That investment will also need to include labor and produc- tivity initiatives. Since 2009, the value of nonresidential construction installed per person has decreased 21%, while the workers needed to install $1 million of product has climbed 27% (Exhibit 3.)
And projects aren’t just getting bigger. Their timelines are also condensing. For nonresidential projects valued at more than $25 million, the average schedule has shortened by more than a year during the past decade. That puts a strain on already challenged labor conditions as people are expected to do more in less time.
Exhibit 3: Increasing Nonresidential Project Complexities Demand More Labor
U.S. Nonresidential Construction Employment vs. Spending Measured in Constant 2012 Dollars
$190
8.5
$180
8.0
Value installed per person decreased 21%
$170
7.5
$160
7.0
$150
6.5
$140
6.0
Workers needed increased 27%
$130
5.5
$120
5.0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
$1,000 installed per person
Workers needed to install $1M
Source: BLS, FMI * Current dollars converted using CPI
6
Made with FlippingBook Annual report