Long-Term Impact of Equipment Technology on Labor Productivity in the U.S. Construction Industry at the Activity Level

Abstract

In general, U.S. industries have witnessed dramatic changes in core processes over the past 25 years. Well understood technological and managerial advances have allowed the manufacturing sector, for example, to steadily increase its productivity and its profit margins. Similar changes are far less well understood in construction. This research examines 200 construction activities for the effect of technology, specifically equipment technology, on their labor productivity from 1976 to 1998. During that time period, changes in equipment technology are measured using a technology index consisting of five technology change factors. Through analysis of variance and regression analyses, it is found that activities experiencing significant changes in equipment technology have witnessed substantially greater long-term improvements in labor productivity than those that have not experienced a change in equipment technology. This research also reveals that changes in (1) energy, (2) control, and (3) functional range are significantly and positively correlated with improvements in labor productivity.