They are also looking to strengthen their insights and partnerships around emerging power-generation and cooling technologies, driving a competitive advantage as they engage with hyperscalers and data center developers. This change is driven by the explosive growth in AI and hyperscale computing, which are altering labor and resource allocation across the industry. According to a survey by Autodesk, nearly half of E&C firm executives classify their supply chains as “fragile due to geopolitical tensions,” a figure that continues to rise.11 In response to these challenges, E&C firms are shifting from ad hoc procurement to more systematic approaches. Against this backdrop, E&C firms may consider focusing on four key trends when planning their growth strategies. Meanwhile, digital transformation, data center expansion, and strategic mergers and acquisitions are reshaping project sourcing, financing, and delivery.
Post-pandemic recovery and investments in green technologies are expected to fuel this growth. Analysts project an annual growth rate of around 5% over the next five years, driven by rising demand for housing, infrastructure upgrades, and sustainable building construction practices. From residential building construction to infrastructure projects, the industry supports direct employment and stimulates growth in sectors like manufacturing and finance.
As societies progress, the demand for sustainable and resilient building construction practices increases, highlighting the industry’s role in shaping the future. Infrastructure projects include roads, bridges, and public facilities, vital for connectivity and services. The construction industry is a cornerstone of modern society, shaping landscapes and creating the infrastructure that supports our daily lives. Progress is being made internationally to decarbonise the sector including improvements to sustainable procurement practice such as the CO2 performance ladder in the Netherlands and the Danish Partnership for Green Public Procurement. Action is demanded https://home365.net/project-financing-features-and-essence.html from governments, standards bodies, the construction sector, and the engineering profession to meet the decarbonising targets.
Residential construction
In the United States, for example, in May 2023, the construction sector employed just over 7.9 million people, of whom 859,000 were laborers, while 3.7 million were construction trades workers (including 603,000 carpenters, 559,000 electricians, 385,000 plumbers, and 321,000 equipment operators). In the United States, construction productivity per worker has declined by half since the 1960s. As a sector, construction accounts for more than 10% of global GDP (in developed countries, construction comprises 6–9% of GDP), and employs around 7% of the total employed workforce around the globe (accounting for over 273 million full- and part-time jobs in 2014). The output of the global construction industry was worth an estimated $10.8 trillion in 2017, and in 2018 was forecast to rise to $12.9 trillion by 2022, and to around $14.8 trillion in 2030. Demolition is the discipline of safely and efficiently tearing down buildings and other artificial structures. Some projects may include elements that are designed for off-site construction (see also DfMA, prefabrication and modular building) and are then delivered to the site ready for erection, installation or assembly.
Materials and Sustainability Interpretation
Construction reached 380,000 people in 2022 with labor shortages hitting 65% of firms in 2023, while sustainability figures keep rising, including recycled materials making up 45% of aggregates. The E&C industry is at a pivotal moment, facing surging demand across sectors like data centers, grid-modernization megaprojects, and advanced manufacturing.17 This growth, fueled by several major federal legislative initiatives and programs, along with strong private investment, presents significant opportunities and formidable challenges. While the construction industry is a major economic driver, it also faces challenges such as workforce safety and sustainability. Sweden’s construction industry is lumbering toward sustainability, swapping concrete for wood and carbon for conscience with the strategic urgency of someone who knows they’re being graded on a very public curve. Elevated costs are also affecting both ongoing and future projects—with an 88.2 % YoY increase in project abandonment activity for August 2025; this has led developers to revisit budgets and adjust financial projections.9 Industry research indicates that increased tariffs on building materials like lumber could pose additional challenges to affordability.10
Persistent talent shortage: Leveraging digital and workforce innovation to unlock opportunities
Professionals including cost engineers, estimators and quantity surveyors apply expertise to relate the work and materials involved to a proper valuation. When applicable, a proposed https://construction-rent.com/the-second-stage-of-the-ocean-plaza-shopping.html construction project must comply with local land-use planning policies including zoning and building code requirements. The financial structure must be adequate to build the design provided and must pay amounts that are legally owed.
