i

Methodology for Calculating Construction Industry 

Supply Chain Statistics

 Douglas S. Thomas 

U.S. Department of Commerce

National Institute of Standards and Technology

Office of Applied Economics

Building and Fire Research Laboratory

Gaithersburg, MD 20899

NIST SP 1116
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Methodology for Calculating Construction Industry 

Supply Chain Statistics

 Douglas S. Thomas

Sponsored by: 

National Institute of Standards and Technology 

Building and Fire Research Laboratory

September 2010

U.S. DEPARTMENT OF COMMERCE

Gary Locke, Secretary

NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY

Patrick Gallagher, Director

U.S. Department of Commerce

National Institute of Standards and Technology

Office of Applied Economics

Building and Fire Research Laboratory

Gaithersburg, MD 20899

NIST SP 1116 
ii
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Abstract

Data from the Economic Census provides detailed statistics on the construction industry; 

however, the data is only gathered every five years. The Bureau of Labor Statistics 

provides statistics on the construction industry on an annual basis, but these statistics do 

not contain the same detail as the Economic Census data. Both sources together, along 

with several additional data sources, can be used to generate estimates of annual detailed 

statistics on the construction industry. The purpose of this report is to provide a 

documented methodology for calculating annual detailed statistics on components of the 

construction industry supply chain. These estimates include values for facility design; 

facility construction; operation and use; renovation; demolition; contents and furnishings; 

materials, components, supplies, and fuels; maintenance and repair; water and energy 

use; and losses. The estimates presented in this report have greater accuracy than a naïve 

model and can be used by policy makers and stakeholders to improve efficiency and 

competitiveness in the construction industry. 

Keywords

Construction; facility construction; facility design; maintenance and repair; renovation; 

statistics
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Preface

This study was conducted by the Office of Applied Economics in the Building and Fire 

Research Laboratory at the National Institute of Standards and Technology. The study 

provides a methodology for calculating statistics on components of the construction 

industry supply chain.

Disclaimer

Certain trade names and company products are mentioned in the text in order to adequately specify the 

technical procedures and equipment used. In no case does such identification imply recommendation or 

endorsement by the National Institute of Standards and Technology, nor does it imply that the products are 

necessarily the best available for the purpose.

Cover Photographs Credits

Microsoft Clip Art Gallery Images used in compliance with Microsoft Corporation’s non-commercial use 

policy.
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Acknowledgements

The author wishes to thank all those who contributed so many excellent ideas and 

suggestions for this report. They include Dr. William Healy, Dr. Hunter Fanney, and Mr. 

Steven Bushby of the Building and Fire Research Laboratory. Special appreciation is 

extended to Dr. David Butry, Dr. Harold Marshall, and Dr. Robert Chapman of the 

Building and Fire Research Laboratory’s Office of Applied Economics for their thorough 

reviews and many insights and to Ms. Carmen Pardo for her assistance in preparing the 

manuscript for review and publication. The author also wishes to thank Mr. Steven J. 

Emmerich, Building Environment Division, and Dr. Nicos Martys, Materials and 

Construction Research Division, for their reviews. 
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TABLE OF CONTENTS

ABSTRACT............................................................................................................................................... III

PREFACE ..................................................................................................................................................V

ACKNOWLEDGEMENTS ..........................................................................................................................VII

1 INTRODUCTION .............................................................................................................................. 1

1.1 BACKGROUND ...................................................................................................................................... 1

1.2 PURPOSE ............................................................................................................................................. 3

1.3 SCOPE AND APPROACH........................................................................................................................... 3

2 CONSTRUCTION INDUSTRY DATA ................................................................................................... 5

2.1 C30 REPORT ........................................................................................................................................ 5

2.2 ECONOMIC CENSUS ............................................................................................................................... 9

2.3 BUREAU OF ECONOMIC ANALYSIS GDP DATA........................................................................................... 18

2.4 EMPLOYMENT DATA............................................................................................................................ 20

2.5 ANNUAL ENERGY REVIEW..................................................................................................................... 24

2.6 ANNUAL SURVEY OF MANUFACTURES ..................................................................................................... 25

2.7 SERVICE ANNUAL SURVEY ..................................................................................................................... 27

2.8 LOSS ESTIMATION ............................................................................................................................... 28

3 CONSTRUCTION STATISTICS METHODOLOGY: SUBSECTORS OF CONSTRUCTION.......................... 31

3.1 NEW CONSTRUCTION........................................................................................................................... 31

3.2 ADDITIONS, ALTERATIONS, AND RECONSTRUCTION.................................................................................... 34

3.3 MAINTENANCE AND REPAIR .................................................................................................................. 35

4 CONSTRUCTION STATISTICS METHODOLOGY: INDUSTRY SUPPLY CHAIN...................................... 37

4.1 FACILITY DESIGN ................................................................................................................................. 37

4.2 MATERIALS, COMPONENTS, SUPPLIES, AND FUELS..................................................................................... 38

4.3 DEMOLITION ...................................................................................................................................... 39

4.4 FACILITY CONSTRUCTION ...................................................................................................................... 40

4.5 COMMISSIONING ................................................................................................................................ 41

4.6 MAINTENANCE AND REPAIR .................................................................................................................. 42

4.7 RENOVATION...................................................................................................................................... 42

4.8 CONTENTS AND FURNISHINGS................................................................................................................ 44

4.9 SERVICES TO BUILDINGS AND DWELLINGS ................................................................................................ 44

4.10 WATER AND ENERGY............................................................................................................................ 44

5 IMPLEMENTATION OF METHODOLOGY AND RESULTS.................................................................. 47

5.1 CONSTRUCTION STATISTICS METHODOLOGY: ACCURACY ............................................................................ 47

5.2 2009 CALCULATIONS........................................................................................................................... 51

6 SUMMARY AND RECOMMENDATIONS FOR FURTHER RESEARCH ................................................. 57

6.1 SUMMARY ......................................................................................................................................... 57

6.2 RECOMMENDATIONS FOR FURTHER RESEARCH ......................................................................................... 58

REFERENCES........................................................................................................................................... 59
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LIST OF FIGURES

Figure 1.1-1: Construction Industry Supply Chain .......................................................................................... 2

Figure 2.1-1: Construction Put in Place .......................................................................................................... 8

Figure 2.1-2: Components of Private Residential Construction Put in Place.................................................. 8

Figure 2.1-3: Components of Private Nonresidential Construction Put in Place............................................ 9

Figure 2.2-1: Construction work from the Economic Census 2007 .............................................................. 15

Figure 2.2-2: Percent of Total Sales, Shipments, Receipts, Revenue, or Business Done by Industry, 

Economic Census 2007................................................................................................................................. 16

Figure 2.2-3: Percent of Paid Employees by Industry, Economic Census 2007 ............................................ 16

Figure 2.3-1: Value Added by Industry 1950-2008....................................................................................... 19

Figure 2.4-1: Construction Employment (1000's), Current Population Survey ............................................ 20

Figure 2.4-2: 2009 Employment by Industry, Current Population Survey.................................................... 21

Figure 2.4-3: Nonfarm Wage and Salary Jobs by Industry 1960-2009, Current Employment Statistics ...... 22

Figure 2.5-1: Energy Expenditures by Energy Source and Energy use ($2009 million) ................................ 24

Figure 6.1-1: Construction Industry Supply Chain ........................................................................................ 57

LIST OF TABLES

Table 2.1-1: Construction Put in Place ($2009 million) 1993-2000 ................................................................ 6

Table 2.1-2: Construction Put in Place ($2009 million) 2002-2009 ................................................................ 7

Table 2.2-1: Construction Work from the Economic Census ($2009 million) .............................................. 10

Table 2.2-2: Construction Costs and Value Added from the Economic Census ($2009 million) .................. 11

Table 2.2-3: Professional, Scientific, and Technical Services from the Economic Census ($2009 

thousands).................................................................................................................................................... 17

Table 2.3-1: Primary Sources used to Calculate Quarterly and Annual Estimates of Industry Value Added 19

Table 2.4-1: Employment, Current Employment Statistics (1000's)............................................................. 23

Table 2.5-1: Consumer Expenditure Estimates ($2009 million) ................................................................... 25

Table 2.6-1: Annual Survey of manufactures ($2009).................................................................................. 27

Table 2.7-1: Service Annual Survey, Revenue ($2009 million) ..................................................................... 27

Table 2.8-1: 2005 Storm Data ($2009 million) ............................................................................................. 28

Table 2.8-2: Structure Fire Losses................................................................................................................. 29

Table 3.1-1: Construction Put in Place by Category ..................................................................................... 31

Table 3.1-2: NAICS Codes from the Economic Census for Each Construction Category .............................. 32

Table 5.1-1: Ratios from the 2002 and 2007 Economic Census ................................................................... 47

Table 5.1-2: Construction Estimates............................................................................................................. 48

Table 5.1-3: Ratios from the 2002 and 2007 Economic Census ................................................................... 49

Table 5.1-4: Estimates of Construction Supply Chain Components ............................................................. 50

Table 5.1-5: Estimates Compared to Naive Model....................................................................................... 51

Table 5.2-1: 2009 Construction Estimates.................................................................................................... 51

LIST OF EQUATIONS

Equation 3.1-1: Scaling Ratio for New Nonresidential Construction............................................................ 33

Equation 3.1-2: New Nonresidential Construction....................................................................................... 33

Equation 3.1-3: Total New Construction ...................................................................................................... 33

Equation 3.2-1: AAR Scaling Ratio ................................................................................................................ 34

Equation 3.2-2: Nonresidential Additions, Alterations, and Reconstruction ............................................... 34

Equation 3.2-3: Total AAR ............................................................................................................................ 35

Equation 3.3-1: Total Maintenance and Repair............................................................................................ 35

Equation 4.1-1: Facility Design ..................................................................................................................... 37

Equation 4.2-1: Scaling Ratio for Materials, Components, Supplies, and Fuels........................................... 38

Equation 4.2-2: Total Materials, Components, Supplies, and Fuels............................................................. 38
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Equation 4.3-1: Total Demolition ................................................................................................................. 39

Equation 4.4-1: Materials, Components, Supplies, and Fuels for New Construction................................... 40

Equation 4.4-2: Facility Design for New Construction.................................................................................. 40

Equation 4.4-3: Facility Construction ........................................................................................................... 41

Equation 4.5-1: Commissioning.................................................................................................................... 42

Equation 4.6-1: Maintenance and Repair..................................................................................................... 42

Equation 4.7-1: Materials, Components, Supplies, and Fuels for Additions, Alterations, and 

Reconstruction ............................................................................................................................................. 43

Equation 4.7-2: Facility Design for Additions, Alterations, and Reconstruction........................................... 43

Equation 4.7-3: Renovations ........................................................................................................................ 44
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1 Introduction

1.1 Background

The construction industry is a significant element of the U.S. economy. It represents 

approximately 4 % of GDP and 7 % of U.S. employment. The industry facilitates all 

types of activity, both business and personal activities. The construction of factories, 

offices, infrastructure, and other professional facilities has provided the backbone of 

economic activity while the construction of housing, educational facilities, religious 

facilities, and facilities for other private activities have provided havens for personal 

consumption and development. Without the construction industry, many business and 

personal activities would not be possible.

The construction industry is complex. For example, small firms with nine or fewer 

employees constitute 90 % of the residential construction industry, but represent only 

61 % of residential construction business.1 The dominance of small firms can make it 

difficult to communicate with the industry. Nonresidential construction does not have the 

same small firm dominance that residential construction has, but has other complicating 

factors. Another complexity of the construction industry is that most construction occurs 

on site away from factories and offices, which makes it different from most other 

industries. In 2008, the value of construction put in place was 14 % down from its peak in 

2006. In the period from 2007 to 2008, the industry lost 882 000 jobs, the most severe

among all industries in terms of percent lost in an industry and number of jobs lost. 

During the 2008 to 2009 period, the industry lost an additional 1 272 000 jobs 

representing 23 % of the 5 485 000 jobs lost in the U.S. economy. Construction has had a 

significant effect on the U.S. economy, both in terms of the economic activity it 

represents and the functions which it enables. The significance of the construction

industry makes it important to understand its complexities in order for policy makers and 

stakeholders to improve efficiency and competitiveness.

The construction industry is comprised of many components as illustrated in the 

construction industry supply chain in Figure 1.1-1. Beginning with facility design, the life 

cycle of a constructed facility moves through six stages: facility design, facility 

construction, commissioning, operation and use, renovation, and eventually demolition. 

These can also be considered the six primary components of the construction industry. A 

number of other secondary components support the primary components. Raw materials

such as lumber, metal, and petroleum, are manufactured into component systems as 

illustrated by the line connecting raw materials and component systems in Figure 1.1-1. 

Some of the materials from component systems, facility construction, maintenance and 

repair, and renovations are disposed or recycled as illustrated by the green lines in Figure 

1.1-1. Constructed facilities are occasionally damaged as illustrated by the red lines to the 

loss box; some of the materials from these losses can also be recycled while others are 

 

1 U.S. Department of Housing and Urban Development, “Overcoming Barriers to Innovation in the Home 

Building Industry.” April 2005 < http://www.pathnet.org/si.asp?id=1452 > (January 27, 2006), 9.
2

Figure 1.1-1: Construction Industry Supply Chain

discarded. Component systems are used in facility design, facility construction, 

renovation, and maintenance and repair as illustrated by the black lines from the 

component systems box. Once constructed, structures require maintenance and often 

times repair caused by normal wear and tear along with other phenomena as illustrated by 

the black line from maintenance and repair to operation and use. Contents and 

furnishings, which is an integral part of constructed facilities, is also connected to 

operation and use. Many of the components of the construction industry along with 

supporting components are affected by standards, codes, and regulatory approvals as 

illustrated by the blue lines.

Construction industry statistics can illuminate the magnitude of the different industry 

components. The most complete data on the construction industry is found in the 

Economic Census, but this is only periodically published. The Census Bureau has been 

collecting data on the construction industry through the Economic Census since at least 

1967; however, the Bureau found that the construction industry was “not able to 

accurately report these data.” In response to these inaccuracies, starting in 2002, they 

began collecting data on receipts, billings, and sales which greatly improved the accuracy 

of the data. 

Another report that provides data on the construction industry, which is published on a 

monthly basis by the Census Bureau, is the C30 report. It provides public, private, and 
3

total values of construction put in place. Between the Economic Census and the C30 

report, dollar values for five components of the construction industry can be estimated on 

an annual basis: facility design; facility construction; renovation; maintenance and repair; 

and a value for materials, components, supplies, and fuels (MCSF). This paper provides a 

method for calculating these and other components of the construction industry supply 

chain on an annual basis. The significance of the construction industry makes it important 

to understand the complexities of the industry in order for policy makers and stakeholders 

to improve efficiency and competitiveness. The estimates developed in this report 

provide an enhanced understanding of construction industry complexities. Federal and 

state agencies can use the estimates in assessing the effect of regulations, tax policy, 

finance policy, land development, and job retention efforts. It can provide insights into 

the extent that new structures are being erected as opposed to old structures being 

renovated and maintained. It also provides insight into industry growth for investors, 

economic development groups, and other construction industry stakeholders. 

