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Policy Support Plan for Strengthening Competitiveness of Small and Medium-sized Construction Companies

Publication Date 2020-10-16

Researchers Eun-Jeong Choi

The internal and external environment surrounding the construction industry is rapidly changing. In the face of slowing economic growth and declining production population, the outbreak of covid-19 is further accelerating the paradigm shift in the industry. As a result, the construction industry, which is a representative labor-intensive industry, needs to shift from the existing "labor force" focus to "improve productivity" and "automation." In addition, SOC budgets have been the biggest increase in years for the importance of safety and the post-corona era. Therefore, it will be an opportunity for construction companies to adapt to changes in trends in construction sites. Compared to large construction companies, however, small and medium-sized construction companies have lower productivity, such as sales, value-added per person, and technical skills. This study aims to identify key competitive factors for small and medium-sized builders. Through this, we want to find out what small and medium-sized construction companies need to supplement to improve their competitiveness. Also, we would like to present the government's policy support plan for small and medium-sized construction companies in the future. As a result of the analysis, in order for small and medium-sized construction companies to be competitive in the future, they should focus on ① strengthening their organizational and manpower management capabilities, ② strengthening their sales and orders capabilities, and ③ strengthening their ability to develop new technologies. The following are the ways to achieve this. Due to the limitations of the existing system, it is necessary to prepare a support policy that reflects the characteristics of the construction industry. First of all, ① support for strengthening the management ability of small and medium-sized construction companies, ② support for securing and fostering talent of small and medium-sized construction companies, ③ support for improving productivity of small and medium-sized construction companies, and ④ promotion for small and medium-sized construction companies should be provided. In addition, the construction company should make continuous efforts to strengthen its competitiveness. In other words, environmental changes require periodic checks and supplements of the capabilities a company should have.