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The Construction Industry

Here are some facts about the commercial construction industry, taken from the U.S. Department of Labor Bureau of Labor Statistics.

The 2006-07 Career Guide to Industries

U.S. Department of Labor | Bureau of Labor Statistics | Bulletin 2601

Page Contents

Significant Points

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Nature of the Industry

Houses, apartments, factories, offices, schools, roads, and bridges are only some of the products of the construction industry. This industry's activities include the building of new structures as well as additions and modifications to existing ones. The industry also includes maintenance, repair, and improvements on these structures.

The construction industry is divided into three major segments. Construction of buildings contractors, or general contractors, build residential, industrial, commercial, and other buildings. Heavy and civil engineering construction contractors build sewers, roads, highways, bridges, tunnels, and other projects. Specialty trade contractors perform specialized activities related to construction such as carpentry, painting, plumbing, and electrical work.

Construction usually is done or coordinated by general contractors, who specialize in one type of construction such as residential or commercial building. They take full responsibility for the complete job, except for specified portions of the work that may be omitted from the general contract. Although general contractors may do a portion of the work with their own crews, they often subcontract most of the work to heavy construction or specialty trade contractors.

Specialty trade contractors usually do the work of only one trade, such as painting, carpentry, or electrical work, or of two or more closely related trades, such as plumbing and heating. Beyond fitting their work to that of the other trades, specialty trade contractors have no responsibility for the structure as a whole. They obtain orders for their work from general contractors, architects, or property owners. Repair work is almost always done on direct order from owners, occupants, architects, or rental agents.

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Working Conditions

Most employees in this industry work full time, and many work over 40 hours a week. In 2004, about 1 in 5 construction workers worked 45 hours or more a week. Construction workers may sometimes work evenings, weekends, and holidays to finish a job or take care of an emergency. Construction workers who work outdoors, often must contend with the weather. Rain, snow, or wind may halt construction work, causing workers to go home or not report to work.

Workers in this industry need physical stamina because the work frequently requires prolonged standing, bending, stooping, and working in cramped quarters. They also may be required to lift and carry heavy objects. Exposure to weather is common because much of the work is done outside or in partially enclosed structures. Construction workers often work with potentially dangerous tools and equipment amidst a clutter of building materials; some work on temporary scaffolding or at great heights and in bad weather. Consequently, they are more prone to injuries than are workers in other jobs. In 2003, cases of work-related injury and illness were 6.8 per 100 full-time construction workers, which is significantly higher than the 5.0 rate for the entire private sector. Workers who are employed by foundation, structure, and building exterior contractors experienced the highest injury rates. In response, employers increasingly emphasize safe working conditions and work habits that reduce the risk of injuries. To avoid injury, employees wear safety clothing, such as gloves and hardhats, and devices to protect their eyes, mouth, or hearing, as needed.

Table 1, Chart 1

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Employment

Construction, with 7.0 million wage and salary jobs and 1.9 million self-employed and unpaid family workers in 2004, was one of the Nation's largest industries. Almost 2 out of 3 wage and salary jobs in construction were with specialty trade contractors; primarily plumbing, heating, and air conditioning; electrical; and masonry contractors. Around 1 out of 4 jobs were with building contractors, mostly in residential and nonresidential construction. The rest were with heavy and civil engineering construction contractors (table 1). Employment in this industry is distributed geographically in much the same way as the Nation's population.

There were about 818,000 construction establishments in the United States in 2004: 247,000 were building construction contractors; 57,000 were heavy and civil engineering construction or highway contractors; and 514,000 were specialty trade contractors. Most of these establishments tend to be small, the majority employing fewer than 5 workers (chart 1). About 1 out of 9 workers are employed by small contractors.

Construction offers more opportunities than most other industries for individuals who want to own and run their own business. The 1.9 million self-employed and unpaid family workers in 2004 performed work directly for property owners or acted as contractors on small jobs, such as additions, remodeling, and maintenance projects. The rate of self-employment varies greatly by individual occupation in the construction trades (chart 2).

Chart 2

Occupations in the Industry

Construction offers a great variety of career opportunities. People with many different talents and educational backgrounds-managers, clerical workers, engineers, truck drivers, trades workers, and construction helpers-find job opportunities in the construction industry (table 2).

