Prospects of Construction Industry: Positive and negative?

Traumatic earthquake of 25 April, 2015 challenged the peace in everyone’s life. Many people got homeless, some of their homes are not in the condition of staying and some of theirs are partially manageable. In one hand, earthquake has damaged many parts but on the other this incident also has awakened people to think more on construction and its know-how. This has added the opportunities to the construction business as their possible customers are interested in this business and want proper guidance under which they can build safe and secure habitat.

Government is supposed to be the backbone in the development of the country but in our country the backbone seems to be weak enough to support the citizens wants and need at minimum level. Relief, rehabilitation and reconstruction measures are ideally on paper works only but application is rarely reached into the needy hands. Uncountable people are still waiting for help and support to get the shelter destroyed by the earthquake.

This mismanagement calls for the construction business to act a role of supporting these rising needs of their potential customers. However, this sector is also facing a lot of hurdles that restricts the flow of their services. Due to inefficiency in production of raw materials and supply problem because of transportation difficulties and energy crisis, production capacity is low. This encounters the problem of being unable to meet the growing demand of construction.

There is lack of appropriate Government policy and plans in the sector. When Government closed the mining of sand, pebbles, gravels etc. owing to environmental aspect, the result was scarcity and illegal excavation of these materials. The Government could formulate better policies to protect the environment. This is impeccable instance of how inappropriate Government policies affect the construction business. Besides, lack of stable political environment, infrastructures, technology and adequate investment, the industrial sector has not been able to come out of infant stage and grow. Due to this, it is not being able to contribute to economy as much as its capacities allows to do so.

The scenario has changed as the need of the customer is rising rapidly which enhances the possibilities of impr
ovement in this sector. Several houses were damaged, some were at extreme level and some partially, they both need construction facilities to manage those damages.

With the motive to support to provide strong foundation for secured residence and buildings construction houses are functioning with limited available resources at most of its capacities. They have to import raw materials heavily as international prices goes up their cost increases, while processing the major problem the energy crisis load shedding results increase in cost of production. Nepal produces construction materials like sand, bricks, pebbles, tiles, PVC pipes, zinc plate etc. Cement is manufactured locally and supports 80% of national demand; remaining is imported. Nepal imports other construction materials like steel rods, lifts, elevators, generator, construction machinery, quality testing equipment, engineering equipment, parqueting, aluminium, composite panels and other products and the import price is very high

This matter urgently needs to be addressed by the government and private sectors as government should assist more in strengthening the policy in construction business and invest more in construction business and private sector must enable these business to perform in a constructive way to lead national economy. It certainly is an important matter as such construction business supports the sustainability of economy and prosperity in long run.