"There are no national firms, it's all mom and pops," LePatner says. About 90% of construction firms employ 10 people or less, when what the industry needs is national companies to cut down on inefficiencies and costs. He says the last major mom and pop was the garbage industry, which saw increased efficiency once Waste Management stepped in.
LePatner says, "The increase (in total dollar amount) in only 13 years has been phenomenal." He estimates the contracted construction industry accounts for 10% of GDP with a total of $1.23 trillion. In 1993 the industry totaled $480 billion.
The increased capital is not just a result of real estate's increasing value. "Surveys that have analyzed productivity show staggeringly that 40% to 60% of all dollars from the project never go into it." The money is funneled into inefficiency, poor coordination, and "folks just standing around."
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