42 Construction Industry Statistics | Track Industry Trends

The construction industry is constantly evolving, and staying informed with up-to-date construction industry statistics can help your business to remain competitive.

These insights not only reveal trends and benchmarks but also provide a clearer picture of the challenges and opportunities that construction professionals face today. Whether you’re in project management, equipment rental, or general contracting, industry data can guide smart decisions and effective strategies.

This page dives into some of the latest numbers shaping construction, giving you a foundation to apply relevant insights.

1. U.S. Construction Spending Grew 5% in 2023 Compared to a 12% Growth in 2022

While growth slowed from 12% in 2022 to 5% in 2023, the continued upward trend in construction spending reflects a resilient industry. To leverage this trend, prioritize efficient operations and cost management to remain profitable even as growth levels stabilize.

2. Private Sector Construction Spending Accounts for 79% at $1.43 Trillion in 2022

Private sector projects dominated U.S. construction spending in 2022, making up 79% of the total $1.43 trillion. If you’re focused on private sector opportunities, now’s the time to refine your proposals and strengthen client relationships to stay competitive in this high-spending arena.

3. Multifamily Construction Rose by 18% in 2023, Expected to Decline by 7% in 2024

Multifamily residential construction saw significant growth in 2023 but is projected to slow down by 7% in 2024, reaching $131 billion. Adjusting your portfolio to anticipate this shift could position your business well, potentially balancing out with other sectors seeing stronger growth.

4. Single-Family Construction Decreased by 13% in Q4 2023 and is Expected to Drop Another 10% in 2024

Single-family construction faced a 13% decline in Q4 2023, with an additional 10% drop projected for 2024, amounting to $354 billion. With this sector facing challenges, focusing on multi-sector flexibility and diversification could be beneficial for maintaining revenue streams.

5. Commercial Construction Spending Hit $128 Billion as of July 2023, Up 11% from 2022

The 11% rise in commercial construction spending reflects a continued push for business and infrastructure development. Business owners should consider targeting commercial projects to tap into this steady demand, possibly diversifying away from more volatile sectors.

6. Home Improvement Spending Grew 1% in 2023

While modest, the 1% increase in home improvement spending signals consistent interest in home upgrades. For companies involved in renovations or residential improvements, small but stable growth is an opportunity for consistent project flow and targeted marketing.

7. 36% of Construction Pros Expect Growth in Manufacturing Sector in Q1 2024

Optimism is high, with 36% of industry professionals predicting growth in construction for the manufacturing sector in early 2024. If you’re looking to expand, this could be an area for early investment or focused business development efforts.

8. Office Construction Spending Increased by 8% in 2023 Due to Demand for Class A Space

Office construction rose by 8% in 2023, driven by the demand for premium Class A spaces in major urban centers. This shift suggests an opportunity to explore or expand in urban office developments, especially if your team specializes in high-quality commercial projects.

9. Demand for AI and Data-Driven Spaces to Fuel Office Construction in 2024

The push for AI and tech-focused office spaces is expected to drive construction projects next year. For businesses, pivoting to accommodate these unique demands—like optimized layouts or data storage facilities—could make you a competitive choice in this evolving landscape.

10. Office Construction Spending Projected to Decline by 4% to $94 Billion in 2024

While office construction spending is expected to dip by 4% to $94 billion, strategic adaptation to niche demands, like tech-enabled office environments, could keep your business competitive even with slightly decreased spending.

11. Conservation and Development Construction Valued at $11 Billion

The conservation and development sector, valued at $11 billion, represents an important niche for eco-conscious projects. If you’re considering expanding into conservation, this sector is set for growth that aligns well with sustainability-focused efforts.

12. Sewage and Waste Disposal Construction Rose by 7% in 2023

Spending on sewage and waste disposal projects increased by 7% last year, showing investment in essential infrastructure. This area presents reliable opportunities for companies involved in public works or specialized in essential services with a steady demand.

13. Transportation Construction Increased by 9% in 2023

Governments boosted budgets and spending on transportation projects, resulting in a 9% increase in transportation construction in 2023. With infrastructure development a national priority, this trend is likely to continue as states work to improve and expand transit systems.

14. 20% of U.S. Construction Takes Place in Five Cities

New York, Dallas, Houston, Los Angeles, and Washington account for 20% of all U.S. construction projects. This concentration reflects the significant urban development needs in these metropolitan areas and underscores the ongoing demand for housing, infrastructure, and commercial spaces in major cities.

15. Conservation and Development Spending Rose by 21% Due to Gulf Coast Restoration

Restoration efforts to protect the U.S. Gulf Coast from storms were a key factor in the 21% increase in conservation and development spending. This investment aims to safeguard cities from extreme weather, bolstering resilience in hurricane-prone regions and addressing rising environmental challenges.

16. New York City Is the World’s Most Expensive City to Build In, at $501.78 per Square Foot

In 2023, New York City ranked as the priciest global construction market, with costs reaching $501.78 per square foot. High demand, complex building regulations, and premium real estate contribute to these costs, making it a challenging environment for developers.

17. 53.7% of Construction Companies Have Processes for Testing New Technologies

In 2021, over half of U.S. construction companies had formal processes for testing and implementing new technologies. This shift reflects an industry-wide push to increase productivity and streamline project management through digital solutions and innovations.

18. 56% of Companies Lacked a Dedicated R&D Budget in 2021

Despite the focus on technology, over half of construction companies did not have a dedicated budget for research and development. Limited R&D investment can restrict growth, potentially hindering firms’ ability to adapt to fast-changing market and technology demands.

19. 37% of Construction Companies Used Drones on Job Sites in 2021

Drone technology was in use at 37% of construction companies’ job sites in 2021, aiding in surveying, safety assessments, and project monitoring. Drones offer precise data collection, enhancing accuracy and efficiency on large-scale projects.

