part, uses proper terminology and provides specific examples.

Consistently uses proper terminology and provides specific examples to support ideas.

(0-7 points) Uses supporting documentation that has been properly references and cited. Inadequate or minimal use of supporting documentation or not properly referenced or cited.

(8 points) For the most part, uses supporting documentation that is properly referenced and cited.

(9-10 points) Consistently uses supporting documentation that is properly referenced and cited.

(8 points) (0-7 points)

(9-10 points)

Considered holistically, demonstrates the ability to write at the graduate level.

Considered holistically, the student demonstrates an inadequate ability to write at the graduate level.

Considered holistically, the student demonstrates an acceptable ability to write at the graduate level.

Considered holistically, the student demonstrates a proficient ability to write at the graduate level.

(0-11 points)

(12-13 points)

(14-15 points)

SubTotal Points =
Turnitin.com Did not turn paper into Turnitin.com Minus 10 points Revisions based on the originality Report. Did not revise paper based on the originality report Minus 20 points

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