1.2 Purpose

Data from the Economic Census provides detailed statistics on the construction industry; 

however, the data is only gathered every five years. The Bureau of Labor Statistics 

provides statistics on the construction industry on an annual basis, but these statistics do 

not contain the same detail as the Economic Census data. Both sources together, along 

with several additional data sources, can be used to generate estimates of annual detailed 

statistics on the construction industry. The purpose of this report is to provide a 

documented methodology for calculating annual detailed statistics on components of the 

construction industry supply chain. These estimates include values for facility design; 

facility construction; operation and use; renovation; demolition; contents and furnishings; 

materials, components, supplies, and fuels; maintenance and repair; water and energy 

use; and losses. The estimates presented in this report have greater accuracy than a naïve 

model and can be used by policy makers and stakeholders to improve efficiency and 

competitiveness in the construction industry.

1.3 Scope and Approach

The six primary components of the construction industry along with supporting

components have a significant effect on business and personal activities and they are a 

major driver of the U.S. economy. Therefore, it is essential that this industry be efficient 

and competitive, which points to the need to measure and track the magnitude of each 

component of the industry. 

This report has five chapters with the introduction being chapter one. Chapter two 

discusses the data available on the construction industry. It begins with a discussion on 

the Census Bureau’s C30 report on construction put in place followed by discussions on 

the Economic Census, Bureau of Economic Analysis GDP data, employment data, energy 

data, manufacturing data, services data, and loss estimation data. Trends and patterns of 

these datasets are discussed and used to measure and track the components of the 

construction industry. Chapter three provides a method to estimate three major
4

components of the construction industry that are not available on an annual basis: new 

construction; additions, alterations, and reconstruction; and maintenance and repair. The 

fourth chapter uses values from chapter 3 to calculate additional components of the 

industry supply chain. These components include values for facility design; materials, 

components, supplies, and fuels; demolition; facility construction; commissioning; 

renovation; maintenance and repair; contents and furnishings, services to buildings and 

dwellings; and water and energy use. A few of these components can simply be adjusted

using the Consumer Price Index while others can be scaled using other annually available 

data sets. Chapter five provides an implementation of the methods in chapters three and 

four and a comparison to a naïve model estimate. The final chapter provides a summary 

discussion and recommendations for further research. 
5

2 Construction Industry Data

This chapter lays out the principal data available on the construction industry. It then 

discusses the definitions used in the data and trends in the data. It begins with a 

discussion on the Census Bureau’s C30 report on construction put in place followed by 

discussions on the Economic Census, Bureau of Economic Analysis GDP data, 

employment data, energy data, manufacturing data, services data, and loss estimation 

data related to the construction industry. When applicable, values have been adjusted to 

constant 2009 dollars using the consumer price index for all consumers for all products, 

unless specified otherwise.

2.1 C30 Report

The C30 report is published near the beginning of every month. It includes detailed data 

on public and private values of construction put in place.2These include values (see 

Table 2.1-1 and Table 2.1-2) for residential construction and nonresidential construction. 

Nonresidential data is broken out into sixteen subsectors: lodging, office, commercial, 

health care, educational, religious, public safety, amusement and recreation, 

transportation, communication, power, highway and street, sewage and waste disposal, 

water supply, conservation and development, and manufacturing construction. Public 

construction data is more detailed in 2002 and beyond. Private residential data is broken 

out into new single family, new multi-family, and improvements. Construction put in 

place includes costs for materials installed or erected, labor and proportionate share of 

construction rental, contractor’s profit, architectural and engineering work, overhead and 

office costs, and interest and taxes paid during construction.3

For the purpose of the C30 report, the term construction includes the following items: 

 New buildings and structures

 Additions, alterations, conversions, expansions, reconstruction, renovations, 

rehabilitations, and major replacements 

 Mechanical and electrical installations 

 Site preparation and outside construction of fixed structures or facilities 

 Installation of the following types of equipment: boilers, overhead hoists and 

cranes, and blast furnaces.

 Fixed, largely site-fabricated, equipment not housed in a building, primarily for 

petroleum refineries and chemical plants

 Cost and installation of construction materials placed inside a building and used to 

support production machinery

 

2 Census Bureau. “Construction Spending.” <http://www.census.gov/const/www/c30index.html>

3 Census Bureau. “Definitions of Construction. C30.” <http://www.census.gov/const/C30/definitions.pdf> 
6

Construction excludes maintenance and repairs to existing structures or service facilities, 

the cost and installation of production machinery and equipment items, the drilling of gas 

and oil wells, and land acquisition.

Table 2.1-1: Construction Put in Place ($2009 million) 1993-2001

Type of Construction 1993 1994 1995 1996 1997 1998 1999 2000 2001

Total Private Nonresidential 222,712 232,253 254,142 267,348 285,675 312,453 320,862 342,976 331,826

Lodging 6,815 6,742 10,038 14,923 17,240 19,503 20,546 20,312 17,588

Office 29,692 29,594 32,372 36,276 43,860 53,166 58,015 65,292 60,261

Commercial 51,067 57,347 62,075 67,521 70,962 73,286 76,461 79,804 77,052

Health care 22,180 22,361 21,480 21,085 23,245 23,345 23,679 24,238 23,629

Educational 7,147 7,251 8,023 9,551 11,765 12,937 12,563 14,555 15,562

Religious 5,781 5,604 6,121 6,204 7,729 8,692 9,492 10,004 10,167

Public safety 319 473 260 439 761 771 599 527 332

Amusement and recreation 6,831 7,394 8,286 9,593 11,411 11,305 12,298 10,924 9,483

Transportation 6,948 6,810 6,699 7,958 8,298 9,595 8,402 8,570 8,550

Communication 14,477 14,692 15,643 16,168 16,644 16,417 23,701 23,421 23,738

Power 34,970 30,462 30,978 23,810 21,871 28,548 28,382 36,559 38,158

Sewage and waste disposal 554 433 811 871 626 446 664 633 487

Water supply 632 821 943 640 599 715 532 890 682

Manufacturing 34,699 41,757 49,783 52,097 50,291 53,285 45,233 46,823 45,809

Total Private Residential 309,082 348,924 321,131 352,085 353,814 390,040 420,191 431,239 441,447

New single family 208,039 234,961 216,107 233,529 234,158 262,458 288,243 295,005 301,740

New multi-family 16,017 20,384 25,183 27,790 30,587 32,344 35,328 35,207 36,711

Improvements 85,026 93,578 79,842 90,766 89,068 95,239 96,620 101,028 102,996

Total Public 189,092 188,800 197,097 200,556 205,096 203,715 217,733 225,905 244,594

TOTAL 720,886 769,976 772,370 819,989 844,585 906,208 958,786 1,000,121 1,017,867

As illustrated in Figure 2.1-1, public construction put in place represented 26 % of total 

construction put in place in 1993. Between 1993 and 2007, it varied between 21 % and 

26 % of total construction put in place, but in 2008 and 2009 it rose to 29 % and 34 % 

respectively. Private Construction put in place trended upward from 1993 through 2006. 

In 2007, it began to decline significantly. This decrease was primarily driven by 

residential construction which declined 22 % as illustrated in Figure 2.1-2. Private 

residential construction at its peak in 2005 represented 70 % of all private construction 

put in place. By 2009, it was down 63 % from its peak and now represented only 41 % of 

private construction. The decline in private residential construction was primarily driven 

by new-single family construction, which declined by 78 % between 2005 and 2009. 

Nonresidential construction trended upwards from 1993 through 2000, but declined 

slightly between 2001 and 2004 as seen in Figure 2.1-3. From 2004 to 2008, it increased 

while residential construction was decreasing. All subsectors of private nonresidential 

construction, except manufacturing construction, decreased from 2008 to 2009. Several 

subsectors are too small to be seen in the figure; these include public safety, sewage and 

waste disposal, and water supply.
7

Table 2.1-2: Construction Put in Place ($2009 million) 2002-2009

Type of Construction 2002 2003 2004 2005 2006 2007 2008 2009

Total Private Nonresidential 283,512 267,396 270,844 281,923 317,589 381,152 414,612 367,913

Lodging 12,482 11,578 13,608 13,914 18,755 28,435 35,253 25,033

Office 42,092 35,654 37,341 40,948 48,611 55,682 56,881 40,286

Commercial 70,369 67,049 71,772 73,143 78,076 88,837 81,205 53,654

Health care 26,758 28,236 29,838 31,302 34,071 36,823 38,962 36,760

Educational 15,633 15,652 14,425 14,048 14,727 17,270 18,519 16,619

Religious 9,940 9,979 9,260 8,475 8,237 7,783 7,072 6,287

Public safety 259 216 328 448 446 616 648 463

Amusement and recreation 8,918 9,072 9,576 8,246 9,924 10,547 10,279 7,718

Transportation 8,077 7,658 7,769 7,826 9,209 9,322 9,861 9,066

Communication 21,924 16,855 17,567 20,702 23,611 28,442 25,405 20,229

Power 38,886 39,198 31,073 28,895 33,164 49,009 68,458 76,699

Sewage and waste disposal 293 324 376 264 325 422 546 458

Water supply 473 458 460 358 508 534 694 345

Manufacturing 27,123 24,991 26,879 32,830 37,338 46,875 60,568 74,135

Total Private Residential 473,074 520,060 605,224 672,171 653,115 510,362 348,833 251,365

New single family 317,082 362,119 428,798 476,211 442,692 315,774 185,115 106,288

New multi-family 39,296 40,944 45,365 51,956 56,191 50,658 44,001 29,264

Improvements 116,695 116,997 131,061 144,005 154,231 143,930 119,717 115,813

Total Public Residential 6,278 6,082 6,256 6,160 6,473 7,473 7,304 8,093

Total Public Nonresidential 248,255 245,914 243,810 251,064 265,301 291,633 297,570 308,252

Office 10,711 10,306 10,818 9,323 9,053 11,842 13,175 14,919

Commercial 4,188 4,692 4,386 4,018 3,560 3,960 3,435 3,807

Health care 5,606 5,960 6,714 6,520 6,870 8,463 8,567 9,835

Educational 72,450 70,998 69,902 73,489 75,651 82,846 85,192 86,065

Public safety 9,075 8,134 7,643 7,586 7,822 9,939 12,242 13,727

Amusement and recreation 11,748 10,571 9,384 8,489 10,330 11,401 11,132 10,953

Transportation 22,667 21,153 20,692 19,694 20,549 23,662 23,971 26,206

Power 5,004 9,131 9,125 10,063 9,141 12,354 11,416 11,995

Highway and street 68,392 66,430 66,206 70,073 76,160 78,894 81,302 84,430

Sewage and waste disposal 19,070 19,010 19,986 21,560 24,349 25,313 24,508 24,392

Water supply 14,364 14,108 13,873 15,053 15,412 15,812 16,197 15,438

Conservation and development 4,193 4,307 4,394 4,748 5,371 5,334 5,331 5,767

Other 787 1,116 686 448 1,033 1,812 1,100 718

TOTAL 1,011,118 1,039,452 1,126,133 1,211,319 1,242,478 1,190,618 1,068,318 935,623
8

Figure 2.1-1: Construction Put in Place

0

100000

200000

300000

400000

500000

600000

700000

19931994199519961997199819992000200120022003200420052006200720082009

$2009 (millions)

Improvements

New single family

New multi-family

Figure 2.1-2: Components of Private Residential Construction Put in Place

0

200

400

600

800

1 000

1 200

1 400

19931994199519961997199819992000200120022003200420052006200720082009

$2009 (Billions)

Total Public

Construction

Total Private

Construction

5%

67%

28%

12%

42%

1993 46%

2009
9

0

50000

100000

150000

200000

250000

300000

350000

400000

450000 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 $2009 (Millions)

Power

Manufacturing

Commercial 

Office

Health care 

Lodging 

Communication

Educational

Transportation

Amusement and recreation

Religious

Public safety

Sewage and waste disposal

Water supply

Figure 2.1-3: Components of Private Nonresidential Construction Put in Place

2.2 Economic Census

The Economic Census provides detailed data on most of the U.S. economy and is 

developed using establishment survey statistics. This census is provided once every five 

years for national and local economies.4The data is classified by the North American 

Industry Classification System (NAICS), which is a system of grouping establishments 

into similar production processes. There are 20 sectors and 1175 industries for the U.S. in 

the 2007 NAICS. The construction sector, NAICS 23, is listed in Table 2.2-1 and Table 

2.2-2. The 2002 and 2007 construction data is based on receipts, billings, or sales. The 

Economic Census is more detailed than the C30 report, but the data is not annually 

collected and published. Variables shown in Table 2.2-1 and Table 2.2-2 include the 

following: values for construction work; values for new construction work; values for 

additions, alterations, and reconstruction; values for maintenance and repair; cost of 

 

4 Census Bureau. “2007 Economic Census.” <http://www.census.gov/econ/census07/>

0% 0% 0% 2% 2% 2%

5%

5%

7%

10%

11%

15%

20%

21%

0% 0% 0%3% 3% 3%

3%

7% 3%

10%

13% 23%

16%

16%

1993 2009
10

Table 2.2-1: Construction Work from the Economic Census ($2009 million)

2007 NAICS 

code

Meaning of 2007 NAICS code Value of 

const work 

Construction 

work: new 

construction 

Const work: 

additions, 

alterations, or 

reconstruction 

Value of construction 

work: maintenance 

and repair 

236115 New single-family general contractors 97,111 85,189 9,739 2,183

236116 New multifamily housing construction (except operative builders) 35,081 32,579 2,266 236

236117 New housing operative builders 176,352 173,598 2,276 478

236118 Residential remodelers 56,695 4,789 38,903 13,000

236210 Industrial building construction 17,475 9,401 4,770 3,304

236220 Commercial and institutional building construction 340,180 216,724 102,619 20,836

237110 Water and sewer line and related structures construction 47,620 32,248 9,058 6,314

237120 Oil and gas pipeline and related structures construction 31,346 17,486 4,293 9,566

237130 Power and communication line and related structures construction 34,289 20,482 5,537 8,270

237210 Land subdivision 64,314 50,649 11,345 2,320

237310 Highway, street, and bridge construction 105,753 59,052 29,830 16,870

237990 Other heavy and civil engineering construction 18,478 11,220 3,537 3,721

238110 Poured concrete foundation and structure contractors 48,778 38,333 6,274 4,171

238120 Structural steel and precast concrete contractors 15,091 12,042 2,093 956

238130 Framing contractors 18,322 15,188 2,456 679

238140 Masonry contractors 27,523 19,805 4,269 3,449

238150 Glass and glazing contractors 10,299 5,877 2,411 2,011

238160 Roofing contractors 29,465 10,136 10,847 8,483

238170 Siding contractors 7,540 3,827 2,314 1,398

238190 Other foundation, structure, and building exterior contractors 7,598 4,435 1,464 1,700

238210 Electrical contractors and other wiring installation contractors 130,242 66,046 38,328 25,868

238220 Plumbing, heating, and air-conditioning contractors 163,524 74,918 40,312 48,294

238290 Other building equipment contractors 24,461 9,446 5,498 9,517

238310 Drywall and insulation contractors 44,586 31,928 9,677 2,981

238320 Painting and wall covering contractors 22,673 8,859 4,418 9,396

238330 Flooring contractors 16,104 7,485 5,800 2,819

238340 Tile and terrazzo contractors 10,366 6,141 3,252 973

238350 Finish carpentry contractors 27,545 12,609 10,872 4,064

238390 Other building finishing contractors 8,821 4,646 1,999 2,176

238910 Site preparation contractors 86,367 61,695 13,987 10,685

238990 All other specialty trade contractors 40,169 23,833 7,211 9,126

TOTAL 1,764,168 1,130,666 397,656 235,843
11

Table 2.2-2: Construction Costs and Value Added from the Economic Census ($2009 million)

