The US construction industry, a cornerstone of the nation’s economic framework, is constantly evolving. In an era of economic uncertainty and ever-changing market conditions, the industry presents both great opportunities and significant hurdles. Recognizing the need for a comprehensive understanding of these changes, we have prepared an in-depth report that offers insights into the current state and future prospects of the sector.
- The US construction sector market size was valued at around $1.8 trillion.
- A total of 8.5 million new residential housing started construction in the first half of 2023.
- Building permits in the United States fell by 7% in September 2023 from September 2022.
- An economic slowdown or recession is the top concern for about 74% of construction companies this 2023. About 73% of contractors are worried about material costs, while 70% of these companies are concerned about insufficient workers or subcontractors.
- The price of construction inputs increased by 40.5% between February 2020 and August 2022.
- The overall construction input prices in January 2023 are 4.9% higher compared to 2022.
- 10,7 million people are employed in the construction industry in the US.
- The construction industry has an unemployment rate of 3.9%.
- The average hourly earnings of employees in the construction industry is $36.66.
- In 2023, 36% of construction and engineering firms have begun integrating AI into some of their projects.
What's In This Article
As an industry, construction is very diverse. It’s a huge market affecting real estate, employment, and even the economy as a whole. Here are some general figures to know about the industry.
- The US construction sector was valued at approximately $1.8 trillion in 2022.
- Approximately $927 billion went into residential construction in 2022. The remaining $921 billion went into non-residential construction.
- The construction industry accounts for 4% of the annual national GDP. Construction is one of the major driving forces behind the country’s economy; so when the capital markets and construction investments run dry, it’s often a sign of an economic downshift.
- The total annual value of private construction in 2022 was $1.4 trillion. Meanwhile, the total annual value of public construction during the same year was approximately $376 billion.
- A total of 8.5 million new residential housing started construction in the first half of 2023. That’s a 23% decrease compared to the same timeframe in the previous year.
- Bechtel tops the list of the biggest construction firms in the country with a revenue of $17.5 billion. The company is known to have completed over 25,000 projects in 160 countries. One of its most notable projects is the Hoover Dam.
- Turner followed Bechtel with a total revenue of $14.4 billion. The organization is known to take about 1,500 projects annually. The Madison Square Garden and the Columbus Crew MLS Stadium are two of its most notable projects.
Top 10 Construction Companies in the US
|Fluor Corporation||$13.7 billion|
|Kiewit Corp.||$12.1 billion|
|STO Building Group||$9.5 billion|
|The Whiting-Turner Contracting Co.||$8.84 billion|
|DPR Construction||$7.5 billion|
|Skanska USA||$6.9 billion|
|Clark Construction Group||$6.3 billion|
- Specialty trade contracting accounts for 42.5% of the industry’s key product and services line. This is followed by building construction with 39.9%.
- The Southern Region had the highest construction spending in private non-residential properties with $179 billion. The Western region came in second with $101 billion. Third and fourth on the list are the Midwest and the Northeastern Regions, with $73 billion and $65 billion, respectively.
- California has the highest construction activity with 1,302 construction projects and a value of $524.6 billion in 2019. Texas followed California with the most energy and utility projects at almost $153 billion, driving the state’s construction pipeline to more than $425 billion.
- Florida topped The Merit Shop Scorecard in 2022, receiving a grade of A in 6 out of 5 categories. The Merit Shop Scorecard reviews and rates the states according to their state-specific laws and information significant to the success of the industrial and commercial construction industry. The categories included are PLA Mandates, Prevailing Wage, Right to Work, Public-Private Partnerships, Workforce Development, Career and Technical Education, and Job Growth Rate.
|State||Overall Ranking||PLA Mandates||Prevailing Wage||Right to Work||Public-Private Partnerships||Workforce Development||Career & Technical Education||Job Growth Rate|
- The productivity of single-family and multi-family residential construction increased by 1.5% from 2019 to 2022. The rate of productivity declined over the 2007-2019 period; the single-family residential construction had an annual -1.4% change,
while the multi-family residential construction had -1.7%.
