25 Construction Facts Shaping the Industry

The construction industry, like many that rely on physical resources, stands to be significantly impacted by shifting political and economic conditions. While the Federal Reserve’s interest rate cuts in 2024 provided some relief, a shortage of skilled workers along with high costs for labor, land and materials remain. 

Despite these hurdles, the industry is expected to experience substantial growth, with global spending on construction projected to rise from $13 trillion in 2023 to $22 trillion by 2040. But how the industry will meet this demand remains unclear. 

We’ve put together a collection of some of the most interesting construction facts to give you a clearer picture of what’s driving the industry forward, the challenges it faces and what might be on the horizon. 

Construction Industry Overview

The global construction industry is expected to see an annual growth rate of 3.9 percent, outpacing the global GDP.

The Global Forecast for Construction to 2030 report from Global Construction Perspectives and Oxford Economics predicts an annual global construction growth rate of 3.9 percent, outpacing the global GDP. This growth is expected to be driven by countries recovering from economic instability and the ongoing industrialization and urbanization of emerging markets.

Construction will make up 13.5 percent of the global GDP. 

A whopping 13 percent of the global GDP in 2020 was attributed to the construction industry. This number is expected to reach over 13.5 percent in 2030.

Infrastructure is forecast to be the fastest growing sector for construction.

Infrastructure is expected to be the fastest-growing construction sector through 2030, with an average annual growth of 5.1 percent in global infrastructure construction from 2020 to 2025. This growth will be driven by high levels of government spending and the rapid development of major global infrastructure projects.

In March 2025, the Dodge Momentum Index (DMI) declined by 6.9 percent.

The DMI measures the value of nonresidential building projects going into planning, which can predict the spending in construction for nonresidential buildings for the following year. “Increased uncertainty around material prices and fiscal policies may have begun to factor into planning decisions throughout March,” said Sarah Martin, associate director of forecasting at Dodge Construction Network.

Construction spending on nonresidential buildings is expected to slow down into 2026.

After rising nearly 20 percent in 2023 and another 6 percent last year, construction spending on nonresidential buildings is expected to slow down this year and into the next. Panelists in The American Institute of Architects’ Consensus Construction Forecast projects gains of just 2.2 percent in 2025 and 2.6 percent in 2026.

High interest rates and inflation continue to impact both residential and commercial sectors. The tough lending market and ongoing slowdown in architecture firm billings are likely to persist throughout the year. However, construction investment, particularly from government funding, along with a potential decrease in interest rates, could offer some relief to the industry in the coming quarters.

Working in Construction

92 percent of construction companies are struggling to find qualified workers.

The labor shortage in the construction industry is becoming a bigger problem. ​​According to a workforce survey conducted by The Associated General Contractors of America (AGC), 94 percent of respondents report having openings for craft workers, and 85 percent have openings for salaried workers. The AGC blames the shortage on the lack of federal investment in workforce education and training, leading to higher costs, longer project timelines and a significant number of delays or cancellations.

The construction industry will require nearly 454,000 additional workers beyond its usual hiring needs. 

In 2025, the industry will need to hire nearly 454,000 additional workers, on top of regular hiring, to meet demand. This is assuming construction spending growth slows significantly.

The average hourly rate for construction workers in the U.S. is $39.24.

Hourly rates for construction workers have gone up nearly $1 per year since 2015. To address the ongoing labor shortage in the industry, 61 percent of firms have raised base pay for hourly craft workers, while 42 percent increased spending on training and professional development.

More than one in five construction workers are 55 or older.

Retirement is right around the corner for a large portion of the industry’s workforce, which threatens to exacerbate the labor shortage. Associated Builders and Contractors’ Chief Economist Anirban Basu stresses that “These are the most experienced workers and their departures are especially concerning.” 

Power Home Remodeling tops the list of Fortune’s Best Workplaces in Construction 2024.

The company employs 3,791 employees across 21 states and is the largest full-service exterior home remodeler in the country. The business prides itself on offering top-of-the-line leadership development programs and work environments. An impressive 96 percent of employees say it is a great place to work, soaring above the average workplace satisfaction rate of 57 percent. 

Industry Pain Points

27 percent of home building imports originate from China.

With the U.S. government placing tariffs on Chinese imports greater than 100 percent, this could adversely affect access to much-needed materials or cause them to skyrocket in price. Other important materials are sourced from Mexico and Canada. Roughly 70 percent of sawmill and wood imports are sourced from Canada, and 71 percent of lime and gypsum imports are sourced from Mexico.

41 percent of businesses cite equipment shortages as a leading cause of project delays.

Nearly half of firms have experienced delays from longer lead times or shortages of electrical equipment like transformers and switchgear, while 28 percent mention delays due to mechanical equipment such as HVAC systems. 

Luckily, there are tools that can help ease these delivery times. A computerized maintenance management system (CMMS) software like Coast, for instance, helps you keep track of your inventory, so you’re always equipped for the job. You can also use it to automate preventive maintenance scheduling, helping you to avoid unexpected delays and extend the lifespan of your equipment. 