2007 

NAICS 

code

Meaning of 2007 NAICS code

Cost of 

materials, 

components, 

and supplies 

Cost of 

construction 

work subcontracted out 

to others 

Total cost of 

selected 

power, fuels, 

and lubricants 

Other 

business 

receipts 

Value 

business 

done 

Value 

added 

236115 New single-family general contractors 41,744 23,868 1,421 1,018 98,129 31,095

236116 New multifamily housing construction (except operative builders) 7,630 17,501 247 164 35,246 9,867

236117 New housing operative builders 63,421 38,682 1,413 1,300 177,652 74,136

236118 Residential remodelers 18,369 14,061 1,140 470 57,166 23,595

236210 Industrial building construction 3,545 5,291 214 315 17,790 8,740

236220 Commercial and institutional building construction 76,721 163,352 2,261 1,677 341,857 99,522

237110 Water and sewer line and related structures construction 16,120 7,996 1,415 290 47,910 22,379

237120 Oil and gas pipeline and related structures construction 4,996 3,066 1,278 564 31,910 22,570

237130 Power and communication line and related structures construction 8,462 4,245 782 359 34,649 21,159

237210 Land subdivision 10,986 27,523 563 768 65,082 26,010

237310 Highway, street, and bridge construction 37,569 19,056 3,900 2,433 108,186 47,661

237990 Other heavy and civil engineering construction 5,920 2,087 558 280 18,758 10,193

238110 Poured concrete foundation and structure contractors 18,358 4,814 1,046 139 48,917 24,698

238120 Structural steel and precast concrete contractors 4,737 1,020 265 246 15,338 9,316

238130 Framing contractors 5,695 2,184 385 6 7 18,390 10,125

238140 Masonry contractors 8,781 2,111 600 136 27,659 16,167

238150 Glass and glazing contractors 4,259 349 160 8 6 10,386 5,618

238160 Roofing contractors 11,435 1,960 686 115 29,580 15,498

238170 Siding contractors 2,724 919 164 117 7,657 3,850

238190 Other foundation, structure, and building exterior contractors 2,352 513 159 153 7,751 4,727

238210 Electrical contractors and other wiring installation contractors 47,402 6,412 2,232 1,311 131,554 75,508

238220 Plumbing, heating, and air-conditioning contractors 61,072 14,120 3,208 1,300 164,824 86,423

238290 Other building equipment contractors 7,362 1,268 428 315 24,776 15,718

238310 Drywall and insulation contractors 14,454 4,497 709 203 44,789 25,129

238320 Painting and wall covering contractors 5,095 1,782 676 363 23,036 15,483

238330 Flooring contractors 7,297 1,714 278 167 16,271 6,982

238340 Tile and terrazzo contractors 3,636 710 210 8 9 10,455 5,899

238350 Finish carpentry contractors 8,880 3,647 704 395 27,940 14,709

238390 Other building finishing contractors 2,683 628 190 101 8,922 5,421

238910 Site preparation contractors 23,256 10,649 4,856 2,125 88,492 49,732

238990 All other specialty trade contractors 13,747 3,641 1,339 1,013 41,182 22,455

TOTAL 548,709 389,667 33,488 18,081 1,782,250 810,386
12

materials, components, and supplies; cost of construction work subcontracted out to 

others; costs of selected power, fuels, and lubricants; other business receipts; value 

added; and value of business done. Definitions from the Economic Census are quoted 

below:

Value of Construction Work: “In the 1987-1997 censuses, the value of 

construction work was collected to measure actual construction activity done 

during the year. Studies have shown that respondents were not able to 

accurately report these data. In 2002 and 2007, receipts, billings, or sales for 

construction work was collected... [Value of construction work] includes the 

receipts, billings, or sales for construction work done by building contractors, 

heavy and civil engineering construction contractors, and specialty trade

contractors. Included are new construction, additions, alterations or 

reconstruction, and maintenance and repair construction work. 

Establishments engaged in the sale and installation of construction 

components such as plumbing, heating, and central air-conditioning supplies 

and equipment; lumber and building materials; paint, glass, and wallpaper; 

and electrical and wiring supplies, elevators or escalators were instructed to 

include both the value for the installation and receipts covering the price of 

the items installed. Excluded are the cost of industrial and other special 

machinery and equipment that are not an integral part of a structure, and 

receipts from business operations in foreign countries.”

5

Value of New Construction Work: “This includes the original construction 

work done on a project including all finishing work on the original building 

or structure. Land development work on the site and demolition of existing 

structures are also included.”

6

Value of Additions, alterations, or reconstruction: “Includes the construction 

work which adds to the value or useful life of an existing building or 

structure or which adapts a building or structure to a new or different use. 

Included are “major replacements” of building systems such as the 

installation of a new roof or heating system and the resurfacing of streets or 

highways. This contrasts to the repair of a hole in a roof or the routine 

patching of highways and streets, which would be classified as maintenance 

and repair.”

7

Value of maintenance and repair: “Includes the incidental construction work 

which keeps a property in ordinary working condition. Excluded are trash 

and snow removal, lawn maintenance and landscaping, cleaning, and 

janitorial services.”

8

 

5 Census Bureau. “2007 Economic Census.” <http://www.census.gov/econ/census07/>

6 Census Bureau. “2007 Economic Census.” <http://www.census.gov/econ/census07/>

7 Census Bureau. “2007 Economic Census.” <http://www.census.gov/econ/census07/>

8 Census Bureau. “2007 Economic Census.” <http://www.census.gov/econ/census07/>
13

Cost of materials, components, and supplies: “Includes the costs for 

materials, components, and supplies used by establishments in the 

construction or reconstruction of buildings, structures, or other facilities plus 

costs for materials bought and resold to others. Also included are costs made 

for direct purchases of materials, components, and supplies although the 

purchases were subsequently provided to subcontractors for their use. 

Supplies include expendable tools which are charged to current accounts. 

Freight and other direct charges representing only that amount paid after 

discounts and the value of materials, components, and supplies obtained from 

other establishments of the respondent's company are also included. Excluded 

from this item are the cost of fuels, lubricants, electric energy, and industrial 

and other specialized machinery and equipment such as printing presses; 

computer systems that are not an integral part of a structure; and materials 

furnished to contractors by the owners of projects.”

9

Cost of construction work subcontracted out to others: “Includes all costs for 

construction work subcontracted out to other construction contractors during 

the reporting year. Excluded from this item are costs to the reporting 

establishment for its purchases of materials, components, and supplies 

provided to a subcontractor for use. These costs are reported under costs for 

materials, components, and supplies. Also excluded are costs for the rental of 

machinery or equipment.”

10

Cost of selected power, fuels, and lubricants: “Includes costs for fuels 

including gasoline, diesel fuel, and lubricants, and electric energy purchased 

during the year from other companies or received from other establishments 

of the company. Also included are costs for natural gas, manufactured gas, 

fuel oil, and coal and coke products.”

11

Other business receipts: “Includes the receipts for all other business activities 

done by an establishment in the current year. Includes business receipts not 

reported as value of construction work. This includes business receipts from 

retail and wholesale trade, rental of equipment without operator, 

manufacturing, transportation, legal services, insurance, finance, rental of 

property and other real estate operations, and other nonconstruction activities. 

Receipts for separately definable architectural and engineering work for 

others are also included here. Excluded are nonoperating income such as 

interest, dividends, the sale of fixed assets, or receipts from other business 

operations in foreign countries.”

12

 

9 Census Bureau. “2007 Economic Census.” <http://www.census.gov/econ/census07/>

10 Census Bureau. “2007 Economic Census.” <http://www.census.gov/econ/census07/>

11 Census Bureau. “2007 Economic Census.” <http://www.census.gov/econ/census07/>

12 Census Bureau. “2007 Economic Census.” <http://www.census.gov/econ/census07/>
14

Value added: “This measure of construction activity is equal to value of 

business done, less costs for construction work subcontracted out to others 

and costs for materials, components, supplies, and fuels.”

13

Value of business done: “Includes the sum of value of construction work and 

other business receipts. Value of business done is the sum of receipts, 

billings, or sales from establishments of construction business activities plus 

receipts from other business activities.”

14

Value added is a common measure used in economics; therefore, it is important to 

understand how it is calculated. In general, it can be described as the total sales of a firm 

minus purchases of inputs from other firms. 15 It is calculated in the Economic Census as 

the value of construction work plus other business receipts minus the cost of materials, 

components, and supplies minus cost of selected power, fuels, and lubricants minus cost 

of construction work subcontracted out to others. It can be represented as the following:

 

Where:

VAt = Value added for time t

VCt = Value of construction work for time t (see Table 2.2-1)

MCSt = Cost of materials, components, and supplies for time t (see Table 2.2-2)

Ft = Cost of selected power, fuels, and lubricants for time t (see Table 2.2-2)

SCt = Cost of construction work subcontracted out to others for time t (see Table 2.2-2)

BRt = Other business receipts for time t (see Table 2.2-2)

Since the Economic Census is only conducted every five years and the structure of the 

census changes occasionally, chronological trends in the census are not analyzed here. 

However, the Economic Census does provide a more detailed breakdown of the 

construction industry than the C30 report. The largest subsector of the construction 

industry is commercial and institutional building construction followed by new housing 

operative builders as seen in the bar graph of Figure 2.2-1. New construction work 

comprises the largest portion of each of these subsectors with additions, alterations, and 

reconstruction being a distant second. New construction comprises 64 % of all 

construction with additions, alterations, and reconstruction representing 23 % as seen in 

the pie chart of Figure 2.2-1.

Unlike the C30 report, the Economic Census has values for other industries. The 

construction industry represents 6 % of the total economy and employs 7 % of the work 

force as seen in Figure 2.2-2 and Figure 2.2-3, substantially more than many of the other 

industries. 

 

13 Census Bureau. “2007 Economic Census.” <http://www.census.gov/econ/census07/>

14 Census Bureau. “2007 Economic Census.” <http://www.census.gov/econ/census07/>

15 Black, John. Oxford Dictionary of Economics. Oxford University Press; New York, 2002.
15

0 100,000 200,000 300,000 400,000

Commercial and institutional building ...

New housing operative builders

Plumbing, heating, and air-conditioning ...

Electrical contractors and other wiring ...

Highway, street, and bridge construction

New single-family general contractors

Site preparation contractors

Land subdivision

Residential remodelers

Poured concrete foundation and structure ...

Water and sewer line and related structures ...

Drywall and insulation contractors

All other specialty trade contractors

New multifamily housing construction ...

Power and communication line and related ...

Oil and gas pipeline and related structures ...

Roofing contractors

Finish carpentry contractors

Masonry contractors

Other building equipment contractors

Painting and wall covering contractors

Other heavy and civil engineering construction

Framing contractors

Industrial building construction

Flooring contractors

Structural steel and precast concrete ...

Tile and terrazzo contractors

Glass and glazing contractors

Other building finishing contractors

Other foundation, structure, and building ...

Siding contractors

$2009 (millions)

Construction work: new 

construction 

Construction work: additions, 

alterations, or reconstruction 

Construction work: maintenance 

and repair 

Figure 2.2-1: Construction work from the Economic Census 2007

64%

23%

13%
16

Figure 2.2-2: Percent of Total Sales, Shipments, Receipts, Revenue, or Business Done by Industry, 

Economic Census 2007

Figure 2.2-3: Percent of Paid Employees by Industry, Economic Census 2007

The Economic Census also provides values for elements of facility design and other 

construction components. It includes architectural services, engineering services, building 

inspection services, and surveying and mapping services. Values from the 2007 

Economic Census are displayed in Table 2.2-3 and they are defined as the following:

Architectural Services: “This industry comprises establishments primarily 

engaged in planning and designing residential, institutional, leisure, 

commercial, and industrial buildings and structures by applying knowledge 

of design, construction procedures, zoning regulations, building codes, and 

building materials.”

16

 

16 Census Bureau. “2007 Economic Census.” <http://www.census.gov/econ/census07/>

0% 1% 1%1%2% 2%

2% 2%

2%

5%

4%

6%

6%

13%

14%

19%

21%

Educational services

Arts, entertainment, and recreation

Mining

Other services (except public administration)

Real estate and rental and leasing

Transportation and warehousing

Utilities

Administrative and support and waste mang and remediation srvs

Accommodation and food services

Professional, scientific, and technical services

Information

Health care and social assistance

Construction

Finance and insurance

Retail trade

Manufacturing

Wholesale trade

0% 1% 1% 2% 2%

3% 3%

4%

6%

6%

7%

7%

10% 9%

12%

14%

15%

Educational services

Utilities

Mining

Arts, entertainment, and recreation

Real estate and rental and leasing

Information

Other services (except public administration)

Transportation and warehousing

Wholesale trade

Finance and insurance

Construction

Professional, scientific, and technical services

Administrative and Support and Waste Mang and Remediation Srvs

Accommodation and food services

Manufacturing

Retail trade

Health care and social assistance
17

Engineering Services: “This industry comprises establishments primarily 

engaged in applying physical laws and principles of engineering in the 

design, development, and utilization of machines, materials, instruments, 

structures, processes, and systems. The assignments undertaken by these 

establishments may involve any of the following activities: provision of 

advice, preparation of feasibility studies, preparation of preliminary and final 

plans and designs, provision of technical services during the construction or 

installation phase, inspection and evaluation of engineering projects, and 

related services.”

17

Building Inspection Services: “This industry comprises establishments 

primarily engaged in providing building inspection services. These 

establishments typically evaluate all aspects of the building structure and 

component systems and prepare a report on the physical condition of the 

property, generally for buyers or others involved in real estate transactions. 

Building inspection bureaus and establishments providing home inspection 

services are included in this industry.”

18

Surveying and Mapping Services: “This industry comprises establishments 

primarily engaged in performing surveying and mapping services of the 

surface of the earth, including the sea floor. These services may include 

surveying and mapping of areas above or below the surface of the earth, such 

as the creation of view easements or segregating rights in parcels of land by 

creating underground utility easements.”

19

Table 2.2-3: Professional, Scientific, and Technical Services from the Economic Census ($2009 

thousands)

2007 NAICS code Meaning of 2007 NAICS code

Receipts/ 

Revenue

541310 Architectural services 38,544,839

541330 Engineering services 120,568,874

541350 Building inspection services 2,201,445

541370 Surveying and mapping (except geophysical) services 6,670,517

One additional value from the 2002 Economic Census is utilized to estimate 

demolition. It is identified using the 1997 NAICS code 23594000: Wrecking and 

Demolition Contractors and is part of the 2002 NAICS code 238910: Site 

Preparation Contractors. It is defined as the following:

Wrecking and Demolition: This U.S. industry comprises establishments 

primarily engaged in site preparation activities, such as excavating and 

grading, demolition of buildings and other structures, septic system 

 

17 Census Bureau. “2007 Economic Census.” <http://www.census.gov/econ/census07/>

18 Census Bureau. “2007 Economic Census.” <http://www.census.gov/econ/census07/>

19 Census Bureau. “2007 Economic Census.” <http://www.census.gov/econ/census07/>
18

installation, and house moving. Earth moving and land clearing for all types 

of sites (e.g., building, nonbuilding, mining) is included in this industry. 

Establishments primarily engaged in construction equipment rental with 

operator (except cranes) are also included.

