Construction, a significant part of our economy, is changing fast. The latest construction statistics show several new trends. For example, there’s more data on projects than a decade ago.
People are more open to adopting new technology like building information modeling (BIM) software and computer-aided design (CAD) tools to design, organize, and manage assets.
From workers to buyers, the evolution is evident. Discover what’s trending in the industry to make the most of new opportunities arising from these changes.
Construction projects and growth statistics
Construction is a broad sector with several segments like commercial, residential, sanitation, and transportation. Below are a few statistics that show the growth and dynamics of these segments.
- Multifamily housing construction increased by 12% from last year to $127 billion in July 2023.
- Commercial construction spending hit $128 billion in July 2023, an 11% rise from the previous year.
- Home improvement spending saw a 1% rise in 2023.
- Manufacturing sector construction experienced a 36% increase in 2023.
of builders used software to gather data and handle information in 2021.
- Sewage and waste disposal construction grew by 7% in 2023.
- Transportation construction rose by 9% in 2023 due to increased government spending.
- 58% of owners are switching to design-build methods in 2023, moving away from the traditional approach. Design-build projects wrap up 102% quicker than conventional methods.
Technology and innovation in construction statistics
The modern construction industry feels going fully digital in designing, building, and running projects will save on cost. The stats below support this mindset as companies adopt building information modeling and artificial intelligence.
Professionals are already experiencing improvements in communication and return on investment. Discover how adopting digital technology can elevate profits in the future.
- 37% of firms used drones at job sites in 2021.
- The construction robot market is set to grow by 13.6% annually from 2021 to 2026.
- 53.7% of construction companies tested and adopted new technology in 2021.
of construction companies had no specific budget for research and development (R&D) in 2021.
- 90% of construction workers use smartphones for work, 82.8% use laptops, and 12.4% used smartwatches.
- Around 29% of construction firms had a BIM department, with 35% outsourcing BIM-related tasks in 2021.
- Only 3% of construction companies use absolutely no specialized software tools.
- 98% of large US architecture firms used BIM in 2021.
- The AI market in construction is expected to hit $4.51 billion by 2026.
Construction labor employment statistics
The construction industry needs skilled labor. They’re so in demand that many organizations have had to extend project timelines due to worker shortage in the industry. The statistics below concern the state of employment in construction labor.
Here are some critical insights into salaries, work accidents, and jobs in the sector.
- The US had 336,000 open jobs in construction as of May 2023.
- Women are almost 11% of the construction workforce in 2023.
- Latinos or Hispanics made up 34.2% of construction workers in 2020.
- Workers aged 42 to 61 accounted for 54.6% of the industry in 2020.
11.8 million people
were employed in the construction industry in 2022.
Source: U.S. Bureau of Labor
- The US construction industry saw the highest number of deadly work accidents, with 1,015 deaths in 2021.
- Construction worker wages and salaries increased by 6% in 2021.
of construction firms had fewer than 200 workers in 2021.
- 62% of contractors needed help finding skilled workers in 2021. 74% of contractors demand more from qualified workers.
- Labor shortages extended project timelines for 44% of firms in 2021.
- There were 337,000 unfilled construction positions in December 2021.
- To address labor shortages, 29% of firms are investing in technology and providing incentives.
- The average annual salary for construction managers was $110,160 in 2022.
- Construction workers earned $36.31 per hour on average in June 2023.
- A typical nonunion construction worker made $976 a week in 2022.
The economic side of the construction industry
These statistics discuss construction’s economic impact. You get insights into current spending on construction activities and how they’re trending upward. With the rising spending, the market value of construction has increased, too.
- Large projects tend to run behind schedule by 20% and go up to as much as 80% over budget.
- 98% of mega projects face delays or budget overruns.
- America’s top 400 construction companies generated approximately $414 billion in revenue in 2020.
- The US construction spending reached $1.79 trillion in 2022.
- Private sector projects accounted for 79% of the $1.79 trillion spent on construction in 2022.
- An 11% increase in engineering and construction spending occurred in 2022, with a 3% increase anticipated for 2023.
- Construction spending in New England, South Atlantic, Mountain, and East North Central regions grew between 6.8% and 7.5% from 2021 to 2022.
- 20% of US construction takes place in five major cities: New York, Dallas, Houston, Los Angeles, and Washington.
- Building in San Francisco costs $444 per square foot, making it the most expensive city globally in 2022.
- Building material costs increased by 14.1% in November 2021, tripling the prior year’s increase.
- COVID-19 disrupted budget or schedule targets for 37% of firms.
- Up to 30% of the initial project data is lost by the end of the design and construction phases.
- The average global cost of construction disputes stands at $54.26 million.
- Insufficient data causes 14% of all construction rework globally.
- There was a 12% hike in total construction during 2021 versus 2020.
- Every day until 2050, the industry must construct 13,000 buildings to accommodate an expected urban population of 7 billion.
Laying one brick at a time
The statistics above suggest the construction market is growing steadily. As the adoption of technology and digital solutions increases, the growth will expand and speed up. Tech-enabling construction, especially the design and management areas, will help many businesses save costs and maximize their profits.
Discover how BIM can help construction companies better organize and manage assets.