US Construction Sector

The 801,000 construction sector establishments are involved in the clearing and preparation of land; building of structures and infrastructure; installation of mechanical systems, nonstructural components and finishings; and the remodeling and expansion of existing structures. The sector is segmented into construction of buildings (residential and nonresidential), heavy and civil engineering, and specialty trades.

Dependence on the Economy and Market

Demand for construction is highly dependent on economic health and can vary considerably across markets.

Seasonal and Weather-Related Factors

Seasonality and weather conditions affect project timelines and contractors’ ability to perform work.

Sep 6, 2026 - Builders See Rise in Mold-Related Lawsuits

• The Wall Street Journal reports that mold-related lawsuits are becoming a costly problem for US home builders as homeowners blame construction defects for moisture intrusion, property damage, and health problems. Tighter energy-efficiency standards can reduce a home's ability to dry out, making mistakes involving HVAC systems, windows, roofs, and ventilation more likely to lead to mold growth. Builders dispute many health claims and argue that testing methods and remediation estimates can vary widely. Still, legal exposure is rising. DR Horton's reserves for legal claims increased 57% from fiscal 2022 to fiscal 2025, reaching $1.1 billion, while Lennar's self-insurance reserve rose 21% in fiscal 2025 to $336.9 million. Lengthy mold litigation could raise builders' legal and construction costs, pressure profits, and contribute to higher home prices.
• Construction robotics are attracting major investment as contractors seek automation to ease labor shortages and handle increasingly large workloads, according to Construction Dive. Bedrock Robotics, Gravis Robotics, and FieldAI have raised nearly $1 billion combined, backed by investors including SoftBank, Nvidia, and Bill Gates. Adoption also appears to be accelerating, with a 2026 BuiltWorlds survey finding that contractor use of robotics increased 45% year over year, while pilot programs nearly tripled. Robots are already performing repetitive tasks such as layout, drilling, painting, bricklaying, and drywall work, although it is still early days for broader adoption. Experts say successful deployment will depend heavily on high-quality construction data. Large integrated contractors and specialized trade firms may be best positioned to invest directly, while midsized contractors are more likely to adopt proven technologies after their capabilities and financial benefits become clearer.
• Multifamily developer confidence weakened in the second quarter of 2026, according to the National Association of Home Builders’ (NAHB) latest Multifamily Market Survey. The Multifamily Production Index (MPI) dropped three points to 43 compared to the second quarter of 2025. The Multifamily Occupancy Index (MOI) decreased by 8 points to 74 over the same period. An MPI or MOI reading of 50 or more indicates that multifamily production or occupancy, respectively, is growing. Multifamily developers’ headwinds include volatility in building materials costs, high interest rates, and regulatory difficulties. While the NAHB expects the recently enacted 21st Century ROAD to Housing Act to help alleviate some of the building industry's challenges, the law's policies will take time to implement.
• The New York Times reports that the 21st Century ROAD to Housing Act represents the largest federal housing effort in a generation, but it is unlikely to reduce housing costs quickly because it provides limited funding and leaves key zoning and permitting decisions to state and local governments. The law encourages cities to allow denser development, speed approvals, and use federal grants for housing construction. It also eases inspection requirements for some subsidized units, protects new build-to-rent communities from investor restrictions, removes the permanent chassis requirement for manufactured homes, and directs HUD to study modular construction reforms. These measures could eventually support the US construction sector by expanding housing demand, lowering factory-built home costs, and encouraging more efficient building methods.

Industry size & Structure

The construction sector is comprised of 801,000 establishments that employ 8.3 million workers and generate $3.1 trillion in annual revenue, according to government sources.

• The construction sector represents 5% of the nation's Gross Domestic Product (GDP) and employs 5% of the country's workers.
• The specialty trade contracting segment is highly fragmented: the 50 largest specialty trade firms represent 7% of segment revenue. The 50 largest building construction firms represent 22% of segment revenue; the 50 largest heavy and civil works firms represent 26% of segment revenue.
• The construction sector has a high volume of independent contractors with no employees. The number of nonemployer establishments is about 948,568 in building construction, 40,315 in heavy and civil works, and 1.9 million in specialty contracting. The owner of nonemployer establishments typically performs the work or subcontracts labor for large or complex jobs.
• The construction sector shed 78,000 establishments in 2021, which equals about 8.5% of existing establishments, according to the Bureau of Labor Statistics. However, the industry added 98,000 new establishments, which is equivalent to 10.7% of existing establishments. As a result, the construction sector has an average growth rate of 2.2%.
• The construction sector is forecast to grow its employment base by 5.1% overall in 2025-2035, which is higher than the national average of 3.5% for all jobs, according to the Bureau of Labor Statistics.