- Industrial building construction had the largest gain in productivity from 2019 to 2022 with an annual 4.8% change. Highway, street, and bridge construction, on the other hand, had a -5.0% rate.
- It costs $301,619 on average to build a house in 2023.
- About 50% of the home-building cost is made up of construction material expenses. Labor accounts for 40%, interior and exterior accounts for 5%, site preparation contributes 3% to the final amount, and room add-ons account for 2% of the total.
- The average price range for an 800-square-foot sized house is between $80,000 and $160,000. Meanwhile, the 5,000-square-foot home would cost at around $500,000 to $1,000,000.
- Building a home with 3 bedrooms would have an average cost of $146,000. Constructing a 4-bedroom home would cost around $285,000 and a 5-bedroom home would cost an average of $375,000.
- Arkansas has the lowest average construction cost in terms of building a home at $117,500. Meanwhile, the state with the highest average building cost is New York at $600,000.
|U.S. State||Average Cost to Build a Home|
Most of the jobs in the construction industry perform tasks that require physical labor. A physically demanding type of work can be a huge entry barrier for some groups. But despite that, the work pays relatively well.
- The construction industry had an unemployment rate of 3.9%. This is the unemployment rate for August 2023. In the previous year, the unemployment rate was also 3.9%. These figures are slightly lower compared to the 4.6% unemployment rate in August 2021.
- The average hourly earnings of employees in the construction industry is $36.66. In the previous year (2022), the average hourly earning was $34.78. These numbers show an upward trend as 2021 has an average of $32.94.
- In contrast, the average weekly hours is 39.1 hours in 2023, slightly higher than the previous year. The previous year only had an average of 38.7.
- The number of entry-level workers in the construction sector increased by 72.8% since 2011. However, despite the high rate of entry-level laborers, there’s a scarcity of qualified skilled workers in the industry as the total number of construction workers only increased by 24.7%.
- The number of workers between the ages of 25 and 54 fell by 8% over the past decade. In addition, the number of older laborers leaving the industry increased.
|16 to 24 years||25 to 54 years||55+ years|
- The average age of workers in the construction industry was 42.7, which was slightly higher than in all industries combined. Compared to 1999, the average age in 2019 has increased by 4.1 years.
- Only 19% of the workforce is represented by low-skilled construction laborers. However, these low-skilled construction laborers comprise 40% of the workforce growth over the past decade.
- The industry needs to bring in approximately 590,000 new workers into the sector this 2023. This is on top of normal hiring to meet the industry demands–assuming that the spending growth will slow down.
- The most popular job title in the construction industry is executive, with 30.2% of people filing for it in 2021. About 25.6% of individuals file for job positions in the project management department and 22.9% are looking into the finance/accounting department.
- Other specialty trade contractors have the highest number of laborers (172,280) in construction laborers. This is followed by residential building construction with 140,700 laborers, utility system construction with 116,300, non-residential building construction with 111,110, and foundation, structure, and building exterior contractors with 104,340 laborers.
- Highway, street, and bridge construction has the highest concentration of construction laborers (24.27%). This is followed by other heavy and civil engineering construction with 24.17% of laborers, other specialty trade contractors with 22.75%, utility system construction, and residential building construction with 15.55%.
- Pipeline transportation of natural gas is the top-paying sector for construction laborers with an annual mean wage of $81,670. This is followed by electric power generation, transmission, and distribution at $65,810, other support services at $61,200, general medical and surgical hospitals at $57,860, and rail transportation at $56,890.
- As of 2023, 10,7 million people are employed in the construction industry in the US.
- The total number of construction laborers in the US is 1,01 million. The number doesn’t include employment in other construction jobs–Construction Managers, Construction and Extraction Occupations, First-Line Supervisors of Construction Trades and Extraction Workers, Operating Engineers and Other Construction Equipment Operators, Painters, Construction and Maintenance, Helpers, Construction Trades, All Other, and Construction and Building Inspectors.
|State||Number of Construction Laborers|
- Despite being the fourth state with the highest number of construction laborers, New York has the highest annual mean wage ($59,280) among the five states. This is followed by California with an annual mean wage of $56,210, Pennsylvania with $50,150, Florida with $37,690, and Texas with $37,600.