Most of the workers in construction are construction trades workers, which include both skilled and apprentice craftsworkers, construction managers, and construction laborers. Most construction trades workers are classified as either structural, finishing, or mechanical workers, with some performing activities of more than one type. Structural workers build the main internal and external framework of a structure and can include carpenters; construction equipment operator; brickmasons, blockmasons, and stonemasons; cement masons and concrete finishers; and structural and reinforcing iron and metal workers. Finishing workers perform the tasks that give a structure its final appearance and may include carpenters; drywall and ceiling tile installers; plasterers and stucco masons; segmental pavers; terrazzo workers; painters and paperhangers; glaziers; roofers; carpet, floor, and tile installers and finishers; and insulation workers. Mechanical workers install the equipment and material for basic building operations and may include pipelayers, plumbers, pipefitters, and steamfitters; electricians; sheet metal workers; and heating, air-conditioning, and refrigeration mechanics and installers.

Construction trades workers are employed in a large variety of occupations that are involved in all aspects of the construction industry. Boilermakers make, install, and repair boilers, vats, and other large vessels that hold liquids and gases. Brickmasons, blockmasons, and stonemasons build and repair walls, floors, partitions, fireplaces, chimneys, and other structures with brick, precast masonry panels, concrete block, stone and other masonry materials. Carpenters construct, erect, install, or repair structures and fixtures made of wood, such as framing walls and partitions, putting in doors and windows, building stairs, laying hardwood floors, and hanging kitchen cabinets. Carpet, floor, and tile installers and finishers lay floor coverings, apply tile and marble, and sand and finish wood floors in a variety of buildings. Cement masons, concrete finishers, segmental pavers, and terrazzo workers smooth and finish poured concrete surfaces and work with cement to create sidewalks, curbs, roadways, or other surfaces. Construction equipment operators use machinery that moves construction materials, earth, and other heavy materials and applies asphalt and concrete to roads and other structures. Drywall installers, ceiling installers and tapers fasten drywall panels to the inside framework of residential houses and other buildings and prepare these panels for painting by taping and finishing joints and imperfections. Electricians install, connect, test, and maintain building electrical systems, which also can include lighting, climate control, security, and communications. Glaziers are responsible for selecting, cutting, installing, replacing, and removing all types of glass. Insulation workers line and cover structures with insulating materials. Painters and paperhangers, stain, varnish, and apply other finishes to buildings and other structures and apply decorative coverings to walls and ceilings. Pipelayers, plumbers, pipefitters, and steamfitters install, maintain, and repair many different types of pipe systems. They may also install heating and cooling equipment and mechanical control systems. Plasterers and stucco masons apply plaster, cement, stucco, and similar materials to interior and exterior walls and ceilings. Roofers repair and install roofs made of tar or asphalt and gravel; rubber or thermoplastic; metal; or shingles made of asphalt, slate, fiberglass, wood, tile, or other material. Sheet metal workers fabricate, assemble, install, and repair products and equipment made out of sheet metal, such as duct systems; roofs; siding; and drainpipes. Structural and reinforcing iron and metal workers place and install iron or steel girders, columns, and other structural members to form completed structures or frameworks of buildings, bridges, and other structures. Lastly, construction laborers perform a wide range of physically demanding tasks at building and highway construction sites, such as tunnel and shaft excavation, hazardous waste removal, environmental remediation, and demolition. Many trades workers perform their services with the assistance of helpers. These people assist trades workers and perform duties of lesser skill.

table 2

The construction industry employs a number of other workers apart from the construction trades. Elevator installers and repairers assemble, install, and replace elevators, escalators, moving walkways, and similar equipment in new and old buildings. Heating, air-conditioning, and refrigeration mechanics and installers install systems that control the temperature, humidity, and the total air quality in residential, commercial, industrial, and other buildings. Material-moving occupations use machinery to move construction materials, earth, petroleum products, and other heavy materials or manually handle freight, stock, or other materials; clean vehicles, machinery, and other equipment; feed materials into or remove materials from machines or equipment; and pack or package products and materials.

First-line supervisors and managers of construction trades and extraction workers oversee trades workers and helpers and ensure that work is done well, safely, and according to code. They plan the job and solve problems as they arise. Those with good organizational skills and exceptional supervisory ability may advance to construction management occupations, including project manager, constructor, field manager, or superintendent. These workers are responsible for getting a project completed on schedule by working with the architect's plans, making sure materials are delivered on time, assigning work, overseeing craft supervisors, and ensuring that every phase of the project is completed properly and expeditiously. They also resolve problems and see to it that work proceeds without interruptions.

