From its towering $2.1 trillion in spending to the 696,000 jobs it couldn't fill, the U.S. construction industry in 2023 was a powerhouse of economic activity, persistent labor challenges, and a tragic safety record that demands a closer look.
Key Takeaways
- In 2023, the U.S. construction industry employed 8,046,000 workers, accounting for 5.0% of total nonfarm payroll employment according to BLS data.
- Construction sector added 136,000 jobs in 2023, with average hourly earnings rising 4.8% year-over-year to $34.23.
- As of Q4 2023, there were 696,000 construction job openings, with a job openings rate of 8.1% in the industry.
- In 2023, the U.S. construction industry generated $1.8 trillion in total value added, representing 7.6% of GDP.
- Construction sector revenue reached $1.67 trillion in 2022 per U.S. Census Bureau data.
- Gross output from construction was $2.1 trillion in 2022, up 8.4% from 2021 according to BEA.
- Total construction spending reached $2.1 trillion in 2023, up 7.5% from 2022.
- Private residential construction spending was $908 billion in 2023, 11% above 2022 levels.
- Nonresidential building construction put in place $238 billion in Q4 2023.
- Total fatal work injuries in construction numbered 1,056 in 2022, a rate of 9.6 per 100,000 full-time workers.
- Construction had the highest fatal injury rate among major industries at 13.9 per 100,000 in 2022.
- Falls to lower level caused 391 construction fatalities in 2022, 37% of total.
- U.S. construction industry expected to grow 4% annually through 2030, adding $1.4 trillion in output.
- Prefabricated construction market projected to reach $250 billion by 2030, CAGR 6.8%.
- Green building projects to comprise 90% of new nonresidential construction by 2025 per Dodge.
The U.S. construction industry is strong but faces persistent labor shortages and safety challenges.
Construction Spending and Output
- Total construction spending reached $2.1 trillion in 2023, up 7.5% from 2022.
- Private residential construction spending was $908 billion in 2023, 11% above 2022 levels.
- Nonresidential building construction put in place $238 billion in Q4 2023.
- Highway construction spending hit $57.8 billion in 2023, up 4.2% year-over-year.
- Single-family housing starts totaled 954,000 units in 2023, down 8% from 2022.
- Multifamily completions reached 372,000 units in 2023 per Census Bureau.
- Public construction spending grew 12.6% to $442 billion in 2023.
- Manufacturing construction put in place $91 billion in 2023, up 70% since 2021.
- Total housing permits issued 1.41 million units in 2023.
- Educational construction spending was $102 billion in 2023, flat from prior year.
- Water supply and sewage construction hit record $44.5 billion in 2023.
- Commercial and office construction spending declined 15% to $120 billion in 2023.
- Power plant construction spending rose 20% to $65 billion in 2023.
- New privately-owned housing units under construction totaled 1.04 million in Q4 2023.
- Heavy and civil engineering construction spending $198 billion in 2023, up 9%.
- Hotel/motel construction put in place $28 billion in 2023, down 5%.
- Amusement/recreation construction spending $12.4 billion in Q4 2023 annualized.
- Private nonresidential construction spending $467 billion in 2023.
- Residential improvements spending $460 billion in 2023, up 5%.
- Air traffic facility construction $2.8 billion annualized Q4 2023.
- Religious building construction $4.1 billion in 2023.
- Conservation/development spending $18.2 billion in Q4 2023.
- Single-family permits 954,000 in 2023, 5-family+ 440,000.
- Healthcare construction $68 billion in 2023.
- Oil/gas field construction down 20% to $12 billion in 2023.
- Total starts for nonresidential buildings 1.2 billion sq ft in 2023 Dodge.
- Warehouse/industrial construction $142 billion in 2023 peak.
- Public school/university construction $95 billion in 2023.
- Rental vacancy rate influenced 250,000 multifamily starts in 2023.
- Construction spending per capita $6,300 in 2023.
- Excavation/site prep spending $82 billion in 2023.
Construction Spending and Output Interpretation
The construction industry is staging a massive, $2.1 trillion pivot where we're feverishly building the factories, roads, and power plants of the future while single-family homes take a cautious breather and commercial offices sulk in the corner.
Employment Statistics
- In 2023, the U.S. construction industry employed 8,046,000 workers, accounting for 5.0% of total nonfarm payroll employment according to BLS data.
- Construction sector added 136,000 jobs in 2023, with average hourly earnings rising 4.8% year-over-year to $34.23.
- As of Q4 2023, there were 696,000 construction job openings, with a job openings rate of 8.1% in the industry.
- Women represented 10.9% of the construction workforce in 2022, up from 9.9% in 2018 per BLS Occupational Employment Statistics.
- Hispanic or Latino workers comprised 30.1% of construction employment in 2023, the highest share among major industry sectors.
- Construction managers numbered 507,430 in 2022 with median annual wage of $104,900 according to BLS OES data.
- In 2023, the quits rate in construction was 2.6% while the layoffs rate was 1.2%, both below the all-industry averages.