- Hawaii is the top-paying state for construction laborers ($66,650) in 2022. This is followed by Illinois and New Jersey with an annual mean wage of $65,590, Massachusetts with $64,940, and New York with $59,280.
- New York-Newark-Jersey (NY-NJ-PA) is the metropolitan area with the highest employment level (45,630) in construction laborers. This is followed by Houston-The Woodlands-Sugar Land (TX) with 33,370, Los Angeles-Long Beach-Anaheim (CA) with 28,260, and Dallas-Fort Worth-Arlington (TX) with 27,400.
- The employment growth in the industry was more pronounced among Hispanic people, rising by 55%. Out of the 11.39 million construction workers in 2019, 7.93 million were Hispanic, and only 3.46 million were non-Hispanic.
Despite being a huge industry, the construction sector faces a lot of challenges in different aspects, such as employment, actual work, commodities, and a lot more. Here’s an overview of the issues this industry regularly faces.
- An economic slowdown or recession is the top concern for about 74% of construction companies this 2023. About 73% of contractors are worried about material costs, while 70% of these companies are concerned about insufficient workers or subcontractors.
- About 83% of contractors see inexperienced skilled labor and workforce shortage as a challenge to the safety and health of their firm’s workers. Only 27% are worried about poor subcontractor safety and health performance and 23% are concerned about safety hazards created by third parties, such as motorists crashing into work zones.
- Building permits in the United States fell by 7% in September 2023 from September 2022. This is primarily due to supply chain constraints, high interest rates, and decreased housing affordability. For this reason, the housing construction in the country slowed down.
- The price of construction inputs increased by 40.5% between February 2020 and August 2022. The volatility in material costs has been driving up the overall cost of construction, which could hurt contractors who haven’t bought large quantities of materials at normalized prices.
- Diversity was an issue in the construction workforce, with only 11% of women workers, 6.3% were Black, and 2.1% were Asian. An increased focus on DEI can help the industry yield additional talent in 2021 and beyond.
- About 35.4% of construction firms reported employee hesitance as the number one limiting factor in adopting new technology. Closely behind employee hesitance is budget constraints and lack of staff support with 35.2% of firms citing it as a factor.
- A total of 62% of engineering/construction firms and infrastructure owner organizations were not prepared for the pandemic but responded quickly in order to recover. Of this 62%, 64% were engineering/construction firms and 59% were infrastructure owner organizations.
- About 83% of construction firms cite the improvement in estimating the accuracy of materials and equipment as the most important response to cost escalation, resource constraints, supply chain disruptions, and other disruptive events. Around 78% of firms think it’s more important to incorporate contractual protections for supply chain disruptions.
- About half (46%) of contractors are frequently experiencing quality issues this year in terms of site-gathering activities. Some of the issues include consistency, accuracy, and completeness.
- The cost of certain construction commodities remains volatile this year, such as cement which is 11.0% higher this August 2023 compared to August 2022. Concrete products are 8.7% higher this year compared to last year. Asphalt felts and coatings are 3.1% higher in 2023.
- Volatility also affects subcontractor price indexes on non-residential building work, as concrete contractors cost 0.1% higher last August 2023 (from July) and 1.8% lower (from August 2022). Roofing contractors cost 11.9% this year compared to August 2022, but 0.1% lower compared to July 2023. The cost of electric contractors went up by 7.1% this year compared to 2022.
- On average, the construction industry loses about $177.5 billion every year on non-optimal activities. Construction professionals spend only about 65% of their time on optimal activities. About 35% of their time is wasted on non-optimal activities, such as looking for project information, conflict resolution, and dealing with mistakes at work.
- About 16.2% of construction professionals frequently spend time more than expected on conflict resolution, a non-optimal activity. Around 15.2% of workers spend more time dealing with mistakes and 14% look for project data/information.
- Around 29% of workers spend more time than needed on non-optimal tasks because of poor communication among project stakeholders. Lack of responsiveness is a primary reason for 21% of workers.
- About $65 billion of total construction spending in the US will go towards rework by year-end. In addition, $31.3 billion of rework will be caused by miscommunication and poor data.
