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The Stagnation of Productivity in Construction Reveals Structural Flaws, Challenges in the Labor Market, and the Immediate Need for a New Culture of Planning, Management, and Technology in the Sector
Meanwhile, the Brazilian construction sector is going through a critical moment. While various segments of the economy have rapidly advanced in digitization, strategic planning, and the use of technology, construction remains stuck in outdated practices, which limits efficiency and competitiveness. In this context, understanding the productivity gap has become essential for leaders who wish to drive their companies with a strategic vision rather than merely reacting to market pressures.
Furthermore, global data reinforces the warning. A study by the McKinsey Global Institute, released in 2020, indicates that, between 2000 and 2020, construction productivity grew, on average, by only 1% per year worldwide. During the same period, the global economy advanced by about 2.8% per year, highlighting a persistent and structural lag in the sector.
In Brazil, the situation remains similar. According to the Brazilian Institute of Geography and Statistics (IBGE), in 2022, the construction industry generated R$ 415.6 billion in gross production value, employing approximately 2.3 million people. Even so, growth remained moderate, while challenges related to efficiency, planning, and labor continued to accumulate.
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Forget the brick: A company from Santa Catarina has created a recycled plastic block that eliminates the need for cement and mortar, assembled like interlocking modules, and according to the manufacturer, is more resistant than conventional brick and concrete block.
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The bridge that will connect Brazil to the Pacific by land, costing around one billion reais, is expected to be completed by 2026 and shorten the route to Asia.
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A man takes a simple farm cattle trough and transforms it into a fully motorized boat by lining the tank with plywood, sealing everything with epoxy, and installing an outboard motor.
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In just 24 days, China erected 7,733 foldable houses alongside nearly 10,000 tents and sheltered over 47,000 residents in one of the highest and most inhospitable regions on the planet, in what is considered the fastest housing deployment in history.
At the same time, specialized consulting studies indicate that the consistent adoption of BIM modeling, process automation, and integrated planning could yield productivity gains of between 50% and 60%. Therefore, these numbers represent not just statistics, but clear warning signs for strategic decisions that can no longer be delayed.
Simultaneously, the labor market adds new pressures to the sector. According to data from the IBGE and the National Confederation of Industry (CNI), the unemployment rate in Brazil reached about 7.5% in 2024, the lowest level since 2015. While this is positive from a macroeconomic perspective, it has significantly reduced the supply of qualified professionals.
As a consequence, engineers, foremen, safety technicians, and skilled operators have become increasingly scarce. As the training of these professionals takes time, the impact is direct: increasing costs, longer deadlines, and reduced investments, precisely when the sector needs to accelerate its delivery capacity the most.
In this context, the productivity gap persists due to well-defined factors. First, the culture of immediacy is highlighted, where planning is seen as a waste of time and improvisation still dominates strategic decisions. Then, resistance to technology adds to this, worsened by a lack of training and the perception that digital systems represent bureaucracy. Finally, economic instability, marked by fluctuations in input costs and a constant sense of risk, reduces the willingness to invest structurally.
For business leaders, the reflections are clear. Low productivity raises costs per square meter, compromises deadlines, reduces the predictability of deliveries, and affects the final quality of the works. Furthermore, companies that have already adopted more modern models gain a competitive advantage in an increasingly contested market.
Therefore, breaking this cycle requires three strategic moves. First, prioritize the design before the construction, treating planning as an investment and not as a cost. Second, empower leadership and teams, creating a culture conducive to technology and innovation. Finally, implement governance and data management, with clear productivity indicators, integration across areas, and continuous performance monitoring.
In summary, Brazilian construction is facing a decisive choice. Remaining inert means losing relevance. Leading the transformation demands culture, preparation, and strategic vision — factors that will determine who will be competitive in the market of the future.
By: Daniela Lopes, Chief Sales Officer of We Are Group, a company specialized in executing high-end corporate and commercial environments.
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