The Importance of the Construction Industry
Growth Trends for Related Jobs
Whether or not you wield a hammer or lay concrete, construction impacts your life. The environment that people live in is a constructed one -- roads, buildings, offices, schools, houses and hospitals are all part of the economy's infrastructure, which is a byproduct of construction.
Direct Impact of Construction
The ebb and flow of the economy is based in large part around the construction industry. New home construction is particularly important. According to the Bipartisan Policy Center, residential house construction can account for 4.5 to 6.3 percent of the nation's gross domestic product. When this industry contracts, the impact is sufficient to send the economy into a recession. Economic recovery is also historically tied to the recovery of the housing industry.
Indirect Impact of Construction
Construction requires planning, which creates jobs for architects and engineers. Construction also requires tools and supplies, which creates jobs for people who manufacture excavation equipment, cranes, backhoes, lifts, lumber, cement and building supplies. The impact of the construction industry goes beyond the erection of buildings. New houses and offices need furniture and appliances. Roads, commercial properties and homes all need landscaping, which creates the need for maintenance. The construction industry is at the core of this job creation process.
Thomas Metcalf has worked as an economist, stockbroker and technology salesman. A writer since 1997, he has written a monthly column for "Life Association News," authored several books and contributed to national publications such as the History Channel's "HISTORY Magazine." Metcalf holds a master's degree in economics from Tufts University.
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