Construction Industry Statistics (2024)

The construction industry is a big part of the United States’ growth, shaping cities and infrastructure. It’s been strong this year with a market worth $1.8 trillion and a contribution of 4% to the country’s economy.

Despite COVID-19-caused problems, construction spending hit over 1.4 trillion in the USA. Let us look closer at the industry globally too, and understand what is going on.

Even if you are a construction company or someone interested in the construction industry, the construction industry statistics will help you know the future trends and expected growth rate. Thus, let’s get started without further ado.

Construction Industry Overview

Global Construction Industry Statistics

Globalization helps a lot in bringing new technologies and building relationships worldwide. Many countries make it favorable for large companies to develop their construction companies in those countries. Some of the global construction industry statistics are:

• 50% of the projected construction spending is likely to come from China, India, and the United States combined. (source)
• There is a decline in the global construction industry due to ongoing cost increases, concerns about limited access to credit, and labor shortages. 74.2 percent of the market is experiencing difficulty in finding skilled workers. (source)
• The worldwide residential construction market was worth $5,267 billion in 2022 and is expected to reach $8,308 billion by 2032, with an annual growth rate of 4.8% from 2023 to 2032. (source)

Top most expensive cities worldwide for construction

From towering skyscrapers to complex infrastructure, these cities showcase costliest construction projects. Explore the costliest cities in the world:

1. Geneva
2. London
3. New York City
4. San Fransico
5. Munich
6. Zurich
7. Copenhagen
8. Hong Kong
9. Boston
10. Philadelphia

Current State of the United States Construction Industry

Ever wondered how many buildings and roads are being built in the United States? We have some simple and easy-to-understand statistics about the current state of the U.S. construction industry.

• The market size of the USA’s construction industry was valued at 1.8 trillion in 2022.. (source)
• The construction industry contributed 4% to the GDP of the United States’s economy. (source)
• In 2022, the amount of money spent on private-sector construction in the U.S. was impressive. It went above 1.4 trillion dollars. Even when COVID-19 started in 2020 and affected the construction industry, the money spent on new private construction still went up to more than 1.1 trillion dollars in 2022. (source)
• The primary categories in the U.S. construction industry include commercial, industrial, infrastructure, energy and utilities, institutional, and residential construction. Residential construction was the leading sector in the U.S. construction market in 2022. (source)
• In July 2023, the construction industry in the United States employed about eight million workers, the largest amount since COVID-19. (source)
• In the first eight months of this year, people spent $1,284.7 billion on construction. This is 4.2% more than the $1,233.4 billion spent during the same time last year in the United States. (source)
• The commercial construction spending of the USA was $1455.37 billion in 2022. (source)
• In the United States, the single-family residential construction spending summed to $404 billion in 2022. (source)

• In August 2023, there were 1,406,000 completions of privately owned housing at a seasonal adjusted annual rate (SAAR). This represents a 5.3% increase from the revised July 2023 estimate of 1,335,000 and a 3.8% rise compared to the rate in August 2022, which was 1,355,000. (source)
• Among the top 50 construction contractors in the country, three firms achieved revenue exceeding $10 billion in 2021. (source)
• In 2020, the United States ranked relatively low when it came to infrastructure spending per capita. This encompasses various forms of infrastructure spending, ranging from highways to electric vehicle charging stations. (source)

US Construction Industry Employment Statistics

Given the significance of construction firms, it should be no surprise that many Americans work in the industry. Consider these amazing statistics for more fascinating information on employment in the construction industry:

• 10.76 million of total Americans worked in the construction industry in 2023.(source)
• 1 out of 10 workers in the construction industry is a woman. (source)
• Women in the construction industry are primarily found in the office or administrative positions. In contrast, men are more active in roles connected to finance, transportation, construction, extraction, and maintenance. (source)

• Over the five years of 2018-2023, the number of people employed in the construction business in the US increased by 1.1%. (source)
• Approximately 20% of workers in the construction industry are involved in the management, business, and financial operations of the construction sector. (source)
• In 2023 (Jan.–May), the construction sector had more than 349,000 job opportunities, and its unemployment rate was 5.05% on average. (source)
• 89% of construction companies faced problems in hiring skilled workers in 2023. (source)
• The average age of construction workers is 42, which is one year higher than the typical worker in the national labor force. (source)

Construction Employee Average Wages

Construction workers’ average annual average wage in 2021 was $44,130. Some of the other salaries for different construction employees are: (source)

Highest Paying States for Construction Workers

Illinois, New Jersey, New York, Massachusetts, and Hawaii are the states that pay the highest salaries to construction laborers. (source)

Construction Industry Environment Statistics

While the construction industry has often faced criticism for its environmentally unfriendly practices, a growing number of contractors are now leading the charge to minimize their ecological footprint. In this context, let’s delve into some enlightening construction industry statistics regarding green building construction projects and their benefits.

