From soaring to a $2.1 trillion spending peak and fueling every corner of the economy, the US construction industry in 2023 showcased itself as a powerhouse of growth, resilience, and immense potential.
Key Takeaways
- In 2023, the US construction industry contributed approximately $1.8 trillion to the GDP, representing about 4% of the total US GDP
- The construction sector's value added to GDP grew by 8.9% in 2023 compared to 2022, outpacing the overall economy's 2.5% growth
- Total construction spending in the US reached $2.1 trillion in 2023, up 7% from 2022
- Construction employment in the US stood at 8.1 million in December 2023, up 4.5% from prior year
- Average hourly earnings for construction workers reached $34.50 in Q4 2023, a 5.2% increase YoY
- Construction unemployment rate was 4.1% in 2023, below national average of 3.7%
- Construction fatalities totaled 1,056 in 2022, rate of 9.6 per 100,000 workers
- Falls from height caused 33% of construction deaths in 2022, totaling 348 fatalities
- Struck-by incidents accounted for 10% of construction fatalities in 2022
- Total construction spending was $2.1 trillion in 2023, up 7.1% from 2022
- Private residential spending reached $908 billion in 2023
- Nonresidential private spending totaled $722 billion in 2023
- US construction industry expected to grow at 4.2% CAGR to $1.9 trillion by 2028
- Modular construction market projected to reach $160 billion by 2030, CAGR 7.5%
- Green building certifications expected to cover 30% of new construction by 2025
The US construction industry grew robustly in 2023, contributing significantly to economic output and job creation.
Construction Spending and Investment
- Total construction spending was $2.1 trillion in 2023, up 7.1% from 2022
- Private residential spending reached $908 billion in 2023
- Nonresidential private spending totaled $722 billion in 2023
- Public construction spending hit $488 billion in 2023, up 10%
- Highway construction spending increased 12% to $152 billion in 2023
- Manufacturing facilities spending surged 70% to $200 billion in 2023
- Single-family home construction spending was $280 billion in 2023
- IIJA allocated $550 billion new infrastructure spending over 5 years starting 2022
- Data center construction investment hit $50 billion in 2023
- Educational construction spending was $98 billion in 2023
- Office building spending declined 5% to $65 billion in 2023
- Renewable energy construction spending reached $40 billion in 2023
- Water supply and sewage spending totaled $45 billion in 2023
- Multifamily residential spending was $120 billion in 2023, down 10%
- Power plant construction investment was $80 billion in 2023
- Healthcare facilities spending hit $55 billion in 2023
- Lodging construction spending fell 15% to $25 billion in 2023
- Amusement/recreation spending was $18 billion in 2023
- CHIPS Act spurred $200 billion in semiconductor fab construction commitments by 2023
- Construction starts value was $981 billion in 2023, down 5% YoY
Construction Spending and Investment Interpretation
The American construction sector is in a dramatic and contradictory dance, where the roaring comeback of manufacturing and infrastructure is undercut by a hesitant housing market and a ghost town of empty offices, proving that even a $2.1 trillion economy can't build its way out of a split personality.
Economic Impact and Market Size
- In 2023, the US construction industry contributed approximately $1.8 trillion to the GDP, representing about 4% of the total US GDP
- The construction sector's value added to GDP grew by 8.9% in 2023 compared to 2022, outpacing the overall economy's 2.5% growth
- Total construction spending in the US reached $2.1 trillion in 2023, up 7% from 2022
- Residential construction accounted for 23% of total construction spending in 2023, totaling around $483 billion
- Nonresidential construction spending hit $1.07 trillion in 2023, driven by manufacturing and infrastructure
- The construction industry's multiplier effect on the economy is estimated at 11,000 jobs per $1 billion invested
- In 2022, construction establishments numbered 919,000 across the US
- Construction output per worker increased by 4.2% in 2023 to $285,000 annually
- The industry's share of private fixed investment was 5.8% in 2023
- Export-related construction activity contributed $120 billion in 2023
- Manufacturing construction boom added $200 billion in spending from 2021-2023
- Infrastructure construction represented 12% of total spending in 2023 at $252 billion
- The ENR Top 400 Contractors had combined revenues of $468 billion in 2023
- Construction backlog reached $1.3 trillion industry-wide in Q4 2023
- Productivity in construction grew 1.1% annually from 2017-2022, lagging other sectors
- US construction imports totaled $45 billion in building materials in 2023
- The industry supported 8.8 million jobs indirectly in 2023 via supply chains
- Federal construction grants disbursed $100 billion under IIJA in first two years
- Private construction investment rose 11% to $1.2 trillion in 2023
- State and local government construction spending increased 5.4% to $300 billion in 2023
Economic Impact and Market Size Interpretation
While its productivity growth may be a sleepy 1.1%, the US construction industry is clearly wide awake, building a $2.1 trillion engine that not only outpaced the entire economy but also generates a cascade of jobs and investment, proving you can't have a GDP without first laying the groundwork.
