The construction industry is the second largest sector in Pakistan's economy after agriculture. It is a fragmented industry which includes very small and very large contracting groups. It includes professional groups such as architects, engineers, management personnel etc. Major part of this industry is dominated by material's suppliers, vendors etc.

In the light of the developments which have taken place particularly over the last ten years, the study has covered the capacity of the construction industry in terms of estimated output, availability of manpower, demand and production of building materials , financial problems, credit, quality of work, the role of construction in the economy, the organizational structure of the industry, costs and price trends of material inputs, the effects of labor immigration and prospects for future developments & problems have been covered.

Using regression analysis, forecasting equations had been derived to estimate the demand for construction (in millions of Pakistan rupees) and materials like cement, steel and timber over the next five years.

Based on the past performance, this study gives a good idea of the present and future construction industry.

I hope this study will prove useful not only to persons and organizations related to the construction industry, but also to the engineering students.