Summary
GlobalData has revised its forecasts upwards for the US construction industry to 1.5% in 2020 and -0.6% in 2021, when compared to the previous projections of -1.1% and -0.8%, respectively, as investment in the residential construction market has risen more sharply than previously anticipated. Meanwhile, recent news of successful COVID-19 vaccine developments suggests that related restrictions on economic activity will diminish in 2021. Furthermore, a less disruptive foreign trade environment under the new President-elect Joe Biden’s administration could benefit the sector from lower tariffs, which should somewhat limit the rise of construction material costs, which have increased substantially under the Trump administration. The residential construction market has outperformed the wider economy and bounced back from the initial shock of the COVID-19 outbreak on the economy, which has left millions of people out of work. The US residential market continues to be supported by record-low mortgage rates and the significant shift in remote working, which have prompted many renters and first-time buyers, who held on to their jobs and wealth, to look for more affordable and larger living spaces in lower density areas such as suburbs, exurbs and rural communities. According to Freddie Mac, mortgage rates remain at record lows, with the weekly average rate on a 30-year fixed mortgage standing at 2.71% as of December 10th.
Data from the US Census Bureau showed that the total value of construction put in place in the US rose by 3.7% YoY in October 2020, after increasing by 1.9% in the previous month (the latest data available at the time of writing). In cumulative terms, construction spending grew by 4.3% in the first ten months of 2020, compared to the same period in 2019. Spending on residential construction projects continued to rise sharply in October, posting a Y-o-Y increase of 14.6%, after increasing by 11.6% in September and 11.7% in August, while spending on non-residential construction fell for the fourth consecutive month, registering a Y-o-Y decline of 3.7%, up from -4.4% in September.
However, uncertainty remains about how long the expansion in the housing market can continue. Several states and local government have imposed new lockdowns and restrictions on businesses amid a resurgence in new COVID-19 cases, and this has paralyzed business activity in many parts of the country. The resulting weak demand could lead to a new wave of job losses, which could weigh on the economy and slow growth of the sector. On the whole, GlobalData expects the US construction industry to fall marginally in 2021, and grow at a moderate pace over the remainder of the forecast period (2022-2024), as the wider economic impact stemming from the COVID-19 disruption will constrain new investment.
This report provides detailed market analysis, information, and insights into the US construction industry, including -
- The US construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the US construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Scope
This report provides a comprehensive analysis of the construction industry in the US. It provides -
- Historical (2015-2019) and forecast (2020-2024) valuations of the construction industry in the US, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
Reasons to Buy
- Identify and evaluate market opportunities using GlobalData's standardized valuation and forecasting methodologies.
- Assess market growth potential at a micro-level with over 600 time-series data forecasts.
- Understand the latest industry and market trends.
- Formulate and validate strategy using GlobalData's critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.
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Table of Contents
1 Executive Summary
2 Construction Industry: At-a-glance
3 Context
3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 COVID-19 Status
4. Construction Outlook
4.1 All Construction
4.2 Commercial Construction
4.3 Industrial Construction
4.4 Infrastructure Construction
4.5 Energy and Utilities Construction
4.6 Institutional Construction
4.7 Residential Construction
5. Key Industry Participants
5.1 Contractors
5.2 Consultants
6. Construction Market Data
7. Appendix
7.1 What is this Report About?
7.2 Definitions
7.3 GlobalData Construction
List of Tables
Table 1: Construction Industry Key Data
Table 2: The US, Key Economic Indicators
Table 3: The US, Commercial Construction Output by Project Type (real % change), 2015-2024
Table 4: The US, Top Commercial Construction Projects by Value
Table 5: The US, Industrial Construction Output by Project Type (real % change), 2015-2024
Table 6: The US, Top Industrial Construction Projects by Value
Table 7: The US, Infrastructure Construction Output by Project Type (real % change), 2015-2024
Table 8: The US, Top Infrastructure Construction Projects by Value
Table 9: The US, Energy and Utilities Construction Output by Project Type (real % change), 2015-2024
Table 10: The US, Top Energy and Utilities Construction Projects by Value
Table 11: The US, Institutional Construction Output by Project Type (real % change), 2015-2024
Table 12: The US, Top Institutional Construction Projects by Value
Table 13: The US, Residential Construction Output by Project Type (real % change), 2015-2024
Table 14: The US, Top Residential Construction Projects by Value
Table 15: The US, Key Contractors
Table 16: The US, Key Consultants
Table 17: The US, Construction Output Value (Real, US$ Million)
Table 18: The US, Construction Output Value (Nominal, US$ Million)
Table 19: GlobalData Construction Market Definitions
List of Figures
Figure 1: G-20, Construction Output (real % change), 2020
Figure 2: The US, Construction Projects Pipeline by Sector (US$ Billion)
Figure 3: The US, COVID-19 Confirmed Cases
Figure 4: The US, Construction Output Value (Real, US$ billion, 2017 prices and exchange rate), 2015-2024
Figure 5: The US, Construction Output Value, by Sector (Real, US$ Million), 2015-2024
Figure 6: The US, Value of Construction Put in Place (US$ Billion, Seasonally Adjusted)
Figure 7: The US, Unemployment Weekly Claims (Seasonally Adjusted, in thousands)
Figure 8: The US, Construction Projects Momentum Index
Figure 9: The US, Commercial Construction Output by Project Type (Real, US$ Million), 2015-2024
Figure 10: The US, Commercial Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 11: The US, Total Commercial Construction Spending (US$ Million, Non-Seasonally Adjusted)
Figure 12: The US, Total Retail Sales Value (US$ Billion)
Figure 13: The US, Total Tourist Arrivals (In thousands)
Figure 14: The US, Industrial Construction Output by Project Type (Real, US$ Million), 2015-2024
Figure 15: The US, Industrial Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 16: The US, Total Manufacturing New Order Value (US$ Billion, Seasonally Adjusted)
Figure 17: The US, Total Exports (US$ Billion, Seasonally Adjusted)
Figure 18: The US, Manufacturing production index (2012=100, Seasonally Adjusted)
Figure 19: The US, Infrastructure Construction Output by Project Type (Real, US$ Million), 2015-2024
Figure 20: The US, Infrastructure Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 21: The US, Total Transportation Construction Spending (US$ Million, Non-Seasonally Adjusted)
Figure 22: The US, Energy and Utilities Construction Output by Project Type (Real, US$ Million), 2015-2024
Figure 23: The US, Energy and Utilities Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 24: The US, Total Energy Spending (US$ Million, Non-Seasonally Adjusted)
Figure 25: The US, Institutional Construction Output by Project Type (Real, US$ Million), 2015-2024
Figure 26: The US, Institutional Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 27: The US, Total Educational and Healthcare Construction Value Put in Place (US$ Million, Non-Seasonally Adjusted)
Figure 28: The US, Residential Construction Output by Project Type (Real, US$ Million), 2015-2024
Figure 29: The US, Residential Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 30: The US, Total Residential Construction Spending (US$ Million, Non-Seasonally Adjusted)
Figure 31: The US, Total New Housing Units Permit Authorized (Seasonally Adjusted, In Thousand)
Figure 32: The US, New Housing Units Started (Thousand)
Figure 33: The US, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 34: The US, Headquarters of Key Consultants (% of Total Project Pipeline)
