16 | December 2021
SUBCONTRACTORS USA
Prime Contractors, Subc
With recent findings highlighting that some of the nation’s largest construction firms are in the state of Texas, this tells us there is business. In order for contractors and subcontractors to be and remain competitive, it’s vital to have a firm business foundation. Building better relationships and obtaining more education are some keys to successfully help you build your business. We have a stronger Texas when our contractors and subcontractors are solid.
BUILDING STRONGE
—Keith “MR. D-MARS” Davis, Sr.
By Subcontractors USA News Provider
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ccording to the US Census Bureau, the nation’s construction industry was worth $1.3 trillion in 2019. As of 2020, the construction industry has 680,000+ employers and 7 million employees (The Associated General Contractors of America) — this is a decrease from 2018, where there were 11.2 million construction employees (Statista). The Associated Builders and Contractors reported that as of early 2020, over 50% of U.S. contractors expected profit increases within a six-month timeframe. Over the tumultuous course of 2020, confidence reached “historic lows” in April of 2020, but as of October 2020, there continues to be a rebound.
Focusing on our nation, specifically Texas, let’s look at some of the economic impacts of construction: • In Texas, construction contributed $100.9 billion (5.3%) of the state’s GDP of $1.9 trillion. There were 706,000 construction firms in the U.S. in 2017, including 43,859 in Texas. • Private nonresidential spending in Texas totaled $45.4 billion in 2019. State and local spending totaled $36.5 billion. • Construction jobs pay well. In Texas, 4 out of the 5 most numerous construction occupations had higher median pay than the median for all employees in the state in 2019.
Source: Ken Simonson, Chief Economist, AGC of America, ken.simonson@agc.org, from Bureau of Economic Analysis (GDP); Census Bureau (spending); Bureau of Labor Statistics (national and state employment, median wages); AGC (workforce survey).
Statista’s latest findings reveal several of the nation’s largest construction firms were from the State of Texas in 2020, with Fluor in Irving being the most profitable of them and ranked second in the top 50 largest construction firms for
the United States as a whole, due to its revenue of over 11.6 billion U.S. dollars that year. Ferrovial US Construction Corp. ranked second in Texas with a revenue of over 2.3 billion U.S. dollars in 2020. As the State of Texas boasts some of the most substantial construction firms in the U.S. and with the bidding process already competitive, combined with the reported turnaround, are you as a contractor or subcontractor prepared for success in 2022? Are your pre qualifications in order? More general contractors are requesting subcontractors show their competency and efficiency
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