Hey there, fellow builders and curious minds! We’re about to embark on an exciting journey through the bustling world of construction, where numbers and stats reveal some pretty cool stories.
The construction industry is more than just concrete and blueprints; it’s a dynamic universe of growth, challenges, and resilience. So, let’s put on our hard hats and dive into these 38 construction stats to see what’s shaping the world of construction in 2023!
Get the big picture on the construction scene! We’re diving into the world of dollars, projects, and company giants to see what’s been shaking in the construction industry.
Dollar Signs in the Air
In 2021, the US construction industry was a bustling hub of activity with projects valued at approximately $1.6 trillion.
This colossal sum not only reflects a booming construction sector but also signifies an ever-evolving urban landscape, from skyscrapers to housing developments.
The construction industry’s ability to generate such a substantial economic value underscores its indispensable role in shaping the physical and financial landscape of the nation.
Building the Nation
The construction industry is more than just a sector; it’s a vital cornerstone of the US economy, contributing an impressive 4.3% to the entire Gross Domestic Product (GDP).
This statistic demonstrates how construction activities reverberate across various sectors, creating jobs, driving demand for materials, and propelling economic growth.
With this significant slice of the economic pie, the construction industry substantially influences the nation’s fiscal health.
Home Sweet Homes
In 2021, builders were certainly on a roll, constructing 1,337,800 new housing units, representing a 4% increase from the previous year. These new homes aren’t merely bricks and mortar; they symbolize dreams realized, families settled, and communities flourishing.
This surge in housing construction reflects an evolving real estate landscape, where demand for residential spaces remains consistently high.
Market Sizing it Up
In 2020, the construction industry was valued at around $1.36 trillion, confirming its immense financial footprint.
This figure illustrates that construction is about erecting structures and creating value, generating revenue, and facilitating investments.
It’s a vast market where stakeholders, from contractors to suppliers, significantly drive economic growth.
High Turnover, High Energy
The 68% annual turnover rate in the construction industry for 2020 tells us that this field is dynamic and constantly evolving.
This high turnover rate reflects an adaptive sector, where skilled workers move from one project to another, and new ventures emerge frequently. It’s an industry marked by its constant ebb and flow.
Budget Balancing Act
A comprehensive three-year study uncovered the intriguing fact that only about 31% of construction projects managed to stay within 10% of their initial budget.
This underscores the challenge of budget management in the industry, where unexpected expenses, changing specifications, and external factors can quickly sway financial plans.
It’s a testament to the need for robust financial planning and management in construction projects.
Big Player on the Block
Bechtel, a colossal player in the construction world, emerged as the leader in the US with a staggering $21.8 billion in revenue in 2019.
This figure highlights Bechtel’s dominance in a highly competitive field and showcases its ability to successfully manage and deliver projects on a grand scale. It’s clear that they’re not just building structures; they’re building a legacy in the industry.
Time to talk jobs! Explore the workforce dynamics, the impact of COVID-19, and the future outlook for employment in the construction sector.
Employment in the US
The United States boasted approximately 157.54 million jobs, showcasing the vast landscape of employment opportunities across the nation. This figure paints a picture of a dynamic and diverse job market.
Construction Workforce in 2022
As of January 2022, around 4.8% of the US workforce, totaling 7.5 million individuals, found their livelihoods in the construction sector. These workers are the backbone of projects that shape our cities and towns.
A Decade Back
Casting our gaze back a decade to 2009, the US had a total of 143 million jobs, and 4.2% of these, amounting to 6 million positions, were occupied within the construction industry.
This reveals the industry’s resilience, maintaining a significant share of employment even in challenging times.
In April 2020, the construction industry grappled with an unemployment rate of 16.6%, a challenging period that has since shown improvement. The steady decline in this figure underscores the industry’s ability to rebound and provide job stability.
Recent Unemployment Figures
By December 2021, the unemployment rate in the construction industry had dropped to 5%, indicating a positive trend.
However, this rate remains slightly higher than the overall national unemployment rate of 4% in January 2022, highlighting the dynamic nature of employment across sectors.
