Construction is 14.7% of the global GDP
Construction is one of the world’s largest industries and is estimated to represent 14.7 percent of the gross domestic product (GDP) of the world’s leading economies, including the United States, Canada, Japan, Germany and the UK.
The United States has achieved great advances in the advancement of construction technology and available construction materials. As a result, the US has a huge potential for expansion in the construction industry.
The US construction industry promotes the notion of individualism. For this reason, many people consider becoming a construction worker, architect, engineer, planner, or similar professional. If you want to be a part of the American culture, take advantage of the experience these people have gained and continue the advancement in the construction industry.
Although the construction industry is in a very good position, it could be doing much better with the development of new technology and materials. Having a firm foundation, construction contractors and construction companies can now focus on other aspects such as marketing materials and technology advancements.
Here’s something about that. The design of your construction project can be very essential considering that it has a direct impact on the budget of the construction project and the lifetime of the construction project. It is this design that can increase the value of the property, improve the efficiency of the construction project, and keep the project working for a longer period without repairs.
Construction spending in the U.S. reached $1.23 trillion in 2017
A 4.6% increase over the previous year.
Over the last decade, construction spending – both residential and nonresidential – has grown at an average annual rate of 4.5%. However, the industry doesn’t rank among the top four U.S. industries for 2018 forecasts, according to the U.S. Bureau of Labor Statistics.
In 2017, nonresidential construction spending hit its second highest level since 2008, behind 2004. Spending on residential construction reached its highest level since 2007.
Nonresidential construction spending in 2017 reached its highest level since the Great Recession in 2008 (just before the housing bubble burst). Residential construction spending also hit a high in 2017.
Despite the boost in spending in 2016 and 2017, construction spending still ranks below earlier years, such as 2005, 2002 and 1998.
Together with educational services, federal and state government, health care and social assistance and professional and business services, construction was the only four-horse race among the top 10 contributors to employment in 2017.
The BLS reported that construction employment has fallen since the Great Recession, and the percentage of construction jobs in the U.S. remains below its 5.1% level from early 2008 to November 2008.
New York City has set aside around $70 billion to spend in construction in 2019
Representing a crucial sector of the US economy.
Construction will account for 2 million of the 7 million construction jobs in the US in 2018, projecting the annual median income by state by state.
In 2018, the construction companies in the US employed 982,000 people.
As per a report by the US Department of Labor, the construction industry is expected to employ one million employees by 2022.
The value of the construction project across the US in 2018 was more than 14.5 billion dollars.
The residential real estate market is also showing positive signs across the US, according to the Housing and Home Price Indices (data from Zillow).
There are more than 70,000 commercial construction businesses in the U.S.
The International Confederation of Healthcare Councils estimates the construction industry accounts for 13 percent of the U.S. GDP, and they’re projecting this figure will climb to 17 percent by the year 2015.
The need for skilled construction laborers continues to rise, as does the demand for skilled laborers in general. Hiring construction managers is one way to address these two issues. Manufacturing is another industry that employers are finding more difficult to fill positions for.
One of the biggest challenges facing construction employers is keeping qualified employees in their workforce. Among such industries as health care and education, construction isn’t considered the highest paying industry. But, qualified employees in education may transfer to a construction employer, and while construction isn’t the highest paying industry, it can be the highest paying position.
Labor positions in construction have become difficult to fill
And as a result, contractors and developers have to hire lower quality employees … sometimes those who may be inexperienced.
Contractor account managers and staff in the offices of project developers are the key positions in the construction industry that are being held for the longest periods of time. We recently surveyed 600 construction and building industry professionals and contractors to help determine just how bad the industry’s talent shortage really was and the effect it was having on the construction industry.
Our research found that labor positions in construction have become difficult to fill and as a result, contractors and developers have to hire lower quality employees … sometimes those who may be inexperienced. The shortage is also having a big impact on contractors’ ability to complete projects on time and on budget.
How is the Building Industry Currently Handling the Talent Shortage?
Our research shows that although the number of vacant projects is decreasing, it’s still more than it was just a couple of years ago. Project developers are struggling to find skilled workers to fill vacant positions.
The construction industry employed 10.7 million people in 2017
The U.S. construction industry is measured by building products, services and geographic areas. There are more than one hundred products and services that can be included in the construction industry.
A total of 10.7 million people in the US were employed in the construction industry in 2017. The US construction industry includes contractors, construction managers, trade contractors, subcontractors, and manufacturers. While construction job growth has slowed, construction jobs have increased by nearly 5 percent since 2010.
The construction industry can be broken down into these main categories:
Residential construction includes new homes, single-family homes, apartment buildings, and condominiums. The historic low point for U.S. housing starts occurred during the 1973-74 recession, when 786,000 housing units were started. Between 2009 and 2017, the number of housing starts ranged from a high of 1,009,000 in 2009 to 662,000 in 2017.
Civil construction is defined as all construction and environmental work inside public works projects, manufacturing plants, and offices buildings. Civil construction includes work on highways, bridges, and airports. Civil construction can also include maintenance on existing facilities and roads, and the building of schools and hospitals. During the 1973-74 recession, civil construction employment fell by 11 percent from its high in the previous cycle. Since then, civil construction employment has steadily climbed, reaching 1.6 million in 2017.