- Self-employed workers made up 20.3% of construction employment in 2022, totaling about 1.6 million individuals.
- Construction added 200,000 net new jobs from January to October 2023, with residential building leading at 92,000 gains.
- Average construction worker age was 42.7 years in 2022, older than the all-industry average of 41.9 years per BLS.
- Union membership rate in construction was 12.6% in 2023, down from 13.2% in 2022 according to BLS union data.
- Carpenters held 677,000 jobs in 2022 with median wage of $51,970, per BLS Occupational Outlook Handbook.
- Construction employment in California reached 922,000 in September 2023, the highest among all states.
- Labor force participation rate for construction workers aged 25-54 was 83.4% in 2023.
- Electricians in construction numbered 596,000 in 2022 with projected 6% growth to 2032.
- Construction unemployment rate averaged 4.2% in 2023, below the national rate of 3.6%.
- Operating engineers and heavy equipment operators totaled 403,000 jobs in 2022.
- In metro areas, construction employment grew 3.2% year-over-year in Q3 2023, adding 92,000 jobs.
- Construction laborers employment reached 939,000 in 2022 with median wage $39,520.
- Veteran employment in construction was 12.4% of the workforce in 2022, higher than all industries average.
- In 2023, Texas led with 786,000 construction workers, followed by Florida at 543,000.
- Plumbers, pipefitters, and steamfitters employment was 449,000 in 2022.
- Construction employment growth was strongest in the South region at 4.1% in 2023.
- Median weekly earnings for construction workers were $1,050 in Q4 2023.
- Drywall installers and finishers totaled 118,000 jobs in 2022.
- Construction job growth slowed to 17,000 monthly average in H2 2023.
- Painters and paperhangers employment reached 372,000 in 2022.
- Construction sector had 4.1% unemployment rate in December 2023.
- Sheet metal workers numbered 146,000 in construction in 2022.
- Construction payroll employment up 2.5% year-over-year in 50 largest metros Q3 2023.
Employment Statistics Interpretation
While the nation's economic engine might be glued together with power tools and plastered with promise, the construction industry itself is a complex job site where demographic shifts, persistent demand, and a generational hand-off are all competing for space on the same scaffold.
Financial and Economic Metrics
- In 2023, the U.S. construction industry generated $1.8 trillion in total value added, representing 7.6% of GDP.
- Construction sector revenue reached $1.67 trillion in 2022 per U.S. Census Bureau data.
- Gross output from construction was $2.1 trillion in 2022, up 8.4% from 2021 according to BEA.
- Average profit margin for construction firms was 3.5% in 2023, per AGC annual survey.
- Construction industry paid $259 billion in wages in 2022, 6.1% of national total payroll.
- Multifamily construction contributed $109 billion to GDP in 2022 per NAHB analysis.
- Interest expenses for construction firms rose 28% to $22 billion in 2023 due to higher rates.
- Construction sector's share of private fixed investment was 5.8% in 2023 at $248 billion.
- Average construction firm revenue was $12.4 million in 2023 per ABC data.
- Taxes on production and imports in construction totaled $78 billion in 2022.
- Construction inflation rate (PPI) averaged 4.2% in 2023, driven by 6.1% rise in inputs.
- Bonded construction backlog for firms averaged 10.2 months of work in Q4 2023.
- Construction firms' cash flow margin improved to 2.8% in 2023 from 1.9% in 2022.
- Employee benefits costs averaged 28.4% of payroll in construction in 2023 per AGC.
- Overhead costs as percent of revenue were 12.6% for construction firms in 2023.
- Construction purchasing managers index (CPI) averaged 52.3 in 2023, indicating expansion.
- In 2022, construction gross output was $2.14 trillion per BEA input-output tables.
- Construction firms reported average backlog of $32 million in 2023 AGC survey.
- Fuel and power costs rose 15% for contractors to 4.2% of revenue in 2023.
- Construction contributed $1.07 trillion to GDP in 2023 Q4 annualized.
- Average construction loan interest rate was 7.2% in Q4 2023.
- Subcontractor profit margin averaged 5.1% in 2023 per ABC.
- Construction equipment rental revenue hit $52 billion in 2023.
- Insurance costs averaged 1.8% of revenue for construction firms in 2023.
- Construction productivity grew 1.2% in 2022, lagging overall nonfarm at 1.7%.
- General contractors' gross margin was 14.7% in 2023 ABC data.
- Construction sector imported $15 billion in goods in 2022 per Census trade data.
- Debt-to-equity ratio for construction firms averaged 1.2:1 in 2023.
Financial and Economic Metrics Interpretation
Despite fueling the nation's economy with over a trillion dollars in activity and millions of jobs, the U.S. construction industry is operating on a razor-thin margin, where a single percentage point swing in interest rates can slice right through its concrete-thick profits.
Industry Trends and Forecasts
- U.S. construction industry expected to grow 4% annually through 2030, adding $1.4 trillion in output.
- Prefabricated construction market projected to reach $250 billion by 2030, CAGR 6.8%.
- Green building projects to comprise 90% of new nonresidential construction by 2025 per Dodge.