According to construction industry diversity statistics, approximately 10.9% of US construction workers are women. This statistic is part of a broader context where women make up 57.4% of the overall US workforce.
It signifies both the progress made in diversifying the construction industry and the potential for further growth.
The construction industry offers a range of salaries, with the average hourly wage standing at $31.44.
This number encapsulates the financial rewards available for those working in this sector, from laborers earning an average of $20.92 to construction managers commanding an average of $51.02 per hour.
These varying salaries reflect the diverse skill sets and roles within the construction field.
The pandemic’s twist on construction – discover how COVID-19 shaped spending, job losses, and changes in project demand in this category.
Between 2019 and 2020, construction spending was a notable 4.8% increase. This uptick in investment signifies the industry’s resilience even during challenging times.
Big Bucks in 2020
In 2020, a grand total of $1.43 trillion was spent on construction, with a substantial $813.9 billion directed towards residential buildings.
This marks a remarkable 12% increase in construction spending from 2019 to 2020, highlighting the pivotal role of the housing sector during the pandemic.
While residential construction was booming, the non-residential sector saw a slight decline of 0.4% in spending between 2019 and 2020, with a significant decrease of 27% in non-residential construction projects.
These figures depict the divergence in the fortunes of different construction segments.
August in the Limelight
Among the months of 2020, August stood out with the highest spending, where a substantial $132 million was invested in construction projects. This peak in August might signify a resurgence in construction activity as the pandemic’s impact evolved.
Job Loss in Early 2020
The construction industry keenly felt the pandemic’s impact, with a staggering 1.1 million jobs lost in March and April 2020. This loss was primarily due to lockdowns and the delays or halting of projects as safety measures were put in place.
Since May 2020, there has been a gradual recovery, with 931,000 jobs added back to the construction sector. This slow but steady rebound reflects the industry’s ability to adapt and recover in response to the evolving pandemic situation.
The Home Improvement Wave
Residential construction experienced a remarkable 275% surge between March and July 2020. Lockdowns drove this spike, as homeowners turned their attention to renovations and home improvements.
This trend was further evidenced by a 144% increase in rates for fence installations and a 238% surge in demand for landscapers.
From infrastructure growth to changing executive sentiments, we’re uncovering the evolving trends that are shaping the construction industry.
Single-Family Building Permits
In 2020, a significant 978,000 building permits were issued for single-family housing. This point to a steady demand for new homes despite the pandemic’s influence.
Issued permits underwent fluctuations in the past. Between 2005 and 2011, they declined but rebounded to 862,000 in 2019. The year 2005 marked the zenith, with 1.682 million building permits issued, reflecting the industry’s cyclical nature.
Home Construction in 2020
In 2020, the construction industry saw 991,000 single-family homes and 390,000 multifamily homes commence their construction.
The data further indicates that single-family home construction increased by 11.6% between 2019 and 2020, while multifamily home construction experienced a 3% decline.
Looking ahead to 2024, new construction projects are anticipated to be valued at a substantial $1.23 trillion.
These projections account for the impact of the 2020 COVID-19 pandemic, with residential buildings contributing approximately $483 billion, non-residential buildings around $473 billion, and other types of construction accounting for roughly $273 billion.
Predictions suggest that by 2029, approximately 300,200 more jobs will be available in the construction industry compared to 2019. This expected growth, with a compound annual growth rate of 0.4%, aligns with the projected rate of growth for all types of US jobs.
Interviews with construction executives reveal their expectations for the industry. In 2023, 60% of executives anticipate industry expansion, with 8% anticipating significant expansion and 52% expecting moderate expansion.
On the other hand, 15% predict a moderate contraction, and 5% foresee a significant contraction, while 20% expect neither contraction nor expansion.
Industry sentiment has fluctuated over the years. In 2017, a robust 84% of executives expected expansion, which declined to 76% in 2018.
While 2020 and 2019 showed slightly lower optimism, with 54% and 52% anticipating expansion, respectively. This trend indicates a changing landscape within the construction sector.
Think beyond borders! Explore how the construction industry is faring on a global scale and what’s driving its growth and challenges.
