Commercial construction is often an arbiter of changing economic conditions. Construction projects mean both an improvement in the economy and a way to improve the economy of a given area. Read on for more interesting facts about it.
This type of construction helps both public sector agencies and private companies. Great new schools in areas where people are moving give students the opportunity to learn in state-of-the-art facilities. New office buildings bring jobs to the area and the upward spiral continues. Not only do buildings benefit users, but the construction process itself provides workers with solid work for several months, and construction project expenses go directly into the local economy.
The United States is the second in the world in terms of this construction, regardless of where the company that carries out the construction is based. Up to 10% of all commercial construction takes place in the US, and New York is the city with the most commercial construction in progress – $ 8.5 billion (that’s a billion with a B) in 2013. Much of the construction was for residential buildings. After New York it was Houston and Dallas. Those two cities spent $ 10 billion in 2013 on commercial projects.
One of the biggest trends in commercial construction is green building. Experts from the Environmental Protection Agency expect that by 2017 up to 48% of new buildings will be made with green building materials. To put it in financial terms, it could mean as much as $ 145 billion.
By 2018, 84% of residential construction companies plan to have at least some of their construction projects classified as green. To get an idea of what kind of impact this has on the broader economy, consider that residential projects add up to as much as 5% of current US gross domestic product. As more and more businesses add green construction to their plans could mean that up to 18% of GDP will be based on green building.
Large commercial office buildings are also going green. LEED certification is becoming the leading standard, and builders are up to 41% green as of 2012. How fast is this growing? Consider that only 2% of commercial, non-residential construction projects were green in 2005. Not surprisingly, states like Hawaii and California are leading the way in LEED projects.
However, not only the United States is interested in green building. LEED certifications around the world are becoming more and more common. A study published earlier this year showed that up to 69,000 LEED projects are underway globally in 150 different countries.
This construction is as important to the global economy as it has ever been, and increases in these types of projects in recent years signal a positive turnaround after the 2008-09 global recession and the smooth recovery that followed. With even more green projects planned than ever, commercial construction projects will also be kinder to the planet, meaning everyone will benefit for years to come.