Grace EllisEquip Your Project With the Right Stats for Success
Construction industry statistics and data are playing an increasingly important role in the building sector. From measuring bid-to-win ratio, to how much a project is over budget or schedule, and KPIs, the more numbers you can put behind your work, the better. Data not only allows for more visibility into the state of a particular project, but relevant industry statistics and facts can provide valuable information needed to make important future decisions regarding preconstruction planning, productivity tools, risk assessment, and workforce efficiency.
Undoubtedly, the construction industry is very complex. Although project needs are increasing worldwide, productivity is declining—but how is this even possible if construction demand is gaining momentum worldwide?
Below, we’ll help you make sense of this trend, providing you with all the important construction industry statistics you need to understand the current state of affairs, as well as how poor productivity and increasing costs are actually inhibiting individual project growth. Additionally, we’ll explore how your company and project can avoid becoming another statistic through the power of technology and construction productivity tools.
After reviewing these construction industry statistics, you should be able to:
- Thoroughly understand the state of the industry and construction workforce
- Leverage data to increase project productivity and reduce costs
- Learn how mobile technology and digitization holds the key to increasing industry-wide efficiency
Whether you need a refresh on current trends or are looking for solid data to bring to your project manager or owner, we hope to equip you with the ultimate 100 construction industry statistics that you need for your next project’s success. Looking to grab a fact fast? Here are key categories so you can quickly locate the most relevant construction industry statistics to your project:
State of the Industry – The Future Is Bright
Over Time and Over Budget Is a Common Theme
Labor Shortage Is an Industry Wide Concern
Scope of Work and Changes Are Impacting Risk
Rework Has Become an Expensive Standard
A Paper Based Industry but Mobile Is Making Waves
Construction Software and Technology Has Room to Grow
State of the Industry – The Future Is Bright
- Construction is 14.7% of global GDP—up from 12.4% in 2014. [GCP] | Click to Tweet
- $1.32 trillion is the worth of U.S. construction industry in 2018. [Construction Economic Forum] | Click to Tweet
- $57 trillion in infrastructure is needed by 2030 to keep up with global GDP growth. [McKinsey Global Institute] | Click to Tweet
- 1.2 million new housing units planned annually in the U.S. — up from 583,000 in 2009. [Census Bureau] | Click to Tweet
- Estimated 85% growth in the volume of construction output to $15.5 trillion by 2030. [PWC] | Click to Tweet
- 3.6% is the estimated growth of global construction in 2018. [IMF] | Click to Tweet
- Estimated 11% increase in U.S. 2018 commercial construction. [FMI] | Click to Tweet
- 72% of construction CEOs expect to increase revenue in 2018. [ENR] | Click to Tweet
- 93% of contractors expect to see equal or greater profit margins in 2018. [CCI] | Click to Tweet
- 99% of contractors feel confident for the demand for commercial construction in 2018. [CCI] | Click to Tweet
- 58% of owners said they’ve used or plan to use design-build, moving away from traditional design-bid-build. [FMI] | Click to Tweet
- 6% increase in modular construction by 2022 is predicted. [UA Builders] | Click to Tweet
Over Time and Over Budget Is a Common Theme
- Over 50% of engineering and construction professionals report one or more underperforming projects in the previous year. [KPMG] | Click to Tweet
- In 2018, a 2-3% increase in overall construction costs is expected in the U.S. [Oldcastle Building Solutions] | Click to Tweet
- Additionally, 3-4% higher construction labor costs are predicted. [Oldcastle Building Solutions] | Click to Tweet
- Estimated 2-3% increase in material costs in the U.S. in 2018. [Oldcastle Building Solutions] | Click to Tweet
- 69% of owners say poor contractor performance is the single biggest reason for project underperformance. [KPMG] | Click to Tweet
- Just 25% of projects came within 10% of their original deadlines in the past 3 years. [KPMG] | Click to Tweet
- And only 31% of all projects came within 10% of the budget in the past 3 years. [KPMG] | Click to Tweet
- Large projects typically take 20% longer to finish than scheduled and are up to 80% over budget. [McKinsey Global Institute] | Click to Tweet
- 98% of megaprojects become delayed or over budget. [McKinsey Global Institute] | Click to Tweet
- 77% of megaprojects around the globe are 40% or more behind schedule. [McKinsey Global Institute] | Click to Tweet
