Construction Accounting Statistics

Construction Accounting Statistics 2023: Facts about Construction Accounting outlines the context of what’s happening in the tech world.

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Top Construction Accounting Statistics 2023

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Construction Accounting “Latest” Statistics

• Instead of upon contract execution or completion, construction accounting often recognizes revenue during the course of a contract depending on how much of the project is finished, 25% completion implies one-quarter of the contract value is recognized.^[1]
• 34% of fatalities in construction are caused by falls; eliminating falls in construction would result in an annual death reduction of over 300.^[2]
• Fatal construction accidents cost $5 billion in medical expenses each year; diminish family members’ quality of life because of lost money and decreased productivity.^[2]
• Just 6% of U.S. employees are employed in the construction industry, despite the industry accounting for over 20% of worker fatalities in the country.^[2]
• The average cost of accidents to construction organizations is 3.6% of their budgets, while only 2.6% goes toward safety training.^[2]
• Over 60% of construction accidents happen during the first year of employment, underlining the need for proactive, top.^[2]
• Over 60% of all fatalities associated with construction are caused by the fatal four primary causes of falls, equipment stuck in between objects, electrocutions, and fires.^[2]
• In the private construction sector, there were 25,460 occurrences of slips, trips, and falls in 2019, accounting for 32.0% of nonfatal injuries resulting in days away from work.^[3]
• Falls, slips, and trips made up the most fatal accidents in the construction sector, accounting for 37.9% of all deaths. 418 of 1,102.^[3]
• Construction employed 114 million us employees in 2018, an increase of 25% from 2011. Hispanic construction workers saw even greater employment growth, increasing by more than half, or 55%, during this time.^[4]
• In 2018, the buildings and construction industry handled 36% of total energy consumption and 39% of energy and process-related carbon dioxide emissions, 11% of which came from the production of building materials and goods such as steel, cement, and glass.^[5]
• From 2019 to 2020, construction expenditure rose by 4.8%; in 2020, there were $1.43 trillion dollars invested in a building.^[6]
• 4.5% of construction workers left their jobs, were fired, or were laid off.^[6]
• Only 31% of construction projects in a three-year survey were completed within 10% of their initial expenditures.^[6]
• Construction starts for single-family houses increased by 11.6% higher than those for multifamily dwellings between 2019 and 2020, while multifamily construction dropped by 3%.^[6]
• 7.4 million people are employed by the U.S. construction sector, which contributes 4.3% of the country’s GDP.^[6]
• Revenues in the construction sector have increased at a yearly pace of 2020, the construction sector has a 68% yearly turnover rate.^[6]
• The U.S. construction industry’s market size was estimated to be approximately, and its revenue increased from 2016 to 2021 at an annualized rate of 2.7%.^[6]
• The U.S. economy’s total rate of employment growth is 4%, and the construction sector’s job growth rate is equal to that.^[6]
• The construction sector employed around 6 million people or 4.2% of the 143 million employed nationwide.^[6]
• Residential construction is expected to account for around $483 billion of this total amount in 2024, while nonresidential construction will account for approximately $473 billion and nonbuilding construction will account for approximately $273 billion.^[6]

Construction Accounting “Other” Statistics

• 25% of employees worry about being hurt every day, and 55% of workers think they need more safety training.^[2]
• Construction had injury and sickness rates that were 24% higher than the average for all industries in 2020.^[2]
• The fatalities made for 20.7% of all occupational fatalities in the united states, which totaled 5,333.^[3]
• Though confidence was lower than typical in 2019, as opposed to 2017 and 2018, when 84% and 76%, respectively, of executives, said they anticipated industry growth over the next two years.^[6]
• Project managers provide for a 10% margin of error as a contingency since they know that not everything will go as planned.^[6]
• Fence installation jumped 144% during the same period, while homeowners hired landscapers at a rate of 238% more.^[6]
• The industry’s revenue has increased at an annualized pace of 27% and is only anticipated to increase in the coming years.^[6]
• The proportion of CEOs who projected industry growth increased from 54% in 2020 and 51% in 2019.^[6]
• This shift has a compound annual rate of change of 0.4%, which is comparable to the expected rate of growth for all U.S. occupations over the same period, which is a 0.4% rise.^[6]

Also Read

How Useful is Construction Accounting

One of the key benefits of construction accounting is its ability to provide project stakeholders with a clear understanding of the financial health of a construction project. By tracking income and expenses, construction accountants can help project managers make informed decisions and identify potential issues before they become critical. This level of visibility allows project stakeholders to make adjustments as needed to stay on track and within budget.

Furthermore, construction accounting helps in minimizing financial risks associated with construction projects. By carefully tracking expenses and monitoring cash flow, construction accountants can identify potential delays or cost overruns early on, allowing project managers to take proactive measures to mitigate these risks. This level of financial oversight can prevent costly mistakes and ensure that projects are completed on time and within budget.

Moreover, construction accounting plays a crucial role in maintaining compliance with various regulatory requirements and industry standards. Construction projects are subject to a wide range of rules and regulations, from tax laws to financial reporting standards. Construction accountants help ensure that all financial transactions are properly documented and reported, keeping projects in good standing with regulators and avoiding costly fines or penalties.

Construction accounting also contributes to the overall success of construction companies by providing valuable insights into financial performance and profitability. By analyzing financial data and performance metrics, construction accountants can identify trends and patterns that can help drive business decision-making and strategic planning. This level of financial analysis can help construction companies identify areas for improvement, optimize resources, and capitalize on growth opportunities.

Ultimately, construction accounting is an invaluable tool for construction projects of all sizes. From small residential builds to large-scale commercial developments, effective financial management is essential for success. Without construction accounting, projects are at risk of financial uncertainty, cost overruns, and missed deadlines. By employing sound accounting practices, construction projects can stay on track, remain within budget, and achieve their desired outcomes.

In conclusion, construction accounting is a critical component of construction projects, providing stakeholders with the financial insights and controls needed to ensure success. By maintaining accurate financial records, controlling costs, and improving visibility into project finances, construction accountants play a key role in the overall success of construction projects. With the help of construction accounting, project stakeholders can make informed decisions, minimize risks, and drive better outcomes for their projects.

Reference

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1. constructioncoverage – https://constructioncoverage.com/construction-accounting-software
2. bigrentz – https://www.bigrentz.com/blog/construction-safety-statistics
3. bls – https://www.bls.gov/opub/ted/2021/fatal-and-nonfatal-falls-slips-and-trips-in-the-construction-industry.htm
4. cdc – https://www.cdc.gov/niosh/construction/statistics.html
5. iea – https://www.iea.org/reports/global-status-report-for-buildings-and-construction-2019
6. zippia – https://www.zippia.com/advice/us-construction-industry-statistics/