Key Industry Challenges
According to construction industry trends, the global construction sector faces two significant challenges: labor shortages and rising material costs.
These challenges underscore the need for innovative solutions to ensure projects can be completed efficiently and cost-effectively.
Demand on the Horizon
The industry anticipates a rise in demand for construction work, primarily driven by infrastructure expansions. This expectation reflects the vital role that construction plays in supporting economic growth and development on a global scale.
Inflation and Material Prices
Interestingly, some producers within the construction industry may find opportunities in the face of inflation and rising material prices. This demonstrates the adaptability and resilience of the sector, where certain players may leverage market dynamics to their advantage.
Where are the golden opportunities? We’ll show you how infrastructure, resilient sectors, and pandemic recovery paths open up growth in construction.
The construction industry is poised for robust growth with projected rates of 20.1% in 2022 and 10.9% in 2023, driven by investments in infrastructure projects. Key areas include transportation, streets, sewage, and water supply.
These sectors represent significant opportunities for construction companies, underscoring their importance in shaping the future.
Infrastructure projects are notably resilient to the challenges posed by consistent inflation rates.
Unlike residential and non-residential construction projects, which may be impacted by rising inflation and interest rates, infrastructure projects maintain their immunity, providing a stable and promising avenue for growth.
Certain sectors, such as manufacturing, communication, commercial, and healthcare, have shown remarkable resilience against the effects of the COVID-19 pandemic.
These sectors have weathered the storm and continue to thrive, leading to a sustained demand for construction work in these areas.
Sectors more heavily impacted by the COVID-19 pandemic, including education, lodging, and offices, are expected to recover to pre-pandemic levels slowly.
These sectors may remain cautious about significant investments in construction work until long-term trends become clearer, indicating a more cautious but nonetheless anticipated path to recovery.
Let’s get to the nitty-gritty of construction! From the impact of inflation to who’s profiting, dive into the world of construction materials and how they shape the industry.
Varied Impact on Suppliers
Many suppliers in the construction industry have experienced a decline in profits due to inflation and the increasing costs of construction materials.
However, some sectors have actually thrived in this economic environment, notably the steel and forestry industries, along with cement producers.
This divergence highlights how different segments of the construction material supply chain respond differently to market forces.
Steel’s Strong Position
Among these sectors, the steel industry stands out as a significant beneficiary of inflation.
This is primarily because finished steel products are a vital component in most construction projects, including major and funded initiatives such as constructing wind turbines or expanding electrical grids.
The necessity of steel in these projects reinforces its value in the construction industry.
For contractors, navigating the landscape of rising inflation and construction material costs can pose challenges.
Those without significant stockpiles of required materials may find it challenging to compensate for escalating prices or to renegotiate terms with customers.
This highlights the importance of supply chain management and cost forecasting for construction firms in an environment marked by fluctuating material costs.
And there you have it, folks – a whirlwind tour through the construction industry in 2023. From the challenges of inflation to the booming world of infrastructure, we’ve seen how this ever-evolving sector weaves its magic.
Whether you’re in the industry or just a curious onlooker, these stats have given you a glimpse into the fascinating world of construction. Keep building, keep innovating, and let’s see what the future holds for this dynamic realm!
Inflation impacts construction materials, causing rising costs. While some sectors like steel and forestry benefit, others face profit declines. Contractors without material reserves must navigate challenges such as higher prices and renegotiations with customers.
Steel is crucial in construction, especially for projects like wind turbines and electrical grid expansions. Inflation increases the demand for finished steel products, positioning the steel industry as a significant beneficiary in the construction sector.
Many suppliers experience profit declines due to inflation and increasing material costs. However, some sectors, such as steel, forestry, and cement production, profit amidst these challenges.
Infrastructure projects often require steel and other construction materials, making them susceptible to rising costs. Nevertheless, investments in essential infrastructure projects continue, underlining the industry’s resilience.
Contractors with sufficient material reserves can better manage inflation’s effects. They can navigate price increases and customer renegotiations more effectively, showcasing the importance of material stockpiles and supply chain management.