The construction industry in the U.S. is one that continues to be profitable, according to IBISWorld. Despite experiencing low revenues in 2011, the commercial building construction industry, in particular, benefitted from the rising demand for office spaces. It has been growing, albeit at a slower pace due to a number of circumstances that involve tight credit markets, high unemployment rates, and capped consumer spending.
Fortunately, with the burst in commercial construction, consistent corporate profit, and sustained growth in consumer spending, the industry will continue to gain revenue in the coming years.
Construction Industry Trend
Strategic construction development is the primary trend in the U.S.' construction industry. The global economic shifts are pushing construction companies to strategize developments. In the U.S., the rising demand parallels rising construction costs. These expenses cover employment, building costs, wages, and productivity. And with these strategic construction investments in 2016, the industry will grow at a rate faster than the economy.
Software for costing construction expenses is among the benefits of increasing reliance on technology as a strategy to improve operations. It provides speed and cost-effective solutions to construction companies. Technological advancements, after all, are congruent to an economy’s growth.
FMI, for instance, provided an overview of the U.S. markets construction industry for 2016. The publication details how most firms have regained revenue in recent years. This affirms IBISWorld’s market research report. Also, it is more than likely that the prices of materials will drop while wages continue to drive construction costs due to a shortage in skilled workers.
What the Numbers Say
As the construction industry is a strong indicator of the U.S. economy’s strength, it is a good sign that the industry’s growth has been set in motion.
Conclusively, developers and construction companies will keep on building. The apparent trend, though, will be caution. Assessing development strategy is the initial concern, but with many opportunities, the industry continues growing at a rate of 7 to 8 percent.