The Tertiary Sector (Services) in the Construction Industry

The construction industry has traditionally been associated with the primary (raw material extraction) and secondary (manufacturing) sectors. However, in recent decades, the significance of the tertiary sector, which includes services, has been growing within the industry. This trend has led to significant transformations for industry players, which should be examined with a critical perspective.

The Role of the Tertiary Sector in Construction

The tertiary sector in construction is no longer just a supplementary component but an integral part of the entire process. Services such as project management, design, consulting, financial solutions, and real estate development have become essential to the industry. These sectors contribute to increased efficiency but also present challenges and risks.

Challenges: When Services Hinder the Construction Industry

Although integrating services can be beneficial in theory, in many cases, they can hinder the industry’s effective operation. Administrative burdens, overly complex permitting processes, and non-transparent financial structures often slow down projects rather than facilitating them.

A typical issue is the administrative bottleneck in execution, which can significantly extend a project's timeline. In Hungary, obtaining permits for large-scale investments can take years, while market conditions change rapidly. This threatens the industry's competitiveness, particularly compared to international players.

The Role of Automation and Digitalization

The digitalization of construction is increasingly linked to the tertiary sector. BIM (Building Information Modeling) systems, project management software, and remote monitoring tools contribute to greater efficiency. However, the spread of automated systems can make it more challenging for manual laborers, who may find it difficult to transition to other sectors due to their specialized skills.

The Impact of Construction Crises

Economic downturns, such as the 2008 crisis or the current one, have long-term effects on the renewal of physical and intellectual capital in the construction industry. An aging workforce, undervalued employees, and increasing demands and responsibilities are making the situation worse.

The pressure is mounting from the market, the government, and clients, while professional recognition remains low. Furthermore, service-related costs are often seen as a necessary evil rather than an investment. However, significant savings could be achieved if all stakeholders utilized and integrated services effectively into the value chain.

Conclusion: The Need for Balance

The growth of the tertiary sector in construction presents a dual impact: while it increases complexity and administrative challenges, it also enhances efficiency and supports sustainable development. The question is not whether services are necessary in construction but how industry stakeholders can prevent administrative burdens from stifling actual productivity.

In the future, one of the most critical tasks in construction development will be balancing technological innovation, efficiency, and reducing administrative obstacles. The long-term sustainability of the market depends on whether the industry can adapt to constantly changing conditions while maintaining productivity and fostering innovation.

The Tertiary Sector in the Construction Industry