The Construction industry in United States of America registered a market size in value add terms of USD 958,800.00 million in nominal terms in 2021
The indicator recorded a historical growth (CAGR) of 4.21% between 2018 and 2021, and is expected to grow by ...
GlobalData projects the indicator to grow ...
US Construction Market Analysis
The US construction industry is expected to expand in real terms in the coming years. Construction output growth, in real terms, was relatively flat in the first three quarters of 2021. This growth was supported by strong activity in the residential construction sector, which offset the continued weakness in the non-residential sector.
GlobalData expects the industry to register single digit annual growth from 2022 to 2025, supported by an increase in investments on transport, electricity, and broadband infrastructure projects. In November 2021, President Joe Biden signed the bipartisan infrastructure bill into law. It includes an investment in infrastructure spending over the next five years. In another positive development, in November 2021 the US House of Representatives passed the Build Back Better (BBB) bill, which now needs approval from the Senate. The plan focuses on combating climate change, extending healthcare coverage and alleviating child poverty, among others. Although the government had planned to pass the BBB act in 2021, the president reported in mid-December 2021 that the negotiations will be extended into 2022.
The residential construction sector has been the standout performer of the US economic recovery from the Coronavirus (COVID-19) crisis, posting double-digit growth rates since the third quarter of 2020, and making significant contributions to the rebound of the economy and overall construction industry.
Commercial Construction: In the short term, investments in the sector could be affected by weak consumer and business confidence amid the emergence of the ‘Omicron’ variant, and the subsequent tightening of travel restrictions to contain the spread.
Industrial Construction: The industrial sector’s output over the forecast period will be supported by a recovery in manufacturing and export activities, coupled with investments in electric vehicle (EV) manufacturing plants.
Value add is calculated by adding all outputs and subtracting intermediate inputs, including equipment, material, labor and energy costs. The term covers all forms of construction activities, including new build, renovation, repair and maintenance and demolition. Nominal data, also referred to as current prices data, includes changes in prices as well as changes in actual volume. Therefore, growth rates in nominal terms can overstate the pace growth in construction activity if there is high inflation that is reflected in rising prices for key inputs.
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