top of page
Construction
Performance Highlights
The industry experienced growth prior to the COVID-19 pandemic due to a strong macroeconomic environment. The pandemic negatively impacted nonresidential construction due to rising unemployment and supply chain disruptions. High interest rates are currently hurting the industry by increasing the cost of capital, thus weakening construction activity.
Geographic Distribution
The Southeast and West regions have the highest concentrations of construction businesses due to their large populations. California, the most populous state, holds the largest share of construction sector establishments.
Industry Outlook
Revenue is expected to grow at a CAGR of 2.1% from 2024 to 2029, reaching $3.7 trillion. The sector will benefit from the Infrastructure Investment and Jobs Act, the CHIPS Act, and the Inflation Reduction Act, which will drive construction spending.
Competitive Forces
The industry is characterized by low concentration and high competition. Barriers to entry are moderate, with legal requirements and start-up costs being significant challenges. Successful businesses develop strong reputations, hire experienced workforces, and maintain effective cost controls.
Major Companies
Notable players include D.R. Horton, Inc. (0.9% market share), Emcor Group, Inc. (0.4% market share), Turner Construction Company (0.2% market share), and Fluor Corporation (0.2% market share). These companies have varying degrees of market share and profit margins, with D.R. Horton leading in market share.
Revenue
$3.3 trillion
Employees
10 million
Businesses
4 million
Wages
$615.4 billion
Economic and External Factors
The sector faces extensive regulations that vary based on location and government levels. The COVID-19 pandemic increased revenue volatility, but Paycheck Protection Program (PPP) loans aided the industry.
bottom of page