Construction Is More Than an Economic Indicator, It’s an Economic Engine

Construction is often viewed as a reflection of economic growth. When businesses expand, populations increase, and capital investment accelerates, construction activity follows. But that perspective overlooks a fundamental reality: Construction doesn’t simply respond to economic growth. It helps create it.

A recent article in Area Development by Scott Canada, President of the Mission Critical Team at McCarthy Building Companies, highlights the industry’s significant economic impact and its importance to long-term regional competitiveness.

According to the article, commercial construction generated an estimated $5.6 trillion in economic activity in 2024, supported by $2.19 trillion in direct spending. More importantly, every dollar invested in construction generates approximately three dollars in broader local economic activity.

That multiplier extends well beyond the jobsite, supporting suppliers, subcontractors, professional services, local businesses, and tax revenues.

The Next Wave of Investment The economic impact becomes particularly significant when considering the unprecedented investment underway in data centers, power infrastructure, advanced manufacturing, and other capital-intensive industries.

These projects create immediate construction opportunities while establishing the infrastructure necessary for future economic expansion.

Data centers provide a compelling example. The article cites projections of more than $150 billion in data center construction underway or in advanced development, with an anticipated economic impact approaching $405 billion.

However, investment alone does not guarantee economic success.

Workforce Development Becomes a Competitive Advantage For North Carolina and South Carolina, the implications are significant.

Both states are competing for major industrial investments, technology infrastructure, and manufacturing expansions. Increasingly, their ability to attract these projects depends on more than available land, favorable business climates, and financial incentives.

Workforce availability, reliable power, infrastructure capacity, and project execution capabilities are becoming critical competitive differentiators.

The construction workforce itself is emerging as an essential component of economic development strategy.

Communities that strengthen technical education, apprenticeships, and partnerships between contractors, employers, and educational institutions will be better positioned to attract investment and sustain growth.

Building Long-Term Economic Value The broader lesson for economic developers, policymakers, and construction leaders is clear.

Construction investment should not be measured solely by the buildings completed or jobs created during development. Its greater value comes from the economic activity those investments enable for decades.

As the Carolinas compete for the next generation of industrial and infrastructure investment, strengthening the construction industry’s capacity must be part of the conversation.

The communities that invest in their ability to build today will be better positioned to grow tomorrow.

Source: Scott Canada, “Where Construction Investment Goes, Economic Growth Follows,” Area Development, Q3 2026.

Construction Is More Than an Economic Indicator, It’s an Economic Engine

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