The construction industry employs nearly all of the workers in some construction craft occupations. In other construction craft occupations, large numbers also work in other industries (table 3). Other industries employing large numbers of construction workers include transportation equipment manufacturing; transportation, communication, and utilities; real estate; wholesale and retail trade; educational services; and State and local government.

table 3

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Training and Advancement

Persons can enter the construction industry through a variety of educational and training backgrounds. Those entering construction out of high school usually start as laborers, helpers, or apprentices. While, some laborers and helpers can learn their job in a few days, the skills required for many of the trades worker jobs take years to learn and are usually learned through some combination of classroom instruction and on-the-job training. In a few cases, skills can be learned entirely through informal on-the-job training, but the more education received, generally the more skilled workers become. Skilled workers such as carpenters, bricklayers, plumbers, and other construction trade specialists most often get their formal instruction by attending a local technical or trade school or through an apprenticeship, or other employer-provided training program. In addition, they learn their craft by working with more experienced workers. Most construction trades workers' jobs require proficiency in reading and mathematics. Safety training is also required for most jobs and English skills are essential for workers to advance within their trade.

Laborers and helpers advance to the more skilled trades occupations by acquiring experience and skill in various phases of the craft. As they demonstrate their ability to perform tasks they are assigned, they move to progressively more challenging work. As they broaden their skills, they are allowed to work more independently, and responsibilities and earnings increase. They may qualify for jobs in related, more highly skilled occupations. For example, after several years of experience, painters' helpers may become skilled painters.

Many persons enter the construction trades through apprenticeship programs. Apprenticeships administered by local employers, trade associations, and trade unions provide the most thorough training. Apprenticeships usually last between 3 and 5 years and consist of on-the-job training and 144 hours or more of related classroom instruction each year. However, a number of apprenticeship programs are now using competency standards in place of time requirements, making it possible to complete a program in a shorter time. Those who enroll in apprenticeship programs usually are at least 18 years old and in good physical condition. Those who enter construction from technical or vocational schools also may go through apprenticeship training; however, they progress at a somewhat faster pace because they already have had courses such as mathematics, mechanical drawing, and woodworking.

To develop their skills further, construction trades workers can work on different projects, such as housing developments, office and industrial buildings, or road construction. Flexibility and a willingness to adopt new techniques, as well as the ability to get along with people, are essential for advancement. Those who are skilled in all facets of the trade and who show good leadership qualities may be promoted to supervisor or construction manager. Construction managers may advance to superintendent of larger projects or go into the business side of construction. Some go into business for themselves as contractors. Those who plan to rise to supervisory positions should have basic Spanish language skills to communicate basic safety and work instructions.

Outside of the construction industry, skilled trades workers may transfer to jobs such as construction building inspector, purchasing agent, sales representative for building supply companies, or technical or vocational school instructor. In order to advance to a management position, additional education and training is recommended.

Managerial personnel usually have a college degree or considerable experience in their specialty. Individuals who enter construction with college degrees usually start as management trainees or construction managers' assistants. Those who receive degrees in construction science often start as field engineers, schedulers, or cost estimators. College graduates may advance to positions such as assistant manager, construction manager, general superintendent, cost estimator, construction building inspector, general manager or top executive, contractor, or consultant. Although a college education is not always required, administrative jobs usually are filled by people with degrees in business administration, finance, accounting, or similar fields.

Opportunities for workers to form their own firms are better in construction than in many other industries. Construction workers need only a moderate financial investment to become contractors and they can run their businesses from their homes, hiring additional construction workers only as needed for specific projects. The contract construction field, however, is very competitive, and the rate of business turnover is high. Taking courses in business helps to improve the likelihood of success.

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Outlook

Job opportunities are expected to be excellent in the construction industry, especially for skilled trades workers, due to the large number of retirements of these workers anticipated over the next decade, as well as fewer people with the right education or experience entering the skilled trades.

The number of wage and salary jobs in the construction industry is expected to grow about 11 percent through the year 2014, compared with the 14 percent projected for all industries combined. Employment in this industry depends primarily on the level of construction and remodeling activity which is expected to increase over the coming decade.

Although household growth is expected to slow slightly over the coming decade, the increase will create demand for residential construction, especially in the fastest growing areas in the South and West. Rising numbers of immigrants, as well as the children of the baby boomers, will generate demand for homes and rental apartments. In addition, a desire for larger homes with more amenities will fuel demand for move-up homes, as well as the renovation and expansion of older homes. Townhouses and condominiums in conveniently located suburban and urban settings also are increasingly desired types of properties.