- Labor shortage expected to leave 500,000 construction jobs unfilled by 2026 AGC forecast.
- Modular construction adoption up 25% since 2020, projected 10% market share by 2030.
- Data center construction spending forecasted at $100 billion annually by 2025.
- BIM usage in construction firms rose to 73% in 2023 from 61% in 2020.
- Renewable energy construction to add 300,000 jobs by 2030 per DOE projections.
- Construction robotics market to grow at 15% CAGR to $10 billion by 2028.
- Semiconductor fab construction boom to peak at 50 million sq ft in 2025.
- Supply chain disruptions expected to impact 40% of projects through 2025.
- Digital twin adoption forecasted to save $1.2 trillion in megaprojects by 2030.
- Infrastructure bill to fund $550 billion in new construction spending over 5 years.
- 3D printing in construction projected to grow 100% CAGR to 2028.
- EV charging station construction to reach 500,000 units by 2030.
- AI in construction management market to hit $5 billion by 2027.
- Shortage of skilled trades projected to worsen with 41% of workforce over 45.
- Net-zero building retrofits to drive $1 trillion market by 2030.
- Construction employment forecasted to reach 9 million by 2032, up 4%.
- Construction drones usage up 50% to 20% of firms in 2023.
- Carbon emissions from construction to drop 40% by 2030 with electrification.
- Warehouse construction to decline 30% in 2024 after 2023 peak.
- Skilled labor demand up 20% for EV infrastructure by 2030.
- VR/AR training adoption in construction to reach 50% by 2027.
- Hyperscale data centers 40 million sq ft under construction Q1 2024.
- Sustainable materials use up to 45% in new projects 2023.
- Construction spending forecast $2.3 trillion by 2028.
- Offsite construction to save 20-30% time on 25% projects by 2030.
- Cybersecurity incidents in construction up 300% since 2020.
Industry Trends and Forecasts Interpretation
The American construction industry, caught between a relentless drive toward a high-tech, sustainable future and the very human, hammer-swinging reality of not having enough hands to swing them, is frantically trying to build its way out of a labor crisis while robots draft the blueprints and drones monitor the progress.
Safety and Injury Rates
- Total fatal work injuries in construction numbered 1,056 in 2022, a rate of 9.6 per 100,000 full-time workers.
- Construction had the highest fatal injury rate among major industries at 13.9 per 100,000 in 2022.
- Falls to lower level caused 391 construction fatalities in 2022, 37% of total.
- Struck by object or equipment incidents led to 151 construction deaths in 2022.
- Nonfatal injury and illness incidence rate in construction was 2.0 cases per 100 workers in 2022.
- Musculoskeletal disorders accounted for 29% of nonfatal construction injuries in 2022.
- OSHA cited construction firms for 21,479 violations in FY2023, with fall protection top at 5,901.
- Heat-related fatalities in construction reached 38 in 2022, up from 20 in 2021 per NIOSH.
- Days away from work cases in construction averaged 8 days per case in 2022.
- Electrical fatalities in construction totaled 76 in 2022, 7% of industry total.
- Construction firms with 11-19 employees had injury rate of 1.8 per 100 workers in 2022.
- Vehicle-related incidents caused 106 construction fatalities in 2022.
- Silica exposure violations numbered 1,243 in construction by OSHA in FY2023.
- Lost workday case rate in roofing contractors was 4.2 per 100 workers in 2022.
- Opioid-related fatalities in construction were 15% of total workplace drug deaths in 2022.
- Trench collapse deaths totaled 15 in construction in 2022 per BLS.
- Construction safety training compliance was 92% among large firms in 2023 AGC survey.
- Recordable incident rate for ABC members was 1.2 in 2023, below national average.
- Eye injuries accounted for 1,200 nonfatal cases in construction in 2022.
- Crane-related fatalities dropped to 19 in 2022 from 32 in 2021.
- Nonfatal construction injuries totaled 151,000 in 2022 with 122,600 involving days away.
- Leading cause of nonfatal injuries was overexertion at 25% in construction 2022.
- OSHA construction inspections totaled 18,200 in FY2023.
- Hand injuries 18% of construction nonfatal cases in 2022.
- Construction fatality rate for workers 55+ was 12.1 per 100k in 2022.
- Scaffolding violations 2,800 by OSHA in construction FY2023.
- Median days away for construction sprains/strains 12 days in 2022.
- Contact with objects/equipment caused 44% nonfatal injuries in 2022.
- Ladder-related falls led to 113 fatalities in construction 2022.
- Respiratory illnesses 1,200 cases in construction SOII 2022.
- Large construction firms (1,000+ employees) injury rate 1.1 per 100 in 2022.
- Caught-in/between incidents 28 fatalities in construction 2022.
- Hearing loss cases 1,800 in construction with days away 2022.
Safety and Injury Rates Interpretation
While every statistic here screams for basic safety measures—from fall protection to opioid awareness—the fact that falls alone kill a person per day in construction tragically proves we’re still failing to address the glaringly obvious.
Sources & References
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