In the United States construction is one of the biggest industries and as such, it is constantly evolving with the economic climate of the world. While the industry dealt with a lot of problems after the COVID-19 pandemic it managed to overcome the problems that arose due to the coronavirus. Looking at the statistics for construction in 2022, you will notice that there is not just growth but also an increase in risk in the market as well.
People working in the construction industry know that in order to successfully complete a job you need reliable construction data. With construction data, contractors have an easier time making decisions regarding everything from the preconstruction phase to the payment collection. In order to make educated decisions about the future of their business, contractors use construction statistics. It is also easier for them to assess risk along with productivity with the help of the invaluable construction data available.
The Current Outlook for the Construction Industry
With the help of recent construction industry statistics contractors have an easier time determining how to move forward with the business. By looking at the different outlooks for the construction industry you can also predict future trends. Here we have assembled the following statistics in construction in order to help contractors make educated decisions regarding the future of their business.
The US Construction Industry
Recent data suggests that the construction industry in the United States based on the gross output had a net worth of $2.1 trillion last year.
The US construction industry was worth over $1.3 trillion in 2020 and employed over 7 million people. The residential construction market represented the largest segment of the US construction industry, accounting for approximately 60% of the total market size.
Global Construction Industry
The global construction market size was valued at $10.5 trillion in 2020. China was the largest construction market in the world, with a market size of over $2.3 trillion in 2020. The global construction equipment market size was valued at $130.5 billion in 2020. Despite the challenges that COVID-19 presented, construction equipment for sale was still in demand globally.
Building Material Costs
The pre-recession inflation and global supply chain issues that the construction industry is dealing with have skyrocketed the prices of construction building materials at different times in the last year. Although a lot of prices have since come down from their peak, on average construction building materials costs have risen from where they were in January, last year. As a result, US construction spending is affected, and a lot of contractors are unable to work on the projects that they bid on previously.
Credit and Payments in the Construction Industry
Late payment is a common issue in the construction industry, with some contractors reporting that they frequently receive payments 30 to 60 days past the due date. This can negatively impact the financial stability of small and medium-sized contractors, as they often rely on timely payments to meet their financial obligations and keep their businesses running. No matter what the general contractor’s hourly rate is, they should always be paid on time.
Last year only 12% of contractors said that they always got paid on time as per their contract, whereas 29% of contractors said that it took between 30 to 40 days for them to receive payment after invoicing. Another 21% of contractors said that it took between 41 to 60 days for them to receive payment and only 15% of construction businesses were able to get paid in full last year. In 2022, a whopping 75% of contractors claim that their retainage has been withheld from their payments on one or several projects
In some cases, contractors may be forced to take legal action to recover payments, which can be time-consuming and costly. It is important for construction contractors to have clear payment terms and to track payments in order to ensure that they are being paid on time. Additionally, some contractors may even choose to work with payment and credit protection services to help mitigate the risks associated with late payments.