2.3 Bureau of Economic Analysis GDP Data

The Bureau of Economic Analysis (BEA) develops estimates of value added by industry, 

which is an industry’s contribution to the nation’s output, or gross domestic product 

(GDP). As mentioned previously, value added is the total sales of a firm minus purchases 

of inputs from other firms.20 Value added, as defined by the BEA, is equal to its gross 

output minus intermediate inputs such as energy, raw materials, and semi-finished goods. 

Gross output includes sales or receipts plus other operating income and inventory change. 

Intermediate inputs include goods and services that are purchased for use in production.21

Value added can be broken into three major components: return to domestic labor 

(employee compensation), net return to government (taxes), and domestic capital return 

(surplus).22

As seen in Table 2.3-1, there are a number of sources for the data that the BEA uses to 

develop value added by industry. This table, however, is not an exhaustive list. There are

various other sources from trade associations, businesses, international organizations, and 

other sources used by the BEA. 

As seen in the pie graph in Figure 2.3-1, construction value added represented 4 % of 

total value added in 1950. In 2008, this value was also approximately 4 %. Meanwhile, 

other industries changed dramatically. For example, manufacturing changed from 27 % 

in 1950 to 11 % in 2008 and professional services went from 6 % to 20 %. 

It is important to note that, at this point, we have discussed two entities that provide an 

estimate of value added for the construction industry. The first source discussed was the 

Economic Census and the second is the BEA. They each have similar definitions;

however, due to different sources, methods, and definitions their estimates of value added 

differ.

 

20 Black, John. Oxford Dictionary of Economics. Oxford University Press; New York, 2002.

21 Bureau of Economic Analysis. “Concepts and Methods of the U.S. National Income and Product 

Accounts.” October 2009. Page 22. <http://www.bea.gov/national/pdf/NIPAhandbookch1-4.pdf>

22 Bureau of Economic Analysis. Guide to the Interactive GDP-by-Industry Accounts. 

<http://www.bea.gov/industry/gpotables/Guide.cfm?anon=507899>
19

Table 2.3-1: Primary Sources used to Calculate Quarterly and Annual Estimates of Industry Value 

Added

Source Agency

Monthly survey of manufacturers’ shipments, inventories, 

and orders

Census Bureau

Monthly wholesale trade survey Census Bureau

Monthly retail trade and food services survey Census Bureau

Quarterly services survey Census Bureau

Monthly construction spending (value put in place) Census Bureau

Monthly U.S. international trade in goods and services Census Bureau and Bureau of Economic Analysis

U.S. international transactions accounts Bureau of Economic Analysis

Annual projections and quarterly farm data Agriculture Department

Monthly current employment statistics Bureau of Labor Statistics

Quarterly financial report Census Bureau

Monthly treasury statement Treasury Department

Consumer price index Bureau of Labor Statistics

Producer price index Bureau of Labor Statistics

International price indexes Bureau of Labor Statistics

Annual survey of manufactures Census Bureau

Annual wholesale trade survey Census Bureau

Annual retail trade survey Census Bureau

Service annual survey Census Bureau

Annual surveys of state and local government finances Census Bureau

Annual revision of the international transactions accounts Bureau of Economic Analysis

Annual farm statistics Agriculture Department

Quarterly census of employment and wages Bureau of Labor Statistics

Tabulations of tax returns Internal Revenue Service

Federal government annual budget Office of Management and Budget

0

2000

4000

6000

8000

10000

12000

14000

16000

19501953195619591962196519681971197419771980198319861989199219951998200120042007

Value Added ($2009 billions)

Other

Government

Professional services

Finance

Wholesale and retail Trade

Manufacturing

Construction

Agriculture and Mining

Figure 2.3-1: Value Added by Industry 1950-2008

1950 2008

9%

4%

27%

15%

14%

6%

11%

14%

3% 4%

11%

12%

27%

20%

13%

8%
20

2.4 Employment Data

There are two major sources for employment data on the construction industry: the 

Current Population Survey and the Current Employment Statistics.23 Both of these are 

available through the Bureau of Labor Statistics. The Current Population Survey is a 

monthly household survey of a sample of the population conducted by the Census Bureau 

for the Bureau of Labor Statistics. It is designed to represent the civilian noninstitutional 

population 16 years of age and older in the U.S. For this survey, employed persons are 

those who “(1) did any work at all as paid employees, worked in their own business or 

profession or on their own farm, or worked 15 hours or more as unpaid workers in a 

family-operated enterprise; and (2) all those who did not work but had jobs or businesses 

from which they were temporarily absent.”24 Due to changes in data collection, only 

construction data from 2003 to the present can be compared. As seen in the pie chart in 

Figure 2.4-1, private industries represented 78 % of construction industry employment in 

2009. Government employees represented 5 % and self-employed workers are 18 % of 

construction industry employment. Unpaid family workers, which were less than 1 %, 

were too small to be seen in the figure. Employment trended upwards from 2003 to 2007, 

but declined in 2008 and 2009 as seen in the stacked area graph in Figure 2.4-1. Total 

construction employment represents 7 % of all industries as seen in Figure 2.4-2. This 

figure is consistent with the values from the Economic Census. 

2003 2004 2005 2006 2007 2008 2009

unpaid family workers 1 5 1 5 1 5 1 2 1 5 1 3 8

self employed 1,717 1,848 1,830 1,910 1,890 1,817 1,701

government 507 496 458 437 440 443 465

private industries 7,900 8,409 8,895 9,390 9,511 8,701 7,528

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Employed (1000's)

unpaid family workers

self employed

government

private industries

Figure 2.4-1: Construction Employment (1000's), Current Population Survey

 

23 Bureau of Labor Statistics. <www.bls.gov>

24 Bureau of Labor Statistics. “Labor Force Statistics from the Current Population Survey.” 

<http://www.bls.gov/cps/cps_over.htm#methodology>

78%

5%

18% 0%

2009
21

Figure 2.4-2: 2009 Employment by Industry, Current Population Survey

The other major source for employment data, the Current Employment Statistics (CES),

is based on a survey of 140 000 businesses and government agencies in the U.S. The CES 

is also known as the establishment survey or payroll survey. Since this data is an estimate 

of nonfarm wage and salary jobs and not an estimate of employed persons, an individual 

that holds two jobs would be represented twice in this survey. Agriculture employees, 

private households, and self-employed individuals are excluded. In contrast to the 

Current Population Survey, construction data available from the Current Employment 

Statistics spans from 1960 to the present. In 1960, the earliest data available, almost 3 

million of the 54 million nonfarm wage and salary jobs in the U.S. were construction 

jobs. This equates to approximately 5 %, as seen in the 1960 pie graph in Figure 2.4-3. In 

2009, 6 million of the 131 million jobs are construction jobs and remains to be 

approximately 5 % of all jobs as seen in the 2009 pie graph in the same figure. 

Meanwhile, other industries shifted dramatically. For example, manufacturing went from 

28 % of all jobs in 1960 to 9 % in 2009 and education and health services went from 5 % 

in 1960 to 15 % in 2009. Most of the job data used to create Figure 2.4-3 can be 

examined in Table 2.4-1.

1%2% 5%

5%

5%

7%

7%

9%

11% 10%

14%

23%

Mining, quarrying, and oil and gas extraction

Information

Public administration

Other services

Transportation and utilities

Financial activities

Construction

Leisure and hospitality

Manufacturing

Professional and business services

Wholesale and retail trade

Education and health services
22

Construction

0

20000

40000

60000

80000

100000

120000

140000

160000 1960 1963 1966 1969 1972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008 Employees (1000's)

Trade, transportation, and utilities

Government

Education and health services

Professional and business services

Leisure and hospitality

Manufacturing

Financial activities

Construction

Other Services

Information

Mining and logging

Figure 2.4-3: Nonfarm Wage and Salary Jobs by Industry 1960-2009, Current Employment Statistics

1960 2009

1% 3% 2% 5%

5%

28%

7% 6%

5%

16%

21%

1% 2% 4% 5%

6%

9%

10%

15% 13%

17%

19%
23

Table 2.4-1: Employment, Current Employment Statistics (1000's) Year Total Mining and logging Information Other Services Construction Financial activities Manufacturing Leisure and hospitality Professional and business services Education and health services Government Trade, transportation, and utilities

1979 89,932 1,008 2,375 2,637 4,562 4,843 19,426 6,631 7,312 6,767 16,068 18,303

1980 90,528 1,077 2,361 2,755 4,454 5,025 18,733 6,721 7,544 7,072 16,375 18,413

1981 91,289 1,180 2,382 2,865 4,304 5,163 18,634 6,840 7,782 7,357 16,180 18,604

1982 89,677 1,163 2,317 2,924 4,024 5,209 17,363 6,874 7,848 7,515 15,982 18,457

1983 90,280 997 2,253 3,021 4,065 5,334 17,048 7,078 8,039 7,766 16,011 18,668

1984 94,530 1,014 2,398 3,186 4,501 5,553 17,920 7,489 8,464 8,193 16,159 19,653

1985 97,511 974 2,437 3,366 4,793 5,815 17,819 7,869 8,871 8,657 16,533 20,379

1986 99,474 829 2,445 3,523 4,937 6,128 17,552 8,156 9,211 9,061 16,838 20,795

1987 102,088 771 2,507 3,699 5,090 6,385 17,609 8,446 9,608 9,515 17,156 21,302

1988 105,345 770 2,585 3,907 5,233 6,500 17,906 8,778 10,090 10,063 17,540 21,974

1989 108,014 750 2,622 4,116 5,309 6,562 17,985 9,062 10,555 10,616 17,927 22,510

1990 109,487 765 2,688 4,261 5,263 6,614 17,695 9,288 10,848 10,984 18,415 22,666

1991 108,375 739 2,677 4,249 4,780 6,558 17,068 9,256 10,714 11,506 18,545 22,281

1992 108,726 689 2,641 4,240 4,608 6,540 16,799 9,437 10,970 11,891 18,787 22,125

1993 110,844 666 2,668 4,350 4,779 6,709 16,774 9,732 11,495 12,303 18,989 22,378

1994 114,291 659 2,738 4,428 5,095 6,867 17,020 10,100 12,174 12,807 19,275 23,128

1995 117,298 641 2,843 4,572 5,274 6,827 17,241 10,501 12,844 13,289 19,432 23,834

1996 119,708 637 2,940 4,690 5,536 6,969 17,237 10,777 13,462 13,683 19,539 24,239

1997 122,776 654 3,084 4,825 5,813 7,178 17,419 11,018 14,335 14,087 19,664 24,700

1998 125,930 645 3,218 4,976 6,149 7,462 17,560 11,232 15,147 14,446 19,909 25,186

1999 128,993 598 3,419 5,087 6,545 7,648 17,322 11,543 15,957 14,798 20,307 25,771

2000 131,785 599 3,630 5,168 6,787 7,687 17,263 11,862 16,666 15,109 20,790 26,225

2001 131,826 606 3,629 5,258 6,826 7,808 16,441 12,036 16,476 15,645 21,118 25,983

2002 130,341 583 3,395 5,372 6,716 7,847 15,259 11,986 15,976 16,199 21,513 25,497

2003 129,999 572 3,188 5,401 6,735 7,977 14,510 12,173 15,987 16,588 21,583 25,287

2004 131,435 591 3,118 5,409 6,976 8,031 14,315 12,493 16,394 16,953 21,621 25,533

2005 133,703 628 3,061 5,395 7,336 8,153 14,226 12,816 16,954 17,372 21,804 25,959

2006 136,086 684 3,038 5,438 7,691 8,328 14,155 13,110 17,566 17,826 21,974 26,276

2007 137,598 724 3,032 5,494 7,630 8,301 13,879 13,427 17,942 18,322 22,218 26,630

2008 136,790 767 2,984 5,515 7,162 8,145 13,406 13,436 17,735 18,838 22,509 26,293

2009 130,920 700 2,807 5,364 6,037 7,758 11,883 13,102 16,580 19,191 22,549 24,949
24

2.5 Annual Energy Review

The Annual Energy Review from the Energy Information Administration is a report that 

provides over 400 pages of energy statistics. Publication of the report is required under 

the Department of Energy Organization Act. In this report, the data will be used to 

calculate residential and commercial energy expenditures. The data is collected from the 

State Energy Data System (SEDS),

25 which originates from a number of sources. Some 

data is collected from other federal agencies such as the Department of Transportation 

while other data is collected from state and local agencies. The energy statistics from the 

Annual Energy Review go as far back as 1970. As seen in Figure 2.5-1, energy 

expenditures trended upwards from 1970 into the early 1980’s and then hit a plateau

somewhat until the late 1990’s. Much of the increase in expenditure is due to increases in 

retail electricity expenditure, which was 58 % of energy expenditures in 1970 and 

increased to 67 % of energy expenditures in 2009. The source data for Figure 2.5-1 can 

be seen in Table 2.5-1. Using data from this table, energy expenditures expressed in 

$2009 have increased 145 % between 1970 and 2006. 

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

1970197219741976197819801982198419861988199019921994199619982000200220042006

Retail Electricity

Petroleum

Natural Gas

Figure 2.5-1: Energy Expenditures by Energy Source and Energy use ($2009 million)

 

25 Energy Information Administration. “Technical Notes and Documentation.” 

<http://www.eia.doe.gov/emeu/states/_seds_tech_notes.html>

24%

9%

67%

23%

58% 19%

1970 2006
25

Table 2.5-1: Consumer Expenditure Estimates ($2009 million)

Year

Natural 

Gas

Petroleum Retail 

Electricity

Total Natural 

Gas

Petroleum Retail 

Electricity

Total

1970 29,150 23,699 57,239 111,764 10,196 7,691 40,469 58,765 170,529

1971 30,205 23,657 61,389 116,713 10,912 8,068 43,972 63,408 180,121

1972 31,939 24,282 66,897 124,221 11,748 8,207 48,466 68,826 193,047

1973 30,354 28,784 71,087 131,124 11,698 9,089 51,735 72,933 204,057

1974 30,240 32,167 77,999 141,703 11,928 13,947 58,195 84,831 226,535

1975 33,536 30,235 82,322 147,273 13,498 12,493 64,429 91,194 238,467

1976 37,674 33,395 85,291 157,547 16,511 13,717 68,426 99,332 256,879

1977 40,089 34,949 92,513 168,847 18,034 15,212 74,426 108,370 277,216

1978 41,344 32,661 95,650 170,935 19,124 13,919 76,226 110,042 280,978

1979 43,652 33,321 93,625 172,182 22,526 16,353 75,156 114,712 286,894

1980 44,826 33,053 100,129 180,008 22,709 18,920 79,699 121,838 301,846

1981 45,168 31,612 105,687 184,717 23,377 18,003 88,468 130,476 315,192

1982 52,494 27,848 111,259 193,959 27,514 14,909 92,838 135,959 329,918

1983 56,409 24,741 116,139 199,399 28,911 15,922 93,761 139,249 338,648

1984 56,921 25,672 115,171 200,009 28,592 16,769 97,675 143,717 343,726

1985 53,469 25,709 116,982 198,293 26,293 13,301 99,875 140,005 338,299

1986 48,698 20,774 118,966 190,038 22,742 9,531 100,709 133,475 323,512

1987 44,796 20,538 119,578 186,294 21,675 9,590 98,015 129,697 315,991

1988 45,568 20,318 121,129 188,419 22,217 8,442 98,674 129,752 318,171

1989 46,248 22,040 119,800 189,537 22,103 8,647 99,414 130,596 320,132

1990 41,373 20,203 118,805 181,976 20,577 9,305 99,516 129,909 311,885

1991 41,411 18,770 121,017 182,711 20,542 7,673 99,876 128,549 311,260

1992 41,852 17,224 117,511 177,994 20,711 6,834 98,221 126,214 304,208

1993 44,967 16,628 122,953 185,740 22,002 5,795 100,403 128,636 314,376

1994 44,594 16,053 122,399 184,096 22,856 5,569 100,808 129,643 313,739

1995 41,042 15,084 123,331 180,443 21,473 5,121 102,033 129,029 309,472

1996 45,117 18,156 123,749 188,147 23,197 6,178 101,349 131,145 319,292

1997 45,938 17,009 121,242 185,083 24,888 5,571 103,129 134,015 319,099

1998 40,374 13,625 122,878 177,555 21,783 4,241 103,977 130,331 307,886

1999 40,401 15,368 120,380 176,866 20,905 4,559 101,913 127,709 304,574

2000 48,248 22,457 122,355 194,141 26,406 7,626 106,059 140,440 334,581

2001 55,638 21,708 124,964 203,190 31,153 6,864 113,146 151,507 354,697

2002 45,705 18,085 127,403 191,991 24,825 5,654 111,816 142,638 334,629

2003 56,034 22,065 129,712 208,788 30,630 7,537 112,239 150,779 359,566

2004 59,123 24,195 131,263 215,687 33,363 8,452 114,192 156,459 372,146

2005 66,945 27,627 141,040 237,143 36,978 10,682 121,408 169,597 406,740

2006 63,475 26,168 149,603 240,792 35,730 10,477 130,802 177,459 418,251

TOTAL

Residential Commercial

Source: Energy Information Administration. “Annual Energy Review 2008.” Pg 79 Table 3.6. 

