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
Confirming previously announced funding, and welfare changes amid adjusted growth forecast.
Scottish Government responds to Grenfell report
As fund for unsafe cladding assessments is launched.
CLC and BSR process map for HRB approvals
One of the initial outputs of their weekly BSR meetings.
Architects Academy at an insulation manufacturing facility
Programme of technical engagement for aspiring designers.
Building Safety Levy technical consultation response
Details of the planned levy now due in 2026.
Great British Energy install solar on school and NHS sites
200 schools and 200 NHS sites to get solar systems, as first project of the newly formed government initiative.
600 million for 60,000 more skilled construction workers
Announced by Treasury ahead of the Spring Statement.
The restoration of the novelist’s birthplace in Eastwood.
Life Critical Fire Safety External Wall System LCFS EWS
Breaking down what is meant by this now often used term.
PAC report on the Remediation of Dangerous Cladding
Recommendations on workforce, transparency, support, insurance, funding, fraud and mismanagement.
New towns, expanded settlements and housing delivery
Modular inquiry asks if new towns and expanded settlements are an effective means of delivering housing.
Building Engineering Business Survey Q1 2025
Survey shows growth remains flat as skill shortages and volatile pricing persist.
Construction contract awards remain buoyant
Infrastructure up but residential struggles.
Warm Homes Plan and existing energy bill support policies
Breaking down what existing policies are and what they do.
A dynamic brand built for impact stitched into BSRIA’s building fabric.