Five-Year Outlook for U.S. Construction Industry Looks Brighter

Words: Dan KamysTimetric forecasts that the construction sector’s average annual growth is set to accelerate in real terms from 1.7% during the review period to 3.1% over the forecast period, increasing from US$1.0 trillion in 2014 to US$1.1 trillion in 2019 in real terms. Investments to modernise the country’s aging infrastructure and renewable energy sector alongside the growing population, which will generate demand for residential buildings, will be one of a number drivers of this growth. Residential construction was the largest market during the review period and will retain this position, mainly supported by the government’s plans to increase the budget allocation by 1.9% to US$46.7 billion in 2015. The budget will support homeownership, sustainable community development and access to affordable housing to protect homeless and vulnerable families. Moreover, the country’s total population is expected to increase from 321.2 billion in 2010 to 338.0 billion by 2020*, which is expected to further increase demand for housing over the forecast period. Energy and utilities will continue holding its position as the second largest market in the US construction industry. The government aims to increase the renewable energy in the country’s total electricity mix, from 9.8% in 2014 to 20.0% in 2020. It is also planning the installation of 10,000MW of renewable capacity in subsidised housing by 2020, and 3.0GW in military capabilities by 2025. Commercial construction will also support the growth of the construction industry and will expand over the forecast period driven by improving economic conditions, an increase in consumer spending, and government investment in tourism, office and retail buildings.
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