Management
Hi Mercy,
as I previously mentioned, this is a continuing task. This is part A of thesis. You are required to produce the first three chapters of a research thesis, which includes Introduction, Literature Review and Methodology.
As you know the topic is: “How COVID-19 has contributed to the shortage of construction materials in Australia”
I have attached a detailed assignment description and marking rubrics. Please make sure you follow along and pay attention to every page of the assignment guideline.
Thanks
ANSWER
How COVID-19 has contributed to the shortage of construction materials in Australia
Table of Contents
Contents
Introduction and Background. 1
Problem Statement and Research Rationale. 2
Aims, Objectives, and Research Questions. 3
Lack of access to construction materials. 5
The failure of construction materials to reach the construction sites. 6
Reduced cash flows, revenue, and profits that limit access and supply of construction materials. 7
Research Methods and Data Sources. 10
Introduction
Introduction and Background
For the longest time, Australia’s construction industry has acted as one of the segments that has contributed to the country’s growth and development. It has generated over $360 billion in revenue and contributed to 9% of the nation’s Gross Domestic Product (National Industry Insights Report, 2021). This sector has been projected to grow at an annual rate of 2.4% in the next five years. However, the emergence of the pandemic has posed significant barriers to the growth and advancement of this key sector. Australia has been forced to adopt measures like lockdown and social distancing to limit the further spread of the virus. This has created a shortage of resources construction materials since Australia cannot import products from worldwide markets. For example, lockdown imposed by communities like China, the US, and Indonesia means limited or no access to construction products. Also, due to the social distancing and the stay-at-home directive, it has become complicated and hectic for Australian companies to source materials locally. Also, these projects have stalled due to the failure of these items to reach the sites. The supply chain was altered due to the safety and security guidelines established by the government to protect its citizens against potential virus attacks. Notably, this industry has continued to experience reduced cash flows due to poor business operations created by the pandemic. Overall, the shortage of materials is a crucial threat affecting Australia’s construction industry.
Problem Statement and Research Rationale
The research focuses on analyzing the situation of the construction sector in Australia in the COVID-19 pandemic era. Since the virus paves its way into this country, the construction area has continued to reduce available materials for various building projects. The government has undertaken different strategic actions to protect and safeguard its people. For example, lockdown is one of the conditions that the government has placed to limit the disease’s spread. It has generated a lack of access to materials, failure of items to reach the sites, and reduced cash flows that affect the ability and capacity to purchase equipment, plants, and other materials. The rationale for the research is to assess the impact that the COVID-19 pandemic has on the Australian construction sector and primarily on creating a shortage of required materials. This is one of the areas that attract a significant share of Australia’s economic growth and productivity. The shortage of materials could threaten the nation’s progressive growth and development. This research will reveal the loopholes that create a shortage of construction materials and open opportunities for making crucial decisions. The research outcome informs stakeholders about steps that they can take to ensure that the Australian economy can access construction products amidst the pandemic.
Aims, Objectives, and Research Questions
The central aim behind this research is to assess the impact that COVID-19 has had on the shortage of construction materials in Australia. It opens further research focusing on suitable mechanisms that Australia’s construction stakeholders should undertake to ensure a steady flow of materials even as the pandemic progresses. These are the objectives that the research focuses on;
- To examine how the COVID-19 pandemic has affected access to construction materials in Australia.
- To assess how the COVID-19 pandemic has complicated or led to failed delivery of construction materials to the desired destination in Australia.
- To evaluate how the COVID-19 pandemic has led to reduced cash flows, revenue, and profitability of the Australian construction sector.
These are the research questions that will guide the research process;
- How has the COVID-19 pandemic affected access to materials for use in the construction sector in Australia?
- How has the COVID-19 pandemic led to failed or complicated delivery of materials to the construction sites in Australia?
- How has the COVID-19 pandemic affected the shortage of construction materials in Australia due to reduced cash flows, revenue, and profits?
Research Limitations
The research process had various limitations that pose a crucial threat to achieving the targeted goals and objectives. One of the challenges experienced was hardships accessing viable information. The majority of the targeted respondents were not willing to provide details about the cash flow issues they encountered while handling various construction projects. Most revealed that such information is private and confidential. The determination of the financial outcomes in the construction field was largely affected by failure to access vital information. Thus, limited access to data and information was a significant challenge. The other limitation was time constraints. There was lack of ample time to sample as many people as possible to gather crucial information about their perception of the COVID-19 pandemic and its impact on the shortage of construction materials. Another major challenge was the lack of previous research studies about the topic. COVID-19 is a new area of study, and most researchers have not examined its impact on a wide range of areas. Thus, it was hard to find and accessing quality research papers that have analyzed this topic. Also, it was hard finding an appropriate sample size since the process was facilitated online. Most of the targeted potential participants did not respond to the request. The sample size obtained was inadequate for the study. These are the set of limitations experienced during the study and impacted the results obtained.
Literature Review
Introduction
COVID-19 pandemic is a healthcare threat that has halted operations in the construction industry in Australia. Since it was reported in Australia, it has continued to hamper key economic activities. The economic recovery process is one of the debates that continues to take root in Australia (O’Sullivan, Rahamathulla and Pawar, 2020, p.135). One of the pivotal industries is the project construction world that has suffered massive losses due to the present status of the pandemic. It has created a shortage of construction materials, making it complicated and hectic for projects to commence and complete at the intended time. One of the factors behind the shortage of these materials is the lack of building equipment across various destinations. The pandemic has attracted strategic actions like lockdown and social distancing to limit the spread of the virus. Construction projects continue to face limitations due to a lack of access to raw materials. Australia accessed these materials from China and Indonesia. Lockdown has made it impossible for construction projects established in Australia to obtain sufficient materials. Research shows Australians cannot access materials due to the lockdown (Ogunnusi et al., 2020, p.121). Limited movements out of critical markets that import construction equipment and plants have primarily created a shortage of materials for this primary sector. Also, most of these construction goods fail to reach the sites. This develops a shortage of materials affecting the progress and completion of projects. For example, due to the lockdown, most dealers experience challenges moving construction products on the ground. An ongoing project is affected by this shortcoming. Lastly, construction initiatives have witnessed reduced cash flows due to the limited operations in the pandemic era. For instance, Biswas et al. (2021, p.3) argue that Australia has lost approximately $5 billion in the construction domain due to the COVID-19 pandemic. This is a significant loss of resource base that would have offered a crucial foundation for this sector. Thus, the shortage of construction materials in Australia has been generated by a lack of access to materials from the producers, failure to reach sites, and reduced cash flows that limit the purchase of different equipment, plants, and other materials.
Lack of access to construction materials
The Australian construction sector has been primarily affected since the emergence of the Corona pandemic. It has halted access to construction materials from nations like Indonesia and China. As Ogunnusi et al. (2020, p.122), the Australian government has been unable to access construction equipment, goods, and plants due to the lockdown directive. Indonesia and China have remained inaccessible, making it hard for potential buyers to export materials required in the construction industry. Due to the rapid spread of the disease, various nations have adopted the lockdown tactic to restrict movement in and outside their jurisdictional areas. As the pandemic continued to spread, the Australian government introduced lockdown and border controls (Infrastructure Australia, 2020, p.4). With these changes, the various activities that surround the construction sector were halted. For example, people experienced challenges moving and consuming products. This changes the patterns of infrastructure use (Infrastructure Australia, 2020, p.4). Limited or zero access to raw materials has been a condition that has affected the establishment and completion of construction projects. Since the pandemic started, the sector has faced a shortage of material supply (Gamil and Alhagar, 2020, p.123). Most countries have adopted measures that have seen a reduction in the movement of people and materials from one location to another. In Australia, the lockdown strategy has made it impossible for individuals to move across various global destinations in search of construction equipment. Also, countries such as China and Indonesia have always been on the frontline to supply Australia with construction materials. However, their decision to adopt safety measures has limited the delivery of construction products to Australia. Thus, one of the threats that the COVID-19 pandemic has generated is the shortage of construction materials due to the lockdown directive.
The failure of construction materials to reach the construction sites
COVID-19 has halted ground operations across various construction projects in Australia. The social distancing and lockdown directive have resulted in inadequate supplies at the construction sites. Citizens have been advised to stay in their homes and only move out when necessary. This means that individuals seeking to deliver construction materials cannot do so because this is not a critical service. Also, purchasing materials from external agencies becomes impossible due to the lockdown directive across various countries. For example, the lockdown has made it impossible for suppliers to relay goods required in starting or completing projects. Research shows that various materials are required, but they do not reach the construction sites (Biswas et al., 2021, p.5). Vehicles moving these items are unable to move the materials from the source to the site. Transportation has been disrupted where materials are unable to reach their destination. For example, when the situation gets out of hand, as evidenced by a surge in the number of Coronavirus cases reported, the government decides to impose a lockdown. A planned supply chain process that had been earlier planned is affected by this immediate decision. A project suffers a shortage of materials due to the governmental changes that keep occurring as leaders seek to protect people’s lives. Consequently, workers also fail to attend to their duties as these projects face a lack or shortage of raw materials. Social distancing has also been a key factor that has hampered the delivery of construction items on the ground. According to Jones Day (2020, p.2), disruption in supply chains is a state that delays or even forces some of the projects to pause. When the project personnel has no materials for use, the project cycle is primarily affected. Overall, COVID-19 has created a shortage of construction raw materials due to insufficient supply chain cycles. When materials fail to reach the destination, construction projects do not achieve the targeted milestones and objectives.