20. Only 3% of Construction Companies Aren’t Using Dedicated Construction Software

Nearly all construction firms now employ specialized software, with only 3% reporting no dedicated software use. From project management to digital design, these tools have become essential for modern construction workflows.

21. 45% of Contractors Declined Projects Due to Skilled Labor Shortages in 2021

A lack of skilled labor led 45% of contractors to turn down projects in 2021, underscoring an industry-wide workforce challenge. Training initiatives and recruitment efforts remain key to meeting future construction demands and closing the labor gap.

22. 97% of Contractors Experienced Material Cost Fluctuations’ Impact on Their Business

Material cost fluctuations had a moderate to high impact on 97% of contractors in 2021, affecting project budgets and timelines. Strategies to manage these costs are critical as volatility in materials pricing continues to influence the industry.

23. 31% of Businesses Reported Impacts from Rising Lumber and Wood Costs

Increasing lumber and wood costs in 2021 impacted 31% of construction businesses. This trend drove up project expenses, especially in residential construction, where wood is a primary material.

24. 19% of Businesses Reported Impacts from Rising Roofing Material Costs

With roofing materials’ prices on the rise, 19% of construction businesses felt the financial impact, adding strain to both project budgets and overall profitability in the industry.

25. 43% of Respondents Noted Impacts from Steel Cost Fluctuations

Steel costs affected 43% of surveyed construction firms, with rising prices impacting budgets and timelines for a range of projects, from commercial buildings to infrastructure.

26. Over 98% of Large U.S. Architecture Firms Now Use BIM

Building Information Modeling (BIM) has become a staple among large architecture firms in the U.S., with over 98% adopting it. This technology improves collaboration and efficiency, setting a new industry standard for design and project execution.

27. Only 8.5% of Infrastructure Projects Finish On Time and On Budget

The majority of infrastructure projects face budget overruns or delays, with only 8.5% completed on time and within budget. Cost-effective project planning and risk management are critical to improving these outcomes.

28. 54.4% of Construction Companies Use the Bluebeam Mobile App for Plan Management

More than half of construction companies utilize Bluebeam’s Revu app to manage project plans on mobile devices. This app supports real-time access to documents, improving workflow efficiency and reducing errors.

29. Demand for New-Build Home Upgrades Will Continue Long-Term

The market for new-build home upgrades is set to remain strong, with builders now favoring streamlined designs over luxury options. This shift aligns with changing consumer preferences and economic pressures on homebuyers.

30. U.S. Construction Equipment Rental Sales Reached $47.8 Billion in 2021

The construction equipment rental market hit $47.8 billion in 2021, with projections indicating a rebound to pre-2019 levels by 2024. Rentals offer flexibility and cost savings, proving popular among firms managing high-value assets.

31. The Tool and Equipment Rental Industry is a $5 Billion Market

In the U.S., tool and equipment rentals are a $5 billion industry, supporting contractors and DIY enthusiasts alike. Rentals provide convenient access to specialized equipment without the burden of ownership costs.

32. Nearly 11.8 Million People Worked in the U.S. Construction Industry in 2022

In 2022, the construction industry employed nearly 11.8 million workers, representing a vital part of the American workforce across residential, commercial, and infrastructure sectors.

33. 57% of Construction Firms Employ Fewer Than 200 Staff Members

The majority of construction firms are smaller businesses, with 57% having under 200 employees. This highlights the prevalence of small- to mid-sized enterprises in the industry, which face unique challenges in scaling and resource management.

34. Construction Managers Earned an Average Annual Salary of $110,160 in 2022

Construction managers in the U.S. earned an average of $110,160 annually in 2022, reflecting the high responsibility and skill required for overseeing projects and managing teams.

35. The Average Hourly Wage for Construction Employees Was $35.21 in January 2024

As of January 2024, the average hourly wage for construction workers stood at $35.21, indicating robust wages for a field that demands both technical expertise and physical skill.

36. Median Weekly Earnings for Nonunion Construction Workers Were $1,007 in 2023

In 2023, nonunion construction workers earned median weekly wages of $1,007, underscoring the earning potential in the industry for skilled tradespeople and laborers.

37. Median Weekly Earnings for Union Construction Workers Were $1,424 in 2023

Union construction workers earned median weekly wages of $1,424 in 2023, benefiting from union negotiations that typically result in higher wages and better working conditions.

38. Top 400 U.S. Construction Companies Generated $414.88 Billion in Revenue in 2020

In 2020, the 400 largest U.S. construction firms collectively generated $414.88 billion in revenue, underscoring the financial scale of the industry’s top players and their contributions to the economy.

39. 1.7 Million Searches for Independent Contractors Monthly

Every month, the term “independent contractor” is searched online 1.7 million times, reflecting significant interest in contractor services. This high volume of searches highlights the importance of digital presence for contractors aiming to attract clients.

40. Average CPC for Construction Search Ads: $2.56

Construction industry advertisers pay an average of $2.56 per click on search ads. Investing in search ads can be a worthwhile strategy for reaching potential clients actively seeking construction services.

41. Average CPC for Construction Display Ads: $0.54

The average cost-per-click for display ads in the construction industry is $0.54, making it an affordable option for contractors looking to increase visibility and reach a broader audience with visual advertising.

42. 96% of Consumers Discover Local Businesses Online

Nearly all consumers—96%—use the internet to find local businesses, including construction companies. For construction professionals, a strong online presence is essential to attract and engage potential clients.

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We hope these statistics provide insights that you can put to work in your business strategy. Whether it’s understanding the online habits of potential clients or recognizing the impact of advertising costs, knowing where the construction industry stands today can help shape your marketing efforts for tomorrow.

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