Economic Performance Assessment for the Construction Industry in the Southeastern United States

Abstract

The construction industry has long been considered a staple of society in that the industry is imperative for the sustainability of economies. The relationship between the construction industry and macroeconomics has gained popularity in the research and professional literature. The purpose of this paper is to provide an economic performance assessment for the construction industry in the southeastern United States. The authors developed a three-step research methodology. First, descriptive statistics were used to assess the economic output of the southeastern United States, including Alabama, Florida, Georgia, North Carolina, South Carolina, and Tennessee. Second, descriptive statistics and inferential analyses were utilized to assess the construction performance in these six states. Third, forecasts were presented for the construction industry in each state using economic output as the primary construct. When assessing each state's construction sector through economic output [i.e., contribution toward state gross domestic product (GDP), rather than construction volume per se], it becomes apparent that the construction industry is not yet on a path of recovery, especially when viewed from an economic output perspective. For example, where the construction industry used to contribute 6-8% of the output in each state, it now contributes only 3-4%, with these percentages predicted to worsen overall through 2015. Furthermore, the construction industry in each of the six states did have a significant statistical effect on their respective state GDP, and as such, these findings warrant further investigation into leveraging the construction industry as a catalyst for each state's economic output.

Department(s)

Civil, Architectural and Environmental Engineering

Keywords and Phrases

Construction industry; Economic and social effects; Economics, Assessment; Construction performance; Construction sectors; Descriptive statistics; Economic output; Economic performance; Gross domestic products; Research methodologies, Industrial economics

International Standard Serial Number (ISSN)

0742-597X; 1943-5479

Document Type

Article - Journal

Document Version

Citation

File Type

text

Language(s)

English

Rights

© 2015 American Society of Civil Engineers (ASCE), All rights reserved.

Publication Date

01 Mar 2015

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