Interdependency in the Construction Sector and Assessing Interdependent Economic Losses due to Demand-Side Fluctuations

The construction sector, which is related to the human housing environment, is closely interdependent with all sectors and infrastructures and is a core sector. In current society, various and complex construction challenges arise in essential sectors such as urban, energy, and environmental fields that can impede sustainable development. Therefore, strengthening security, diminishing risks, and improving the resilience of the construction sector will become increasingly important issues. However, currently, methodologies for evaluating and analyzing issues related to those problems are not well known, and are lacking in terms of effective processes and methods. Thus, the main objective of this study was to define correlations between the construction sector and all other economic sectors and to identify the interdependence of the construction sector within an economic system. The study proposes a method for assessing interdependent economic losses due to demand-side fluctuations in the construction sector. The interdependency of the construction sector is required to evaluate the economic impacts in the construction sector as well as losses in the construction sector owing to exogenous events such as natural disasters and hazards. Increasing the security and improving the resiliency of the construction sector will lead to reliable, resilient, and efficient construction projects in the future and will protect sustainable built environments for future generations. Furthermore, strengthening the security and resilience of the construction sector will help drive economic growth and create resilient, thriving communities, and will be a critical solution to climate change.