• Buildings contribute to approximately 40% of carbon dioxide emissions worldwide. (source)
• The construction industry is responsible for 23% of air pollution globally. (source)
• Green buildings are good for your wallet. They cost less to maintain and can reduce operating costs by about 10% in a year. (source)
• Buildings use 12% of all water in the U.S., and each person uses 80-100 gallons of water daily, which increases water pollution. (source)
• The carbon emissions produced by commercial buildings can reach 1.8% by 2030. (source)
• Green buildings help cut down on carbon emissions, water usage, energy consumption, and waste. LEED (Leadership in Energy and Environmental Design) certified buildings had 34% lower CO2 emissions, used 25% less energy, consumed 11% less water, and diverted over 80 million tons of waste from landfills. (source)

Construction Technology Statistics

Construction sites in 2023 may resemble those from 1923, with old-fashioned practices like manual bricklaying, paper blueprints, and scaffold towers. Despite being a huge $12 trillion industry, architecture, engineering, and construction (AEC) have been slow to embrace technological advances.

• $50 million was invested in architecture, engineering, and construction technology globally between 2020 and 2022, an increase of 85% over the previous three years. (source)
• A survey conducted after the November 2020 US elections revealed that 76% of Engineering and Construction (E&C) executives intend to invest in at least one digital technology in 2021. (source)
• 46% of construction jobs are using drones which got less than 50% in 2021 still, it is a significant amount. (source)
• 17% of construction companies have used AR/VR for at least one of their infrastructure projects. This usage is going to increase only as 46% of construction owners are interested in using it. (source)
• 81% of construction companies are planning to spend more on technology integration over the upcoming years. (source)
• The construction robot market is projected to increase from $1.26 billion in 2023 to $3.81 billion by 2032, with a Compound Annual Growth Rate (CAGR) of 14.80% throughout the forecast period. (source)

Construction Industry Future Predictions

As people are starting to accept technology in the construction industry, the future of the industry seems bright. AI and robotics are going to enter the industry ultimately helping in labor shortages. Some other future predictions are:

• The size of the global construction market was around 6.4 trillion in 2022, which is expected to reach 14.4 trillion in 2030. (source)
• The demand and usage of fully autonomous machinery are going to increase by 2030. It will help the construction workforce complete their tasks sooner. (source)
• A city in the Netherlands, Eindhoven, plans to 3D print a neighborhood of five houses. While there are already some 3D-printed houses, many don’t meet building regulations. So, we can expect slow but steady progress in using this technology in the future. (source)
• The self-healing concrete market is predicted to grow at a remarkable 34% CAGR by 2027. Self-healing concrete is a synthetically produced concrete with the capacity to heal the cracks and damages itself. (source)
• Autonomous electric machines represent the future of the construction industry. They not only reduce costs by 40% but also cut down CO2 emissions by 98%. In a test program, it was found that conventional vehicles consume 3,360 liters of diesel per day, whereas hybrid wheel loaders use only 64 liters. (source)

Data is the new gold, as data and advanced analytics are becoming essential for future success in the construction industry. They shift business decisions from reacting to predicting, allowing construction firms to stay ahead of the competition. (source)

Top US States with the Most Construction Spending

Source: census.gov

Building Material costs

Due to a global supply chain squeeze and pre-recession inflation, material costs surged at different points in time. Although some have decreased from their highest points, overall prices have generally risen from January 2022 to current times by 10%, except for lumber prices.

Source: ConstructionDive

Construction Disputes

In North America, the typical duration of construction disputes lasted about 16.7 months in 2021, with an average dispute value of $30.1 million.

During the same year, the most frequently used method for resolving construction disputes was contract and specification reviews.

The primary cause of construction disputes in 2021 was attributed to “poorly drafted or incomplete and unsubstantiated claims.

Top 5 Construction Companies of USA in 2024

Source: blackridgeresearch.com

Conclusion

To sum it up, the future of the construction industry is bright. Green buildings, 3D printed buildings, automation, and other cool technology will be the new norm in the near future.

Not everything is glittery though, rise in material costs, difficulty in getting skilled workers, and other such problems are also going to stay. So, whether you are a builder or an enthusiast of the construction industry, start adapting to the changing scenarios sooner.

As we finish looking at these statistics, one thing is clear: being flexible and knowing what’s going on is key to success in construction. So, let’s keep watching the construction statistics, picking up new ideas, and making the construction world even better. It’s a journey worth taking.

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