Post-Corona Era, the Core Competitiveness of Small and Medium Construction Companies is 'Workforce'

For Strengthening Competitiveness of Small and Medium Enterprises, 'Sales and Order Activities' Ranked as Top Priority
Meanwhile, Workforce Management and Technical Development Capabilities Are the Weakest in Small Construction Firms
Post-COVID, 'Adaptability' Needed to Respond to Deregulation of Business Areas and Other Changes

(Photo: Excerpt from the Korea Construction Industry Research Institute's report 'Policy Support Measures to Strengthen the Competitiveness of Small and Medium-sized Construction Companies')

[Asia Economy Reporter Yuri Kim] An analysis has emerged that prioritizing the enhancement of workforce management capabilities is essential to strengthen the competitiveness of small and medium-sized construction companies.

On the 15th, the Korea Construction Industry Research Institute released survey results on the competitiveness factors of small and medium-sized construction companies through its report 'Policy Support Measures to Strengthen the Competitiveness of Small and Medium-sized Construction Companies,' emphasizing the importance of 'personnel.'

The survey results identified sales and contract acquisition activities as the most important primary factor for the competitiveness of small and medium-sized construction companies. This was followed by construction activities, organizational management, workforce management, and technology development. Based on this analysis, factors to strengthen the competitiveness of small and medium-sized construction companies were examined, revealing that 'management of contract acquisition specialists' was the most critical capability. 'Management of sales specialists' and 'management of estimating personnel' followed.

Researcher Eunjeong Choi of the Korea Construction Industry Research Institute explained, "The core factor for strengthening the competitiveness of small and medium-sized construction companies is ultimately related to 'personnel.' Given that employees in small and medium-sized construction companies must perform multiple roles compared to large construction firms, the importance of workforce management is inevitably significant."

When investigating the current level of each competitiveness factor in small and medium-sized construction companies, technology development was found to be the weakest with an average score of 1.78 (out of 5). Among technology development aspects, scores for research and development (R&D) investment and possession of new construction-related technologies were the lowest, indicating a need for government policy support for the introduction of smart construction in the future. Following technology development, workforce management scored an average of 2.24, construction activities 2.57, organizational management 2.68, and sales and contract acquisition activities 2.88.

Researcher Choi explained, "Although estimating and contract acquisition capabilities were identified as the most critical core competencies among competitiveness factors, the internal workforce training and support systems, as well as technology investments to support these capabilities in small and medium-sized construction companies, were found to be the weakest."

The Korea Construction Industry Research Institute explained that for small and medium-sized construction companies to maintain sustainable competitiveness in a rapidly changing environment, government policy support focusing on ▲strengthening organizational and workforce management capabilities ▲enhancing sales, contract acquisition, and construction capabilities ▲strengthening new technology development capabilities is necessary. Due to the limitations of existing support systems targeting small and medium enterprises, support policies reflecting the characteristics of the construction industry need to be established. Priority should be given to support for strengthening management capabilities of small and medium-sized construction companies, support for securing and nurturing talent, support for productivity improvement, and promotion and support for strong small and medium-sized construction companies, the institute emphasized.

Researcher Choi stated, "The unexpected COVID-19 pandemic has highlighted 'smart infrastructure' as a key element," adding, "Infrastructure (SOC) budgets are showing the largest increase in several years to stimulate the economy." This trend change in construction sites presents an opportunity for small and medium-sized construction companies to generate new projects.

Meanwhile, it is seen as a crucial time for small and medium-sized construction companies to establish systematic organizational management systems for workforce development alongside government policy support. Researcher Choi said, "With the abolition of sector regulations between general construction and specialized construction industries starting in 2021, it is necessary to strengthen the direct construction capabilities of general construction companies," adding, "It will be important to prepare for securing skilled workers, maintaining excellent partner companies, and operating various construction equipment."

This content was produced with the assistance of AI translation services.