- About 36% of construction firms think that technology fails because of its poor fit with the current procedures and processes. Low adoption is a reason for failure for 25% of the firms and 22% think that technology fails because it’s either difficult to use, there’s no adequate training for it, or it doesn’t integrate well with existing technology.
Construction Site Hazards
Aside from being physically demanding, construction jobs are also hazardous. In fact, the OSHA cited four common construction injuries and labeled them as the “Construction Focus Four.”
- Fall protection is the most frequently cited standard in the construction industry with 5,915 violations in the Fiscal Year of 2022. This is followed by ladders with 2,449 violations, scaffolding with 2,251 violations, fall protection training with 1,762 violations, and eye and face protection with 1,572 violations.
- The year 2019 has the highest number (1,102) of fatal work injuries between 2017 and 2021 in the construction industry. The year had a total of 418 fatal falls, slips, and trips. Falls to the lower level accounted for 401 of the cases, while falls on the same level had 12 cases.
- The number of fatalities in construction rose to 1,102 in 2019, showing an increase of 41.1% since 2011. The rate remained constant at 9 and 10 fatal injuries per 100,000 FTEs (full-time employees).
- Fatal injuries among Hispanic workers, like their rate of employment, were especially profound in 2019 with 10.8 deaths per 100,000 FTEs. Out of 1,102 fatalities, 728 of the cases involved Hispanic workers.
- A total of 709 deaths were caused by the “Construction Focus Four” hazards in 2019. The Construction Focus Four includes falls to a lower level, caught-in/between, struck-by, and electrocution. These four made up 64.3% of all construction fatalities in 2019.
- Out of the Construction Focus Four, falls to lower level had the highest percentage (36.4%) of fatalities in 2019. This is followed by struck-by (15.4%), electrocution (7.2%), and caught-in/between (5.4%).
- Specialty trade contractors had the highest number of fatal falls, slips, and trips in private construction industries with 229 cases in 2018, 245 cases in 2020, and 281 cases in 2021. Following specialty trade contractors is the construction of buildings with 89 cases in 2018, 83 cases in 2020, and 91 cases in 2021.
- Deaths involving roofs had an increase of 28.1% from 2018 to 2019. There were only 114 fatalities involving roofs in 2018. In 2019, the number of fatal falls from roofs went up to 146.
- Among the fatal struck-by fatalities, 52.9% involved being struck by an object or equipment, most commonly falling materials. Out of the 170 struck-by fatalities, 90 involved an object or equipment, while the other 80 involved a vehicle.
- About 70.3% or two-thirds of caught-in/between fatalities were caused by collapsing materials. Among the 59 fatalities, 46 involved collapsing materials, while 13 involved equipment or objects.
Construction Commodities and Technology
The construction industry wouldn’t be what it is today without the help of certain commodities, such as cement, steel, lumber, and technology. For some, however, the procurement of commodities and technology can be a challenge.
- The construction technology market is anticipated to be worth $5 billion this year. It is expected that the construction technology market will reach $24 billion by 2033, projecting a growth rate at a CAGR of 16.9%.
- The global investment in construction tech, engineering, and architecture grew to about $50 billion between 2020 and 2022. Global deals in AEC (architecture, engineering, and construction) tech grew at a rate of 85% from 2017-2019 ($27 billion) to 2020-2022 ($50 billion).
- The number of global deals in AEC tech increased by 30% from 2017-2019 to 2020-2022. There were only 944 AEC deals between 2017 and 2019. From 2020 to 2022, the number of deals reached 1,229.
- The overall construction input prices in January 2023 are 4.9% higher compared to 2022. Non-residential construction input prices also increased by 4.9% since January 2022.
- In the same month, the prices of construction materials went up by 1.3%. The high material prices will continue to affect the overall cost of commercial real estate development.
- The price of construction machinery and equipment rose by 1.6% in July this year. Compared to January 2023 and July 2022, the rate of increase is 3.4% and 9.3%, respectively.
- The market size of global artificial intelligence in construction is expected to grow to approximately $8,5 billion by 2031 with a CAGR of 34.1%. In 2021, the market size was only $496 million.
- Around 46.7% of construction firms are using pre-fabrication technology as their strategic advantage in the industry. In 2021, only about 27.7% were using machine learning or AI and 26.4% were using AR/VR.
- About 54.8% of construction firms use Siri in their job sites to help perform small and clerical tasks. Only 21.3% were using Amazon Alexa and 16.1% were using Google Home.
- About 50% of engineering/construction firms were planning to put a high level of technology investment in their capital program. About 39% were willing to put in a moderate level of investment, while 8% were putting in a low level of investment.
- Interestingly, only 4% of construction and engineering firms are adopting AI across all projects in 2023. Only 36% of firms just started integrating AI in a few of their projects.
- 46% of construction firms are adopting integrated project management information systems (PMIS) across all their projects. Around 45% are using basic data analytics in all their projects, 39% are using building information remodeling, and 34% are using mobile platforms.
Environmental Impact and Sustainability
Achieving sustainability is a bit of a challenge for the industry, given its historical environmental impact. However, as ESG becomes paramount, more and more construction firms are starting to become more environmentally aware.
- The buildings and construction sector comprised about 39% of final energy use and 39% of carbon dioxide emissions in 2018. About 11% of this came from the manufacturing of building and construction materials, such as cement, glass, and steel.
- About 4 billion tons of cement are produced annually, accounting for about 8% of global CO2 emissions. If cement is a country, it would be the third largest emitter in the world, following China and the United States.
- The cement process makes up 12% of the carbon emissions in New Jersey alone. Each pound of concrete releases 0.93 pounds of carbon dioxide.
- About 40% of the United States’ total energy use comes from operating buildings in the residential (22%) and commercial (18%) sectors. The environmental effects of a construction project can last longer after the project is finished.
- About 83% of engineering and construction companies are prioritizing the promotion of sustainable practices. Around 76% of these companies are encouraging sustainable use of new materials and resources. About 63% are reducing their energy consumption, 60% are reducing waste generation and encouraging responsible waste disposal, and approximately 17% are sourcing low-carbon energy.
- Only around 34% of construction companies in the US are focused on green building in 2021. At the same time, around 46% reported that they’re going to focus on green building in the next three years.
- About 78% of companies have policies that promote recycling. Around 48% have policies on the reuse of materials and 26% have rules regarding sustainable purchasing.
- More than half (54%) of firms fully envision the benefits of ESG and are aggressively pursuing improvement and maturity in 2023. Around 37% see some benefit in ESG and are using a targeted approach to meet sustainability demands.
- About 50% of construction firms are implementing ESG into their capital projects and programs for two primary reasons–reputational improvement and competitive advantage. Around 45% are implementing ESG for more inclusive and safe job sites.
- The value of private construction for transportation is $16.14 billion (2022). The private construction spending for transportation reached $17.88 billion in 2018 and fell in 2020 ($16.31 billion) and 2021 ($15.41 billion).
- Meanwhile, the value of public highway and street construction reached a peak at $108.94 in 2022. The value of construction in this sector rose steadily from 2002 ($57.35 billion) to 2021 ($100.23 billion).
- The Federal Highway Administration (FHWA) announced an investment of $2.1 billion. The fund was announced in early 2023 and is dedicated to the improvement of the country’s bridge infrastructures as part of the national government’s efforts to improve highway bridges all over the nation.
- Of the $1.2 billion investment, $144 million will be used to improve the bridges located in the south of Chicago. About $400 million will go to the improvement of the Golden Gate Bridge in California. And, $158 million will go to the improvement of the Gold Star Memorial Bridge.
Effect of the Bipartisan Infrastructure Law
The future is bright for the construction industry thanks to the recently passed Bipartisan Infrastructure Law. The legislation is intended to rebuild the country’s roads, bridges, and rails. The law will provide federal investments to each state for a wide variety of projects that would create great demand for construction services, equipment, and materials. As of September 2023, the states have been receiving billions in funding and plenty of American households are benefitting from it.