<http://www.eia.doe.gov/aer/pdf/aer.pdf>

2.6 Annual Survey of Manufactures

The Annual Survey of Manufactures provides statistics on employment, payroll, worker 

hours, cost of materials, operating expenses, value added, capital expenditures, 

inventories, and energy use for manufacturing. For this report, it is used solely for the 

purpose of estimating the value of contents and furnishings within structures. The data 

from the survey includes estimates for value added, total value of shipments, and value of 

product shipments.26 For the purposes of this report, total value of shipments is used since 

it includes the net selling values of all products shipped as well as all miscellaneous 

receipts for contract work, installation, and repair. This variable best represents the value 

of building contents and furnishings. Total value of shipments is defined by the Census 

Bureau as the following:

 

26 Census Bureau. “Annual Survey of Manufactures.” 

<http://www.census.gov/manufacturing/asm/index.html>
26

Total value of shipments – “Includes the received or receivable net selling 

values, “Free on Board” (FOB) plant (exclusive of freight and taxes), of all 

products shipped, both primary and secondary, as well as all miscellaneous 

receipts, such as receipts for contract work performed for others, installation 

and repair, sales of scrap, and sales of products bought and sold without 

further processing. Included are all items made by or for the establishments 

from material owned by it, whether sold, transferred to other plants of the 

same company, or shipped on consignment. The net selling value of products 

made in one plant on a contract basis from materials owned by another was 

reported by the plant providing the materials. In the case of multiunit 

companies, the manufacturer was requested to report the value of products 

transferred to other establishments of the same company at full economic or 

commercial value, including not only the direct cost of production but also a 

reasonable proportion of “all other costs” (including company overhead) and 

profit (interplant transfers). In addition to the value for the North American 

Industry Classification System (NAICS) defined products, aggregates of the 

following categories of miscellaneous receipts are reported as part of a total 

establishment’s value of product shipments: 

1. value of resales — sales of products bought and sold without further 

manufacture, processing, or assembly;

2. contract receipts — receipts for work or services that a plant 

performed for others on their materials; and

3. other miscellaneous receipts — includes repair work, installation, sales 

of scrap, etc.

Total value of shipments is comprised of three components. These 

components are: 

1. primary product value of shipments 

2. secondary product value of shipments; and

3. total miscellaneous receipts.”27

Relevant subsectors of manufacturing have been selected to represent building contents 

and furnishings for 2007 and 2008 as seen in Table 2.6-1. 

 

27 Census Bureau. “Annual Survey of Manufactures.” Definitions. 

<http://www.census.gov/manufacturing/asm/definitions/index.html>
27

Table 2.6-1: Annual Survey of manufactures ($2009)

NAICSbased 

code

Meaning of NAICS-based code Year

Number of 

employees

Total value 

of shipments 

($1,000)

334310 Audio and video equipment manufacturing 2007 16,213 7,832,216

314110 Carpet and rug mills 2007 38,114 13,677,694

31412 Curtain and linen mills 2007 37,238 5,735,187

337 Furniture & related product mfg 2007 515,764 88,501,968

335224 Household laundry equipment manufacturing 2007 11,087 4,604,955

335222 Household refrigerator and home freezer manufacturing 2007 13,971 5,955,856

33512 Lighting fixture manufacturing 2007 49,079 12,146,416

335221 Household cooking appliance manufacturing 2007 11,516 4,952,874

33521 Small electrical appliance manufacturing 2007 13,502 4,205,663

TOTAL 2007 706,484 147,612,829

334310 Audio and video equipment manufacturing 2008 14,476 5,817,238

314110 Carpet and rug mills 2008 39,622 11,709,553

31412 Curtain and linen mills 2008 31,230 4,594,306

337 Furniture & related product mfg 2008 459,835 80,179,802

335224 Household laundry equipment manufacturing 2008 9,579 4,046,080

335222 Household refrigerator and home freezer manufacturing 2008 12,310 4,550,990

33512 Lighting fixture manufacturing 2008 46,026 11,651,712

335221 Household cooking appliance manufacturing 2008 11,113 4,441,951

33521 Small electrical appliance manufacturing 2008 12,809 4,115,161

TOTAL 2008 637,000 131,106,792

2.7 Service Annual Survey

The Service Annual Survey provides annual revenues and expenses of selected service 

sector establishments. The data includes nine industries. For the purpose of this report, 

we use selected subsectors of the “administrative and support and waste management and 

remediation services” industry (NAICS 56) for estimates on building services. The 

selected subsectors to represent building services are listed in Table 2.7-1.

28, 29

Table 2.7-1: Service Annual Survey, Revenue ($2009 million)

NAICS Kind of Business 2001 2002 2003 2004 2005 2006 2007 2008

561621 Security systems services 

(except locksmiths) 11,829 12,631 11,644 11,911 12,175 11,664 12,196 12,657

56171 Exterminating and pest 

control services 7,349 7,867 8,402 8,714 8,946 9,083 9,088 8,985

56172 Janitorial services 31,763 32,209 34,166 34,399 34,870 34,885 37,768 38,400

56174 Carpet and upholstery 

cleaning services 3,078 3,243 3,274 3,366 3,732 3,850 4,026 4,065

56179 Other services to 

buildings and dwellings 4,046 4,554 5,107 5,341 5,949 6,694 7,451 7,858

TOTAL 58,066 60,504 62,594 63,732 65,672 66,176 70,528 71,965

 

28 Census Bureau. “Annual and Quarterly Services.” < http://www.census.gov/services/index.html>

29 Census Bureau. “Service Annual Survey 2008.” Current Business Reports. January 2010. 

<http://www2.census.gov/services/sas/data/Historical/sas-08.pdf>
28

2.8 Loss Estimation

Annual estimates of constructed facility losses due to natural and manmade hazards are 

limited; however, some data does exist. In regards to losses related to weather, NOAA 

Storm Data provides annual loss summaries of general property for a number of weather 

phenomena for 1998 through 2005.30 NOAA receives this data from the National 

Weather Service who gathers it from various sources, which include but are not limited to 

the following: federal, state, and local emergency management officials; law 

enforcement; SKYWARN spotters; damage surveys; newspapers; insurance companies; 

and the general public. Since some weather events generally do not affect constructed 

facilities (e.g., dust storm, fog, and rip currents), we have selected the relevant events and 

adjusted the values to 2009 as shown in Table 2.8-1.

Table 2.8-1: 2005 Storm Data ($2009 million)

Weather Event 2005 2004 2003 2002 2001 2000 1999 1998 AVERAGE

Tornado 463.3 610.0 1,475.6 955.6 763.3 527.7 2,562.5 2,256.2 1,201.8

Tstm Wind 438.0 190.0 414.8 345.6 385.0 305.5 403.7 1,889.6 546.5

Hail 527.8 525.8 609.2 387.8 2,868.9 555.7 570.5 1,774.7 977.6

Flash Flood 322.1 973.0 2,476.4 393.1 1,037.8 978.9 1,547.6 1,196.5 1,115.7

River Flood 1,367.1 953.4 488.2 385.0 1,044.2 582.4 276.5 1,843.8 867.6

Coastal Storm 2.4 0.6 13.3 0.4 21.4 0.5 0.9 154.4 24.2

Tropical Storm/Hurricane 102,231.2 21,467.1 2,191.4 1,317.0 6,284.4 10.1 5,395.7 4,668.0 17,945.6

Winter Storm 322.7 208.4 582.3 896.8 125.5 1,289.8 79.7 692.2 524.7

High Wind 64.3 3,762.4 193.8 98.9 77.3 60.9 111.6 83.8 556.6

TOTAL 105,738.9 28,690.7 8,445.1 4,780.0 12,607.9 4,311.5 10,948.7 14,559.3 23,760.3

Fire loss estimates are available from the NFPA on an annual basis starting in 1977 as 

seen in Table 2.8-2. In 2008, there was approximately $ 12.361 billion in losses in 

structure fires with $ 8.550 billion being residential properties.31 These estimates are 

calculated using data from the National Fire Incident Reporting System (NFIRS), a 

voluntary reporting system for fire departments. The NFIRS data is combined with an 

NFPA survey to produce national estimates. Earthquake damage to the built environment 

has been extensively researched by FEMA. Their latest research, from 2008, estimates 

that $ 5.3 billion of damage is caused to the national building stock annually.32 After 

adjusting all data to 2009 dollars, averaging the last five years of NFPA fire losses 

($ 10.6 billion), averaging the last five years of storm data ($ 32.1 billion), and adding the 

FEMA earthquake estimates ($ 5.3 billion), the average losses are $ 47.9 billion. This 

estimate includes direct property damage. Losses due to lives lost, disruption of 

 

30 National Oceanic and Atmospheric Administration. Storm Data. 

<http://www.ncdc.noaa.gov/oa/climate/sd/>

31 Karter, Michael J. Fire Loss in the United States 2008. August 2009. National Fire Protection 

Association. <http://www.nfpa.org/assets/files/PDF/OS.fireloss.pdf>

32 FEMA. HAZUS MH, Estimated Annualized Earthquake Losses for the United States. FEMA 366. April 

2008. <http://www.fema.gov/library/viewRecord.do?id=3265>
29

commerce, and the cost of mobilizing emergency equipment is not included. The 

National Science and Technology Council has estimated that annual losses due to lives 

lost, disruption of commerce, mobilizing emergency equipment, and properties destroyed 

is $ 57 billion after adjusting to 2009 dollars.33, 34

Table 2.8-2: Structure Fire Losses

Year Fires 

Civilian 

Deaths

Civilian 

Injuries

Damage 

($2009 billion)

1977 1,098,000 6,505 26,310 14.5

1978 1,062,000 6,350 24,985 13.2

1979 1,036,500 5,970 24,850 14.8

1980 1,065,000 5,675 24,725 14.3

1981 1,027,500 5,760 25,700 14.2

1982 946,500 5,200 25,575 12.7

1983 868,500 5,090 26,150 12.5

1984 848,000 4,525 23,025 12.2

1985 859,500 5,265 23,350 12.8

1986 800,000 4,985 22,750 11.4

1987 758,000 4,880 23,815 11.7

1988 745,000 5,280 26,275 13.1

1989 688,000 4,655 24,025 13.0

1990 624,000 4,400 24,075 11.0

1991 640,500 3,765 24,975 13.1

1992 637,500 3,940 24,325 10.7

1993 621,500 3,980 26,550 11.0

1994 614,000 3,590 23,125 10.0

1995 573,500 3,985 21,725 10.7

1996 578,500 4,220 21,875 10.8

1997 552,000 3,510 20,375 9.5

1998 517,500 3,420 19,425 8.8

1999 523,000 3,040 18,525 10.9

2000 505,500 3,535 19,600 10.6

2001 521,500 3,220 17,225 10.8

2002 519,000 2,775 15,600 10.4

2003 519,500 3,385 15,600 10.1

2004 526,000 3,305 15,525 9.4

2005 511,000 3,105 15,325 10.1

2006 524,000 2,705 14,350 10.2

2007 530,500 3,000 15,350 11.0

2008 515,000 2,900 14,960 12.4

AVERAGE 847,500 3,103 20,084 11.6

 

33 Damages were originally quoted as $ 52 billion in 2005 dollars.

34 National Science and Technology Council. June 2005. “Grand Challenges for Disaster Reduction.” 

<http://www.sdr.gov/SDRGrandChallengesforDisasterReduction.pdf>
30
31

3 Construction Statistics Methodology: Subsectors of 

Construction

This chapter provides a method for estimating annual values of construction industry 

components. These components represent significant sub sectors of the industry and are 

important in understanding the industry as a whole. New construction is discussed first, 

followed by additions, alterations, and reconstruction and then maintenance and repair. 

Other components are discussed in Chapter 4.

3.1 New Construction

As described in Section 2.2, new construction includes original construction work done 

on a project. It includes all finishing work on the original structure, land development, 

and demolition of existing structures. The value for new construction will be used in the 

calculation of facility construction in the construction industry supply chain as well as 

other construction industry components. Construction can be broken into four categories: 

residential, commercial/institutional, manufacturing, and public works. In order to 

estimate the value of construction being done in each of these categories, the construction 

data from the C30 report can be allocated to each of the four categories. Table 3.1-1

shows the four categories and their corresponding values from the C30 report. The sum 

of public and private values listed for each category is the total construction put in place 

for that category. Residential construction includes private values of new single family 

construction, new multi-family construction, and improvements along with total public 

residential construction from the C30 Report.

Table 3.1-1: Construction Put in Place by Category

Category Private Values Public Values

New single family Total Public Residential

New multi-family

Improvements

Lodging 

Office Office

Commercial Commercial 

Health care Health care

Educational Educational

Religious

Public safety Public safety

Amusement and recreation Amusement and recreation

Manufacturing Manufacturing

Transportation Transportation

Communication

Pow er Pow er 

Sew age and w aste disposal Sew age and w aste disposal

Water supply Water supply

Highw ay and street

Conservation and development

Residential 

Commercial/Institutional

Public Works

Conveniently, new construction is easily categorized for residential construction as new 

single family, new multi-family, and public residential construction. New construction 

for commercial/institutional, manufacturing, and public works construction must be 
32

broken out using another method. For the purpose of this paper, NAICS codes from the 

Economic Census included in residential, commercial/institutional, manufacturing, and 

public works construction include the total of the subsectors marked for each category in 

Table 3.1-2. These will be used to calculate scaling ratios. Value of construction work 

from the Economic Census is closely related to construction put in place from the C30 

report, except, that value of construction work includes maintenance and repair while 

construction put in place does not. Using the Economic Census, a scaling ratio can be 

calculated to apply to the C30 data providing an estimate of new construction.

