Competition and the persistence of profits in the UK construction industry

An examination has been made of the performance of a range of medium-size publicly quoted construction firms over the five-year period 1990-1994 including evidence on the competitive nature of construction markets. The results suggest that construction markets are price competitive with mark-ups that vary positively with the construction cycle. Common arguments that competition in construction is excessive and that firms can gain from firm specific strategies are not supported by the analysis.