Reduced cash flows, revenue, and profits that limit access and supply of construction materials
The majority of the construction projects in Australia have faced resource limitations since the emergence of the pandemic. This sector has lost massive financial resources due to the poor status of business witnessed globally. Statistics show that the Australian construction sector has lost $5 billion due to the COVID-19 pandemic (Biswas et al., 2021, p.3). This translates to a significant loss of financial power to purchase other raw materials. A study on 45 projects based in Australia showed that construction projects lost 7% of productivity due to labor shortages and social distancing (Ogunnusi et al., 2012, p.122). Diminished productivity means that these projects do not have sufficient financial status to source for other useful products to oversee the successful completion of these projects. The pandemic has halted global operations, making it impossible for businesses to gain productivity. For example, the construction industry has lost its workforce due to the social distancing directive. After the Indonesian government ordered its people to remain at home and social distance to curtail the virus’s spread, most workers failed to turn to their construction duty posts. Also, shortened work period translates into significant cash flow reduction. A study by Zamani et al. (2021, p.2) reveals that the shortening of the working period after the emergence of the virus saw construction projects witness reduced productivity. This meant that these projects could not achieve the required milestones. Limited cash flows, revenue, and profits diminish the access to other raw materials needed in various construction projects. Thus, this has been a critical barrier towards accessing sufficient materials for use in construction projects. For example, if a business person has various projects that earn them income that they use to venture into the construction sector, stalled operations due to economic hardships created by the pandemic could affect one’s cash flow. Thus, there is a limited chance of gathering enough resources for the purchase of materials. This leads to a shortage of required materials because the resources at an investor’s disposal are inadequate to meet all the needs.
Summary
Undoubtedly, the shortage of materials for the construction domain in Australia is linked to a lack of access to essential products. The nation sources materials from critical markets like China and Indonesia. The lockdown directive has seen most of these nations close their borders. This has resulted in failure to access the required materials. For example, China has closed its borders which meant that if Australia desired to purchase construction items, they would experience numerous hurdles. As Gamil and Alhagar (2020, p.123) highlight, the pandemic has created a shortage of materials supply. These projects have either ceased to progress or witnessed reduced activities as the professionals working on these sites have no materials for use. Also, some materials that would have been used to advance the sector failed to arrive on the sites. Constructions attract specific time and resource investments. If materials fail to reach the destination at the right time, this can extensively affect the start and completion of the projects. Nagaraju and Reddy (2012, p.660) reveal that projects are time and resource-bound. Any shortfall experienced in each of these areas might pose a significant threat to a construction project. The pandemic has hampered access and provision of desired construction materials. The outcome is massive shortages of vital equipment, plants, and items needed to commence and complete various building projects. Another key situation that has accelerated the deficit is the reduced productivity of this sector. It has lost numerous resources since the pandemic started. One of the aspects behind this is labor shortages. Statistics show that the Australian construction domain has lost 7% of its productivity due to labor shortfalls (Ogunnusi et al., 2012, p.122). Social distancing remains a crucial factor that has contributed to reduced cash flows. Individuals and companies aligned to the construction field have continued to face numerous challenges due to insufficient resource base to purchase materials.
Research Methodology
Introduction
The research methodology part is a stage where the researcher integrates procedures that help find, select, process, and analyze information. It is the practical level where investigators can examine the best tactic of handling the research process. Due to the current status attributed to the pandemic, the research will focus on online identification, sampling, and collection of information. The participants will provide crucial data and information via questionnaires that will be sent digitally. Also, a zoom session will be used to collect data from targeted persons through focus group discussions. Online interviews will be another valuable way of gathering important information about the impact of the pandemic on the shortage of construction materials in Australia. Besides using primary sources, the research will also integrate secondary data from researchers who have examined this topic.
Research Methodology
Research methodology entails the path that researchers use to facilitate their research. It revolves around the formulation of the research problem, objectives, and the presentation of the data obtained. The research problem and the objectives act as the guide for the data collection and analysis process. Thus, research methodology is deemed the scientific approach adopted for conducting research (Mishra and Alok, 2017, p.1). It entails the techniques used to identify, select, and analyze data and information about a particular topic of interest. The researcher is expected to decide on the best methodological approaches that can assist in gathering vital data. The methodology selected permits the investigator to assess the study’s validity and reliability. Thus, the methodological stage is portrayed as one of the vital steps that can support researchers in achieving the targeted goals and objectives.