Table 3.1-2: NAICS Codes from the Economic Census for Each Construction Category

Residential

Commercial/

Institutional Manufacturing

Public 

Works

236115 new single fam 

236116 new multifam 

236117 new housing operative 

236118 residential remodelers 

236210 industrial building construction 

236220 commercial/institute 

237110 w ater/sew er 

237120 oil and gas 

237130 pow er and communication 

237210 land subdivision 

237310 highw ay, street, bridge 

237990 other heavy and civil 

238110 poured concrete foundation    

238120 structural steel and precast concrete    

238130 framing   

238140 masonry    

238150 glass and glazing   

238160 roofing   

238170 siding   

238190 other foundation structure, and building   

238210 electrical   

238220 plumbing, heating, and air cond   

238290 other building equipment   

238310 dryw all and insulation   

238320 painting and w all covering   

238330 flooring   

238340 tile and terrazzo   

238350 finish carpentry   

238390 other building finishing   

238910 site preparation    

238990 all other specialty trade    

The scaling ratio can be calculated with the total of new construction from the Economic 

Census in the numerator and the value of construction work less total maintenance and 

repair in the denominator. This calculation can be made for each category of 

nonresidential construction (i.e., commercial/institutional, manufacturing, and public 

works) using a separate ratio. The scaling ratio is represented in the following equation:
33

Equation 3.1-1: Scaling Ratio for New Nonresidential Construction

 

 

 

Where:

SRNC,x, t = Scaling ratio for construction category x, where x is either 

 commercial/institutional, manufacturing, or public works construction 

 at time t

NCx, t = The sum of new construction for construction category x, where x is either 

 commercial/institutional, manufacturing, or public works construction from the 

 Economic Census at time t

VCx, t = The sum of the value of construction work for construction category x, where x is 

 either commercial/institutional, manufacturing, or public works construction 

 from the Economic Census at time t

MRx, t = The sum of maintenance and repair for construction category x, where x is either 

 commercial/institutional, manufacturing, or public works construction from the 

 Economic Census at time t

The scaling ratio (SRNC, x, t) can then be multiplied by each of the categories from the C30 

report to get values for new construction for commercial/institutional, manufacturing, and 

public works construction. This can be represented as the following:

Equation 3.1-2: New Nonresidential Construction

 

Where:

NCx, t+n = New construction for time t plus n for category x, where x is either 

 commercial/institutional, manufacturing, or public works 

 construction

SRNC, x, t = Scaling ratio for time t for new construction in Equation 3.1-1

CPx, t+n = Construction put in place for time t plus n for category x, where x is either 

 commercial/institutional, manufacturing, or public works construction

The sum of new construction for commercial/institutional, manufacturing, and public 

works construction added to residential new construction is total new construction. It is 

represented as the following: 

Equation 3.1-3: Total New Construction

 

Where:

NCTot, t+n = Total new construction for time t plus n
34

NCx, t+n = New construction for time t plus n for category x, where x is either 

 commercial/institutional (CI), manufacturing (M), or public works (PW) 

 construction from Equation 3.1-2 or residential new construction (R) 

 described in Section 3.1

3.2 Additions, Alterations, and Reconstruction

Additions, alterations, and reconstruction include construction work that adds to the value 

or useful life of an existing building or structure or which adapts a building or structure to 

a new or different use. The replacement of a heating and cooling system, roof, or the 

resurfacing of a road would be included. Additions, alterations, and reconstruction can be 

calculated in a similar fashion to that of new construction from the previous section. The 

value of residential additions, alterations, and reconstruction is equal to the value for 

residential improvements from Table 3.1-1. The remaining three categories are calculated 

using a scaling ratio similar to the one in Equation 3.1-1, except, instead of nonresidential 

new construction being in the numerator, nonresidential additions, alterations, and 

reconstruction is in the numerator:

Equation 3.2-1: AAR Scaling Ratio

 

 

 

Where:

SRAAR, x, t = Scaling ratio for additions, alterations, and repair for construction category x,

 where x is either commercial/institutional (CI), manufacturing (M), or 

 public works (PW) construction for time t

AARx, t = The sum of additions, alterations, and repair for construction category x,

 where x is either commercial/institutional (CI), manufacturing (M), or public 

 works (PW) construction from the Economic Census at time t

VCx, t = The sum of the value of construction work for construction category x, where x is 

 either commercial/institutional, manufacturing, or public works construction 

 from the Economic Census at time t

MRx, t = The sum of maintenance and repair for construction category x, where x is either 

 commercial/institutional, manufacturing, or public works construction from the 

 Economic Census at time t

The scaling ratio (SRAAR) can then be multiplied by each of the nonresidential categories 

of construction put in place from the C30 report. This will provide values for additions, 

alterations, and reconstruction for commercial/institutional, manufacturing, and public 

works construction. This can be represented as the following:

Equation 3.2-2: Nonresidential Additions, Alterations, and Reconstruction

 
35

Where:

AARx, t+n = Additions, alterations, and reconstruction for time t plus n for category x,

 where x is either commercial/institutional (CI), manufacturing (M), or 

 public works (PW) construction

SRAAR, x, t = Scaling ratio for additions, alterations, and repair for category x,

 where x is either commercial/institutional (CI), manufacturing (M), or

 public works (PW) construction for time t in Equation 3.2-1

CPx, t+n = Construction put in place from the C30 report for time t plus n for category x,

 where x is either commercial/institutional (CI), manufacturing (M), or public 

 works (PW) construction

The sum of additions, alterations, and reconstruction for commercial/institutional, 

manufacturing, and public works construction added to residential additions, alterations, 

and reconstruction equals the total. It is represented as the following: 

Equation 3.2-3: Total AAR

 

Where:

AARTot, t+n = Total additions, alterations, and reconstruction for time t plus n

AARx, t+n = Additions, alterations, and reconstruction for year t plus n for category x,

 where x is either commercial/institutional (CI), manufacturing (M), or 

 public works (PW) construction from Equation 3.2-2, or additions, 

 alterations, and reconstruction for residential (R) construction described 

 above

3.3 Maintenance and Repair

Maintenance and repair is the incidental construction work that is done to maintain a 

property. It does not include snow and trash removal or lawn maintenance, landscaping, 

cleaning, or janitorial services. The Economic Census provides an estimate of 

maintenance and repair that can be scaled using new construction from the Economic 

Census. It is important to remember that maintenance and repair is not part of 

construction put in place from the C30 report; that is, maintenance and repair is excluded. 

Maintenance and repair is calculated similarly to that of new construction. A scaling ratio 

can be calculated with maintenance and repair from the Economic Census in the 

numerator and new construction in the denominator. This ratio can be used to estimate 

maintenance and repair. Four ratios are calculated, one for each category of construction. 

The sum of the calculations is the total maintenance and repair. It can be represented as 

the following:

Equation 3.3-1: Total Maintenance and Repair

 ∑(

 

 

 )
36

Where:

MRt+n = Total maintenance and repair for time t plus n

NCx, t = The sum of new construction for time t for category x, where x is either 

 commercial/institutional (CI), manufacturing (M), or public works (PW) 

 construction or residential (R) new construction described 

 in Section 3.1

NCx, t+n = New construction for time t plus n for category x, where x is either 

 commercial/institutional (CI), manufacturing (M), or public works (PW) 

 construction from Equation 3.1-2 or residential (R) new construction 

 described in Section 3.1

MRx, t = The sum of maintenance and repair for time t for category x, where x is either 

 commercial/institutional (CI), manufacturing (M), public works (PW) or 

 residential (R) construction from the Economic Census
37

4 Construction Statistics Methodology: Industry Supply 

Chain

This chapter provides values for the construction industry supply chain. First it develops 

estimates for facility design followed by materials, components, supplies, and fuels; 

demolition; facility construction; commissioning; maintenance and repair; renovation; 

contents and furnishings; services to buildings; and water and energy. Some estimates 

differ from those in Section 3 in that they separate facility design and materials, 

components, supplies, and fuels from other types of construction work. For example, the 

value for maintenance and repair in Chapter 3 includes materials, components, supplies, 

and fuels whereas in Chapter 4 materials, components, supplies, and fuels is excluded 

from maintenance and repair to avoid double counting.

4.1 Facility Design

Facility design is the value of services rendered to design construction projects. 

Unfortunately, there is no annual data available on the design of construction projects.

However, there are values for architectural services, engineering services, and surveying 

services in the Economic Census. It has been estimated that one half of engineering 

services is dedicated to construction. Annual values for facility design can be estimated 

by using a ratio to construction put in place. Facility design can be represented as the 

following:

Equation 4.1-1: Facility Design

 

 

 

 

 

 

 

Where:

FDt+n = Facility design for time t plus n

ASt = Architectural services at time t from the Economic Census

SSt = Surveying and mapping services from the Economic Census at time t

ESt = Engineering services from the Economic Census at time t

CPTot, t+n = Total construction put in place from the C30 report for time t plus n

CPt, t+n = Total construction put in place from the C30 report for time t

The value for facility design includes materials, components, supplies, and fuels. 

Unfortunately, data does not exist on materials, components, supplies, and fuels for 

facility design but it is assumed that it is approximately 2 % of the total.35 Thus, facility 

design for the supply chain is 98% of FDt+n.

 

35 This assumption is based on consultation with construction industry experts.
38

4.2 Materials, Components, Supplies, and Fuels

Materials, components, supplies, and fuels (MCSF) include the costs for items used by 

establishments in the construction or reconstruction of buildings, structures, or other 

facilities. It is the sum of the cost of materials, components, and supplies from Table 

2.2-2 and the total cost of selected power, fuels, and lubricants from Table 2.2-2. In the 

construction industry supply chain, materials, components, supplies, and fuels needs to be 

broken out for new construction; additions, alterations, and reconstruction; maintenance

and repair; and facility design. Unfortunately, data does not exist on materials, 

components, supplies, and fuels for facility design but industry experts estimate that it is 

approximately 2 % of the total. This is the best estimate available. Using data from the 

Economic Census, a scaling ratio can be used to estimate values for the years that the 

Economic Census is not published. A scaling ratio for materials, components, supplies, 

and fuels can be computed for residential and nonresidential construction and then 

applied to the value of construction. The ratios can be represented in the following 

equation:

Equation 4.2-1: Scaling Ratio for Materials, Components, Supplies, and Fuels

 

 

 

Where:

SRM, x, t = Scaling ratio for materials, components, supplies, and fuels for time t for 

 construction category x, where x is either commercial/institutional (CI), 

 Manufacturing (M), public works (PW) or residential (R) construction 

Mx, t = Materials, components, and supplies at time t for construction category x, where x 

 is either commercial/institutional (CI), Manufacturing (M), public works (PW) 

 or residential (R) construction

Fx, t = Cost of selected power, fuels, and lubricants at time t for construction

 category x, where x is either commercial/institutional (CI), manufacturing (M),

 public works (PW)or residential (R) construction

VCx, t = Value of construction for time t for construction category x, where x 

 is either commercial/institutional (CI), Manufacturing (M), public works (PW) 

 or residential (R) construction

The ratios calculated above can then be used to estimate materials, components, supplies 

and fuels for residential and nonresidential construction. Each construction category is 

multiplied by its corresponding ratio. The sum of these is the total materials, components, 

supplies, and fuels for both construction put in place and maintenance and repair. These

calculations can be represented as the following:

Equation 4.2-2: Total Materials, Components, Supplies, and Fuels

 ∑( ( ))
39

Where:

Mt+n = Total materials, components, supplies, and fuels for time t plus n

SRM, x, t = Scaling ratio for materials, components, supplies, and fuels for time t

 for construction category x, where x is either commercial/institutional 

 (CI), Manufacturing (M), public works (PW), or residential (R) construction

CPx, t+n = Construction put in place for time t plus n for category x, where x is either 

 commercial/institutional (CI), manufacturing (M), public works (PW),

 or residential construction (R)

MRx, t+n = Maintenance and repair for time t plus n for category x, where x is either 

 commercial/institutional (CI), manufacturing (M), public works (PW), 

 or residential construction (R)

4.3 Demolition

Demolition is the wrecking and demolition of buildings and other structures. Demolition 

is found in the Economic Census; however, it is only broken out in earlier editions. The 

2007 Economic Census does not break demolition into its own category; however, the 

2002 version does have it broken out. A scaling ratio can be generated using the 2002 

value. This ratio should exclude materials, components, supplies, and fuels since these 

are included in the total calculation of materials, components, supplies, and fuels. The 

ratio can be multiplied by construction put in place excluding materials, components, 

supplies, and fuels to get an estimate for demolition in other years. Demolition can be 

represented as the following:

Equation 4.3-1: Total Demolition

 

 

 

 ( )

Dt+n = Demolition at time t plus n 

Dt = Demolition at time t from the Economic Census

VCt = Total value of construction work from the Economic Census at time t

MCD, t = Total materials, components, and supplies for demolition from the Economic 

 Census at time t

FD, t = Selected power, fuels, and lubricants for demolition from the Economic Census at 

 time t

MCt = Total materials, components, and supplies from the Economic Census at time t

Ft = Selected power, fuels, and lubricants from the Economic Census at time t

NCTot, t+n = Total new construction for time t plus n from Equation 3.1-3

AARTot, t+n = Total AAR for time t plus n from Equation 3.2-3

MRt+n = Maintenance and repair for time t+n from Equation 3.3-1

Mt+n = Total materials, components, supplies, and fuels for time t plus n 

 from Equation 4.2-2
40

4.4 Facility Construction

Values for facility construction capture new construction work done but exclude design 

costs and materials, components, supplies, and fuels. The values can be calculated as new 

construction minus facility design for new construction; minus materials, components, 

supplies, and fuels for new construction; and minus demolition. Materials, components, 

supplies, and fuels for each category of construction for new construction is represented 

in the first set of brackets in Equation 4.4-1. The second set of brackets is materials, 

components, supplies, and fuels used for the facility design of new construction. This 

value is subtracted because it is included in facility design for new construction in 

Equation 4.4-2. It is estimated that 2 % of facility design is materials, components, 

supplies, and fuels; therefore, facility design is multiplied by 0.02 in order to calculate the 

materials, components, supplies, and fuels used in the facility design of new construction. 

Materials, components, supplies, and fuels for new construction can be represented as the 

following:

Equation 4.4-1: Materials, Components, Supplies, and Fuels for New Construction

 ∑( ) ( ( 

))

Where: 

MNt+n = Materials, components, supplies, and fuels for new construction for time t plus n

SRM, x, t = Scaling ratio for materials, components, supplies, and fuels for category x,

 where x is either commercial/institutional (CI), manufacturing (M), public 

 works (PW), or residential construction (R) from Equation 4.2-1

NCx, t+n = Construction put in place for time t plus n for category x, where x is either 

 commercial/institutional (CI), manufacturing (M), or public works (PW)

 construction from Equation 3.1-2, or residential construction (R)

 from Section 3.1

SRNC, tot, t = Scaling ratio for total new construction from Equation 3.1-1

FDt+n = Facility design for time t plus n from Equation 4.1-1

Facility design for new construction can be calculated as a ratio for new construction 

from the Economic Census multiplied by facility design for time t plus n. It is assumed 

that facility design applies to new construction and additions, alterations, and 

reconstruction while maintenance and repair does not include values of facility design. 

