The Construction Industry in a War-Ravaged Region: Examination of Challenging Factors

Construction, like any other economic activity, can contribute to national income by creating employment opportunities, and raising gross domestic product (GDP). Several researchers have studied the challenges of various aspects of the construction industry (CI), ranging from sustainability, the industrial revolution, small and medium enterprise, building information modelling, and intelligent construction, but this research examines the state of the CI in conflict-affected regions by evaluating the challenging factors impacting this sector of the economy. A total of 150 industry experts participated in this survey across three regions (Africa, Eastern Europe, and the Middle East). In total, 35 challenging factors were identified and classified using exploratory factor analysis (EFA). Using version 4 of Smart Partial Least Squares (PLS), structural equation modelling (SEM) was used to build the model, which produced seven constructs: economic, environment and education, government, industrial, sustainability, technology, training and support. 31 challenging factors were outlined under these constructs, with economic challenges such as high inflation, high-interest rates, and foreign direct investment (FDI) being the most critical of those observed. This study will be of great importance to the governments of nations in the formulation of policies for the CI. At the same time, stakeholders in the CI will collaborate in the advancement of the sector in the affected region.