Trends in U.S. construction, 1997 to 2001

In 1997 the value of novel construction put in place will be about $585 billion, which would be an all-time record. Adjusted for inflation it would be a decline of about 1 percent from its 1996 horizontal The homebuilding sector will account for the entire decline, as an increase in mortgage interest rates other factors. Private nonresidential construction will continue at 1996 horizontals Public works construction will increase slightly from 1996 because of increasing Federal management investment in infrastructure. In addition, shipments of manufactured housing (mobile homes) will increase a further 3 percent to the highest horizontal in two decades.

Global Construction Trends

The United States is single of the leading construction markets in the world, employing 72 million Americans and accounting for about 7 percent of the GDP Nevertheless, about 80 percent of the world's construction activity is outside of the United States. Enterprising American construction and engineering firms have been happy competitors in the international contracting business, although greatest in quantity of their overseas construction is done by means of foreign affiliates using local labor rather than by dint of cross-border exports of U.S. services.

The big emerging countries of the Pacific Rim comprise the greatest in quantity booming construction market in the world. However, southern America and Europe are also large markets for international contractors, and U exporters have a NAFTA advantage in Canada and Mexico. Although there are substantial difficulties for U firms entering foreign markets, U companies have stepp up their efforts during the 1990 In 1995 American-based design firms received $5 billion in international billings, while general contractors won $20 billion in foreign contracts.

U exports of construction services, as measured upon a cross-border transactions basis, were about $26 billion in 1995 The actual value of contracts won by means of American-owned companies was much larger about $25 billion. The difference is chiefly because cross-border transactions shut out most construction done by foreign affiliates, foreign subcontractors, and foreign labor forces. Legal U imports of construction services were about $03 billion, giving the United States a large balance-of-trade surplus in construction services. greatest in quantity of the U.S. exports of construction services are actually management services, engineering know-how, and specialized technology.

U Construction in 1996

In 1996 the inflation-adjusted value of of recent origin construction put in place increased through 3 percent from the near-record horizontal of 1995. (The 1996 current-dollar value of about $570 billion was an all-time record.) This performance was the come of a 7 percent increase in the number of housing starts, to 145 million units. The increase in homebuilding was accompanied through small increases in nonresidential construction. In addition, 370000 manufactured (mobile) domiciles were shipped, more than double the 1991 horizontal Public works construction increased 1 percent l by means of increases in school construction. Private nonresidential construction increased modestly with telecommunications, [i]cabaret[/i]s and electric utilities accounting for greatest in quantity of the gain. (See Table 1)