Construction was one of the hardest hit industries in the American economy during the recession, but new numbers are showing that the industry is finally on the rebound.
The U.S. Department of Commerce recently released May numbers, revealing that the total construction industry grew 0.5 percent over the previous month to a $874.9 billion annual rate. The number also represents a 5.4 percent increase over May 2012 and is at its highest point since 2009, according to the U.S. Census Bureau.
Though the growth is slow (revised numbers show the industry only grew 0.1 percent in April), it may show signs of building. A Commerce Department press release points out that during the first five months of this year, a total of $326.2 billion was spent on residential and commercial building projects, an increase of 6.2 percent from the same period in 2012.
Broken down by types of building, public projects showed some sign of improvement during May after previously falling for three straight months. And while the private commercial real estate market continues to struggle, it is private residential building that is providing the largest boost to the industry.
The report shows that total residential building is at $328.6 billion, which is 1.2 percent higher than April 2013 and 22.7 percent higher than May of last year. This is in line with recent improvements in home building and home price trends.
The National Association of Home Builders (NAHB) recently reported that the number of metro areas in the country with positive housing markets rose by five in May to 263. This is based on the Improving Markets Index (IMI), which looks at metropolitan areas that have shown a rise in housing permits, employment and house prices for six consecutive months. Included in the list are areas in 49 states, as well as the District of Columbia. NAHB Chairman Rick Judson said the news represents the fifth month in a row that the IMI has shown that the housing market in over 70 percent of U.S. metro areas are improving.
All of this growth will create the need for more construction management leaders in the coming years. The U.S. Bureau of Labor Statistics (BLS) estimates that nearly 90,000 building project managers will be added between 2010 and 2020, with all of them holding at least an associate’s degree. The median pay for these positions in 2010 was over $83,000 per year.
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