NIOSH Program Portfolio : Construction : Economic Factors

NIOSH Programs > Construction > Economic Factors

Construction

Input: Economic Factors

In 2005, the total value of construction put in place was more than $1.1trillion. The largest segment was residential construction with more than half of this value ($632 billion). Other large nonresidential construction segments include educational facilities ($76 billion), commercial buildings ($71 billion), highway and street ($67 billion) construction, and office ($46 billion) construction.

Source: U.S. Census Bureau, 2006, Annual Value of Construction Spending put in place
External Link: http://www.census.gov/const/C30/total.pdf

Across the Sector

Several construction industry economic and industry organization factors serve to provide challenges that can impact safety and health conditions:

Employment is intermittent and transient based on the length of the construction project.
Many employers are small—80% of the construction businesses with paid workers have fewer than 10 workers. They employ 27% of all paid construction workers.
In addition, 2.1 million self-employed businesses exist-without other paid workers.
Source: U.S. Census Bureau, 2002.
External Link: http://www.census.gov/econ/census02/data/us/US000.HTM
Construction worksites are organizationally complex multi-employer sites and present numerous managerial challenges. General contractors usually organize the projects and use individual trade sub-contractors to perform specific tasks (e.g., plumbing, electrical work). In many cases, schedules overlap and certain tasks may be predicated on completion of a task by a different employer thus creating schedule pressures and sometimes extended overtime.
There is a high degree of competition—Construction work is performed under time and cost constraints imposed by a system of competitive bidding and a practice of awarding contracts to the lowest bidder.
Employment in Construction is expected to grow by 15% between 2002 and 2012, making it among the top 10 largest sources of job growth and constitutes an additional one million new jobs.
The market for construction materials can be volatile, including prices and availability of those materials, thus introducing planning and scheduling challenges on construction sites.

Labor Force Issues

The industry has a high concentration of apprenticeship programs that provide an occupational safety and health training opportunity.

In 2004, approximately 20% of construction workers worked 45 hours or more.

The short-term nature of construction projects, the cyclical nature of the industry, and slowdowns due to poor weather conditions can result in periods of unemployment.

The industry has a high concentration of immigrant and non-English speaking workers, which presents a variety of potential safety and health challenges such as training and communication. For example, a recent Pew Hispanic Center Research Report estimates that while unauthorized ( their term for undocumented) immigrant workers represented 4.9% of the total civilian labor force, they represented 14% of the construction workforce. Four of the five detailed occupations with the highest share of such workers are in construction.

1. Insulation workers 36%
3. Roofers 29%
4. Drywall installers, ceiling tile installers, and tapers 28%
5. Helpers, construction trades 27%

Other construction occupations with at least three times the national share include construction laborers (25%), brickmasons, blockmasons, and stonemasons (25%), painters (construction and maintenance) (22%), and cement masons, concrete finishers, and terrazzo workers (21%) (Passel, J. 2006. The Size and Characteristics of the Unauthorized Migrant Population in the U.S, Estimates are based on the March 2005 Current Population Survey from the Pew Hispanic Center. March 7, 2006.
External Link: http://pewhispanic.org/files/reports/61.pdf

Estimates of the costs of fatal occupational injuries in construction

NIOSH Fatal Occupational Injury Cost Fact Sheet: Construction
DHHS (NIOSH) Publication No. 2006-153 (September 2006)
Includes the number, rate, and costs of fatal occupational injuries in the U.S. construction industry by selected characteristics, 1992–2002.

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	NIOSH Programs > Construction > Economic Factors Construction Input: Economic Factors In 2005, the total value of construction put in place was more than $1.1trillion. The largest segment was residential construction with more than half of this value ($632 billion). Other large nonresidential construction segments include educational facilities ($76 billion), commercial buildings ($71 billion), highway and street ($67 billion) construction, and office ($46 billion) construction. Source: U.S. Census Bureau, 2006, Annual Value of Construction Spending put in place External Link: http://www.census.gov/const/C30/total.pdf Across the Sector Several construction industry economic and industry organization factors serve to provide challenges that can impact safety and health conditions: Employment is intermittent and transient based on the length of the construction project. Many employers are small—80% of the construction businesses with paid workers have fewer than 10 workers. They employ 27% of all paid construction workers. In addition, 2.1 million self-employed businesses exist-without other paid workers. Source: U.S. Census Bureau, 2002. External Link: http://www.census.gov/econ/census02/data/us/US000.HTM Construction worksites are organizationally complex multi-employer sites and present numerous managerial challenges. General contractors usually organize the projects and use individual trade sub-contractors to perform specific tasks (e.g., plumbing, electrical work). In many cases, schedules overlap and certain tasks may be predicated on completion of a task by a different employer thus creating schedule pressures and sometimes extended overtime. There is a high degree of competition—Construction work is performed under time and cost constraints imposed by a system of competitive bidding and a practice of awarding contracts to the lowest bidder. Employment in Construction is expected to grow by 15% between 2002 and 2012, making it among the top 10 largest sources of job growth and constitutes an additional one million new jobs. The market for construction materials can be volatile, including prices and availability of those materials, thus introducing planning and scheduling challenges on construction sites. Labor Force Issues The industry has a high concentration of apprenticeship programs that provide an occupational safety and health training opportunity. In 2004, approximately 20% of construction workers worked 45 hours or more. The short-term nature of construction projects, the cyclical nature of the industry, and slowdowns due to poor weather conditions can result in periods of unemployment. The industry has a high concentration of immigrant and non-English speaking workers, which presents a variety of potential safety and health challenges such as training and communication. For example, a recent Pew Hispanic Center Research Report estimates that while unauthorized ( their term for undocumented) immigrant workers represented 4.9% of the total civilian labor force, they represented 14% of the construction workforce. Four of the five detailed occupations with the highest share of such workers are in construction. 1. Insulation workers 36% 3. Roofers 29% 4. Drywall installers, ceiling tile installers, and tapers 28% 5. Helpers, construction trades 27% Other construction occupations with at least three times the national share include construction laborers (25%), brickmasons, blockmasons, and stonemasons (25%), painters (construction and maintenance) (22%), and cement masons, concrete finishers, and terrazzo workers (21%) (Passel, J. 2006. The Size and Characteristics of the Unauthorized Migrant Population in the U.S, Estimates are based on the March 2005 Current Population Survey from the Pew Hispanic Center. March 7, 2006. External Link: http://pewhispanic.org/files/reports/61.pdf Estimates of the costs of fatal occupational injuries in construction NIOSH Fatal Occupational Injury Cost Fact Sheet: Construction DHHS (NIOSH) Publication No. 2006-153 (September 2006) Includes the number, rate, and costs of fatal occupational injuries in the U.S. construction industry by selected characteristics, 1992–2002. < Sector Description \| Economic Factors \| Occupational Risks >				NIOSH Program: Construction Program Description Inputs Sector Description Economic Factors Occupational Risks National Research Agenda (NORA) NIOSH Strategic Goals Partners NIOSH Contacts Activities NIOSH Research Projects NIOSH Funded Research Grants Outputs Publications Topic Pages Research to Practice Conferences Outcomes Review & Evaluation Program Review National Academies Evaluation
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