The construction equipment industry is expected to grow 12% over a 10-year period from 2016 until 2026. As construction spending continues, however, those growth projections could increase even more. With a market share of around 10%, the United States is the second largest construction market worldwide and continues to grow.
According to Construction Equipment, construction spending increased 0.1% from June to July, and 5.2% for the first seven months of 2018. This uptick in spending — on materials for metal carports, commercial building materials, and more — is displaying a balanced growth in spending for the majority of the year.
“Contractors are optimistic that demand for projects will continue but many report that workforce shortages are leading to longer construction schedules and higher costs,” said Ken Simonson, chief economist of the Associated General Contractors of America (AGC).
As of 2016, the professional market for power tools reached $4.6 billion. Year-to-date spending through the first seven months of the year was 5.4% higher than in January through July 2017 for public construction and 5.2% for private construction. Additionally, private construction increased 7.7% for residential projects and 2.2% for nonresidential jobs.
“In the latest Autodesk-AGC of America Workforce Survey, firms overwhelmingly plan to hire more workers, but 80 percent of firms report difficulty filling hourly craft positions, leading to longer completion times for projects,” Simonson added.
According to CNBC, these construction spending increases lead to a 14-year high U.S. manufacturing industry activity.
The Institute for Supply Management (ISM) stated that its index of national factory activity jumped to 61.3 last month, the highest reading since May 2004. A reading above 50 indicates significant growth in manufacturing, which contributes roughly 12% of the U.S. economy.
Overall, spending on private construction projects slipped 0.1% in July after decreasing 0.5% in the month prior. Additionally, state and local government construction outlays advanced 0.6% in July after falling 1.6% throughout June.
The ISM has cautioned that the “nation’s employment resources and supply chains continue to struggle.”