- U.S. $42.8 million was the global average value of construction disputes. [Arcadis] | Click to Tweet
- 14 months was the global average length of construction disputes. [Arcadis] | Click to Tweet
- 45% of construction professionals report spending more time than expected on non-optimal activities. [PlanGrid + FMI] | Click to Tweet
Labor Shortage Is an Industry Wide Concern
- Percentage of young construction workers declined by 30% from 2005-2016. [BuildZoom] | Click to Tweet
- 40% of construction jobs were lost between 2006-2011 due to the recession, and industry has struggled to get back since then. [eSUB] | Click to Tweet
- 56% of builders reported that they were suffering due to the effects of the skilled labor shortage. [National Association of Home Builders] | Click to Tweet
- 200,000 unfilled construction positions in 2016 alone. [The Bureau of Labor Statistics] | Click to Tweet
- 21.4% industry wide turnover rate, making it one of the highest rates of all industries. [Bureau of Labor Statistics] | Click to Tweet
- 16-20% of an individual’s base salary is the average cost of a turnover. [American Progress] | Click to Tweet
- 26% of construction workers say they are frustrated by the lack of tools they need to do their jobs better. [TINYpulse] | Click to Tweet
Workforce at a Glance
- In 2017, 210,000 jobs were added in the industry, a 35% increase from 2016. [The Bureau of Labor Statistics] | Click to Tweet
- More than 180 million people work in construction around the world. [WEIGO] | Click to Tweet
- 42 years old is the average age of a U.S. construction worker, one year older than the average age of the workforce. [NAHB] | Click to Tweet
- Construction accounts for only 4% of workers but 21% of workplace-related deaths in the U.S. [The Bureau of Labor Statistics] | Click to Tweet
- 16% increase in U.S. construction workers deaths in 2015 over 2012. [The Bureau of Labor Statistics] | Click to Tweet
- Only 13% of construction firms are women owned. [Womenable] | Click to Tweet
- 57% of contractors expect to hire more workers in the next 6 months. [CCI] | Click to Tweet
- Only 9.1% of the construction workforce is female. [NAWIC] | Click to Tweet
Problems in Productivity
- $1.63 trillion could be saved annually from infrastructure productivity changes. [McKinsey Global Institute] | Click to Tweet
- 35% of construction professionals time is spent (over 14 hours per week) on non-productive activities including looking for project information, conflict resolution and dealing with mistakes and rework. [PlanGrid + FMI] | Click to Tweet
- In all, non-optimal activities will cost the U.S. construction industry over $177 billion in labor costs in 2018 alone [PlanGrid + FMI] | Click to Tweet
- 50% or more impact on productivity as a result of issues with construction logistics. [MCAA] | Click to Tweet
- 10% impact on productivity as a result of late crew build-up. [Whirlwind Steel] | Click to Tweet
- 50% variation in productivity of two groups of workers doing identical jobs on the same site and at the same time. This gap in productivity was found to vary by 500% at different sites. [Sourceable] | Click to Tweet
- Only 11% of contractors consider jobsites to be very efficient. [CCI] | Click to Tweet
- 30.9% of construction industry professionals say that the top reason for miscommunication is unresponsiveness to questions/requests. [PlanGrid + FMI] | Click to Tweet
Scope of Work and Changes Are Impacting Risk
- Average of 35% of all construction projects will have a major change. [Project Analysis Group] | Click to Tweet
- Up to 30% of initial data created during design and construction phases is lost by project closeout. [Emerson] | Click to Tweet
- 82% of owners feel they need more collaboration with their contractors. [KPMG] | Click to Tweet
- 78% of engineering and construction companies believe that project risks are increasing. [KPMG] | Click to Tweet
- 43% of construction firms prioritize immediate financial goals over organizational resilience. [Constructing Excellence] | Click to Tweet
- 34.4% say the top cause of poor project data and information is erroneous or incorrect project data. [PlanGrid + FMI] | Click to Tweet
Rework Has Become an Expensive Standard
- Up to 70% of total rework experienced in construction and engineering products are a result of design-induced rework. [Quality] | Click to Tweet
- 52% of rework is caused by poor project data and miscommunication. [PlanGrid + FMI] | Click to Tweet
- Meaning, $31.3 billion in rework will be caused by poor project data and miscommunication in the U.S. alone in 2018. [PlanGrid + FMI] | Click to Tweet
- Roughly 4-6% of total project cost is the median cost of rework—but only taking into consideration direct cost or reported rework. [Navigant Construction Forum] | Click to Tweet
