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
- 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
- Residential construction put in place value was $902 billion in 2023
- Total construction backlog stood at $1.1 trillion in mid-2023
- Construction sector inflation rate was 4.1% in 2023 compared to overall CPI of 3.4%
- Public construction spending increased 12% to $450 billion in 2023
- Private construction spending totaled $1.65 trillion in 2023
- Manufacturing construction spending surged 76% since 2021 to $200 billion in 2023
- Highway construction spending hit $52 billion in 2023
- Construction cost index rose 5.8% in 2023 per Turner Building Cost Index
- US construction output grew 6.8% in real terms in 2023
- Single-family housing starts value was $250 billion in 2023
- Multifamily construction spending reached $100 billion in 2023
- Commercial construction put in place was $300 billion in 2023
- Institutional construction spending totaled $150 billion in 2023
- Heavy civil construction value was $200 billion in 2023
- Construction industry added $200 billion in value-added in 2023
- Regional construction spending highest in South at $700 billion in 2023
- Northeast construction spending $400 billion in 2023
- Midwest construction $350 billion, West $450 billion in 2023
- Construction productivity growth lagged at 1% annually 2018-2023
- US construction market size projected $1.9 trillion in 2024 nominal terms
- Dodge Momentum Index rose 10% in Q1 2024 signaling growth
- Construction input prices up 2.5% YoY in Jan 2024
- ENR Construction Cost Index increased 4.2% in 2023
- Bid prices for construction projects up 5% in 2023
- Construction spending per capita $6,300 in 2023
- Federal construction outlays $100 billion in FY2023
- State and local construction spending $350 billion in 2023
Economic 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
- 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
- Construction added 250,000 net new jobs in 2023
- 7.5 million wage and salary workers in construction in 2023
- Self-employed construction workers numbered 1.2 million in 2023
- Labor force participation in construction 65% in 2023
- Construction job openings averaged 400,000 per month in 2023
- Quit rate in construction 2.5% monthly average 2023
- Hires rate 5.0% in construction 2023 average
- Construction supervisors employment 1 million in 2023
- Carpenters numbered 835,000 in construction workforce 2023
- Electricians in construction 650,000 employed 2023
- Laborers and helpers 1.1 million in 2023
- Operating engineers 400,000 in construction 2023
- Painters and paperhangers 350,000 employed 2023
- Plumbers and pipefitters 450,000 in 2023
- Roofers 120,000 employed in construction 2023
- Sheet metal workers 140,000 in 2023
- Structural iron workers 70,000 employed 2023
- Construction managers 500,000 in workforce 2023
- Women in construction 11% of workforce or 900,000 in 2023
- Hispanic workers 30% of construction labor force in 2023
- Veterans comprise 15% of construction workforce numbering 1.2 million in 2023
- Apprentices in construction programs 250,000 active in 2023
- Construction labor shortage estimated 500,000 workers in 2023
- Average construction worker age 42.5 years in 2023
- Entry-level construction wages up 6% to $25/hour in 2023
- Overtime hours in construction averaged 3.5 hours/week in 2023
- Union membership in construction 12.5% or 1 million workers in 2023
Employment 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
- 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
- Infrastructure spending to add $1.2 trillion by 2030
- Data centers to drive $100 billion annual construction 2024-2028
- Semiconductor plants 20 new projects $200 billion by 2030
- Renewable energy construction $150 billion annually by 2025
- Housing shortage 4 million units needing 1.5 million starts/year to 2030
- Labor shortage to peak 546,000 workers by 2024
- Prefab/modular market to $200 billion by 2030 10% CAGR
- BIM software market in construction $12 billion by 2028
- Sustainability retrofits $400 billion market 2024-2030
- Construction robotics market $10 billion by 2028
- 3D printing in construction to $50 billion by 2030
- AI in construction productivity gains 20-30% by 2030
- Decarbonization investments $1 trillion needed by 2030
- Supply chain digitalization 50% adoption by 2027 reducing costs 15%
- Aging workforce retirement 25% by 2030 needing 1 million new workers
- Urbanization drives 60% construction growth in cities to 2030
- Reshoring manufacturing adds $300 billion construction by 2030
Forecasts 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
- 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
- Multifamily starts 400,000 units $100 billion spending in 2023
- Office building construction $80 billion in 2023
- Retail construction spending $50 billion in 2023
- Warehouse and distribution centers $120 billion in 2023
- Manufacturing facilities construction $200 billion boom in 2023
- Healthcare construction $70 billion in 2023
- Educational buildings $60 billion spending 2023
- Highway and street construction $52 billion in 2023
- Bridge construction $25 billion federal aid in 2023
- Airport construction $15 billion in 2023
- Water supply and sewage $40 billion in 2023
- Power plant construction $50 billion renewables focus 2023
- Data center construction spending $30 billion in 2023
- Hotel construction $20 billion starts in 2023
- Renovation and remodeling market $450 billion in 2023
- Green building projects 40% of new construction value $800 billion in 2023
- Infrastructure bill IIJA allocated $550 billion new spending over 5 years starting 2023
- Semiconductor fabs construction $50 billion in 2023
- EV charging stations $7.5 billion planned under NEVI 2023 starts
- Broadband infrastructure $42 billion BEAD program construction begins 2023
- Affordable housing construction 200,000 units $50 billion in 2023
- Historic preservation spending $10 billion tax credits 2023
Project 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
- 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
- Falls to lower level caused 38% of construction fatalities in 2022
- Struck-by objects 10% of construction deaths 2022
- Caught-in/between 12% fatalities in construction 2022
- OSHA citations issued 15,000 to construction firms in FY2023
- Leading violation scaffolds 2,800 citations in construction 2023
- Ladders violations 2,500 in construction FY2023
- Fall protection standard 6,400 violations construction 2023
- Construction productivity 1% annual growth 1995-2023 lagging other sectors
- Modular construction boosts productivity 20-50% on projects
- BIM adoption in large projects 70% improving productivity 15%
- Prefabrication used in 25% of projects reducing schedule 25%
- Construction waste generation 160 million tons annually 2023
- Recycling rate for construction debris 76% in 2023
- Heat-related illnesses 3,000 cases in construction 2023
- Silica exposure violations 1,200 in construction FY2023
- Crane incidents 80 fatal in 2022 construction
- Trench collapse deaths 30 annually average 2018-2023
- Lost time incident rate 1.5 per 200,000 hours in construction 2023
- Safety training hours average 40 per worker annually 2023
- Digital safety tech adoption 40% firms reducing incidents 20%
- Construction output to peak at 2.2 million jobs equivalent productivity 2025
Safety 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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