More than one third of firms face government-related delays.

Construction is a heavily regulated industry, with many boxes to check before a project is given the go-ahead. Roughly 35 percent of companies point to delays related to approvals or inspectors, while 31 percent say they experience delays due to changes or halts by owners.

While a CMMS can’t eliminate the red tape, it can help to organize work orders, coordinate inspections and speed up the approval process.

Construction has the second most workplace deaths and the highest instance of injury of any industry.

The Bureau of Labor Statistics reports that construction has the second most workplace deaths and the highest instance of injury of any industry. Falls from dangerous heights account for more than a third of fatal construction accidents. 

76 percent of contractors report experiencing data integration challenges. 

In construction, key performance indicators (KPIs) are used to optimize processes and set comparison standards. About 76 percent of contractors admit they struggle to apply the data they collect. Without proper integration, they’re not able to accurately interpret analytics, determine project cost and profitability or anticipate changes in timeline.

Techʼs Influence on the Construction Industry

Uncrewed systems are being used to perform inspections while minimizing risks.

The use of drones in the construction industry has been growing at an annual rate of 239 percent. Drones allow construction crews to view the buildings from above without using ladders or lifts, reaching areas that would be too difficult to access otherwise. 

Many construction firms are turning to Building Information Modeling (BIM) technology for better decision-making and team collaboration.

According to a recent buildingSMART international survey, nearly half of respondents use BIM for the majority of their projects. The top reasons given for using BIM are faster issue resolution, improved collaboration, reduced costs and better visibility of design decisions. 

26 percent of construction firms are increasing their use of learning programs with strong online or video components.

To make up for the skills gap in training, many companies are turning to video conferencing software to help get new hires up to speed. Virtual classes and online training sessions are more inclusive options that help firms recruit more effectively. 

85 percent of construction companies say mobile technology is crucial to their operations.

The importance of mobile technology in construction has grown significantly, with 85 percent of firms now considering it “important” or “very important” to their operations. Smartphones, tablets and other mobile devices are streamlining processes from blueprint approval to post-construction monitoring. These tools also improve the safety of construction sites by enabling real-time communication and quicker incident reporting, which can help reduce injury risks and lower workers’ compensation costs.

29 percent of construction companies believe that AI and robotics will positively impact the industry.

Nearly a third of construction companies see AI and robotics having a positive impact on construction costs by automating manual tasks, reducing the likelihood of human error and improving the quality of construction along with worker safety and productivity. Apps like Coast help construction companies automate their operations with task management, team communications and inventory management features, all in one place. 

Take Coast customer Solmet Group for example. After a year using Coast, the manufacturer’s maintenance team now completes work orders five times faster than before. 

Future of Construction

44 percent of the current skill requirements in infrastructure are expected to evolve over the next five years.

As technology becomes increasingly integrated into all aspects of the construction industry, 44 percent of infrastructure skills are expected to change over the next five years. Demand is up for digital skills like data analytics, cloud computing and software development as well as soft skills such as people management, business and supplier management. This will likely make the recruitment process more challenging for companies trying to fill gaps in both traditional labor skills and those needed for a more digital, automated future.

By 2030, the average age of craft workers will be 46 years.

An aging workforce is another challenge. Roughly 41 percent of the construction workforce is expected to retire by 2031, creating a unique challenge for construction companies who need to replace these workers to keep their operations running. Recruitment efforts will need to find a balance between the valuable experience of older employees and the fresh skills and perspectives of younger workers.

Companies look to technology to address labor shortages and increase retention.

AI-powered automation, maintenance tracking and digital tools are helping companies to boost productivity, attract younger workers and help keep older ones by reducing physical strain and improving safety. AI technologies like robots or autonomous machines can take on physically demanding jobs, allowing workers to focus on higher skill tasks.

Big tech firms are set to invest more than a trillion dollars into data centers.

The growth of cloud computing, 5G and AI technology is driving more investment in data centers and tech hubs. A prime example of this trend is Meta’s $10 billion data center project in Louisiana.

34 percent of companies are focused on green buildings, factoring sustainability into their construction projects. 

The growing global focus on climate change is motivating construction companies to prioritize sustainability in their projects, processes and designs. A report from the World Green Building Council highlights the need for low-carbon solutions to reduce emissions throughout a building’s life cycle. Innovation, digital technologies, policy incentives and supportive regulations are all helping drive the industry’s shift toward net-zero emissions.

Triumphs & Challenges Shaping the Construction Industry

To sum it up, the current state of the construction industry is a bit of a mixed bag. The push for infrastructure and green building solutions, along with increasing adoption of technology like AI, drones and mobile tools, are helping streamline processes and improve worker safety. 

However, challenges such as labor shortages, rising costs of materials and land, and an aging workforce persist. These hurdles, coupled with the need for new skillsets and data integration, present ongoing obstacles for companies striving to meet demand. The future of the construction industry hinges on finding the delicate balance between traditional skills and technology.