DUBLIN--(BUSINESS WIRE)--The "United States of America (USA) Construction Market Size, Trends and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2022-2026" report has been added to ResearchAndMarkets.com's offering.
The US construction industry contracted by 1% in real terms in 2021, compared to an annual growth of 1.5% in 2020. The industry suffered a worse than expected outturn in Q4 2021, with real gross output of the construction industry contracting by 4.5% year on year (YoY) in the quarter, according to the US Bureau of Economic Analysis. Reflecting the impact of higher construction materials costs, in nominal terms there was an 8.3% increase in the total value of construction put in place in 2021, according to the US Census Bureau.
The industry is expected to expand by 4.5% in real terms in 2022, supported by investments in transport, renewable energy, water, and housing projects. In mid-March 2022, Mr. Joe Biden signed a $1.5 trillion spending package for FY2022 (October 2021 to September 2022), that funds the government until September 2022. Of the total, $782 billion is allocated for defense funding - a 5.6% increase compared to the defense spending of the previous fiscal year, and $730 billion in non-defense funding - a 6.7% increase compared to the allocation in FY2021.
The package includes an allocation of $284.6 billion for military construction and veterans affairs, including an allocation of $127.6 billion in discretionary funding for programs like veterans' healthcare and military construction; $234.2 billion for agriculture, rural development, food and drug administration, and related agencies; this includes an allocation of $4 billion for broadband access - in addition to $65 billion earmarked as part of the bipartisan infrastructure bill; $81 billion for the transportation, housing and urban development sector, and $55 billion for the energy and water department - this includes $14 billion in investments in clean energy and water infrastructure projects. Additionally, the package also contains $13.6 billion in humanitarian and security assistance to Ukraine
The construction industry's output in the early part of the forecast period could be affected by subdued investor confidence amid a steep rise in construction costs. According to the US Bureau of Labor Statistics, construction material costs were up 1.2% in February and 23.5% YoY. This increase is attributed to rising inflation, supply chain disruption, and labor shortages, among others.
The price of softwood lumber had been rising sharply after the US doubled tariffs on Canadian lumber and wildfires disrupted lumber production. In addition to this, the ongoing Russia-Ukraine crisis could further pose a significant downside risk to the US construction industry's outlook in the short term.
The ongoing crisis may further worsen the global semiconductor chip shortage, as several countries had imposed sanctions on Russia. Russia is a key supplier of rare metals like palladium, which is one of the main resources used in the production of semiconductors.
Moreover, Ukraine supplies most of the US' semiconductor-grade neon, which is key gas integral to lasers used in the chip making process. In addition to this, the rise in COVID-19 cases in China, and the subsequent tightening of restrictions in several Chinese cities, could further worsen global semiconductor shortages.
Scope
- Historical (2017-2021) and forecast (2022-2026) 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
Key Topics Covered:
1 Executive Summary
2 Construction Industry: At-a-Glance
3 Context
3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 COVID-19 Status
3.5 Risk Profile
4 Construction Outlook
4.1 All Construction
- Outlook
- Latest news and developments
- Construction Projects Momentum Index
4.2 Commercial Construction
- Outlook
- Project analytics
- Latest news and developments
4.3 Industrial Construction
- Outlook
- Project analytics
- Latest news and developments
4.4 Infrastructure Construction
- Outlook
- Project analytics
- Latest news and developments
4.5 Energy and Utilities Construction
- Outlook
- Project analytics
- Latest news and developments
4.6 Institutional Construction
- Outlook
- Project analytics
- Latest news and developments
4.7 Residential Construction
- Outlook
- Project analytics
- Latest news and developments
5 Key Industry Participants
5.1 Contractors
5.2 Consultants
6 Construction Market Data
7 Appendix
For more information about this report visit https://www.researchandmarkets.com/r/mcgmc5
