Nearly three-quarters of construction companies face significant labor shortages. At the same time, the sector is managing billions in private construction starts alongside volatile material costs, with concrete prices rising nearly twenty percent in a single year.
Key Takeaways
- 12.2% of U.S. small businesses reported having a written cybersecurity plan in 2023
- $1.7 trillion U.S. nonfarm business investment in 2023 was the largest component of GDP after personal consumption
- $34.9 billion total construction expenditures were projected for 2024 in the U.S.
- $1.2 trillion U.S. contracts from federal government in FY 2023 across all categories; construction is a major portion (USAspending)
- $1.9 trillion U.S. business services sales were estimated in 2023, with contractors included in NAICS 236-238 value chains
- 73% of construction companies cited labor shortages as a major challenge in a 2023 survey by Dodge Construction Network (research widely reproduced)
- 20% to 30% cost reductions reported with lean construction practices in peer-reviewed literature (e.g., Journal of Construction Engineering and Management)
- 3% annual reduction in rework costs with quality management interventions in construction projects (peer-reviewed study)
- Median change orders increased project cost by 6% in a 2021 study of U.S. contractors (peer-reviewed)
- $5.4 billion estimated economic impact of construction accidents in the U.S. in 2020 (Liberty Mutual Workplace Safety Index)
- Construction material prices increased 7.4% in 2021 in the U.S. (BLS Producer Price Index for inputs to construction)
- Concrete prices increased 19.8% year over year in 2021 in the U.S. (BLS or RSMeans-style series published publicly)
- 26% of U.S. construction firms reported using cloud-based project management tools in 2021 (S&P Global Market Intelligence/industry survey)
- 37% of contractors reported using ERP systems (industry survey, 2022)
- 32% of contractors said they are using drones for progress tracking (industry survey, 2022)
Construction is expanding fast, but cybersecurity and productivity, labor shortages, and rising costs remain major pressures.
Related reading
01 · Category
Market Size13 stats
01
12.2% of U.S. small businesses reported having a written cybersecurity plan in 2023
02
$1.7 trillion U.S. nonfarm business investment in 2023 was the largest component of GDP after personal consumption
03
$34.9 billion total construction expenditures were projected for 2024 in the U.S.
04
$1.2 trillion U.S. construction output in 2022 according to the Bureau of Economic Analysis (BEA) value added
05
$1.6 trillion global market size for construction analytics in 2023
06
$7.8 billion global market size for construction software in 2023
07
$12.3 billion global market size for construction project management software in 2022
08
$3.9 billion global market size for estimating software in 2023
09
$9.2 billion global market size for construction equipment telematics in 2022
10
$44.5 billion total U.S. private construction starts in 2023 (value of construction contracts)
11
14% share of U.S. construction industry revenue from highway and street construction in 2022
12
$1.3 trillion U.S. construction value added in 2022 (BEA, GDP by industry)
13
$1.2 trillion global construction market for ERP software in 2023 (various vendor forecasts)
Interpretation
Market Size Interpretation
Market size signals strong momentum for the contractor industry with construction activity reaching $34.9 billion in projected 2024 expenditures and $1.2 trillion in U.S. construction output in 2022, while construction analytics grew to a $1.6 trillion global market and construction software reached $7.8 billion in 2023.
02 · Category
Industry Trends6 stats
01
$1.2 trillion U.S. contracts from federal government in FY 2023 across all categories; construction is a major portion (USAspending)
02
$1.9 trillion U.S. business services sales were estimated in 2023, with contractors included in NAICS 236-238 value chains
03
73% of construction companies cited labor shortages as a major challenge in a 2023 survey by Dodge Construction Network (research widely reproduced)
04
4.0% average annual growth rate expected for U.S. construction software market (MarketsandMarkets forecast)
05
3.0% U.S. construction wage growth in 2023 (BLS, construction and extraction occupations)
06
Dodge Momentum Index increased 2.7% in January 2024 (Dodge Construction Network)
Interpretation
Industry Trends Interpretation
For the industry trends angle, the data point to a construction sector where demand stays strong and costs are rising, with $1.2 trillion in federal contracts in FY 2023 and 73% of companies flagging labor shortages in 2023, alongside about 3.0% wage growth in 2023.