Shifting priorities: Growing focus on data centers and energy infrastructure to drive E&C’s next wave
- A separate report from BlackRock last month cited Labor Department forecasts that show employment in skilled trades will grow by 5.3% on average from 2024 to 2034 versus the overall rate of 3.1%.
- For example, Engineering News-Record (ENR), a US-based construction trade magazine, has compiled and reported data about the size of design and construction contractors.
- Depending on the type of project, mortgage bankers, accountants, and cost engineers may participate in creating an overall plan for the financial management of a construction project.
- This change is driven by the explosive growth in AI and hyperscale computing, which are altering labor and resource allocation across the industry.
Introduction The U.S. construction industry is a fundamental pillar of economic development, driving growth, job creation, and infrastructure enhancement. Executive Summary The U.S. construction industry employed 8.3 million workers in July 2024 and recorded $2 trillion in construction spending across the first half of the year. The show transforms Fortune’s trusted reporting into actionable, conversational, and entertaining insights for an emerging class of business leaders. Farley also warned the U.S. has overlooked the labor needed to build and sustain data centers and manufacturing facilities.
To fully capitalize on the digital dividend, firms should institutionalize data governance frameworks, invest in continuous workforce development, build ecosystem partnerships, and embed digital performance metrics throughout project delivery. Despite these advanced technologies, poor-quality data continues to frequently undermine the reliability of analytics and AI solutions,20 reducing the return on investment and limiting both operational and competitive advantage. E&C firms are increasingly leveraging advanced digital tools to boost productivity, protect margins, and adapt to rapidly changing market conditions. Interest rates, inflation, and consumer sentiment will likely be closely monitored by developers of manufacturing, retail, and office properties. Projects in early planning stages could be affected by signs of evolving government policies or economic slowdown. In August 2025, commercial and institutional planning activity increased by 30% year over year.14
Related Construction Assets
Each label reflects how much corroboration we saw for a figure — not a legal warranty or a guarantee of accuracy. Percentage of Indian construction firms using technology for project management in 2023 was 45% BIM collision detection saved U.S. construction firms $18,000 per project on average (2023) 3D printing of buildings in China in 2023 covered 20 million sqm
Construction Projects25 stats
Sami Alami is a managing director at Deloitte focused on creating value through tech- and AI-enabled operations and supply chain transformations, including the deployment of smart operations solutions for clients. In this role, she leads the applied AI strategic growth offering, helping Deloitte’s largest IP&C clients create value through the implementation of AI and data. With close to three decades of consulting experience in global finance and information technology transformation programs, Michelle Meisels leads the engineering and construction practice and helps clients integrate digital technologies with organizational and process standard practices. Commitment to sustainability will improve the industry’s environmental impact and drive economic benefits through operational efficiencies.
Financial planning ensures adequate safeguards and contingency plans are in place before the project is started, and ensures that the plan is properly executed over the life of the project. Accountants act to study the expected monetary flow over the life of the project and to monitor the payouts throughout the process. Depending on the type of project, mortgage bankers, accountants, and cost engineers may participate in creating an overall plan for the financial management of a construction project. Once construction is complete, any later changes made to a building or other asset that affect safety, including its use, expansion, structural integrity, and fire protection, usually require municipality approval. Other legal requirements come from malum prohibitum considerations, or factors that are a matter of custom or expectation, such as isolating businesses from a business district or residences from a residential district.
On construction sites, automation will become increasingly visible, partially addressing labor shortages, enhancing safety, and improving performance. AI-driven tools will optimize designs, automate calculations, and manage schedules in real time, enabling smarter and faster project outcomes. Persistent labor shortages, rising material costs, and economic uncertainty continue to challenge firms’ resilience. The current administration has announced plans for workforce reform33 and is directing all federal workforce programs to modernize, integrate, and realign to address critical workforce needs in emerging industries.34