Here’s a table on the number of bridges and miles of highway in poor condition in each state, as well as the funding they get from the government:
|STATE||NUMBER OF BRIDGES IN POOR CONDITION||MILES OF HIGHWAY IN POOR CONDITION||EXPECTED FEDERAL FUNDING TO RECEIVE OVER FIVE YEARS||ANNOUNCED FUNDING TO DATE (September 7, 2023 – for roads, bridges, roadway safety, and major projects)|
|ALABAMA||575||over 2,367 miles||$5.8 billion||$2.4 billion|
|ALASKA||126||over 660 miles||$3.7 billion||$1.6 billion|
|ARIZONA||107||over 3,604 miles||$5.3 billion||$2.3 billion|
|ARKANSAS||674||over 520 miles||$3.9 billion||$1.6 billion|
|CALIFORNIA||1,547||over 8,715 miles||$28.2 billion||$12.1 billion|
|COLORADO||452||over 3,568 miles||$4 billion||$1.8 billion|
|CONNECTICUT||225||over 2,076 miles||$4.1 billion||$1.9 billion|
|DISTRICT OF COLUMBIA||4||over 413 miles||$1.3 billion||$619 million|
|DELAWARE||14||over 259 miles||$1.4 billion||$604.5 million|
|FLORIDA||455||over 3,144 miles||$13.3 billion||$5.4 billion|
|GEORGIA||293||over 2,274 miles||$9.2 billion||$3.7 billion|
|HAWAII||74||over 612 miles||$1.5 billion||$698.2 million|
|IDAHO||234||over 481 miles||$2.2 billion||$940.9 million|
|ILLINOIS||2,423||over 6,137 miles||$11.3 billion||$4.9 billion|
|INDIANA||1,040||over 4,118 miles||$6.9 billion||$2.8 billion|
|IOWA||4,604||over 453 miles||$3.9 billion||$1.6 billion|
|KANSAS||1,294||over 1,967 miles||$2.8 billion||$1.2 billion|
|KENTUCKY||1,013||over 963 miles||$5.1 billion||$2.3 billion|
|LOUISIANA||1,571||over 3,352 miles||$5.9 billion||$2.7 billion|
|MAINE||355||over 1,284 miles||$1.5 billion||$775.7 million|
|MARYLAND||251||over 2,261 miles||$4.7 billion||$2 billion|
|MASSACHUSETTS||444||over 1,416 miles||$5.4 billion||$2.2 billion|
|MICHIGAN||1,269||over 7,025 miles||$7.9 million||$3.4 billion|
|MINNESOTA||602||over 3,010 miles||$4.8 billion||$2.1 billion|
|MISSISSIPPI||1,097||over 5,690 miles||$3.6 billion||$1.5 billion|
|MISSOURI||2,230||over 7,479 miles||$7.1 billion||$2.9 billion|
|MONTANA||367||over 1,609 miles||$3.1 billion||$1.4 billion|
|NEBRASKA||1,220||over 726 miles||$2.2 billion||$920.6 million|
|NEVADA||29||over 1,074 miles||$2.7 billion||$1.3 billion|
|NEW HAMPSHIRE||190||over 625 miles||$1.4 billion||$573 million|
|NEW JERSEY||455||over 3,411 miles||$8.1 billion||$3.3 billion|
|NEW MEXICO||199||over 4,130 miles||$2.8 billion||$1.2 billion|
|NEW YORK||1,611||over 7,043 miles||$13.6 billion||$6 billion|
|NORTH CAROLINA||1,303||over 2,402 miles||$7.8 billion||$3.4 billion|
|NORTH DAKOTA||449||over 827 miles||$1.9 billion||$842 million|
|OHIO||1,223||over 4,440 miles||$9.9 billion||$5.5 billion|
|OKLAHOMA||2,207||over 917 miles||$4.7 billion||$2 billion|
|OREGON||396||over 956 miles||$3.7 billion||$1.6 billion|
|PENNSYLVANIA||3,112||over 7,743 miles||$13.2 billion||$5.5 billion|
|RHODE ISLAND||130||over 840 miles||$1.8 billion||$857.5 million|
|SOUTH CAROLINA||477||over 1,036 miles||$4.9 billion||$2 billion|
|SOUTH DAKOTA||996||over 1,971 miles||$2.2 billion||$915.9 million|
|TENNESSEE||881||over 284 miles||$6.3 billion||$2.6 billion|
|TEXAS||774||over 19,997 miles||$27.5 billion||$11.1 billion|
|UTAH||64||over 1,913 miles||$2.6 billion||$1.1 billion|
|VERMONT||71||over 728 miles||$1.6 billion||$690.2 million|
|VIRGINIA||501||over 1,980 miles||$7.7 billion||$3.2 billion|
|WASHINGTON||423||over 5,547 miles||$5.3 billion||$2.5 billion|
|WEST VIRGINIA||1,461||over 3,235 miles||$3.8 billion||$1.5 billion|
|WISCONSIN||922||over 6,976 miles||$5.4 billion||$2.3 billion|
|WYOMING||205||over 394 miles||$2 billion||$791.4 million|
Aside from the 50 states, the Bipartisan Infrastructure Law is also being implemented in the five major US territories–American Samoa, Guam, Northern Mariana Islands, Puerto Rico, and the US Virgin Islands.