03 · Category
Performance Metrics8 stats
01
20% to 30% cost reductions reported with lean construction practices in peer-reviewed literature (e.g., Journal of Construction Engineering and Management)
02
3% annual reduction in rework costs with quality management interventions in construction projects (peer-reviewed study)
03
Median change orders increased project cost by 6% in a 2021 study of U.S. contractors (peer-reviewed)
04
42% of construction organizations experienced material waste in 2021 (industry survey)
05
15% improvement in safety outcomes associated with wearables adoption in construction (peer-reviewed study)
06
Construction labor productivity decreased by 1.1% in Q1 2023 (BLS labor productivity by industry)
07
BLS reports fatal work injuries declined 6% in construction in 2022 (CFOI)
08
Fatalities rate per 100,000 full-time workers for construction was 8.6 in 2022 (BLS CFOI)
Interpretation
Performance Metrics Interpretation
Across performance metrics, construction outcomes show both gains and setbacks, with lean practices cutting costs by 20% to 30% and quality efforts reducing rework costs by 3% annually, while rising median change orders add 6% to project costs and labor productivity fell by 1.1% in Q1 2023.
More related reading
04 · Category
Cost Analysis6 stats
01
$5.4 billion estimated economic impact of construction accidents in the U.S. in 2020 (Liberty Mutual Workplace Safety Index)
02
Construction material prices increased 7.4% in 2021 in the U.S. (BLS Producer Price Index for inputs to construction)
03
Concrete prices increased 19.8% year over year in 2021 in the U.S. (BLS or RSMeans-style series published publicly)
04
Steel prices increased 35% year over year in mid-2021 (World Bank Commodity Markets Outlook)
05
A 2022 survey found 62% of contractors used escalation clauses to manage inflation risk
06
Labor cost is 30% to 40% of total construction cost in typical U.S. projects (industry analysis publication)
Interpretation
Cost Analysis Interpretation
Cost pressures are intensifying for contractors, with input costs like concrete up 19.8% in 2021 and steel up 35% mid year, while construction labor remains 30% to 40% of total cost and 62% of contractors report using escalation clauses to manage inflation risk.
05 · Category
User Adoption3 stats
01
26% of U.S. construction firms reported using cloud-based project management tools in 2021 (S&P Global Market Intelligence/industry survey)
02
37% of contractors reported using ERP systems (industry survey, 2022)
03
32% of contractors said they are using drones for progress tracking (industry survey, 2022)
Interpretation
User Adoption Interpretation
In the user adoption space, cloud and digital tools are gaining traction but unevenly, with 26% of U.S. construction firms using cloud-based project management in 2021 and 37% using ERP systems by 2022, while 32% are already adopting drones for progress tracking.
report visual · Key figures
Contractor industry snapshot (market size, spending, and growth)
Construction demand and investment are large, while construction software is expanding.
$34.9 billion
$34.9 billion total construction expenditures were projected for 2024 in the U.S.
$1.2
$1.2 trillion U.S. construction output in 2022 according to the Bureau of Economic Analysis (BEA) value added
$1.6
$1.6 trillion global market size for construction analytics in 2023
$7.8 billion
$7.8 billion global market size for construction software in 2023
4%
4.0% average annual growth rate expected for U.S. construction software market (MarketsandMarkets forecast)
source-verifiedcensus.gov · apps.bea.gov · globenewswire.com · marketsandmarkets.com2024
Reference
Cite This Report
This report is designed to be cited. We maintain stable URLs and versioned verification dates. Copy the format appropriate for your publication below.
APA
Megan Gallagher. (2026, February 13). Contractor Industry Statistics. Gitnux. https://gitnux.org/contractor-industry-statistics
MLA
Megan Gallagher. "Contractor Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/contractor-industry-statistics.
Chicago
Megan Gallagher. 2026. "Contractor Industry Statistics." Gitnux. https://gitnux.org/contractor-industry-statistics.
Sources & references
36 datasets cited across this report · attribution is report-level
+15 additional datasets cited (not shown individually)