Summary
The US construction industry suffered a downturn in 2017, contracting by 1.0% in real terms that year, following an average annual growth of 5.0% during the preceding four years. This decline can be attributed to the slowdown in non-residential buildings construction activity and the decline in the government’s outlay on major infrastructure projects.
The country’s construction industry is expected to record positive growth over the forecast period (2018-2022), driven by the government’s plans to revamp the country’s depleted infrastructure. In addition, public and private sector investments in residential, commercial, healthcare and educational infrastructure construction projects are expected to support growth in the industry over the forecast period.
In February 2018, the White House released its infrastructure initiative, under which the Trump administration seeks to provide US$200 billion in the next ten years to spur a projected US$1.5 trillion in states, local governments and private sector investment to rebuild what Trump called America’s crumbling infrastructure.
The industry’s output value in real terms is expected to rise at a compound annual growth rate (CAGR) of 2.22% over the forecast period, compared to 3.80% during the review period (2013-2017).
GlobalData’s "Construction in the US - Key Trends and Opportunities to 2022", 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.
Key Highlights
- GlobalData expects the residential construction market to retain its leading position over the forecast period, with a share of 46.5% of the industry’s total value in 2022. Market growth over the forecast period is expected to be supported by rising residential buildings permits in the country. The government’s focus on affordable houses is also expected to support the market growth over the forecast period.
- The government’s focus to rebuild and modernize the country’s aging infrastructure is expected to drive infrastructure construction market growth over the forecast period. In February 2018, the White House released its infrastructure initiative, under which the Trump administration seeks to provide US$200 billion in the next ten years to spur a projected US$1.5 trillion in state, local governments and private sector investment to rebuild US infrastructure.
- Over the forecast period, the energy and utilities construction market is expected to be supported by the government’s investment in transmission and distribution construction projects. In its 2018-2019 Budget, the Trump administration proposed US$30.7 billion for the Energy Department, a 2% increase from the fiscal year 2017-2018.
- According to American Society of Civil Engineers estimates, the country requires US$3.6 trillion to repair, upgrade and modify its aging transport infrastructure by 2020. Accordingly, under the Airport Improvement Program, the government plans to invest US$3.2 billion for the development and modernization of airports in the country.
- The total construction project pipeline in the US, as tracked by GlobalData, stands at US$629.3 billion. The pipeline, which includes all projects from pre-planning to execution, is skewed towards late stage projects, with 62.1% of the pipeline value being in projects in the pre-execution and execution stages as of October 2018.
Scope
This report provides a comprehensive analysis of the construction industry in the US and also provides -
- Historical (2013-2017) and forecast (2018-2022) 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
2. CONSTRUCTION OUTLOOK: AT-A-GLANCE 3
3. LATEST NEWS AND INDICATORS 9
4. KEY DRIVERS AND RISKS 12
4.1. Economic Performance 12
4.2. Political Environment 12
4.3. Demographics 12
4.4. Risk Profile 13
5. CONSTRUCTION OUTLOOK 14
5.1. All Construction 14
5.1.1. Outlook 14
5.1.2. Project analytics 16
5.2. Commercial Construction 18
5.2.1. Outlook 18
5.2.2. Project analytics 19
5.3. Industrial Construction 21
5.3.1. Outlook 21
5.3.2. Project analytics 22
5.4. Infrastructure Construction 24
5.4.1. Outlook 24
5.4.2. Project analytics 25
5.5. Energy and Utilities Construction 27
5.5.1. Outlook 27
5.5.2. Project analytics 28
5.6. Institutional Construction 30
5.6.1. Outlook 30
5.6.2. Project analytics 31
