Analyzing the Problem of Low Efficiency in Housing Construction

Abstract

Although the volume of Russian housing construction has exceeded in recent years the maximal level of the Soviet times, the key problem of this branch is low efficiency. In particular, it is low technological level of construction and industry of construction materials, high resource intensity of construction, monopolization of market for construction materials, low productivity of labor. Administrative barriers also play a considerable role, giving rise to additional costs and increasing duration of construction. In time of crises, a dramatic worsening of business conditions commonly causes reorganization of the industry, removing inefficient actors from the market and forcing actors that remain to intensively find and implement every possibility for survival by means of improving efficiency. However, the 2008- 2009 crisis and the “sluggish” crisis of the recent had no such an effect in the Russian housing construction. This evidences stability of the existing system against external disturbances; low efficiency in this branch permanently reproduces itself under the impact of a complex of interrelated factors. Thus, the problem has the system nature. This article analyze the structure of the problem and the interaction of factors that cause its self-reproduction. The analysis is performed both at the level of the housing construction as a whole and at the level of specific construction firm.