The construction industry’s steady growth shows no signs of slowing down any time soon. According to several studies, the industry’s economic outlook will remain rock solid into the next decade.
Confidence in Construction Remains High
A recent PwC report predicted that the volume of worldwide global construction could increase by 85 percent to $15.5 trillion by 2030. Global construction output reached nearly $9 trillion in 2016.
“Construction is likely to be one of the most dynamic industrial sectors in the next fifteen years and is utterly crucial to the evolution of prosperous societies around the world,” Fernando A. González, Chief Executive of global building materials company CEMEX told PwC.
Another study, by the U.S. Chamber of Commerce, found that 54 percent of contractors reported high confidence in new business over the next 12 months.
“The commercial construction industry employs millions of Americans and the contributions the sector makes to the U.S. economy are vital to our country’s growth,” said Thomas J. Donohue, president and CEO of the U.S. Chamber.
5 Strong Points of the Construction Industry
Several other major industry indicators also suggest that growth will continue in the years ahead, according to a National Business Capital report.
The industry is expanding so fast that it is often difficult for employers to find enough qualified employees. In fact, construction employment increased approximately three percent in 2016.
2) Private Non-Residential Spending
Private non-residential spending, such as commercial construction, increased approximately seven percent last year as well.
3) Public Non-Residential Spending
Public non-residential construction, such as government buildings, spending spiked approximately five percent in 2016. With many new public infrastructure projects proposed, this sector of the industry may expand even more in future years.
4) New Construction
The amount of new construction projects increased about six percent to bring total spending to more than $172 billion.
5) Green Building
Green construction currently represents about 30 percent of the total residential market. It’s another significant opportunity for contractors since customers are willing to pay more for these services.
If these five signs prove to be accurate, the construction industry will continue to be a major source of strength for the American economy — today, tomorrow and through 2030.