- 9% of total project cost is closer to the actual total cost of rework—considering both direct and indirect factors combined. [Navigant Construction Forum] | Click to Tweet
- As much as $4.2 billion a year in the U.S. is the cost of rework caused by poor document control. [Seattle Government] | Click to Tweet
A Paper Based Industry but Mobile Is Making Waves
- 40% of construction companies are still using paper plans on the job. [JB Knowledge] | Click to Tweet
- Nearly 50% of the construction professionals manually prepare and process daily reports. [JB Knowledge] | Click to Tweet
- But only 18% of firms reported consistently using mobile apps to access project data and collaborate. [PlanGrid + FMI] | Click to Tweet
- 75% of construction companies use cloud storage. [CITE + Dropbox] | Click to Tweet
- 75% of construction companies provide PMs and field superintendents with mobile devices. [PlanGrid + FMI] | Click to Tweet
- 77% of contractors and 65% of owners use mobile technology to complete their construction and engineering projects. [KPMG] | Click to Tweet
- 36% of construction firms use 5 or more mobile business apps to complete projects. [Canvas] | Click to Tweet
- However, only 29% use apps routinely on all their projects. [KPMG] | Click to Tweet
Opportunity for Digitization
- The construction industry is one of the least digitized industries. [McKinsey Global Institute] | Click to Tweet
- Nearly 60% of construction companies are not investigating in any new technologies. [JB Knowledge] | Click to Tweet
- 52% consider the needs of field staff a top consideration for investing in technology. [PlanGrid + FMI] | Click to Tweet
- But only 28% actually receive feedback from field staff before investing in technology. [PlanGrid + FMI] | Click to Tweet
- Within 10 years, full-scale digitization could lead to savings between $0.7-1.2 trillion (13- 21%) in the Design & Engineering and Construction phases and $0.3-0.5 trillion (10-17%) in the Operations phase. [World Economic Forum] | Click to Tweet
- 40% of construction firms say new technology has not been implemented due to lack of support, followed closely by budget concerns at 37% and employee hesitance at 32%. [JB Knowledge] | Click to Tweet
- 57% of construction professionals reported they were “considering” using worksite tracking technology. [JB Knowledge] | Click to Tweet
- 36% of construction professionals cited the reason technology failed was because of poor fit with current processes and procedures. [PlanGrid + FMI] | Click to Tweet
- AI has the potential to increase the construction industry’s profits by 71% by 2035. [Accenture] Click to Tweet
Construction Software and Technology Has Room to Grow
- The construction workflows most dependent on spreadsheets are Estimating at 70%, Accounting 59% and Project Management at 46%. [JB Knowledge] | Click to Tweet
- 30% of construction professionals say “none” of the software applications they use to integrate. [JB Knowledge] | Click to Tweet
- 28% reported that their construction company does not bid on projects involving BIM. [JB Knowledge] | Click to Tweet
- Only 27% reported having a dedicated BIM/VDC department. [JB Knowledge] | Click to Tweet
- 51% of contractors currently use BIM software. [Software Connect] | Click to Tweet
- But 59% of BIM adopters report that they are less than thrilled with their software. [Software Connect] | Click to Tweet
- 61% report BIM processes reduced project error. [Dodge Data and Analytics] | Click to Tweet
- And 55% report BIM processes reduced the time required for communications. [Dodge Data and Analytics] | Click to Tweet
- Additionally, 82% of BIM users report a positive return-on-investment. [Dodge Data and Analytics] | Click to Tweet
- 38% of construction companies reported that they are not experimenting with emerging technology. [JB Knowledge] | Click to Tweet
- Only 18% of small to midsize construction companies are currently using drones for photogrammetry and mapping. [Software Connect] | Click to Tweet
- Just 4% of contractors use 3D printing technology. [Software Connect] | Click to Tweet
- 59% of companies state that their workforce doesn’t have the skills needed to work with BIM. [CIOB] | Click to Tweet
Use Construction Industry Statistics Wisely
With the help of data and technology, the industry is poised for big changes in the coming years—will you be another failed construction industry statistic or an outlier moving the needle? Accessing the right information and embracing innovation not only benefits your company and project’s ROI, but the whole industry wins as a result.
Which construction industry statistics are the most meaningful to your business? Share your thoughts in our comments section below.
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