Despite Market Uncertainties, Construction Employment Increases In 281 U.S. Metros
The United States is currently the second largest construction market in the world, with a global market share of approximately 10%. The national construction equipment industry alone is a major contributor to the market share, as the industry is expected to grow 12% over a 10-year period from 2016 to 2026.
For decades, the construction sector wasn’t just essential for the actual designing and building of various structures, but for American employment as a whole. According to Construction Equipment Guide, from October 2017 to October 2018, construction employment has increased in a total of 281 U.S. metros.
Construction employment grew in 78% of the 358 U.S. metro areas; declined in 43 metros; and was unchanged in 34 metros.
“Construction employment has been increasing at a greater rate than overall employment in many metros,” said Ken Simonson, the chief economist of the Associated General Contractors of America. “But many contractors report they are having difficulty filling hourly craft worker positions, even though construction pay exceeds the average for the overall economy.”
The Houston, Texas metro area added the single most construction-related jobs over the last year with 25,600 new jobs (12%). Other cities that added a large amount of construction jobs include: Phoenix (16,700 jobs), Dallas (13,100 jobs), Orlando (11,700 jobs), and Midland (7,200 jobs).
The largest construction job losses during the 12 year timeframe occurred in Middlesex, New Jersey (losing 3,900 jobs), Baltimore (losing 2,100 jobs), and Sacramento (losing 1,500 jobs).
According to WLTX, as the country faces higher tariffs incoming from China, there could be a significant drop in construction-related jobs. With 28 million small businesses in the U.S., these tarrifs mean younger, smaller construction companies may have a rocky road ahead.
In October, China Jushi USA filed an exemption request for construction equipment needed to create a Columbia-based factory by 2019. The letter was sent to the U.S. Trade Representative, stating that the tariffs could cost a significant amount of both money and jobs.
“This would result in the loss of an additional 400 jobs (as each line requires approximately 400 employees) that are contingent on the completion of the second production line, as well as the loss of jobs to build the facility,” wrote China Jushi USA.
Additionally, the tariffs would impact $11 million worth of new construction equipment used to create the facility, which is more than 3 million square feet.
Though the immediate future is filled with uncertainness due to various tariff issues, unemployment ebbs and flows, and emerging technology; the fact that 281 U.S. metros are increasing their construction employment rates should be seen as a positive.
“The construction industry is improving the economies of metro areas nationwide, but those gains are at risk.” added Stephen E. Sandherr, CEO of the Associated General Contractors of America. “Public officials should promptly overhaul career and technical education to prepare more students for rewarding and high-paying careers in construction. Meanwhile, there is an immediate need for skilled construction workers from outside the United States.”
