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Companies like Action, IKEA and Amazon thrive on low prices and efficiency.
by MomoXenosaga 5y ago
Companies like Action, IKEA and Amazon thrive on low prices and efficiency.
- mywittyname 5y agoManufacturing and construction are pretty different segments. When manufacturing, it's very easy to optimize for cost because you know exactly how much material is required and how much time, probably to the second, it takes to process such material into the final form. Even shipping prices are pretty well known and can be optimized for through effective packaging. Construction isn't like that. Companies aren't cranking out a million buildings a day, so they can't remove every ounce of unnecessary materials; they don't control the environment, making delays a fact of life; they don't control all of the companies and people involved; etc. There's just so much unknown when it comes to construction. Like software, it can be difficult to figure out how much padding to put into estimates. It's a good bit easier when it comes to things like roads, but companies still need to contend with unexpected delays a lot.