United States Construction Industry Overview: Income Potential Trends
The Construction industry is a $1.29 trillion industry that contributes about 4.1 % in GDP to the U.S. economy. The sector supports over seven million jobs annually and one of the largest suppliers to the manufacturing, mining, and professional services industries. The table below shows industry growth.
Starting at nearly $800 billion in 2011 and projected to grow to over $1.4 billion by 2023. Construction income levels had not exceeded $1.4 trillion from 2004 through 2008 before the sub-prime lending crisis greatly impacted the industry, which is now on track to recover. Although residential construction will remain stable, substantial growth within this market will not be significant due to projected stagnant population growth, ageing population, and online shopping, which will limit brick and mortar construction. As a result, residential development will grow to nearly $600 billion by 2023, with the remaining $8 billion projected spend in Supply Chain growth industries.
The Construction industry supply chain consists of private construction of new homes, non-residential buildings, offices, lodging, religious, educational, and health care services. Non-residential construction supports farming, land improvements, telecommunications, railroads, utilities, and airfields. Public construction helps mostly educational and government buildings with expenditures for highways, streets, and sewer systems.
Construction Markets: 2019 Supply Chain Growth Opportunities
Moving past 2019, growth areas within the U.S. Construction area will be dominated that support the energy industry, which could grow to $1 billion past 2023. Additionally, the demand for healthcare facilities will increase due to an aging population, and online shopping will propel the construction of warehouse and storage facilities. High-technology markets will drive demand for office construction projects. Federal and State government spending and regulations will increase demand for infrastructure projects, including significant transportation and airport construction, local rapid transit projects and, high-speed rail construction. Projects supporting the energy sector, including oil, Natural Gas, and Green energy, will increase in demand.
Technology Innovation: Key Construction Industry Trends Beyond 2019
Innovations and advances in technology will drive down construction costs and increasing efficiencies, creating additional building opportunities. The following are vital innovations for this industry:
Drones in Construction
Drones rapidly map large areas and produce aerial heat maps and thermal images. They are the fastest growing trends in construction, with increased usage of over 200% annually. Drone software provides real-time information used for rapid decision making, adding to the efficiency of construction processes. Drones add to safety and reach heights to complete work otherwise completed by human workers in dangerous environments. Drones add to construction site security and are used to monitor thefts that occur on construction sites.
Construction Management Software
Construction management software is helpful to manage projects, track costs, and schedule activities otherwise completed manually. With increased efficiency, construction management software lowers costs and helps contractors be competitive. Storing past project information helps with the price-targeting of future projects.
Modular and prefabricated construction allows construction in the factory and assembly on-site at a work-site. This method of installation will grow 10 percent annually, bringing modular construction to $160 billion annually by 2023.
Government regulations and tax breaks create incentives to build energy-efficient homes and structures. Green construction will be the standard of new construction by 2030, adding to the growth potential of this market.
Additional information about the U.S. Construction Industry
The table below lists the NAICS codes and Industry Sectors for purchasing the AllBizOps Market Research report to analyze the construction industry further. See AllBizOps Market Research Reports for more Buyer and Supplier information within your sector of interest. AllBizOPs subscriptions are also available to continue Market Research for the Construction industry.