- Based on formula funding alone, American Samoa is expected to receive approximately $24 million over 5 years. In 2022 and 2023, the American Samoa received $4.6 million in highway formula funding.
- The Commonwealth of the Northern Mariana Islands has over 14 specific projects for a funding of $207.7 million in September 2023. Since the law passed, the Islands have invested almost $36 million for investment in roads, bridges, public transit, ports, and airports.
- The law invests $17 billion in Guam’s port infrastructure to ultimately help the country move goods and improve supply chains at a lower cost. The country has received roughly $810,000 between 2022 and 2023 for the repair and maintenance of its ports and waterways.
- Puerto Rico has received approximately $49 million in federal funding between 2022 and 2023 for airports. The budget is given to replace and modernize airport infrastructures in the country to become more economically competitive.
- The announced funding to date in the US Virgin Islands is $43.4 million. About $18.4 million of the funding is dedicated to highway rehabilitation and safety and $25 million was received through the RAISE program between 2022 and 2023.
Major Economic Impacts of Construction on Different States
Like in the national GDP, the construction industry also affects the state-level GDP. Here’s some information about the effects of construction on the GDP of certain states.
- The construction industry in Alabama contributed 3.6% or $8.4 billion to the state’s GDP of $231.0 billion. There are a total of 7,384 construction firms in the state and 79% of them had unfilled roles as of 2020.
- Alaska’s construction industry contributed about 3.7% to the state’s GDP of $55.4 billion. The construction industry in the state contributed approximately $2.1 billion to its total GDP.
- California has 73,587 firms and a total of 833,100 employees in the construction industry. The construction jobs in the state pay well as most construction roles pay higher than the median wage for all employees.
- Florida’s construction sector has contributed 5.4% to the state’s GDP of $1.1 trillion. The state and local spending on private non-residential property construction totaled a whopping $14.9 billion.
- The state of Michigan has a GDP of $541.6 billion and 4.0% of it came from the construction industry. The construction sector of Michigan contributed a total of $21.8 billion to its GDP.
- The state and local spending in private non-residential construction in New York had a total of $32.1 billion. The construction industry alone contributed $53.8 billion to the state’s GDP.
How much does the construction industry contribute to the US GDP?
The construction industry accounts for 4% of the annual national GDP and plays a significant role in the country’s economy.
What is the average hourly earnings of employees in the construction industry?
The average hourly earnings of employees in the construction industry as of August 2023 is $36.71. This figure increased incrementally from May to July of the same year.
What percentage of construction firms are actively pursuing ESG initiatives in the current year?
More than half (54%) of construction firms fully embrace the benefits of ESG and are aggressively pursuing improvement and maturity in these initiatives.
What is the cost range of building a house in 2023?
The cost to build a house in 2023 ranges from approximately $113,399 to $485,755.
Which state has the lowest average construction cost for building a home, and which state has the highest average cost in 2023?
Arkansas has the lowest average construction cost for building a home in 2023, at $117,500, while the state with the highest average building cost is New York, at $600,000.