The Economic Impact of Construction in the United States and Michigan
The Economic Impact of Construction in the United States and Michigan Economic Impact of Construction:
• U.S. gross domestic product (GDP)—the value of all goods and services produced in the country—totaled $26.5 trillion at a seasonally adjusted annual rate in the 1st quarter of 2023; construction contributed $1.1 trillion (4.0%).
• In Michigan, construction contributed $23 billion (3.6%) of the state’s GDP of $645 billion.
• There were 919,000 construction establishments in the U.S. in the 1st quarter of 2023, including 24,600 in Michigan. (An establishment is a fixed business location; about 99% of construction firms have only one establishment.)
Construction Spending:
• Nonresidential spending in the U.S. totaled $921 billion in 2022 ($554 billion private, $367 billion public).
• Residential construction spending in the U.S. totaled $927 billion ($453 billion single-family, $110 billion multifamily, $355 billion improvements, $10 billion public).
• Private nonresidential spending in Michigan totaled $8.7 billion in 2022. State and local spending totaled $7.5 billion. (Totals are not available for residential, railroad, power, communication, or federal construction.)
Construction Employment (Seasonally Adjusted):
• Construction (residential + nonresidential) employed 7.9 million workers in July 2023, an increase of 198,000 (2.5%) from July 2022 and an increase of 4.8% from February 2020, the peak pre-pandemic month.
• Construction employment in Michigan in July 2023 totaled 191,800, an increase of 8,200 (4.5%) from July 2022 and an increase of 14,000 or 7.9% from February 2020.
• Contractors are having trouble filling positions, impeding the industry’s recovery. In the September 2023 AGCAutodesk Workforce Survey, 85% of firms had a hard time filling hourly craft positions. Construction Industry Pay:
• Construction jobs pay well. In Michigan, 4 out of the 5 most numerous construction occupations had median annual pay exceeding the median for all employees in 2022. (Half of workers earn more than the median; half earn less.)
Median Annual Pay for Selected Construction Occupations in Michigan, 2022
Source: Macrina Wilkins, Senior Research Analyst, AGC of America, macrina.wilkins@agc.org, from Bureau of Economic Analysis (GDP); Census Bureau (spending); Bureau of Labor Statistics (national and state employment, median wages); AGC (outlook survey). 56,180 September 18, 2023
