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
1Total construction spending was $2.1 trillion in 2023, up 7.1% from 2022
Verified2Private residential spending reached $908 billion in 2023
Verified3Nonresidential private spending totaled $722 billion in 2023
Verified4Public construction spending hit $488 billion in 2023, up 10%
Directional5Highway construction spending increased 12% to $152 billion in 2023
Single source6Manufacturing facilities spending surged 70% to $200 billion in 2023
Verified7Single-family home construction spending was $280 billion in 2023
Verified8IIJA allocated $550 billion new infrastructure spending over 5 years starting 2022
Verified9Data center construction investment hit $50 billion in 2023
Directional10Educational construction spending was $98 billion in 2023
Single source11Office building spending declined 5% to $65 billion in 2023
Verified12Renewable energy construction spending reached $40 billion in 2023
Verified13Water supply and sewage spending totaled $45 billion in 2023
Verified14Multifamily residential spending was $120 billion in 2023, down 10%
Directional15Power plant construction investment was $80 billion in 2023
Single source16Healthcare facilities spending hit $55 billion in 2023
Verified17Lodging construction spending fell 15% to $25 billion in 2023
Verified18Amusement/recreation spending was $18 billion in 2023
Verified19CHIPS Act spurred $200 billion in semiconductor fab construction commitments by 2023
Directional20Construction starts value was $981 billion in 2023, down 5% YoY
Single sourceConstruction 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
1In 2023, the US construction industry contributed approximately $1.8 trillion to the GDP, representing about 4% of the total US GDP
Verified2The construction sector's value added to GDP grew by 8.9% in 2023 compared to 2022, outpacing the overall economy's 2.5% growth
Verified3Total construction spending in the US reached $2.1 trillion in 2023, up 7% from 2022
Verified4Residential construction accounted for 23% of total construction spending in 2023, totaling around $483 billion
Directional5Nonresidential construction spending hit $1.07 trillion in 2023, driven by manufacturing and infrastructure
Single source6The construction industry's multiplier effect on the economy is estimated at 11,000 jobs per $1 billion invested
Verified7In 2022, construction establishments numbered 919,000 across the US
Verified8Construction output per worker increased by 4.2% in 2023 to $285,000 annually
Verified9The industry's share of private fixed investment was 5.8% in 2023
Directional10Export-related construction activity contributed $120 billion in 2023
Single source11Manufacturing construction boom added $200 billion in spending from 2021-2023
Verified12Infrastructure construction represented 12% of total spending in 2023 at $252 billion
Verified13The ENR Top 400 Contractors had combined revenues of $468 billion in 2023
Verified14Construction backlog reached $1.3 trillion industry-wide in Q4 2023
Directional15Productivity in construction grew 1.1% annually from 2017-2022, lagging other sectors
Single source16US construction imports totaled $45 billion in building materials in 2023
Verified17The industry supported 8.8 million jobs indirectly in 2023 via supply chains
Verified18Federal construction grants disbursed $100 billion under IIJA in first two years
Verified19Private construction investment rose 11% to $1.2 trillion in 2023
Directional20State and local government construction spending increased 5.4% to $300 billion in 2023
Single sourceEconomic 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
1Construction employment in the US stood at 8.1 million in December 2023, up 4.5% from prior year
Verified2Average hourly earnings for construction workers reached $34.50 in Q4 2023, a 5.2% increase YoY
Verified3Construction unemployment rate was 4.1% in 2023, below national average of 3.7%
Verified4There were 745,000 job openings in construction in November 2023
Directional5Labor force participation in construction was 63.2% in 2023
Single source6Hispanic workers comprised 30% of construction workforce in 2023, totaling 2.4 million
Verified7Women represented 10.9% of construction employment in 2023, up from 9.8% in 2020
Verified8Union membership in construction was 12.4% in 2023, highest among major industries
Verified9Construction added 200,000 net new jobs in 2023
