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Source : Hannes Richter, Unsplash
May 31, 2023
Author : Patty Allen
The "United States Construction Industry Databook Series - Market Size & Forecast by Value and Volume across 40+ Market Segments in Residential, Commercial, Industrial, Institutional, Infrastructure Construction and City Level Construction by Value - Q1 2023 Update" report presents interesting insights and forecasts on the construction industry.
According to the report, the construction industry, the backbone of the United States, is expected to scale by 6.1 percent and reach $1,419,192 million by the end of 2023.
Although there have been a few near-term challenges in some construction sites across the country, the long-term growth plans remain unchanged.
According to predictions, the construction industry is forecasted to scale steadily over the next few years. The growth momentum is expected to surpass a CAGR of 5.2 percent between 2023 to 2027, with the construction output in the country expected to reach $1,735,526.5 million by the end of 2027.
Due to inflation, there was a reported multi-year high in the country in 2022. The increased construction costs, supply chain, and labor availability issues caused several project delays hindering the overall growth of the construction industry.
Initially, the raw material expenses and construction costs were projected to decrease substantially over the next few quarters. However, further rate hikes expected to be declared by the Federal Reserve will probably ruin the growth of the housing construction industry.
Additionally, as inflation and recession threaten to affect the revenue growth of tech giants like Google and Amazon, there might be several delays in the 2023 hyper-scale data center construction programs.
On a positive note, although the outlook for the United States construction industry seems subdued in hindsight, government infrastructure spending is expected to bolster the construction industry in 2023.
As evident, the United States construction industry will remain under macroeconomic pressure. However, increasing infrastructure spending by the federal government will keep assisting the industry in the long run.
Here are some upcoming projects expected to propel the growth of the construction industry in the coming years:
As per the report, the government is expected to fund more infrastructure to improve highways and bridge networks across the country, assisting industry growth for the next couple of years. Additionally, several market opportunities in the building and infrastructure sector are anticipated at the country level.
If the government keeps up with these initiatives, the US construction industry will soon bolster and reach new heights.