Less than 10% of workers in the construction industry are female
The construction industry has a long way to go when it comes to gender equality. And in this case, not all construction tasks are equal … The area that construction companies need to focus on has to do with the percentage of female workers. As of 2011, 12% of construction industry workers were female. That’s less than 10% and shows no sign of improvement.
There are various theories as to why this disparity exists. One (and certainly the most sexist) explanation is that women smell bad. It was believed in the 1950s that women were unprofessional and untrustworthy … this was due to the wrong choice of work dress code. Today’s technological advances mean that workers can be identified by fingerprint scanners.
One other theory (and a lot more sensible explanation) is that women just don’t see construction jobs as attractive. However, a survey showed that 40% of women did want a career in construction. It’s difficult to say whether women have any more difficulties obtaining jobs in construction than their male counterparts.
In general, women find themselves becoming disillusioned with the career path and lack of recognition compared to the men in the field. This status-quo discourages women from entering into the industry and pursuing a career within it.
General contractors and construction managers make an average of about $91,370 per year
The average age of homeowners in the United States is 45years, and that will jump to 52 years by the year 2014.
The project manager is responsible for the overall work on the project. The person in this position is typically responsible for the following.
Keep up with the progress of the project.
Communicate with the contractor; reporting to them any work that might affect the project.
Call the appropriate construction inspector for the project and make sure they meet their deadlines as well.
Manage the project’s final accounts.
Handle the contracts and other related activities for the project.
The median age of construction workers is 42 years old
It’s no secret that the average age of construction workers is on the rise, but how quickly are some industries aging?
According to the Bureau of Labor Statistics (BLS), the median age of construction workers in 2004 was 42, up 7 years from 1970 when it was 29. The data also shows that construction workers over the age of 40 make up the majority (55 percent) of the construction workforce.
Millennials (defined in this instance as those born between 1980 and 2000) and Generation X (those born between 1965 and 1979) saw a decline in the employment of construction workers between 2004 and 2014 but an increase in 2014.
Over the next decade, the BLS projects a rise in the number of construction workers needed to about 1.3 million,compared to 1.1 million in 2014. This means that employers are going to have to be more flexible with ways to attract and retain construction workers. To combat this, the Department of Labor now allows home builders to hire workers without the need to verify liability insurance. Workers over 18 might want to consider this option if they are seeking entry to the construction industry.
Almost 30% of construction workers are Latino or Hispanic
With the rapid growth of the construction industry, this information is crucial to keeping up with current industry trends.
According to the US Census Bureau, in 2014, there were 2.1 million Latinos and Hispanics employed as construction workers. While this number is only slightly greater than the population of that demographic (which in 2011 was 37 million), Latinos and Hispanics make up about 30.2 percent of construction workers in the United States. If there isn’t enough skilled labor to meet demand, and this population continues to grow, construction contractors will be experiencing a shortage of skilled labor, and their projects will become both more robust and more expensive.
Additionally, this information is essential to the development of stronger relationships between the Latino and Hispanic communities and the construction industry. To welcome and accommodate Latinos and Hispanics, both business owners and construction contractors should know their size.
The profits of construction businesses vary widely
Over the course of their lifecycles (WSE 61, 2013). In the United States, the median profit is estimated at 15.3%, while in the United Kingdom, the median profit is estimated at 4.6% (WISE, 2013). As for the Spanish construction industry, during the period between 1995 and 2006, the average profit was 17%. In Spain, the average profit in the construction industry has been more stable and relatively average, with a slight decrease in 2003 and a slight increase in 2006 (CEPYME, 2011).
In the big cities, many construction companies work with government agencies, such as those in public works, where the profit margin tends to be much lower than in private construction (HKSAR, 2014).
The share of the construction market for self-employed workers is estimated to be around 27% and declining over time. In 2001, it amounted to 43% (1996 to WISE, 2013).
On average, the number of jobs and employees in the construction sector grew since 2008, although the number of people employed in the industry declined by about 6% from 2008 to 2013 and by 4% between 2008 and 2014. This was due to different reasons, including the affects of the economic crises, the aging process of the population, and the expansion of the sector, which is still at a very early level.
The five-year survival rate for construction businesses is 36.4%
And for the U.S. economy it's 11.5%.
In the United States, 23 out of every 1,000 construction businesses survive at least five years. This figure is 65% lower than the five-year survival rate for the U.S. economy overall (11.5% vs. 36.4%).
Dead money becomes a natural liability for projects that remain dormant and without purpose.
Truckloads of dead money within the construction industry is the result of an inefficient use of resources.
Data reported by the IRS shows that the average industry tax-deduction percentage is 15.5%.
Only a small portion of the dead money is curtailed from construction and development projects each year. Lack of tracking this data means most projects fail without any track of the dead money, which dramatically increases the number of dead projects.
Burdensome and ineffective government regulations are accompanied by the costs of maintaining laws and regulations. These costs restrict workers’ ability to earn the wages offered within construction. The costs of older laws are passed on to workers as higher wages.