Directional10Self-employed construction workers numbered 2.1 million in 2023, 25% of total
Single source11Entry-level construction wages averaged $22/hour in 2023
Verified1275% of contractors reported labor shortages as top issue in 2023 survey
Verified13Apprenticeship programs enrolled 120,000 new construction workers in 2023
Verified14Construction job quits rate was 2.8% monthly average in 2023
Directional15Multi-trade contractors employed 1.2 million in specialty trades in 2023
Single source16Veteran employment in construction reached 1.1 million in 2023, 14% of workforce
Verified17Overtime hours in construction averaged 3.8 hours/week in 2023
Verified18Construction hiring plans index hit 45 in Q1 2024 survey, indicating expansion
Verified1965% of construction firms increased wages by over 5% in 2023
Directional20Electrical contractors employed 700,000 workers in 2023
Single source21Job tenure average in construction was 4.2 years in 2023
VerifiedEmployment 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
1US construction industry expected to grow at 4.2% CAGR to $1.9 trillion by 2028
Verified2Modular construction market projected to reach $160 billion by 2030, CAGR 7.5%
Verified3Green building certifications expected to cover 30% of new construction by 2025
Verified4Prefabrication adoption to rise to 25% of projects by 2027
Directional5BIM usage in construction projected at 80% by 2025
Single source6Labor productivity growth forecasted at 2.8% annually through 2030
Verified7Infrastructure spending to average $300 billion/year through 2026 under IIJA
Verified8Residential construction starts to rebound 10% in 2024 to 1.4 million units
Verified9Semiconductor construction backlog to peak at $300 billion by 2025
Directional10EV charging station builds to reach 500,000 by 2030, requiring $60 billion investment
Single source113D printing in construction market to grow to $50 billion globally by 2030, US share 40%
Verified12Digital twin adoption to hit 50% in large projects by 2027
Verified13Net-zero buildings to comprise 20% of commercial starts by 2030
Verified14Construction robotics market projected at $10 billion by 2028 in US
Directional15Supply chain disruptions to ease, reducing delays by 30% by 2025
Single source16Data centers to require 20 GW new capacity by 2030, $200 billion construction
Verified17Workforce aging to create 500,000 annual openings through 2030
Verified18AI integration to boost project efficiency 15-20% by 2027
Verified19Affordable housing shortage to drive $1 trillion investment need by 2030
Directional20Climate-resilient infrastructure retrofits to cost $500 billion by 2040
Single sourceIndustry 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
1Construction fatalities totaled 1,056 in 2022, rate of 9.6 per 100,000 workers
Verified2Falls from height caused 33% of construction deaths in 2022, totaling 348 fatalities
Verified3Struck-by incidents accounted for 10% of construction fatalities in 2022
Verified4Nonfatal injury rate in construction was 2.0 cases per 100 workers in 2022
Directional5Musculoskeletal disorders made up 28% of nonfatal construction injuries in 2022
Single source6OSHA cited 25,000 construction violations in FY2023
Verified7Heat-related illnesses in construction rose 20% from 2016-2022
Verified885% of construction fatalities involved workers age 25-54 in 2022
Verified9Electrical fatalities in construction numbered 72 in 2022
Directional10Days away from work averaged 71 days for construction injuries in 2022
Single source11Trench collapse deaths totaled 21 in 2022, despite OSHA standards
Verified12Safety training reduced incident rates by 25% in trained firms per 2023 study
Verified13PPE non-compliance caused 15% of citations in construction FY2023
Verified14Construction had highest fatal injury rate among industries at 9.6 per 100k in 2022
Directional15Vehicle-related incidents killed 140 construction workers in 2022
Single source16Silica exposure violations topped 1,200 in construction FY2023
Verified17Fatigue contributed to 13% of construction accidents per NSC 2023 report
Verified18Scaffolding failures caused 59 deaths in 2022
Verified19Lost workday injury rate fell 5% to 1.2 per 100 in 2022
Directional20Hispanic workers had 20% higher fatality rate at 11.5 per 100k in 2022
Single source21Crane-related deaths totaled 28 in 2022
VerifiedSafety 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.
Sources & References
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