The calculation for facility design for new construction can be represented as the 

following:

Equation 4.4-2: Facility Design for New Construction

 

 

 

 

Where: 

FNCt+n = Facility design for new construction at time t plus n
41

NCt = Total new construction from the Economic Census for time t

VCt = Total value of construction work from the Economic Census at time t

MRt = Total maintenance and repair from the Economic Census at time t

FDt+n = Facility design for time t plus n from Equation 4.1-1

Facility construction for time t plus n, therefore, can be calculated as new construction 

minus facility design for new construction minus materials, components, supplies, and 

fuels for new construction minus demolition. It is assumed that demolition occurs only 

for new construction and it must be subtracted from new construction since it is part of 

NAICS code 238910: Site Preparation. Construction put in place also states that site 

preparation is included. Facility construction is represented as the following:

Equation 4.4-3: Facility Construction

 

Where:

FCt+n = Facility construction for time t plus n

NCTot, t+n = Total new construction for time t plus n in Equation 3.1-3

FNCt+n = Facility design for new construction at time t plus n from Equation 4.4-2

MNt+n = Materials, components, supplies, and fuels for new construction in 

 Equation 4.4-1

Dt+n = Demolition at time t plus n from Equation 4.3-1

4.5 Commissioning

According to ASHRAE Guideline 0, building commissioning is “a quality-oriented 

process for achieving, verifying, and documenting that the performance of facilities, 

systems, and assemblies meets defined objectives and criteria.”36 There is no estimate in 

the Economic Census or the C30 report for commissioning; however, building inspection 

services has a slightly narrower definition as being establishments that evaluate all 

aspects of the building structure and component systems of new and existing facilities 

and prepare a report on the physical condition of property for buyers and others involved 

in real estate transactions. It does not include conducting inspections for enforcing public 

building codes and standards, inspection for pests, or inspections for hazardous materials. 

Commissioning is often referred to as inspection and servicing;37 therefore, inspection 

services, quite arguably, has significant overlap with commissioning, re-commissioning, 

and retro-commissioning.38 An estimate of inspection services conducted is included in 

 

36 National Institute of Building Sciences. Whole Building Design Guide. 

<http://www.wbdg.org/project/buildingcomm.php>

37 Mills, Evan. “Building Commissioning: A Golden Opportunity for Reducing Energy Costs and 

Greenhouse-gas Emissions.” Prepared for the California Energy Commission, Public Interest Energy 

Research. July 21, 2009. Pg 3. <http://cx.lbl.gov/2009-assessment.html>

38 National Institute of Building Sciences. Commissioning Definitions. ASHRAE Guideline 0-2005. 

<http://www.wbdg.org/pdfs/comm_def.pdf>
42

the Economic Census. An annual value can be estimated using the ratio estimated for 

new construction. Inspection services can be estimated as the following:

Equation 4.5-1: Commissioning

 

 

 

 

Where:

CMt+n = Commissioning for time t+n

BIt = Building inspection services from the Economic Census at time t

NCt = New construction from the Economic Census at time t

NCTot, t+n = Total new construction for time t plus n from Equation 3.1-3

4.6 Maintenance and Repair

Maintenance and repair is not included in values for construction put in place from the 

C30 report. The value of maintenance and repair for the construction industry supply 

chain does not include materials, components, supplies, and fuels; therefore, it must be 

subtracted. Maintenance and repair for the supply chain can be calculated by taking the 

value of maintenance and repair from Section 3.3 and subtracting materials, components, 

supplies, and fuels. The value for maintenance and repair is represented as the following:

Equation 4.6-1: Maintenance and Repair

 ∑( )

 

Where:

MMt+n = Materials, components, supplies, and fuels for maintenance and 

 repair for time t plus n

MRx, t+n = Maintenance and repair for time t plus n for category x, where x is either 

 commercial/institutional (CI), manufacturing (M), public works (PW), or 

 residential construction (R) from Equation 3.3-1

SRM, x, t = Scaling ratio for materials, components, supplies, and fuels for category x,

 where x is either commercial/institutional (CI), manufacturing (M), public 

 works (PW), or residential construction (R) for time t from Equation 4.2-1

MRSup, t+n = Total maintenance and repair for the supply chain for time t plus n

MRt+n = Total maintenance and repair for time t plus n from Equation 3.3-1

4.7 Renovation

Renovation includes construction work that adds to the value of useful life of an existing 

building or structure. It does not include materials, components, supplies, and fuels or 
43

facility design. It can be calculated by taking the value for additions, alterations, and 

reconstruction from Section 3.2 and subtracting materials, components, supplies and fuels 

and facility design used in additions, alterations, and reconstruction. The two values 

being subtracted can be calculated using ratios from the Economic Census. Residential 

and nonresidential materials, components, supplies, and fuels used for additions, 

alterations, and reconstruction is represented in the first set of brackets in Equation 4.7-1. 

The second set of brackets subtracts materials, components, supplies, and fuels used in 

the facility design of additions, alterations, and reconstruction. This value is subtracted 

because it is included in total facility design for additions, alterations, and reconstruction 

represented in Equation 4.7-2. It is estimated that 2 % of facility design is materials, 

components, supplies, and fuels; therefore, facility design is multiplied by 0.02 in order 

to calculate the materials, components, supplies, and fuels used in the facility design of 

additions, alterations, and reconstruction. Materials, components, supplies, and fuels for 

additions, alterations, and reconstruction can be represented as the following:

Equation 4.7-1: Materials, Components, Supplies, and Fuels for Additions, Alterations, and 

Reconstruction

 ∑( ) ( ( 

))

Where:

MAt+n = Materials, components, supplies, and fuels for additions, alterations, and 

 reconstruction for time t plus n

AARx, t+n = Additions, alterations, and reconstruction for year t plus n for category x,

 where x is either commercial/institutional (CI), manufacturing (M), or 

 public works (PW) from Equation 3.2-2 or residential construction (R)

 described in Section 3.1

SRM, x, t = Scaling ratio for materials, components, supplies, and fuels for time t for 

 category x, where x is either commercial/institutional (CI), manufacturing 

 (M), public works (PW), or residential construction (R) from

 Equation 4.2-1

SRAAR, tot, t = Scaling ratio additions, alterations, and repair from Equation 3.2-1 for all 

 construction

FDt+n = Facility design for time t plus n in Equation 4.1-1

Facility design for additions, alterations, and reconstruction can be calculated by taking 

facility design from Section 4.1 and multiplying it by the ratio of additions, alterations, 

and reconstruction. It can be represented as the following:

Equation 4.7-2: Facility Design for Additions, Alterations, and Reconstruction

 

 

 

Where:

FDAt+n = Facility design for additions, alterations, and reconstruction
44

FDt+n = Facility design for time t plus n in Equation 4.1-1

AARt = Additions, alterations, and reconstruction for time t from the Economic Census

VCt = Total value of construction work from the Economic Census at time t

MRt = Total maintenance and repair from the Economic Census at time t

Renovation can then be calculated by taking additions, alterations, and reconstruction 

from Section 3.2 and subtracting the previously mentioned variables. It can be 

represented as the following:

Equation 4.7-3: Renovations

 

Where:

Rt+n = Renovations for time t plus n

AARTot, t+n = Total additions, alterations, and reconstruction for time t plus n from 

 Equation 3.2-3

MAt+n = Materials, components, supplies, and fuels for additions, 

 alterations, and reconstruction for time t plus n from Equation 4.7-1

FDAt+n = Facility design for additions, alterations, and reconstruction from 

 Equation 4.7-2

4.8 Contents and Furnishings

Contents and furnishings includes nine values from the Annual Survey of Manufactures 

listed in Table 2.6-1. It includes audio/video equipment, carpets, rugs, curtains, furniture, 

laundry equipment, refrigerators, lighting fixtures, major household appliances, and small 

electrical appliances. To get the most recent values for these items we simply adjust them 

using the consumer price index. The values in Table 2.6-1 have already been adjusted to 

2009 values.

4.9 Services to Buildings and Dwellings

Services to buildings and dwellings includes five values from the Service Annual Survey. 

These items are listed in Table 2.7-1: security systems services, exterminating and pest 

control, janitorial services, cleaning, and other services. Similar to contents and 

furnishings, these values are simply adjusted using the consumer price index to get 

current estimates. The values in Table 2.7-1 have already been adjusted to 2009 values.

4.10 Water and Energy

Energy includes all residential and commercial energy expenditures as seen in Table 

2.5-1. For the purposes of this report, the latest value available is used and adjusted to 

current dollars. The values in the table have already been converted to 2009 dollars. 

Water use for commercial and residential purposes is provided by U.S. Geological 
45

Survey for 1995.

39 More recent data does not break water data into residential and 

commercial. In 1995, 402 billion gallons of water were used per day and water cost 

approximately $ 3 per 1000 gallons of water. Approximately 9.59 billion gallons were 

used for residential purposes and 26.1 billion gallons were used for commercial purposes.

In 2005, a total of 410 billion gallons of water were used daily, an increase of 1.99 % 

from 1995. To calculate water use in the current year, we assume that commercial and 

residential water use has increased at the same rate as total water use from 1995 to 2005

and adjust the cost to current dollars using the consumer price index for all goods for all 

consumers.

 

39 U.S. Geological Survey. “Estimated Use of Water in the United States in 1995.” 

<http://pubs.usgs.gov/circ/1344/pdf/c1344.pdf>
46
47

5 Implementation of Methodology and Results

5.1 Construction Statistics Methodology: Accuracy

The accuracy of the estimate for nonresidential new construction in Section 3.1 relies on 

two notions. The first notion is that the ratio of new construction to the value of 

construction is the same for both the Economic Census and the C30 report. 

Unfortunately, there is no way to test this hypothesis empirically for nonresidential 

construction. The second is that the ratio of new construction to the value of construction 

(excluding maintenance and repair) remains relatively constant from the most recent 

Economic Census until the time being assessed. This ratio does in fact change only 

slightly from one Economic Census to the next. The ratios from the 2002 and 2007 

Economic Census can be compared in Table 5.1-1. The ratio of commercial/institutional 

new construction (NC) to the value of construction (NC+AAR) in 2002 was 0.707 and 

0.697 in 2007; a change of 1.5 %. The other ratios changed at similar rates. In Table 5.1-2

new construction put in place in 2007 is calculated using the 2002 Economic Census and 

compared to values estimated using the 2007 Economic Census. The mean absolute 

percent error (MAPE) is 0 % for residential construction since this is provided directly 

from the C30 report on an annual basis. New nonresidential construction 

(commercial/institutional, manufacturing, and public works) has a MAPE between 0 % 

and 2 %.

The accuracy of the estimates for nonresidential additions, alterations, and reconstruction 

depend on similar notions as those for new construction. The first notion is that the ratio 

of additions, alterations, and reconstruction to the value of construction (excluding 

maintenance and repair) in the Economic Census is similar to that of construction put in 

place. Unfortunately, there is no way to test this hypothesis empirically. The second

notion that accuracy relies on is that the ratio of additions, alterations, and reconstruction 

to the value of construction (excluding maintenance and repair) remains relatively 

constant from the most recent Economic Census until the time being assessed. The ratios 

between 2002 and 2007 vary only slightly as seen in Table 5.1-1. In Table 5.1-2,

additions, alterations, and reconstruction put in place in 2007 is calculated using the 2002 

Economic Census and compared to values estimated using the 2007 Economic Census. 

The mean absolute percent error (MAPE) is 0 % for residential construction since this is 

provided directly from the C30 report on an annual basis. Nonresidential construction 

(commercial/institutional, manufacturing, and public works) has a MAPE between 1 % 

and 4 %.

Table 5.1-1: Ratios from the 2002 and 2007 Economic Census

2002 2007 2002 2007

Category NC/(NC+AAR) NC/(NC+AAR) AAR/(NC+AAR) AAR/(NC+AAR)

Residential 0.767 0.759 0.233 0.241

Commercial/Institutional 0.707 0.697 0.293 0.303

Manufacturing 0.709 0.705 0.291 0.295

Public Works 0.779 0.781 0.221 0.219
48

Table 5.1-2: Construction Estimates

2002 Economic 

Census

2007 Economic 

Census MAPE

($Billions 2007) ($Billions 2007)

$1,150.69 $1,150.69 0.0%

(Including Facility Design)

 Total Private Construction $861.62 $861.62 0.0%

 Total Public Construction $289.07 $289.07 0.0%

$1,150.69 $1,150.69 0.0%

i. Residential $500.47 $500.47 0.0%

New Construction $361.37 $361.37 0.0%

Renovation (Additions, Alterations, $139.10 $139.10 0.0%

 and Reconst ruct ion (AAR))

ii. Commercial/Institutional $363.13 $363.13 0.0%

New Construction $256.81 $252.96 1.5%

Renovation (AAR)[2] $106.31 $110.17 3.5%

iii. Manufacturing $45.72 $45.72 0.0%

New Construction $32.43 $32.25 0.6%

Renovation (AAR) $13.29 $13.47 1.4%

iv. Public Works $241.37 $241.37 0.0%

New Construction $188.09 $188.44 0.2%

Renovation (AAR) $53.28 $52.94 0.7%

$1,150.69 $1,150.69 0.0%

New Construction $838.70 $835.01 0.4%

Renovation (AAR) $311.99 $315.68 1.2%

$175.86 $203.54 13.6%

b. Value of Construction Put in Place by Type of 

Construction

a. Value of Construction Put in Place by Sector

c. Value of Construction Put in Place by Projecture 

d. Expenditures for Maintenance and Repair

The accuracy of the estimates for maintenance and repair relies on the notion that the 

ratio of maintenance and repair to new construction does not change significantly from 

one Economic Census to the next. Accuracy also relies on the ratio of maintenance and 

repair to new construction being similar to that of maintenance and repair to construction 

put in place from the C30 report. These two cannot be compared as the C30 report does 

not actually include maintenance and repair. In Table 5.1-2, maintenance and repair put

in place in 2007 is calculated using the 2002 Economic Census and compared to values 

estimated using the 2007 Economic Census. The mean absolute percent error (MAPE) is 

13.6 % for all maintenance and repair construction.

Accuracy of estimates of the construction supply chain components rely on several 

additional notions. The accuracy of facility design estimates relies on the notion that 

architectural, surveying, and engineering services increase at a similar rate as 

construction put in place. Accuracy of facility construction and renovations relies on the 

notion that facility design is proportionally distributed between the two. Facility 
49

construction, renovation, and maintenance and repair rely on three notions: first, that 

materials, components, supplies, and fuels is distributed proportionally between all three; 

second, that the ratio of materials, components, supplies, and fuels to total construction in 

the Economic Census is the same for the C30 report; and third, that the ratio of materials, 

components, supplies, and fuels to total construction in the Economic Census does not 

change significantly from the year of the census to the year being estimated. The first two 

cannot be tested; however, the third can be examined more closely. The maintenance and 

repair ratio and the materials, components, supplies, and fuels ratio for 2002 and 2007 are 

compared in Table 5.1-3. The percent change from 2002 to 2007 ranges from 9 % to 

22 %. In Table 5.1-4, each of the construction supply chain components is calculated for 

2007 using the 2002 Economic Census and also using the 2007 Economic Census. The 

values are compared to generate a mean absolute percent error (MAPE). The MAPE 

ranges from 10 % to 17 % for the supply chain components shown in bold.

