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Construction in the US - Key Trends and Opportunities to 2023
Summary
Following weak growth in 2017, construction growth in the US accelerated in 2018, owed in part to corporate tax cuts and increased infrastructure investment by state and local governments. As a result, the country’s construction industry grew by 2.2% in real terms in 2018, compared to 0.4% in 2017. However, growth is projected to decelerate this year to 0.5% in 2019, largely due to a decline in residential investment and heightened policy uncertainty from the recent escalation of the US trade war with China, which is weighing on business sentiment and holding back investment in major construction projects.
On 1st August, President Donald Trump announced that he would impose a new 10% tariff on a further US$300 billion of imported Chinese goods, ranging from clothes to smartphones, marking a sharp escalation of the ongoing trade war between the two countries. This new round of tariffs is in addition to the current tariffs of 25% on US$250 billion of Chinese imports. Already, construction companies across the country are shifting supply chains and delaying capital expenditure as a result of the previous US tariff increases on Chinese products and foreign metals. This latest announcement of tariffs on Chinese imports, together with the effects of previous tariffs, will further undermine business confidence, and likely lead to weaker construction growth.
Activity in the US residential construction market - which accounts for almost 42% of the industry’s total value - softened significantly in 2018, and has since struggled to gain traction, with construction put in place contracting by an average of 8.2% (in seasonally adjusted annual rates) in the first six months of 2019, according to the US Census Bureau. Growth is expected to recover to a compound annual growth rate (CAGR) of 1.1% over the remainder of the forecast period, supported by rising investments in infrastructure and energy and utilities projects.
The total construction project pipeline in the US including all mega projects with a value above US$25 million - stands at US$852.2 billion. The pipeline, which includes all projects from pre-planning to execution, is relatively skewed towards late stage projects, with 58.7% of the pipeline value being in projects in the pre-execution and execution stages as of October 2019.
Scope
This report provides a comprehensive analysis of the construction industry in the US. It provides -
Reasons to Buy
Summary
Following weak growth in 2017, construction growth in the US accelerated in 2018, owed in part to corporate tax cuts and increased infrastructure investment by state and local governments. As a result, the country’s construction industry grew by 2.2% in real terms in 2018, compared to 0.4% in 2017. However, growth is projected to decelerate this year to 0.5% in 2019, largely due to a decline in residential investment and heightened policy uncertainty from the recent escalation of the US trade war with China, which is weighing on business sentiment and holding back investment in major construction projects.
On 1st August, President Donald Trump announced that he would impose a new 10% tariff on a further US$300 billion of imported Chinese goods, ranging from clothes to smartphones, marking a sharp escalation of the ongoing trade war between the two countries. This new round of tariffs is in addition to the current tariffs of 25% on US$250 billion of Chinese imports. Already, construction companies across the country are shifting supply chains and delaying capital expenditure as a result of the previous US tariff increases on Chinese products and foreign metals. This latest announcement of tariffs on Chinese imports, together with the effects of previous tariffs, will further undermine business confidence, and likely lead to weaker construction growth.
Activity in the US residential construction market - which accounts for almost 42% of the industry’s total value - softened significantly in 2018, and has since struggled to gain traction, with construction put in place contracting by an average of 8.2% (in seasonally adjusted annual rates) in the first six months of 2019, according to the US Census Bureau. Growth is expected to recover to a compound annual growth rate (CAGR) of 1.1% over the remainder of the forecast period, supported by rising investments in infrastructure and energy and utilities projects.
The total construction project pipeline in the US including all mega projects with a value above US$25 million - stands at US$852.2 billion. The pipeline, which includes all projects from pre-planning to execution, is relatively skewed towards late stage projects, with 58.7% of the pipeline value being in projects in the pre-execution and execution stages as of October 2019.
Scope
This report provides a comprehensive analysis of the construction industry in the US. It provides -
- Historical (2014-2018) and forecast (2019-2023) 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
Reasons to Buy
- Identify and evaluate market opportunities using standardized valuation and forecasting methodologies.
- Assess market growth potential at a micro-level with over 600 time-series data forecasts.
- Understand the latest industry and market trends.
- Formulate and validate strategy using critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.
Note: Product cover images may vary from those shown
1 Executive Summary2 Construction Outlook: At-A-Glance3 Latest News And Indicators
4 Key Drivers And Risks
5 Construction Outlook
6 Key Industry Participants
7 Appendix
8 About The Author
List of Tables
List of Figures
Note: Product cover images may vary from those shown