Employment Statistics
- Construction employment in the US stood at 8.1 million in December 2023, up 4.5% from prior year
- Average hourly earnings for construction workers reached $34.50 in Q4 2023, a 5.2% increase YoY
- Construction unemployment rate was 4.1% in 2023, below national average of 3.7%
- There were 745,000 job openings in construction in November 2023
- Labor force participation in construction was 63.2% in 2023
- Hispanic workers comprised 30% of construction workforce in 2023, totaling 2.4 million
- Women represented 10.9% of construction employment in 2023, up from 9.8% in 2020
- Union membership in construction was 12.4% in 2023, highest among major industries
- Construction added 200,000 net new jobs in 2023
- Self-employed construction workers numbered 2.1 million in 2023, 25% of total
- Entry-level construction wages averaged $22/hour in 2023
- 75% of contractors reported labor shortages as top issue in 2023 survey
- Apprenticeship programs enrolled 120,000 new construction workers in 2023
- Construction job quits rate was 2.8% monthly average in 2023
- Multi-trade contractors employed 1.2 million in specialty trades in 2023
- Veteran employment in construction reached 1.1 million in 2023, 14% of workforce
- Overtime hours in construction averaged 3.8 hours/week in 2023
- Construction hiring plans index hit 45 in Q1 2024 survey, indicating expansion
- 65% of construction firms increased wages by over 5% in 2023
- Electrical contractors employed 700,000 workers in 2023
- Job tenure average in construction was 4.2 years in 2023
Employment Statistics Interpretation
The construction industry is booming so vigorously that it's practically building its own labor force from scratch, raising wages to tempting heights while still desperately waving a help-wanted sign at nearly three-quarters of a million open positions.
Industry Trends and Projections
- US construction industry expected to grow at 4.2% CAGR to $1.9 trillion by 2028
- Modular construction market projected to reach $160 billion by 2030, CAGR 7.5%
- Green building certifications expected to cover 30% of new construction by 2025
- Prefabrication adoption to rise to 25% of projects by 2027
- BIM usage in construction projected at 80% by 2025
- Labor productivity growth forecasted at 2.8% annually through 2030
- Infrastructure spending to average $300 billion/year through 2026 under IIJA
- Residential construction starts to rebound 10% in 2024 to 1.4 million units
- Semiconductor construction backlog to peak at $300 billion by 2025
- EV charging station builds to reach 500,000 by 2030, requiring $60 billion investment
- 3D printing in construction market to grow to $50 billion globally by 2030, US share 40%
- Digital twin adoption to hit 50% in large projects by 2027
- Net-zero buildings to comprise 20% of commercial starts by 2030
- Construction robotics market projected at $10 billion by 2028 in US
- Supply chain disruptions to ease, reducing delays by 30% by 2025
- Data centers to require 20 GW new capacity by 2030, $200 billion construction
- Workforce aging to create 500,000 annual openings through 2030
- AI integration to boost project efficiency 15-20% by 2027
- Affordable housing shortage to drive $1 trillion investment need by 2030
- Climate-resilient infrastructure retrofits to cost $500 billion by 2040
Industry Trends and Projections Interpretation
The numbers paint a clear, and rather expensive, picture: American construction is racing toward a smarter, greener, and more modular future, but it will need to build its way out of a half-trillion-dollar labor hole while the concrete is still wet.
Safety and Injury Data
- Construction fatalities totaled 1,056 in 2022, rate of 9.6 per 100,000 workers
- Falls from height caused 33% of construction deaths in 2022, totaling 348 fatalities
- Struck-by incidents accounted for 10% of construction fatalities in 2022
- Nonfatal injury rate in construction was 2.0 cases per 100 workers in 2022
- Musculoskeletal disorders made up 28% of nonfatal construction injuries in 2022
- OSHA cited 25,000 construction violations in FY2023
- Heat-related illnesses in construction rose 20% from 2016-2022
- 85% of construction fatalities involved workers age 25-54 in 2022
- Electrical fatalities in construction numbered 72 in 2022
- Days away from work averaged 71 days for construction injuries in 2022
- Trench collapse deaths totaled 21 in 2022, despite OSHA standards
- Safety training reduced incident rates by 25% in trained firms per 2023 study
- PPE non-compliance caused 15% of citations in construction FY2023
- Construction had highest fatal injury rate among industries at 9.6 per 100k in 2022
- Vehicle-related incidents killed 140 construction workers in 2022
- Silica exposure violations topped 1,200 in construction FY2023
- Fatigue contributed to 13% of construction accidents per NSC 2023 report
- Scaffolding failures caused 59 deaths in 2022
- Lost workday injury rate fell 5% to 1.2 per 100 in 2022
- Hispanic workers had 20% higher fatality rate at 11.5 per 100k in 2022
- Crane-related deaths totaled 28 in 2022
Safety and Injury Data Interpretation
For all its impressive skylines, the U.S. construction industry is still tragically building its foundation of fatalities from falls, its scaffolding of silica violations, and its framework of preventable tragedies, all while proven tools like training and compliance wait in the toolbox.
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