Table 5.1-3: Ratios from the 2002 and 2007 Economic Census

2002 2007 2002 2007

Category MR/NC MR/NC MCSF/TC MCSF/TC

Residential 0.199 0.231 0.305 0.368

Commercial/Institutional 0.224 0.267 0.267 0.325

Manufacturing 0.312 0.356 0.317 0.364

Public Works 0.194 0.218 0.298 0.326
50

Table 5.1-4: Estimates of Construction Supply Chain Components

2002 Economic 

Census

2007 Economic 

Census MAPE

a. Facility Design (FD) ($Billions 2007) ($Billions 2007)

Architectural Services (NAICS 541310) $34.4 $37.3 7.7%

Surveying Services (NAICS 54137) $5.8 $6.4 9.4%

Engineering Services (NAICS 54133) $79.1 $94.7 16.5%

Total Facility Design $119.3 $138.4 13.8%

Less Materials, Components, Supplies, and Fuels for FD -$2.4 -$2.8 13.8%

Facility Design $116.9 $135.7 13.8%

b. Facility Construction

New Construction Put in Place (NC) $838.7 $835.0 0.4%

Less NC Facility Design (FD) -$89.3 -$102.4 12.8%

Less Materials, Components., Supplies, and Fuels for NC -$246.0 -$288.4 14.7%

Facility Construction $503.4 $444.1 13.3%

c. Commissioning Inspection Services $1.4 $1.6 14.9%

d. Renovation (Additions, Alterations, and Reconstruction (AAR))

Value of AAR $312.0 $315.7 1.2%

Less AAR Facility Design (FD) -$30.0 -$36.0 16.6%

Less Materials, Components, Supplies, and Fuels for AAR -$90.2 -$108.4 16.8%

Renovation $191.7 $171.2 12.0%

e. Maintenance and Repair (M&R)

Value M&R $175.9 $203.5 13.6%

Less Materials, Components, Supplies, and Fuels for M&R -$37.4 -$50.4 25.8%

Maintenance and Repair $138.5 $153.2 9.6%

f. Materials, Components, Supplies, and Fuels (MCSF) 

Facility Design $2.4 $2.8 13.8%

Facility Construction $243.2 $286.4 15.1%

Renovation $90.2 $108.4 16.8%

Maintenance and Repair $37.4 $50.4 25.8%

MCSF $373.2 $447.9 16.7%

To evaluate the accuracy of the methodology, some of the MAPE values found in Table 

5.1-2 and Table 5.1-4 can be compared to a naïve model. In Table 5.1-5, MAPE values 

for a naïve model have been calculated for new construction; additions, alterations, and 

reconstruction; maintenance and repair; and materials, components, supplies, and fuels. 

The naïve model simply assumes that values of construction from the 2002 Economic 

Census increase at the rate of inflation. Estimates for 2007 are generated and compared 

with the 2007 Economic Census. The MAPE values under the “Estimates” column are 

from Table 5.1-2 and Table 5.1-4. The methodology presented in this report has a lower 

MAPE than the naïve model for all five estimates.
51

Table 5.1-5: Estimates Compared to Naive Model

Naïve Estimates

New Construction 16.2% 0.4%

Additions, Alterations, and Reconstruction 19.8% 1.2%

Maintenance and Repair 28.4% 13.6%

Materials, Components, Supplies, and Fuels 29.1% 16.7%

5.2 2009 Calculations

Calculations for the year with the most recently available data, 2009, have been 

calculated below. Some data from the previous year has also been included for 

comparison along with data concerning value added from the Bureau of Economic 

Analysis and employment data. Examining section I, private construction put in place

declined 22 % from 2008 to 2009 while public construction increased by 2 %. The 

decline was due to new residential construction, which declined by 29 %, and 

commercial/institutional construction, which declined by 17 %. Manufacturing and 

public works construction grew at 10 % and 1 % respectively. Overall, new construction 

decreased by 18 % and renovations decreased by 8 %. The volume of construction work, 

which is the sum of construction put in place and maintenance and repair, decreased 

15 %. The value of materials, components, supplies and fuels decreased by 16 %. 

Employment in the construction industry has dropped by 12 % to 16 % depending on the 

source data. Construction value added, from the Bureau of Economic Analysis, decreased 

10 % and represents 4 % of the total value added for all industries. Facility design for the 

construction industry supply chain is $ 107 billion; facility construction is estimated at 

$ 331 billion; commissioning is $ 1 billion; renovation is $ 160 billion; maintenance and 

repair is $ 115 billion; materials, components, supplies, and fuels is $ 347 billion; 

contents and furnishings is $ 157 billion; operations and use is $ 552 billion; demolition 

is $ 2 billion; and losses are $ 48 billion. 

Table 5.2-1: 2009 Construction Estimates

I. Value of Construction Put in Place

2008 2009 Percent

($Billions 2008) ($Billions 2009) Change

a. Construction Put in Place by Sector $1,067.56 $907.78 -15.0%

(Including Facility Design)

 Total Private Construction $758.83 $592.33 -21.9%

 Total Public Construction $308.74 $315.46 2.2%

b. Construction Put in Place by Type of Construction $1,067.56 $907.78 -15.0%

i. Residential $357.75 $253.58 -29.1%

New Construction $237.60 $141.54 -40.4%

Renovation (Additions, Alterations, $120.14 $112.04 -6.7%

 and Reconst ruct ion (AAR))
52

ii. Commercial/Institutional $384.51 $320.46 -16.7%

New Construction $267.86 $223.24 -16.7%

Renovation (AAR) $116.65 $97.22 -16.7%

iii. Manufacturing $53.23 $58.51 9.9%

New Construction $37.55 $41.27 9.9%

Renovation (AAR) $15.69 $17.24 9.9%

iv. Public Works $272.08 $275.24 1.2%

New Construction $212.41 $214.88 1.2%

Renovation (AAR) $59.67 $60.36 1.2%

2008 2009 Percent

($Billions 2008) ($Billions 2009) Change

c. Construction Put in Place by Projecture Nature $1,067.56 $907.78 -15.0%

New Construction $755.41 $620.92 -17.8%

Renovation (AAR) $312.15 $286.86 -8.1%

II. Expenditures for Maintenance and Repair

(Based on C30 and 2007 Census Data)

2008 2009 Percent

($Billions 2008) ($Billions 2009) Change

a. New Construction Put in Place $755.41 $620.92 -17.8%

b. Maintenance and Repair (M&R) $186.07 $153.83 -17.3%

III. Volume of Construction Work

(Based on C30 and 2007 Census Data)

2008 2009 Percent

($Billions 2008) ($Billions 2009) Change

a. New Construction $755.41 $620.92 -17.8%

b. Renovation (AAR) $312.15 $286.86 -8.1%

c. Maintenance and Repair (M&R) $186.07 $153.83 -17.3%

d. Volume of Construction Work $1,253.63 $1,061.61 -15.3%

IV. Cost of Materials, Components, Supplies, and Fuels

(Calculated from ratios based on C30 and 2007 Census Data)

2008 2009 Percent

($Billions 2008) ($Billions 2009) Change

a. Facility Design MCSF $2.21 $2.18 -1.5%

b. New Construction MCSF $255.78 $208.09 -18.6%

c. Renovation (AAR) MCSF $106.56 $98.22 -7.8%

d. Maintenance and Repair (M&R) MCSF $46.64 $38.92 -16.6%

e. Cost of Materials, Components, Supplies, and Fuels $411.19 $347.42 -15.5%

V. Construction Value Added

(Based on BEA Data)

 

2008 2009 Percent

($Billions 2008) ($Billions 2009) Change

a. Construction Value Added $639.3 $578.3 -9.5%
53

VI. Employment in Construction

2008 2009 Percent

Change

i. Employment in Construction 10,974,000 9,702,000 -11.6%

ii. Total U.S. Employment 143,194,000 137,775,000 -3.8%

iii. Construction Employment

 as Share of Total Employment 7.66% 7.04% -8.1%

2008 2009 Percent

Change

i. Employment in Construction 7,162,000 6,037,000 -15.7%

ii. Total Non-farm US Employment 136,790,000 130,912,000 -4.3%

iii. Construction Employment

 as Share of Total Non-farm Employment 5.24% 4.61% -11.9%

2008 2009 Percent

($Billions 2008) ($Billions 2009) Change

VII. Construction Share of GDP

a. Ratio of Value of Construction

Put in Place to GDP:

i. Value of Construction Put in Place $1,067.56 $907.78 -15.0%

ii. GDP $14,441.40 $14,258.20 -1.3%

iii. Value of Construction Put in Place

 as Share of GDP 7.39% 6.37% -13.9%

b. Ratio of Value of Construction

 Put in Place le ss Mate rials, C ompone nts, 

 Supplies & Fuels (MCSF) to GDP:

i. Value of Construction Put in Place

 Less MCSF $656.37 $560.37 -14.6%

ii. GDP $14,441.40 $14,258.20 -1.3%

a. Data from Current Population Survey, Bureau of Labor Statistics (Based on household surveys; includes 

government workers (2009: 465,000) proprietors and self-employed workers (2009: 1,701,000) and unpaid 

family workers (2009: 8,000)).

b. Data from Current Employment Statistics, Bureau of Labor Statistics (Based on establishment surveys; includes 

civilian government workers but not non-civilian government workers, proprietors and self-employed workers or unpaid 

family workers).
54

iii. Value of Construction Put in Place 

 Less MCSF as Share of GDP 4.55% 3.93% -13.5%

c. Ratio of New Construction 

 Put in Place to GDP

i. New Construction Put in Place $755.41 $620.92 -17.8%

ii. GDP $14,441.40 $14,258.20 -1.3%

iii. New Construction Put in Place

 as Share of GDP 5.23% 4.35% -16.7%

d. Ratio of Construction Value Added to GDP

i. Construction Value Added $639.30 $578.30 -9.5%

ii. GDP $14,441.40 $14,258.20 -1.3%

iii. Value Added as Share of GDP 4.43% 4.06% -8.4%

VIII. Estimation of 2009 Construction Industry Supply Chain Components

a. Facility Design (FD) 

 (From the Architectural, Engineering, and Related Services section of the 2002 Census)

Architectural Services (NAICS 541310) $29.3 B

Surveying Services (NAICS 54137) $5.1 B

Engineering Services (NAICS 54133) $74.6 B

Total Facility Design $109.1 B

Less Materials, Components, Supplies, and Fuels for FD -$2.2 B

Facility Design $106.9 B

b. Facility Construction

New Construction Put in Place (NC) $620.9 B

Less NC Facility Design (FD) -$80.7 B

Less Demolition and Materials, Components., Supplies, and Fuels for NC -$209.7 B

Facility Construction $330.5 B

c. Commissioning Inspection Services $1.2 B

d. Renovation (Additions, Alterations, and Reconstruction (AAR))

Value of AAR $286.9 B

Less AAR Facility Design (FD) -$28.4 B

Less Materials, Components, Supplies, and Fuels for AAR -$98.2 B

Renovation $160.3 B

e. Maintenance and Repair (M&R)

Value M&R $153.8 B

Less Materials, Components, Supplies, and Fuels for M&R -$38.9 B

Maintenance and Repair $114.9 B

2009

($Billions 2009)
55

f. Materials, Components, Supplies, and Fuels (MCSF) 

Facility Design $2.2 B

Facility Construction $208.1 B

Renovation $98.2 B

Maintenance and Repair $38.9 B

MCSF $347.4 B

g. Contents and Furnishings 

From Annual Survey of Manufactures 2006

Audio and Video Equip.Mfg. 334310 $9.6 B

Carpets and Rug Mills 314110 $15.2 B

Curtains and Linen Mills 31412 $6.7 B

Furniture and Related Prod. Mfg. 337 $85.6 B

Hh. Laundry Equipment 335224 $4.9 B

Hh. Refrig. and Home Freezer 335222 $6.2 B

Lighting Fixture Mfg. 33512 $10.9 B

Household Cooking Appl.Mfg. 335221 $4.9 B

Small Elec. Appl. Mfg. 33521 $3.7 B

Total $147.7 B

Contents and Furnishings

(adjusted to 2009) $157.1 B

h. Operation and Use

Energy 

(Based on the 2005 values from the 2007 Annual Energy Review)

Commercial $179.9 B

Residential $251.5 B

Energy $431.4 B

Water

Commercial $40.2 B

Residential $14.8 B

Commercial and Residential $55.0 B

Services to Buildings and Dwellings 

 ( Fr o m t h e Ser v ice An n ual Sur v ey : NAI CS 5 6 1 6 2 1 , 5 6 1 7 1 , 

 56172, 56174, 56179) $65.9 B

O peration and Use (total of 

energy, water, and services) $552.4 B

i. Demolition

Value of Construction Less MCSF 

times 2002 ratio $1.6 B

j. Loss 

Fire $10.6 B

Wind (tornado, tstm wind, high wind) $2.0 B

Earthquakes $5.3 B

Floods (flash flood, river flood) $1.9 B

Other (hail, coastal storm, tropical storm/hurricane, winter storm) $28.1 B

Loss $47.9 B
56
57

6 Summary and Recommendations for Further Research

6.1 Summary

Beginning with the owners’ needs, the life cycle of a constructed facility moves through 

six primary stages, which are the primary components of the construction industry: 

facility design, facility construction, commissioning, operation and use, renovation, and 

eventually demolition. A number of other components support them; these include 

maintenance and repair; materials, components, supplies, and fuels; contents and 

furnishings; and standards, codes, and regulatory approvals. The methods discussed in 

this report provide annual estimates for the six primary components along with the 

supporting components and losses. Without the methodology presented in this report, 

some values are only available every five years and others are not available at all. Having 

a method to estimate these components of the construction industry provides a better 

understanding of the construction industry. The accuracy of the methods discussed relied

on several notions, primarily that the ratios in the Economic Census do not change 

significantly from one year to the next and that ratios found in the Economic Census are 

similar to those of construction put in place from the C30 reports. The 2009 estimates for 

the construction industry supply chain values, as described in the report, are illustrated in 

Figure 6.1-1. Federal and state agencies can use the estimates in assessing the effect of 

Figure 6.1-1: Construction Industry Supply Chain
58

regulations, tax policy, finance policy, land development, and job retention efforts. They 

can provide insights into the extent that new structures are being erected as opposed to 

old structures being renovated and maintained while also providing insight into industry 

growth for investors, economic development groups, and other construction industry 

stakeholders.

6.2 Recommendations for Further Research

There are a number of opportunities for further research and improvement on the 

estimation of the construction industry supply chain statistics. Among them is the 

estimate for commissioning, which now only includes values for inspection. According to 

ASHRAE Guideline 0, Building commissioning is “a quality-oriented process for 

achieving, verifying, and documenting that the performance of facilities, systems, and 

assemblies meets defined objectives and criteria.”40 The estimate for commissioning, 

therefore, needs to also include additional expenditures on design, servicing, and other 

steps in the process. Commissioning is a review of a building to identify suboptimal 

situations or malfunctions that has been shown to provide median whole-building energy 

savings between 13 % and 16 %.41 Inspection is arguably one part of the commissioning 

process which begins in the pre-design phase of construction and continues through the 

operation of the structure. 

Further research is needed on expenditures for developing and implementing building 

standards and codes along with expenditures on regulatory approval of structures. The 

development of standards for the built environment is critical to the health and safety of 

those who occupy or use structures. It includes fire codes, disaster resistance standards, 

electrical codes, plumbing codes, and other standards for structural components. 

Although current building codes and standards, which are primarily prescriptive in 

nature, increase construction expenditures and lengthen the delivery time of construction 

projects, the use of performance-based codes and standards is seen as a mechanism for 

reducing regulatory burdens. Currently, there is not a complete understanding of the 

expenditures on developing and implementing building standards. 

 

40 National Institute of Building Sciences. Whole Building Design Guide. 

<http://www.wbdg.org/project/buildingcomm.php>

41 Mills, Evan. 2009 “Building Commissioning: A Golden Opportunity for Reducing Energy Costs and 

Greenhouse-gas Emissions.” < http://cx.lbl.gov/2009-assessment.html>
59

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