The Construction Industry in Ohio experienced a 1.5% increase in state employment levels for the twelve month period ending May 31, 2014, as compared to an overall employment increase of 3.3% in the U.S. While Ohio reported an employment level gain over the past year, construction employment in Ohio totaling 187,800 represented a decrease of 26% from the state’s peak reported in 2000. In the past year, the Dayton Metro area reported a 2% change in employment figures. Source: “The Economic Impact of Construction in the United States and Ohio,” AGC of America, Ken Simonson , Chief Economist.
The Economic Impact of Construction in the United States and Ohio
Economic Impact of Investment in Nonresidential Construction:
An additional $1 billion invested in nonresidential construction would add $3.4 billion to Gross Domestic Product (GDP), $1.1 billion to personal earnings and create or sustain 28,500 jobs.
o About one-third (9,700) of these jobs would be on-site construction jobs.
o About one-sixth (4,600) of the jobs would be indirect jobs from supplying construction materials and services. Most jobs would be in-state, depending on the project and the mix of in-state suppliers.
o About half (14,300) of the jobs would be induced jobs created when the construction and supplier workers and owners spend their additional incomes. These jobs would be a mix of in-state and out-of-state jobs. Conversely, investments elsewhere would support some indirect and induced jobs in the state.
Nonresidential Construction Spending:
- Nonresidential spending in the U.S. in 2013 totaled $569 billion ($305 billion private, $264 billion public).
- Private nonresidential spending in Ohio totaled $7.2 billion in 2012. (Public spending is not available by state.)
- Nonresidential starts in Ohio totaled $9.3 billion in 2013, according to Reed Construction Data.
Construction Employment (Seasonally Adjusted):
- Construction (residential + nonresidential) employed 6.0 million workers in May 2014, an increase of 193,000 (3.3%) from May 2013 and a decrease of 1.7 million (22%) from April 2006, when U.S. construction employment peaked.
- Construction employment in Ohio in May totaled 187,800, an increase of 1.5% from May 2013 and a decrease of 26% from the state’s peak in March 2000.
Construction Industry Pay:
- In 2013, annual pay of all construction workers in the United States averaged $53,200, 7% more than the average for all private sector employees.
- Construction workers’ pay in Ohio averaged $52,000, 18% more than all private sector employees in the state.
- The United States had 652,900 construction firms in 2012, of which 92% employed fewer than 20 workers.
- Ohio had 29,700 construction firms in 2012, of which 92% were small (<20 employees).