CIC - Construction Intelligence Center

US Growth to Continue

24 Oct 2017

The US construction industry is expected to reach a value of US$1.4 trillion by 2021, in real terms measured at constant 2010 US dollar exchange rates, according to Timetric’s Construction Intelligence Center (CIC).

According to the report, construction sector growth over the forecast period to 2021 will be supported by the ongoing economic recovery, coupled with government investment across infrastructure construction, energy production, healthcare, manufacturing, educational facilities, and affordable housing. 

The industry’s output value in real terms is expected to rise at a compound annual growth rate (CAGR) of 2.1% over the forecast period, compared to 5.0% during the review period (2012–2016). 

Residential construction was the largest market in the US construction industry during the review period, accounting for 40.0% of its total value in 2016. The market is expected to follow a similar trend over the forecast period, with the market set to account for 42.1% of the industry value in 2021. A fall in the mortgage interest rate, coupled with affordable housing programs, population growth and ongoing urbanization is expected to drive the market’s growth over the forecast period.

According to the United Nations Department of Economic and Social Affairs (UNDESA), the total population of the US is expected to increase by 4.0%, going from 325.1 million in 2015 to 338.0 million by 2020 and 350.6 million by 2025. This growth is expected to increase demand for housing over the forecast period. 

The government aims to build affordable houses for low- and middle-income people under the Community Development Block Grants (CDBG), the US Department of Agriculture Housing Assistance program, the Neighborhood Stabilization Program (NSP) and the Housing Choice Voucher Program. 

With a 16.3% share in 2016, energy and utilities construction was the second largest market in the construction industry during the review period. The market grew at a CAGR of 2.18% during the review period, and is expected to grow at a CAGR of 3.52% over the forecast period, driven by government investment in energy and renewable energy infrastructure to meet rising electricity demand. In addition, investments in wastewater infrastructure under the Clean Water State Revolving Fund program and the Drinking Water State Revolving Fund program are expected to drive market growth over the forecast period.

Government investment in renewable energy infrastructure is expected to drive industry growth over the forecast period. In order to meet rising demand for electricity, the government is focusing on the construction of new power plants, as well as renewable energy infrastructure. Accordingly, the government plans to add 136.7GW of new power plants by 2020 and 202.9GW during the period of 2021–2025. The government plans to construct 100GW solar power generation plants with an investment of US$130.0 billion by 2020. Furthermore, under the Advanced Research Projects Agency Energy program, it plans to spend US$37.0 million to build high-performance separators and electrodes in the country, with an aim to improve energy storage. The government’s focus on improving energy infrastructure is expected to drive growth in the construction industry over the forecast period. 

About this report

This information is taken from the Timetric report: ‘Construction in the US- Key Trends and Opportunities to 2021’.

To find out more information about the report, please contact us at reports@timetric.com. To purchase the full report, click here

About the Construction Intelligence Center

The Construction Intelligence Center (CIC) is the most comprehensive source of data and analysis on the global construction industry. The Construction Intelligence Center is a product of Timetric, which provides information solutions and technologies that enable organizations to drive business value and manage business risk.

For more information and updates, please visit www.construction-ic.com

About Timetric

Timetric is a leading provider of online data, analysis and advisory services on key industry sectors. It provides integrated information services covering risk assessments, forecasts, industry analysis, market intelligence, news and commentary.

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