Commercial Building Contractors NAICS 2362

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Industry Summary
The 40,344 Commercial building contractors in the US coordinate resources and manage the building process for industrial, commercial, and institutional projects. About 71% of contractors are sole proprietors or entities without workers on payroll. Most commercial building contractors rely heavily on subcontractors.
Dependence on Subcontractors
Commercial building contractors are dependent on subcontractors for specialized activities, such as electrical, plumbing, or mechanical work.
Competitive Pricing Environment
Most commercial construction jobs are competitive bidding situations, and price is a major deciding factor in which commercial contractor obtains the job.
Recent Developments
Aug 4, 2025 - Nonresidential Building Construction Spending Mixed
- The total value of nonresidential construction put in place declined by 0.1% in June 2025 compared to May, according to the US Census Bureau. Spending on nonresidential building projects was mixed in June. Growth was led by a 1.1% uptick in lodging spending, followed by educational (up 0.2%), and amusement and recreation (+0.2%). However, several segments on the nonresidential building construction subsector saw spending fall in June, including office (Down 1.2%), commercial (-0.7%), manufacturing (-0.5%), and healthcare (-0.2%). Associated Builders and Contractors (ABC) Chief Economist Anirban Basu said, “Nonresidential construction spending declined in June and has now contracted in 6 of the past 7 months.” He went on to say, “While ABC members remain optimistic about the second half of the year, according to ABC’s Construction Confidence Index, recent data pertaining to both the construction industry and the broader economy suggest weakness could persist in the months to come.”
- The domestic policy bill signed by President Trump on July 4, 2025, sunsets a tax credit program that could slow the burgeoning office conversion trend, according to Construction Dive. The new law repeals the Section 179D commercial building energy efficiency tax deduction. For nearly two decades, the deduction provided financial incentives for energy-efficient upgrades—such as HVAC and lighting improvements—that often served as a catalyst for broader renovations and conversions. Industry experts warn that without this federal support, property owners may be less inclined to invest in upgrades, especially in foreclosure or bankruptcy scenarios where risk mitigation is critical. The loss of 179D could stall office-to-residential conversions, reduce job creation in trades and engineering, and leave firms that invested in sustainability infrastructure without a viable path forward. The Biden-era Inflation Reduction Act made the 179D deduction permanent, but the new law requires the deduction to expire for projects beginning after June 30, 2026.
- Demand for building design services dropped in June from the prior month, as architectural billings remain soft, according to a July report by the American Institute of Architects (AIA). The AIA’s Architecture Billing Index (ABI) fell to 46.8 in June from May’s reading of 47.2. Any reading of 50 or more indicates growth in architectural billings. The score for new project inquiries rose to 53.6 in June compared to 51.4 in May, and the index for the value of new design contracts increased from 45.9 to 46.0. The AIA’s Chief Economist, Kermit Baker said, “Business conditions were soft nationwide in June, with a slight billing increase in the South for the first time since October. Other regions saw declining billings, though at a slower pace. While all specializations experienced softer billings, the decline slowed for commercial/industrial and institutional firms. Multifamily firms faced the weakest conditions, with further declines.”
- North American construction and engineering spending in 2025 is expected to grow by 1% after increasing an estimated 7% in 2024, according to FMI’s third-quarter 2025 North American Engineering and Construction Outlook. With growth of 32%, the data center subsector will lead 2025 nonresidential building construction, followed by amusement and recreation (6% growth over 2024), educational (+4%), and public safety (+4%). Commercial construction spending is expected to decline 4% in 2025 amid a 4% drop in warehouse demand, which accounts for more than half of annual commercial spending. Lodging construction spending is forecast to fall by 3%, and stubbornly high office vacancies are expected to hold new office construction to 2% growth in 2025.
Industry Revenue
Commercial Building Contractors

Industry Structure
Industry size & Structure
A typical commercial building contractor employs about 23 workers and generates $15.4 million annually.
- The commercial building contracting industry consists of 40,344 companies that employ 910,500 workers and generate $619.7 billion annually.
- About 70% of contractors are sole proprietors or entities without workers on payroll.
- Most commercial building contractors rely heavily on subcontractors.
- Large companies include Turner Corporation, Tutor Perini, Jacobs Engineering, and Gilbane Building Company.
Industry Forecast
Industry Forecast
Commercial Building Contractors Industry Growth

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