Research Methods and Data Sources
The primary data collection process will entail the use of the digital platform. Due to the threat that the pandemic has posed on people’s health and lives, the research will avoid face-to-face interactions. Online interviews and questionnaires will provide essential data about the topic at hand. The researcher will engage the selected participants in an online interview to gather their insights on COVID-19 and the shortage of construction materials. The targeted information will revolve around lack of access to materials, failure of materials to reach the construction sites, and reduced cash flows revenue and profits. Questionnaires will also be sent to the participants so that they can relay feedback on the highlighted issues. The feedback obtained from these methods will expose the researcher to the impact that the pandemic has caused on the Australian construction industry. Another critical method that the research will integrate is focus groups. The investigator will assemble a number of participants via the zoom session to undertake the collective perception linked to the pandemic. The information obtained from the group discussion will allow the research to assess the broader perspective of this key issue. One of the benefits of using focus groups is that it enables the researcher to integrate many participants (Then, Rankin and Ali, 2014. p.17). It provides the chance to gather the collective perspectives of the targeted subjects on the matter at hand. Secondary data resources will also offer essential data and information about the topic. Even though this is a new research area with no sufficient information, it will also act as a key foundation for the research. COVID-19 is a new topic in the academic field, and most researchers are yet to venture into this area. The study will rely on available secondary research sources covering this topic. It will help to verify the information presented by the respondents through the interview, questionnaire, and focus group discussion.
Qualitative and quantitative data sources will be the foundation for the research. The researcher will target sources that quantify the feedback. For example, when reporting the reduced cash flows, revenue, and profits linked to the pandemic and shortage of materials, the researcher will rely on quantitative studies for this reporting purpose. Notably, qualitative sources will also highlight the attitude and perception about the shortage of construction materials situation attributed to the COVID-19 pandemic.
Summary
The data collection process will integrate primary and secondary data sources. Since this is a new topic, combining these methods will enable the researcher to access important data and information. Participants will be sampled and interviewed through the online platform. This is due to the avoidance of face-to-face interactions due to directives established by the government and healthcare providers. Also, questionnaires will be sent to the respective respondents. Focus group discussions will also exist as a primary source of information. Secondary data sources will boost the primary research outcomes obtained. The research will also aim at integrating quantitative and qualitative data sources. The research seeks to examine how the pandemic has led to the shortage of construction materials in Australia. The central elements are the lack of access to these materials, failure to reach the sites, and reduced cash flows in this sector.
These aspects integrate qualitative and quantitative data sources to assess the financial outcome of the pandemic and people’s perception and attitude towards lack of access to required construction materials and failure to reach the construction ground. Overall, the research will combine primary and secondary data sources. Interviews, questionnaires, and focus groups are the main primary data collection methods that will be integrated and carried out online.
References
Biswas, A., Ghosh, A., Kar, A., Mondal, T., Ghosh, B. and Bardhan, P.K., 2021, February. The impact of COVID-19 in the construction sector and its remedial measures. In Journal of Physics: Conference Series (Vol. 1797, No. 1, p. 012054). IOP Publishing.
Gamil, Y. and Alhagar, A., 2020. The Impact of Pandemic Crisis on the Survival of Construction Industry: A Case of COVID-19. Mediterranean Journal of Social Sciences, 11(4), pp.122-122.
Infrastructure Australia. 2020. Infrastructure beyond COVID-19. A national study on the impacts of the pandemic on Australia. An Interim Report for the 2021 Australian Infrastructure Plan.
Jones Day. 2020. Construction Projects and Disputes: A look beyond the COVID-19 lockdown. White Paper.
Mishra, S.B., & Alok, S. 2017. HANDBOOK OF RESEARCH METHODOLOGY.
Nagaraju, S.K. and Reddy, B.S., 2012. Resource Management in Construction Projects–a case study. Resource, 2(4).
National Industry Insights Report. (2021). Retrieved 11 May 2021, from https://nationalindustryinsights.aisc.net.au/industries/construction#:~:text=The%20Construction%20industry%20generates%20over,employing%20less%20than%2020%20people.
O’Sullivan, D., Rahamathulla, M. and Pawar, M., 2020. The impact and implications of COVID-19: An Australian perspective. The International Journal of Community and Social Development, 2(2), pp.134-151.
Ogunnusi, M., Hamma-Adama, M., Salman, H. and Kouider, T., 2020. COVID-19 Pandemic: The effects and prospects in the construction industry. International journal of real estate studies, 14(Special Issue 2).
Then, K.L., Rankin, J.A. and Ali, E., 2014. Focus Group Research: What is it and how can it be used? Canadian journal of cardiovascular nursing, 24(1).
Zamani, S.H., Rahman, R.A., Fauzi, M.A. and Yusof, L.M., 2021, February. Effect of COVID-19 on building construction projects: Impact and response mechanisms. In IOP Conference Series: Earth and Environmental Science (Vol. 682, No. 1, p. 012049). IOP Publishing.
