Commodities in the construction industry
In economics, a commodity is a basic good or service that cannot be differentiated from a product of the same type emanating from another producer – it is interchangeable with that product. Wherever encountered, the market treats the commodity (whether a good or service) as equivalent irrespective of manufacturer or country of origin. Examples include agricultural products (sugar, rice, wheat), raw materials (copper, iron, aluminium), steel and so on.
A kilogramme of copper of a specific purity cannot be differentiated from any other kilogramme of copper of the same purity, whether by mine, country of origin or smelter. This general lack of distinction means that commodities are usually sold on the basis of price which will be determined by market value.
This quality of having little or no differentiation is called ‘fungibility’, and commodities are either fully- or substantially fungible. A further quality is that commodities are usually the basis for making other goods or services.
In contrast to commodities, goods such as cars may be highly differentiated in the market based on criteria such as the manufacturer, design, features, fuel consumption, etc.
In recent years, the definition of a commodity has expanded to include currencies, indexes, phone minutes and bandwidth.
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
RTPI leader to become new CIOB Chief Executive Officer
Dr Victoria Hills MRTPI, FICE to take over after Caroline Gumble’s departure.
Social and affordable housing, a long term plan for delivery
The “Delivering a Decade of Renewal for Social and Affordable Housing” strategy sets out future path.
A change to adoptive architecture
Effects of global weather warming on architectural detailing, material choice and human interaction.
The proposed publicly owned and backed subsidiary of Homes England, to facilitate new homes.
How big is the problem and what can we do to mitigate the effects?
Overheating guidance and tools for building designers
A number of cool guides to help with the heat.
The UK's Modern Industrial Strategy: A 10 year plan
Previous consultation criticism, current key elements and general support with some persisting reservations.
Building Safety Regulator reforms
New roles, new staff and a new fast track service pave the way for a single construction regulator.
Architectural Technologist CPDs and Communications
CIAT CPD… and how you can do it!
Cooling centres and cool spaces
Managing extreme heat in cities by directing the public to places for heat stress relief and water sources.
Winter gardens: A brief history and warm variations
Extending the season with glass in different forms and terms.
Restoring Great Yarmouth's Winter Gardens
Transforming one of the least sustainable constructions imaginable.
Construction Skills Mission Board launch sector drive
Newly formed government and industry collaboration set strategy for recruiting an additional 100,000 construction workers a year.
New Architects Code comes into effect in September 2025
ARB Architects Code of Conduct and Practice available with ongoing consultation regarding guidance.
Welsh Skills Body (Medr) launches ambitious plan
The new skills body brings together funding and regulation of tertiary education and research for the devolved nation.
Paul Gandy FCIOB announced as next CIOB President
Former Tilbury Douglas CEO takes helm.
UK Infrastructure: A 10 Year Strategy. In brief with reactions
With the National Infrastructure and Service Transformation Authority (NISTA).