5.7. Residential Construction 33
5.7.1. Outlook 33
5.7.2. Project analytics 35
6. KEY INDUSTRY PARTICIPANTS 37
6.1. Contractors 37
6.2. Consultants 39
7. APPENDIX 41
7.1. What is this Report About? 41
7.2. Definitions 41
8. ABOUT GLOBALDATA 45
8.1. GlobalData at a Glance 45
8.2. GlobalData Construction 46
8.3. Disclaimer 47
8.4. Contact Us 47
List of Tables
Table 1: Construction Outlook 3
Table 2: The US, Key Economic Indicators 12
Table 3: The US, Construction Output Value (nominal, US$ Million) 17
Table 4: The US, Top Commercial Construction Projects by Value 20
Table 5: The US, Top Industrial Construction Projects by Value 23
Table 6: The US, Top Infrastructure Construction Projects by Value 26
Table 7: The US, Top Energy and Utilities Construction Projects by Value 29
Table 8: The US, Top Institutional Construction Projects by Value 32
Table 9: The US, Top Residential and Mixed-Use Construction Projects by Value 36
Table 10: The US, Key Contractors 37
Table 11: The US, Key Consultants 39
Table 12: GlobalData Construction Market Definitions 42
Table 13: Construction Risk Index Ratings and Scores 44
List of Figures
Figure 1: Key Markets, Construction Output Growth Matrix and Risk Matrix 3
Figure 2: The US, Construction Projects Pipeline by Sector (US$ Billion) 3
Figure 3: The US, Housing Price Index 9
Figure 4: The US, total residential permit issued Value (US$ Billion) 10
Figure 5: The US, construction spending on commercial buildings (US$ Million) 10
Figure 6: The US, Risk Profile, Q3 2018 13
Figure 7: The US, Risk Comparison, Q3 2018 13
Figure 8: The US, Construction Output Value (Real, US$ billion, 2017 prices and exchange rate) 14
Figure 9: The US, Construction Output Value, Growth Matrix 15
Figure 10: The US, Construction Output Value, by Sector (US$ Million), 2013-2022 15
Figure 11: The US, Construction Projects Pipeline, Projected Annual Spending by Stage (US$ Million), 2017-2022 16
Figure 12: The US, Construction Projects Pipeline, Value by Stage (US$ Million) 16
Figure 13: The US, Commercial Construction Output by Project Type (US$ Million), 2013-2022 18
Figure 14: The US, Commercial Construction Projects Pipeline, Value by Stage (US$ Million) 19
Figure 15: The US, Commercial Construction Projects Pipeline, Projected Annual Spending by Stage (US$ Million) 20
Figure 16: The US, Industrial Construction Output by Project Type (US$ Million), 2013-2022 21
Figure 17: The US, Industrial Construction Projects Pipeline, Value by Stage (US$ Million) 22
Figure 18: The US, Industrial Construction Projects Pipeline, Projected Annual Spending by Stage (US$ Million) 23
Figure 19: The US, Infrastructure Construction Output by Project Type (US$ Million), 2013-2022 24
Figure 20: The US, Infrastructure Construction Projects Pipeline, Value by Stage (US$ Million) 25
Figure 21: The US, Infrastructure Construction Projects Pipeline, Projected Annual Spending by Stage (US$ Million) 26
Figure 22: The US, Energy and Utilities Construction Output by Project Type (US$ Million), 2013-2022 27
Figure 23: The US, Energy and Utilities Construction Projects Pipeline, Value by Stage (US$ Million) 28
Figure 24: The US, Energy and Utilities Construction Projects Pipeline, Projected Annual Spending by Stage (US$ Million) 29
Figure 25: The US, Institutional Construction Output by Project Type (US$ Million), 2013-2022 30
Figure 26: The US, Institutional Construction Projects Pipeline, Value by Stage (US$ Million) 31
Figure 27: The US, Institutional Construction Projects Pipeline, Projected Annual Spending by Stage (US$ Million) 31
Figure 28: The US, Residential Construction Output by Project Type (US$ Million), 2013-2022 34
Figure 29: The US, Residential Construction Projects Pipeline, Value by Stage (US$ Million) 35
Figure 30: The US, Residential Construction Projects Pipeline, Projected Annual Spending by Stage (US$ Million) 36
Figure 31: The US, Headquarters of Key Contractors (% of Total Project Pipeline) 38
Figure 32: The US, Headquarters of Foreign Contractors (% of Project Pipeline with Foreign Contractor) 38
Figure 33: The US, Headquarters of Key Consultants (% of Total Project Pipeline) 40
Figure 34: The US, Headquarters of Foreign Consultants (% of Project Pipeline with Foreign Consultants) 40
