Analysis of Effects of External Stressors on the Profitability of the Construction Industry

<p dir="ltr">The construction industry is essential for a nation’s economic development, but is very susceptible to external stressors such as natural disasters, economic downturns, and pandemics. These stressors can affect funding, supply chains, disrupt projects, and hence decrease profitability. The impacts of the stressor events on the profitability of the construction industry have not yet been systematically classified. This research addresses that gap by classifying and examining how external stressors affect the construction industry’s profitability in the U.S. A mixed-methods approach was employed—the Systematic Literature Review (SLR) of the impacts of the external stressors on the construction industry along with a survey of construction professionals in the U.S. A multi-level classification framework has been presented to categorize the impacts of the stressors and enhance risk assessment. The survey results highlighted the variation in the perception of severity among industry professionals. The research provides risk mitigation recommendations and highlights critical implications for industry stakeholders. Construction firms can use these findings to enhance their risk management strategies and maintain profitability against future crises. Similarly, policymakers can gain insights to formulate supportive measures for the sustainable construction industry. Overall, this study’s contributions enhance the understanding of the impacts of external stressors on construction profitability and provide a basis for future research on improving the resilience of the construction industry.</p>