RICON

▣ Research Title : A Study of the Korean Specialty Contractor's Global Competitiveness

 

▣ Author : Jaeyong Cho, Sungho-Hong

 

▣ Background and purpose of the study

• The Specialty Contractors account for approximately 5 to 15% of Korean International construction revenues. In Korea, As a subcontractor of Korean general construction contractors, these companies are expanding their businesses into foreign countries.

• To win an order from a foreign client or a foreign general contractor, it is necessary to understand the strengths and weaknesses of our specialty contractors through competitiveness evaluation.

• The goal of this study is to assess Korean Specialty Contractors' competitiveness in cost, time, and quality in the international construction market.

 

▣ Research Methodology & Period

• A survey targeting Korean general contractor

• July.2020 ~ April.2021

 

▣ Research contents

• The survey included items that assessed the relative competitiveness of companies from advanced countries, Chinese companies, and virtual local companies for quality, cost and time competitiveness in the above 12 sectors of Korean Specialty Contractors.

• In most sectors, Korean Specialty Contractors' cost competitiveness is rated lower than that of Chinese and local Specialty Contractors. Korean Specialty Contractors' average cost competitiveness is rated at 4.80, which is slightly lower than that of developed countries. Local Specialty Contractors' cost competitiveness is rated at 5.10, which is very high when compared to Chinese Specialty Contractors (4.99) and Korean Specialty Contractors (4.80).

• In most sectors, Korean Specialty Contractors's time competitiveness is rated lower than that of Chinese and local Specialty Contractors. The average time competitiveness of Korean Specialty Contractors is 3.65, indicating that the cost is slightly higher than that of Specialty Contractors from advanced countries. Especially, Chinese Specialty Contractors' time competitiveness is rated at 4.27, which is very high when compared to local (3.89) and Korean (3.65) Specialty Contractors.

• In most sectors, Korean Specialty Contractors' quality competitiveness is rated higher than that of Chinese and local Specialty Contractors. Korean Specialty Contractors' average quality competitiveness is rated as 3.40, which is slightly lower than that of Specialty Contractors from advanced countries. Local Specialty Contractors (2.68) are rated higher than Chinese Specialty Contractors(2.42).

• In most sectors, the overall competitiveness of Korean Specialty Contractors is rated higher than that of Chinese and local Specialty Contractors. Ground preparation and pavement construction, indoor building construction, and landscaping planting facility construction, in particular, are rated as having higher overall competitiveness than Specialty Contractors from advanced countries.

 

▣ Expected effect

• It is used as a reference source for establishing strategies for international expansion of Korean Specialty Contractors.