For electrical contractors seeking construction-related work, it is no secret that the industry is booming nationwide. However, according to a new report from GlobalData, Project Insight - Construction in Key U.S. States, some states are significantly more active than others.
The report notes that the U.S. construction industry is a major contributor to the nation's economy, accounting for 4.1% of gross domestic product and employing 5.3% of the nation's total workforce. Annual expenditures in the industry reached $1.4 trillion last year, with output growing 4.4% in real gross terms.
A booming economy in general, as well as recent corporate tax cuts, combined with state and local government efforts to raise revenues for public works, have combined to drive this growth.
However, according to the report, while construction is active nationwide, it is most active in just 10 states, which account for almost 60% of the total U.S. construction market (an average of 6% per state), with the remaining 40 states accounting for the other 40% of the market (an average of just 1% per state).
The report tracked 11,208 construction projects in the United States in both the public and private sectors at all stages of development from initial announcement to execution, collectively valued at $2.7 trillion.
With a total of 1,302 projects worth $524.6 billion, California has both the largest number and greatest value of projects in the U.S. construction pipeline. In addition, the state is home to more "megaprojects" than any other state in the nation.
In second place is Texas with $425 billion in projects, the lion's share of which are energy and utility projects, valued at almost $153 billion (about one-third of the state's total project valuation).
The remaining eight states in the top 10 are, in order: New York, Florida, Washington, Illinois, Pennsylvania, Georgia, Ohio, and North Carolina.
For electrical contractors in these states, work should be plentiful. For contractors in nearby states looking for work, it might be worth looking into expanding into one or more of these top 10 states.
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ATKINSON has been a full-time business magazine writer since 1976. Contact him at [email protected].