While the American economy is built on countless industries, none physically shapes our future more than the $2.1 trillion construction sector, a powerhouse that not only builds our homes and highways but also drives a staggering 4.2% of the nation's total GDP.
Key Takeaways
- US construction spending reached $2.1 trillion in 2023
- Construction industry GDP contribution was 4.2% of total US GDP in 2023 amounting to $1.12 trillion
- Nonresidential construction spending grew by 7.5% year-over-year in Q4 2023
- US construction employment reached 8.1 million in peak 2023
- Construction unemployment rate averaged 4.0% in 2023
- Average hourly earnings in construction $35.50 in 2023
- Residential construction spending totaled $900 billion in 2023
- Nonresidential buildings construction $450 billion in 2023
- Single-family housing starts 950,000 units valued at $250 billion in 2023
- Fatalities in construction totaled 1,056 in 2022
- Nonfatal injuries 148,000 cases requiring days away in construction 2022
- Construction injury rate 2.0 per 100 full-time workers in 2022
- US construction industry to grow 4% CAGR to 2028 reaching $2.5 trillion
- Residential construction forecast +2.5% growth 2024
- Nonresidential to expand 5% in 2024 led by manufacturing
The US construction industry is booming, with strong growth in manufacturing and infrastructure projects.
Economic Indicators
1US construction spending reached $2.1 trillion in 2023
Verified2Construction industry GDP contribution was 4.2% of total US GDP in 2023 amounting to $1.12 trillion
Verified3Nonresidential construction spending grew by 7.5% year-over-year in Q4 2023
Verified4Residential construction put in place value was $902 billion in 2023
Directional5Total construction backlog stood at $1.1 trillion in mid-2023
Single source6Construction sector inflation rate was 4.1% in 2023 compared to overall CPI of 3.4%
Verified7Public construction spending increased 12% to $450 billion in 2023
Verified8Private construction spending totaled $1.65 trillion in 2023
Verified9Manufacturing construction spending surged 76% since 2021 to $200 billion in 2023
Directional10Highway construction spending hit $52 billion in 2023
Single source11Construction cost index rose 5.8% in 2023 per Turner Building Cost Index
Verified12US construction output grew 6.8% in real terms in 2023
Verified13Single-family housing starts value was $250 billion in 2023
Verified14Multifamily construction spending reached $100 billion in 2023
Directional15Commercial construction put in place was $300 billion in 2023
Single source16Institutional construction spending totaled $150 billion in 2023
Verified17Heavy civil construction value was $200 billion in 2023
Verified18Construction industry added $200 billion in value-added in 2023
Verified19Regional construction spending highest in South at $700 billion in 2023
Directional20Northeast construction spending $400 billion in 2023
Single source21Midwest construction $350 billion, West $450 billion in 2023
Verified22Construction productivity growth lagged at 1% annually 2018-2023
Verified23US construction market size projected $1.9 trillion in 2024 nominal terms
Verified24Dodge Momentum Index rose 10% in Q1 2024 signaling growth
Directional25Construction input prices up 2.5% YoY in Jan 2024
Single source26ENR Construction Cost Index increased 4.2% in 2023
Verified27Bid prices for construction projects up 5% in 2023
Verified28Construction spending per capita $6,300 in 2023
Verified29Federal construction outlays $100 billion in FY2023
Directional30State and local construction spending $350 billion in 2023
Single sourceEconomic Indicators Interpretation
America is frantically, and quite expensively, trying to rebuild its foundation, house its people, and retool its factories all at once, proving that progress is a messy and very high-stakes renovation project.
Employment Statistics
1US construction employment reached 8.1 million in peak 2023
Verified2Construction unemployment rate averaged 4.0% in 2023
Verified3Average hourly earnings in construction $35.50 in 2023
Verified4Construction added 250,000 net new jobs in 2023
Directional57.5 million wage and salary workers in construction in 2023
Single source6Self-employed construction workers numbered 1.2 million in 2023
Verified7Labor force participation in construction 65% in 2023
Verified8Construction job openings averaged 400,000 per month in 2023
Verified9Quit rate in construction 2.5% monthly average 2023
Directional10Hires rate 5.0% in construction 2023 average
Single source11Construction supervisors employment 1 million in 2023
Verified12Carpenters numbered 835,000 in construction workforce 2023
Verified13Electricians in construction 650,000 employed 2023
Verified14Laborers and helpers 1.1 million in 2023
Directional15Operating engineers 400,000 in construction 2023
Single source16Painters and paperhangers 350,000 employed 2023
Verified17Plumbers and pipefitters 450,000 in 2023
Verified18Roofers 120,000 employed in construction 2023
Verified19Sheet metal workers 140,000 in 2023
Directional20Structural iron workers 70,000 employed 2023
Single source21Construction managers 500,000 in workforce 2023
Verified22Women in construction 11% of workforce or 900,000 in 2023
Verified23Hispanic workers 30% of construction labor force in 2023
Verified24Veterans comprise 15% of construction workforce numbering 1.2 million in 2023
Directional25Apprentices in construction programs 250,000 active in 2023
Single source26Construction labor shortage estimated 500,000 workers in 2023
Verified27Average construction worker age 42.5 years in 2023
Verified28Entry-level construction wages up 6% to $25/hour in 2023
Verified29Overtime hours in construction averaged 3.5 hours/week in 2023
Directional30Union membership in construction 12.5% or 1 million workers in 2023
Single sourceEmployment Statistics Interpretation
The construction industry is booming with high employment and wages, yet it's desperately trying to build its future workforce while leaning heavily on its experienced, aging backbone.
