Wednesday, March 27, 2024
Hawai'i Free Press

Current Articles | Archives

Thursday, August 18, 2016
Construction 5.9% of Hawaii GDP—#2 in USA
By News Release @ 7:18 PM :: 7753 Views :: Hawaii Statistics, Labor, Rail, Small Business

Construction’s Contribution to Economy Increases in 30 States in 2015

News Release from Associated Builders and Contractors

WASHINGTON, D.C., Aug. 17– The value added by the private construction industry as a percentage of gross domestic product (GDP) increased in 30 states and decreased in only six in 2015, according to a report released today by Associated Builders and Contractors (ABC). Nationally, construction’s direct contribution to GDP increased by 0.1 percent to 3.9 percent from 2014 to 2015.

“Construction continued to play a vital role in the U.S. economy in 2015, increasing its percentage contribution to GDP nationally and in 30 states,” said economist Bernard M. Markstein, Ph.D., president and chief economist of Markstein Advisors, who conducted the analysis for ABC. “The industry continues to experience growth following the Great Recession, led by investment in lodging, office, manufacturing and multifamily construction. The recovery is being led by consumers who have benefited from improved job markets, increased income and low energy prices and who are spending their increases in disposable income.”

Construction accounted the highest percentage of state GDP in North Dakota, with of 7.6 percent in 2015, compared to a low of 3.1 percent in Connecticut and New York. Six states—Arizona, North Dakota, Mississippi, Oregon, West Virginia and Wyoming—saw a decrease in construction’s percentage of GDP from 2014.

View the breakdown of construction's contribution to GDP per state, states ranked by construction's contribution to their GDP in 2015 and a regional breakdown of construction's contribution to state economies.

The Top Five States

In 2015, the top five states for the value added from construction as a percentage of state GDP in order from highest to lowest were:

1.    North Dakota

2.    Hawaii

3.    Montana

4.    Wyoming

5.    Louisiana

North Dakota’s construction industry supplied the largest share of state GDP for the fifth year in a row, although its share dropped to 7.6 percent in 2015 from 7.7 percent in 2014. Hawaii’s construction industry made the second largest contribution to state GDP at 5.9 percent with an increase of 0.5 percent from 2014, the largest year-over-year improvement of any state. Montana’s construction industry accounted for 5.8 percent of state GDP and construction’s portion of GDP has remained above 5.5 percent dating back to the beginning of the data series in 1997. Wyoming saw the largest drop in percentage of GDP from construction investment from 2014 (0.3 percent) but still had the fourth largest ratio 5.7 percent. Construction’s contribution to Louisiana’s GDP remained unchanged from 2014 at 5.5 percent, dropping the state from the second highest ratio to fifth.

Bottom Four States

In 2015, the bottom four states for the value added from construction as a percentage of state GDP in order from highest to lowest were:

47.    Oregon

48.    Delaware

49.    Connecticut and New York (tie)

Connecticut and New York’s construction industries shared the lowest contribution of state GDP for the third year in a row at 3.1 percent. Delaware experienced the third lowest share of state GDP from construction at 3.2 percent. Oregon’s construction industry accounted for the fourth lowest contribution to GDP. The fifth lowest was a tie among six states—California, Illinois, New Hampshire, New Mexico, North Carolina and Ohio—at 3.4 percent.

Background on Construction and the Economy

Construction has always played a vital role in the nation’s economy despite some ups and downs. From 1999 through 2015, real (inflation-adjusted) construction investment (both residential and nonresidential) varied from 5.1 percent of real gross domestic product (GDP) in 2010 and 2011 to 9.4 percent of GDP in 1999. In 2014 and 2015, construction investment was 6 percent of GDP. These numbers cover a wider range of construction’s impact on the economy than the more narrowly defined value added from private construction. Thus, the percentages are higher than those from the value-added data.

These figures represent the direct impact of construction investment. However, there are additional benefits from purchases related to, but not directly included in, construction projects, such as equipment for a new factory, furniture for an office or residential property, and appliances for commercial and residential units. Further, the workers employed in construction through spending their income stimulate other parts of the economy. Based on reasonably conservative estimates, these additional purchases add at least 2 percent to 3 percent to the impact of construction activity on the economy.

Read the full report here.

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

Aloha Pregnancy Care Center

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

HIEC.Coop

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Moms for Liberty

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

July 4 in Hawaii

Kakaako Cares

Keep Hawaii's Heroes

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

MentalIllnessPolicy.org

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

NFIB Hawaii News

No GMO Means No Aloha

Not Dead Yet, Hawaii

NRA-ILA Hawaii

Oahu Alternative Transport

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

ReRoute the Rail

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

School Choice in Hawaii

SenatorFong.com

Sink the Jones Act

Statehood for Guam

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT