Fernando de Querol Cumbrera
Research expert covering construction, loans, leasing, savings, and debt
The construction materials industry in the United States - statistics & facts
There is a wide array of materials used for construction. Many of them occur naturally and can be found, mined, or extracted. But generally they still need to be processed into their final form. Some examples are lumber, stone, and some metals such as copper. Other building materials, such as concrete, steel, and bricks have complex manufacturing processes which utilize several raw materials. Given that the value added of construction activities in the United States amounted to roughly four percent of its GDP, the construction material industry also plays an important role in the economy.
The cost of building materials
The price increase of materials can be one of the main determinants in deciding what material to use in construction projects. In 2021 and 2022, the price of construction materials and components in the U.S. soared. Despite prices falling back down slightly in 2023, the prices of building materials and other costs still is an important concern for the construction industry. However, price is not the factor that needs to be taken into account, the preferences of the clients, the availability of the material, and its aesthetic and physical properties are also important. In addition to that, the manufacturing process of some materials are significantly can be very energy-intensive and polluting, which also needs to be taken into account if builders want to reduce their carbon footprint.The costs of concrete
Despite the rise in the producer price of concrete products in the United States, it is still one of the most widely used construction materials. The price of the main concrete ingredients has also increased in the past years even if the cost of other building materials actually fell in 2023. The materials typically used for the manufacture of concrete are gravel, crushed stone or other aggregates, sand, water, and cement, which is itself mainly made out of clinker, clay, limestone, and gypsum. Clinker is one of the main reasons why the CO2 emissions released during the manufacture of cement are so high. Although reducing the share of clinker in cement can lower the footprint of cement, the concrete industry still has a large environmental impact.