Employment is expected to grow faster in nonresidential construction over the decade. Replacement of many industrial plants has been delayed for years, and a large number of structures will have to be replaced or remodeled. Construction of nursing homes and other residential homes for the elderly, as well as all types of healthcare facilities, will be needed to meet the need for more medical treatment facilities, especially by the growing elderly population. Construction of schools will continue to be needed, especially in the South and West where the population is growing the fastest. In other areas, however, replacing and renovating older schools will create jobs.

Employment in heavy and civil engineering construction is projected to increase due to growth in new highway, bridge, and street construction, as well as in maintenance and repairs to prevent further deterioration of the Nation's existing highways and bridges. Voters and legislators in most States and localities continue to approve spending on road construction, which will create jobs over the next decade.

Employment in specialty trades contracting, the largest segment of the industry, will grow the fastest as demand grows for subcontractors in building and heavy construction and as more workers are needed to repair and remodel existing homes, which specialty trade contractors are more likely to perform. Home improvement and repair construction is expected to continue to grow faster than new home construction. Remodeling should be the fastest growing sector of housing construction because of a growing stock of old residential and nonresidential buildings. Many older, smaller homes will be remodeled to appeal to more affluent, space- and amenity-hungry buyers. Remodeling tends to be more labor-intensive than new construction. In addition, the construction industry, as well as all types of businesses and institutions, are increasingly contracting out the services of specialty trades workers instead of keeping these workers on their own payrolls.

The number of job openings in construction may fluctuate from year to year. New construction is usually cut back during periods when the economy is not expanding or interest rates are high. However, it is rare that all segments of the construction industry are down at the same time, allowing workers to switch from building houses to working on office building construction, depending on demand.

Employment growth will differ among various occupations in the construction industry. Employment of construction managers is expected to grow as a result of the increasing complexity of construction work that needs to be managed, including the need to deal with the proliferation of laws dealing with building construction, worker safety, and environmental issues. Also, the growth of self-employment in this industry is leading to a larger number of managers that own small construction businesses. An especially favorable job outlook is expected for who have a bachelor's degree in construction science, with an emphasis on construction management, and who related work experience in construction management services firms. Employment growth of administrative support occupations will be limited by increased office automation.

Although employment in construction trades as a whole is expected to grow about as fast as the industry average, the rate of growth will vary by trade. Employment of tile and marble setters; construction and building inspectors; and heating, air-conditioning, and refrigeration mechanics and installers is projected to grow faster than the industry average because their specialized services will be in greater demand. On the other hand, employment of carpet installers; construction laborers; floor sanders and finishers; insulation workers; paperhangers; plasters and stucco masons; and tapers are expected to grow more slowly than that of the construction industry as a whole because either their specialty is not as great demand or they are becoming more productive.

table 4

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Earnings

Earnings in construction are higher than the average for all industries (table 4). In 2004, production or nonsupervisory workers in construction averaged $19.23 an hour, or about $736 a week. In general, the higher skilled trades workers, such as electricians and plumbers, get paid more than less skilled trades workers, laborers, and helpers. Earnings also vary by the worker's education and experience, type of work, the complexity of the construction project, and geographic location. Earnings of construction workers are often affected when poor weather prevents them from working, because they usually do not get paid if they do not work. Traditionally, winter is the slack period for construction activity, especially in colder parts of the country, but there is a trend toward more year-round construction even in colder areas. Construction trades are dependent on one another to complete specific parts of a project-especially on large projects-so work delays in one trade completing it's work can delay or stop the work of another trade. Earnings in 2004 of selected occupations in construction appear in table 5.

About 17 percent of construction trades workers were union members or covered by union contracts, compared with about 14 percent of workers throughout private industry. In general, union workers are paid more than nonunion workers and have better benefits. Many different unions represent the various construction trades and form joint apprenticeship committees with local employers to supervise apprenticeship programs.

table 5

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Sources of Additional Information

Disclaimer: Links to non-BLS Internet sites are provided for your convenience and do not constitute an endorsement.

Information about apprenticeships and training can be obtained from local construction firms and employer associations, the local office of the State employment service or apprenticeship agency, or the Bureau of Apprenticeship and Training, U.S. Department of Labor.

For additional information on jobs in the construction industry, contact:

Additional information on occupations in construction may be found in the 2006-07 edition of the Occupational Outlook Handbook:

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NAICS Codes

23

Suggested citation: Bureau of Labor Statistics, U.S. Department of Labor, Career Guide to Industries, 2006-07 Edition, Construction, on the Internet at http://www.bls.gov/oco/cg/cgs003.htm (visited July 26, 2006).

Last Modified Date: December 20, 2005
Source: Bureau of Labor Statistics

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