Since the late 1960s, construction productivity has reduced by half. Surprisingly, prices for building materials are not to blame because materials are subtracted from value-add measurements. A major problem is complying with regulation, applying for permits, etc. These protocols have accounted for one-eighth of productivity lost since 1987, according to the Bureau of Labor Statistics. Along with regulations, the industry has become less capital-intensive, with workers replacing machinery. Instead of investing, companies maintain that the capital easiest to get rid of in a pinch are workers. How does the U.S. stack up with other countries?
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