Cathy Breden, CAE, CMP, Managing Director, Center for Exhibition Industry Research
Executive Director Jeff Werling, of Inforum at the University of Maryland, and one of CEIR’s economists, recently completed a report for the Association of Equipment Manufacturers (AEM). AEM released a White Paper, “The Economic Footprint of the Construction Equipment Industry on the U.S. Economy.” The paper provides a new and innovative estimate of an industry which includes downstream activities such as transportation and distribution.
The Building, Construction, Home and Repair (HM) Sector is the beginning of the food chain. Watching the HM sector’s performance is an indicator of other things to come – whether we are on an upswing or downswing. Here’s why:
- Construction Equipment contributed a $57.1 billion economic impact in 2012 and supports 370,000 jobs.
- Construction machinery impacts productivity of construction itself. The Construction Industries Institute indicates widespread improvement across construction activities from 0.2 percent to 2.8 percent, 1976 through 2004, respectively.
- Infrastructure investment is now about half (1.5 percent of GDP) of its peak of 3 percent in the late 1960s.
- Deficient surface transportation infrastructure is projected to reduce cumulative GDP by $900 billion over the next decade.
- Based on research by Inforum, a $1 billion increase in infrastructure spending will increase GDP by almost $2 billion and create 15,000 jobs in the short run.
The CEIR Index reported that heavy and civil engineering construction, which includes utilities and infrastructure, grew 1.4% in 2011 and 4.0% in 2012, and despite government gridlock and weak public construction spending, employment grew another 2.4% in 2013. Will this growth continue if investment is made in public infrastructure investment?
Tell us what you think!
For more CEIR Index insights relating to the construction sector, download the sector report at the following link: 2014 CEIR Index Report: Building, Construction, Home and Repair Sector (HM).