DUBLIN–(BUSINESS WIRE)–The “Construction in United States of America (USA) – Key Trends and Opportunities to 2024” report has been added to ResearchAndMarkets.com’s offering.
The publisher has revised its forecasts upwards for the US construction industry to 1.5% in 2020 and -0.6% in 2021, when compared to the previous projections of -1.1% and -0.8%, respectively, as investment in the residential construction market has risen more sharply than previously anticipated.
Meanwhile, recent news of successful COVID-19 vaccine developments suggests that related restrictions on economic activity will diminish in 2021. Furthermore, a less disruptive foreign trade environment under the new President-elect Joe Biden’s administration could benefit the sector from lower tariffs, which should somewhat limit the rise of construction material costs, which have increased substantially under the Trump administration.
The residential construction market has outperformed the wider economy and bounced back from the initial shock of the COVID-19 outbreak on the economy, which has left millions of people out of work. The US residential market continues to be supported by record-low mortgage rates and the significant shift in remote working, which have prompted many renters and first-time buyers, who held on to their jobs and wealth, to look for more affordable and larger living spaces in lower density areas such as suburbs, exurbs and rural communities.
According to Freddie Mac, mortgage rates remain at record lows, with the weekly average rate on a 30-year fixed mortgage standing at 2.71% as of December 10th.
Data from the US Census Bureau showed that the total value of construction put in place in the US rose by 3.7% YoY in October 2020, after increasing by 1.9% in the previous month (the latest data available at the time of writing). In cumulative terms, construction spending grew by 4.3% in the first ten months of 2020, compared to the same period in 2019.
Spending on residential construction projects continued to rise sharply in October, posting a Y-o-Y increase of 14.6%, after increasing by 11.6% in September and 11.7% in August, while spending on non-residential construction fell for the fourth consecutive month, registering a Y-o-Y decline of 3.7%, up from -4.4% in September.
However, uncertainty remains about how long the expansion in the housing market can continue. Several states and local government have imposed new lockdowns and restrictions on businesses amid a resurgence in new COVID-19 cases, and this has paralyzed business activity in many parts of the country.
The resulting weak demand could lead to a new wave of job losses, which could weigh on the economy and slow growth of the sector. On the whole, the publisher expects the US construction industry to fall marginally in 2021, and grow at a moderate pace over the remainder of the forecast period (2022-2024), as the wider economic impact stemming from the COVID-19 disruption will constrain new investment.
This report provides detailed market analysis, information, and insights into the US construction industry, including –
- The US construction industry’s growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the US construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
- Historical (2015-2019) and forecast (2020-2024) 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 the publisher’s 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 the publisher’s critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.
Key Topics Covered:
1 Executive Summary
2 Construction Industry: At-a-glance
3.1 Economic Performance
3.2 Political Environment and Policy
3.4 COVID-19 Status
4. Construction Outlook
4.1 All Construction
4.2 Commercial Construction
4.3 Industrial Construction
4.4 Infrastructure Construction
4.5 Energy and Utilities Construction
4.6 Institutional Construction
4.7 Residential Construction
5. Key Industry Participants
6. Construction Market Data
For more information about this report visit https://www.researchandmarkets.com/r/2syzdy
Laura Wood, Senior Press Manager
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