Forecasts and Trends
1US construction industry to grow 4% CAGR to 2028 reaching $2.5 trillion
Verified2Residential construction forecast +2.5% growth 2024
Verified3Nonresidential to expand 5% in 2024 led by manufacturing
Verified4Infrastructure spending to add $1.2 trillion by 2030
Directional5Data centers to drive $100 billion annual construction 2024-2028
Single source6Semiconductor plants 20 new projects $200 billion by 2030
Verified7Renewable energy construction $150 billion annually by 2025
Verified8Housing shortage 4 million units needing 1.5 million starts/year to 2030
Verified9Labor shortage to peak 546,000 workers by 2024
Directional10Prefab/modular market to $200 billion by 2030 10% CAGR
Single source11BIM software market in construction $12 billion by 2028
Verified12Sustainability retrofits $400 billion market 2024-2030
Verified13Construction robotics market $10 billion by 2028
Verified143D printing in construction to $50 billion by 2030
Directional15AI in construction productivity gains 20-30% by 2030
Single source16Decarbonization investments $1 trillion needed by 2030
Verified17Supply chain digitalization 50% adoption by 2027 reducing costs 15%
Verified18Aging workforce retirement 25% by 2030 needing 1 million new workers
Verified19Urbanization drives 60% construction growth in cities to 2030
Directional20Reshoring manufacturing adds $300 billion construction by 2030
Single sourceForecasts and Trends Interpretation
America is attempting to build its way out of multiple crises at once, from housing shortages and an aging grid to the demands of AI and reshoring, all while racing against a clock of worker shortages and the need to decarbonize.
Project Types and Spending
1Residential construction spending totaled $900 billion in 2023
Verified2Nonresidential buildings construction $450 billion in 2023
Verified3Single-family housing starts 950,000 units valued at $250 billion in 2023
Verified4Multifamily starts 400,000 units $100 billion spending in 2023
Directional5Office building construction $80 billion in 2023
Single source6Retail construction spending $50 billion in 2023
Verified7Warehouse and distribution centers $120 billion in 2023
Verified8Manufacturing facilities construction $200 billion boom in 2023
Verified9Healthcare construction $70 billion in 2023
Directional10Educational buildings $60 billion spending 2023
Single source11Highway and street construction $52 billion in 2023
Verified12Bridge construction $25 billion federal aid in 2023
Verified13Airport construction $15 billion in 2023
Verified14Water supply and sewage $40 billion in 2023
Directional15Power plant construction $50 billion renewables focus 2023
Single source16Data center construction spending $30 billion in 2023
Verified17Hotel construction $20 billion starts in 2023
Verified18Renovation and remodeling market $450 billion in 2023
Verified19Green building projects 40% of new construction value $800 billion in 2023
Directional20Infrastructure bill IIJA allocated $550 billion new spending over 5 years starting 2023
Single source21Semiconductor fabs construction $50 billion in 2023
Verified22EV charging stations $7.5 billion planned under NEVI 2023 starts
Verified23Broadband infrastructure $42 billion BEAD program construction begins 2023
Verified24Affordable housing construction 200,000 units $50 billion in 2023
Directional25Historic preservation spending $10 billion tax credits 2023
Single sourceProject Types and Spending Interpretation
America's wallet, with a straight face, just spent $900 billion making new homes while simultaneously laying the infrastructure for a greener, more connected, and chip-rich future, all while renovating the kitchen.
Safety and Productivity
1Fatalities in construction totaled 1,056 in 2022
Verified2Nonfatal injuries 148,000 cases requiring days away in construction 2022
Verified3Construction injury rate 2.0 per 100 full-time workers in 2022
Verified4Falls to lower level caused 38% of construction fatalities in 2022
Directional5Struck-by objects 10% of construction deaths 2022
Single source6Caught-in/between 12% fatalities in construction 2022
Verified7OSHA citations issued 15,000 to construction firms in FY2023
Verified8Leading violation scaffolds 2,800 citations in construction 2023
Verified9Ladders violations 2,500 in construction FY2023
Directional10Fall protection standard 6,400 violations construction 2023
Single source11Construction productivity 1% annual growth 1995-2023 lagging other sectors
Verified12Modular construction boosts productivity 20-50% on projects
Verified13BIM adoption in large projects 70% improving productivity 15%
Verified14Prefabrication used in 25% of projects reducing schedule 25%
Directional15Construction waste generation 160 million tons annually 2023
Single source16Recycling rate for construction debris 76% in 2023
Verified17Heat-related illnesses 3,000 cases in construction 2023
Verified18Silica exposure violations 1,200 in construction FY2023
Verified19Crane incidents 80 fatal in 2022 construction
Directional20Trench collapse deaths 30 annually average 2018-2023
Single source21Lost time incident rate 1.5 per 200,000 hours in construction 2023
Verified22Safety training hours average 40 per worker annually 2023
Verified23Digital safety tech adoption 40% firms reducing incidents 20%
Verified24Construction output to peak at 2.2 million jobs equivalent productivity 2025
DirectionalSafety and Productivity Interpretation
The grim reality is that while construction's future is being built with digital tools and modular efficiency, its present remains stubbornly anchored to the same old, deadly hazards, proving that no amount of productivity gains can outpace the human cost of neglecting fundamental safety.
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