Delaney, F T and Wamuziri, S C (2002) Corporate profitability in construction and allied industries. Journal of Financial Management of Property and Construction, 7(2), pp. 107-116. ISSN 1366-4387
Abstract
Often firms plagued by poor performances seek to take higher risks. This may lead especially where resources exit, to increased diversification. Construction companies operate in a highly competitive business environment plagued by low profit margins and high failure rates. This paper explores the profitability of markets within the construction industry; the three examined are construction, plant hire and construction materials sector. The study was conducted in two parts. The first analysis involves the use of descriptive statistics, which provides a valuable aid in the visual presentation of the range of the possible outcomes. In addition a probabilistic analysis of the distribution of profitability has been undertaken. The second analysis involves the use of inferential statistics, concentrating on the use of significance testing. In all cases the performance of the plant hire sector was found to exceed that of contracting and material sectors.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | construction industry, diversification, materials sector, plant hire, profitability |
| Index terms: | plant hire, testing, construction industry, statistics, markets, competitive busines, diversification, construction material, profitability, construction company, profit |
| Subjects: | mathematical modelling, building materials, industry analysis, organization, economic analysis, business management, professional practice, maintenance engineering, market analysis |
| Topics: | Business Strategy, Research Practice, Engineering Principles |
| Descriptive scope: | 4 PCTA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here