Commercial Building Construction in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: July 2024
NAICS 23622aRevenue
$293.2bn
Past 5-Year Growth
Profit
$XX.Xbn
Employees
325k
Businesses
70,540
Wages
$XX.Xbn
Commercial Building Construction in the US industry analysis
Commercial building construction contractors have expanded modestly over the past five years. The outbreak of COVID-19 began a downward trend for contractors as economic closures and uncertainty reduced construction activity, with declines peaking in 2021. Commercial construction activity ramped up in 2022 and 2023 despite rate hikes, but much of this growth has been because of higher construction material costs. While office rental vacancies increased, the total value of office construction increased despite less construction work being done. Also, high interest rates have disincentived new construction activity. Overall, industry revenue has been increasing at a CAGR of 0.2% to total an estimated $293.2 billion in 2024, with revenue estimated to drop 2.1% in 2024.
Trends and Insights
- Pandemic woes, climbing interest rates and supply challenges have hit commercial construction contractors. Nonetheless, rising activity in the construction of the warehouse, retail and food sector has provided some buoyancy against these tough conditions.
- Warehouses and retail space construction have driven growth. However, evolving consumer habits, the rise of telecommuting and costly construction have been traditional malls, offices and newly built accommodations.
- The Southeast houses the most commercial building contractors. Its large population provides a vast market, with Florida playing a key role because of its sizable population.
- No contractor holds a sizable portion of the market. Top contractors only command minor market shares, revealing a highly competitive landscape spanning a broad spectrum of contractors.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 0.2 % over the past five years, to reach an estimated $293.2bn in 2024.
Trends and Insights
The pandemic and interest rates have impacted performance
- The COVID-19 pandemic sent commercial building construction revenue into decline, with the largest recent drop in industry revenue occurring in 2021. Work stoppages, declining corporate profit, rising unemployment and falling consumer spending all drove down commercial building construction revenue during the height of the pandemic.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
More favorable economic conditions to bolster expansion
- Accelerated growth in disposable income and corporate profit will greatly benefit commercial building construction contractors. Interest rate cuts will trigger the expansion of stores, restaurants and other commercial buildings, providing a positive impetus for commercial building construction contractors. Increased disposable income levels, coupled with a favorable economic climate, will drive the expansion of commercial building spaces.
Biggest companies in the Commercial Building Construction in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
The Whiting-Turner Contracting Company | 8,464.0 | 211.6 | 2.5 | |
Skanska AB | 5,502.3 | 137.6 | 2.5 | |
Clark Construction Group, Llc | 5,400.0 | 135.0 | 2.5 |
To view the market share and analysis for all 19 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Design, bid, build contracts, Design-build contracts and Integrated product delivery contracts. Design, bid, build contracts is the largest segment of the Commercial Building Construction in the US.
Trends and Insights
Traditional design-bid-build contracts have a steady presence
- This segment includes design, bid and build contracts, under which the property owner or developer hires an architect or designer to render the plans for a structure and then receives bids from general contractors (GCs) for the building project.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Municipal Building Construction in the US
Complementors
- Apartment & Condominium Construction in the US
- Industrial Building Construction in the US
- Heavy Engineering Construction in the US
- Commercial Leasing in the US
- Architects in the US
International industries
- Commercial Building Construction in Canada
- Commercial and Industrial Building Construction in Australia
- Commercial and Industrial Building Construction in New Zealand
- Commercial Building Construction in the UK
- Building Construction in Ireland
Table of Contents
About this industry
Industry definition
This industry includes companies responsible for work on the construction of office, retail, hotel, agricultural and entertainment buildings, including new construction, additions, alterations, maintenance and repairs. Participants are general contractors or project managers. This industry excludes institutional buildings, such as hospitals and schools; heavy industrial buildings, such as factories and power plants; or infrastructure, such as communications towers or oil pipelines.
What's included in this industry?
Office building constructionHotel and motel constructionRestaurant, cafe and bar constructionRetail store constructionShopping center or shopping mall constructionCommercial warehouse constructionService and gas station constructionAuto service and sales store constructionEntertainment and recreation building construction (e.g. casinos, gyms, cinemas and arenas)Radio and TV broadcast studio constructionCompanies
The Whiting-Turner Contracting CompanySkanska ABClark Construction Group, LlcPurchase this report to view all 19 major companies in this industry.
Related Terms
GENERAL CONTRACTOR (GC)DEVELOPERCOMPUTER-AIDED DESIGN (CAD)WRITE DOWNIndustry Code
NAICS 236220 - Commercial Building Construction in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Pandemic woes, climbing interest rates and supply challenges have hit commercial construction contractors. Nonetheless, rising activity in the construction of the warehouse, ...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Warehouses and retail space construction have driven growth. However, evolving consumer habits, the rise of telecommuting and costly construction have been traditional malls,...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The Southeast houses the most commercial building contractors. Its large population provides a vast market, with Florida playing a key role because of its sizable population.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
No contractor holds a sizable portion of the market. Top contractors only command minor market shares, revealing a highly competitive landscape spanning a broad spectrum of c...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
No contractor in commercial building construction holds a market share of 5.0%. Due to the vastness of the industry, even the largest corporations only command a relatively s...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of The Whiting-Turner Contracting Company's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Skanska AB's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Clark Construction Group, Llc's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 16 additional companies
Detailed analysis
- Description and key data for The Whiting-Turner Contracting Company, and factors influencing its performance in the industry
- Description and key data for Skanska AB, and factors influencing its performance in the industry
- Description and key data for Clark Construction Group, Llc, and factors influencing its performance in the industry
- Description, key data and performance trends for 16 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Commercial construction contractors must comply with many codes. These codes include general building codes, health and safety regulations and environmental policies. Not adh...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Commercial building costs are soaring because of supply chain and labor woes. Specifically, increases in construction materials and subcontractor labor costs, which form a hu...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Commercial Building Construction in the US industry in United States in 2024?
The market size of the Commercial Building Construction in the US industry in United States is $293.2bn in 2024.
How many businesses are there in the Commercial Building Construction in the US industry in 2024?
There are 70,540 businesses in the Commercial Building Construction in the US industry in United States, which has grown at a CAGR of 0.7 % between 2019 and 2024.
Has the Commercial Building Construction in the US industry in United States grown or declined over the past 5 years?
The market size of the Commercial Building Construction in the US industry in United States has been growing at a CAGR of 0.2 % between 2019 and 2024.
What is the forecast growth of the Commercial Building Construction in the US industry in United States over the next 5 years?
Over the next five years, the Commercial Building Construction in the US industry in United States is expected to grow.
What are the biggest companies in the Commercial Building Construction in the US market in United States?
The biggest companies operating in the Commercial Building Construction market in United States are The Whiting-Turner Contracting Company, Skanska AB and Clark Construction Group, Llc
What does the Commercial Building Construction in the US in United States include?
Office building construction and Hotel and motel construction are part of the Commercial Building Construction in the US industry.
Which companies have the highest market share in the Commercial Building Construction in the US in United States?
The company holding the most market share in United States is The Whiting-Turner Contracting Company.
How competitive is the Commercial Building Construction in the US industry in United States?
The level of competition is high and steady in the Commercial Building Construction in the US industry in United States.