As contractors and subcontractors are represented by unions, they do not feel a need to hire subcontractors that would save them money. This results in more money being spent on labor.
Construction is projected to grow 4.5% through 2022
According to the National Association of Home Builders/Wells Fargo survey of builders, existing-home sales are expected to increase 8.6% in 2015, to 3.36 million units. The new-home market continues to be soft, with sales of new single-family houses falling 5.7% to 273,000 units. A rebound in multifamily sales and a slight increase in square foot volume in December will lift sales to 300,000 units in 2015.
The supply of new homes on the market will increase more slowly in 2015. The U.S. Census Bureau expects housing starts to rise 5.4% in 2015 to 1.326 million units. The number of new single-family units will rise 10.2% to 745,000 units, on a seasonally adjusted annual rate basis. Multifamily starts will decline 5.2%, to 280,000 units, on a seasonally adjusted annual rate basis. The supply and demand aspects will continue to weigh on new home prices. We forecast a 0.8% annual increase in the median new-home price in 2015.
Residential housing construction is growing faster than any other construction segment
In the country, as demand for new homes continues to outpace the building of new homes, the industry’s supply chain, and the economy.
The construction industry expanded 5.6 percent in value and 21 percent in size in 2011, a rebound from the contraction of 10.3 percent in value and 3.3 percent in size in 2010 during the recession and following pullback in construction from 8.4 percent in 2009 to 5.3 percent in 2010.
Average annual growth in productive capacity and the number of total employees remained at flat rates of 3.8 percent and 3.4 percent respectively from 2010 to 2011 for all sectors of the industry, with residential construction growing at a 4.4 percent rate, and industrial and commercial construction at 2.9 percent and 2.1 percent respectively.
Not including employment growth of 8.9 percent in transportation and utilities, which includes pipeline fabrication, pipe piling, and roads, the industry employment rose by 1.8 percent, a half percent better than 2010, due to the increase in the number of jobs associated with the consumption boom in leisure and hospitality services.
New job growth slowed for the construction industry in 2011. The industry added 25,000 jobs in 2011, which was 6 percent less than the 34,000 jobs added in 2010.
3D printing technology is used by 4% of contractors
Within the construction industry, the 3D printing technology is used by just 4% of contractors.
Interestingly, 85% of small construction companies are using 3D printing, while 46% of medium sized companies are using the technology.
Among large construction companies only 8% are using 3D printing; the largest companies only employ about 6% of the inhouse construction 3D printing market.
It is also interesting to see that over 50% of the 3D printing contractors are using the technology in order to deliver faster and more cost effective projects.
In 2017 alone, the use of building information modeling software increased by 12%
37% of construction firms are experimenting with drone technology
Construction Dive, March 28, 2016.
Construction productivity software save companies an average of 5 hours a week
It’s estimated that AI technology can boost profits by 71%
65% of construction company owners use mobile devices to complete projects
Have you ever tried to nail your house construction project or determine what time the pizza place was going to deliver your extra large meatball? If the answer is yes, perhaps you should hurry up and tweet your frustration to your friends … while it’s still in your phone! According to a new survey from TRUSTe, 64% of construction company owners say they have used mobile devices to complete a construction task, while 65% also say that they have used mobile devices to track progress on a project.
Age, gender and occupation are all influencing factors in the way that construction company owners use mobile devices, according to the report. Younger construction company owners are more likely to use mobile devices to track construction progress, while older construction company owners are more likely to use mobile devices to complete construction tasks. Additionally, male construction company owners are more likely than females to use in-house mobile devices, while females are more interested in using mobile applications than males.
Construction company owners can use mobile devices to complete a variety of tasks, whether it’s determining a project timeline, tracking progress on a construction project, taking pictures of a project and sending them to others via email, or storing their files. Some construction company owners check their business email on their mobile devices, 44% of construction company owners complete invoices on their mobile devices, and 37% electronically sign documents on their mobile devices.
75% of construction companies now use social media for promotion
A survey of home-based businesses found that 70% of the respondents used social media for marketing their services in 2009.
The same survey also found that the marketing with social media was used by 73% of construction companies. This points to the growing use of social media by construction companies. In addition, social media marketing has been used to send emails with more targeted messaging (47%) in order to increase open rates … 72%.
The study found that 79% of the home-based service respondents were very satisfied or somewhat satisfied with their social media marketing efforts, which is up from 66% in 2009.
According to an Accenture report, 76% of consumers use social media to share their home improvement experiences.
It seems that social media can indeed help with SEO, as it provides insight into how people are using search phrases related to home improvement and home improvement-related products.
While 21 Construction Industry Statistics are great to know, making it to the bottom line of your endeavor is far more important.
In this blog post, we’ll be taking a closer look at the construction industry as well as the Construction Industry. These statistics, along with the insights, will help you understand that the industry is going through tough times and why it is right that you need to be in tune with what’s going on around you so that you can keep your mindset positive and perhaps turn the tables.
After all, nobody is perfect, and it is only human to make mistakes, but if you learn from those mistakes and continue moving ahead, you can definitely make a difference.
Grab your coffee, sit back, and get inspired.