WASHINGTON, DC—Green building will account for more than one-third of all US construction jobs by 2018, according to a study prepared for the US Green Building Council by Booz Allen Hamilton. The 2015 Green Building Economic Impact Study also finds that green construction is growing at a faster annual pace than non-green construction, and will continue to increase.

Specifically, the study projects that green construction will increase 15.1% year-over-year between now and '18, with annual spending projected to increase from $150.6 billion this year to $224.4 billion in 2018. Residential green construction spending is expected to grow from $55 billion this year to $100.4 billion in '18, representing Y-O-Y growth of 24.5%, while commercial green construction spending is estimated to grow from $95.6 billion in2015 to $123.96 billion in 2018,reflecting Y-O-Y growth of 9.76%.

'Green construction contributed significantly to the national GDP with a net direct economic impact of $60.7 billion and an indirect impact of $68.9 billion in 2015,” according to the USGBC report. “It is expected to grow to $85.4 billion and$98.3 billion, respectively, by 2018.” What this means, according to the report, is that the green construction market's impact on GDP is projected to increase by 41% from 2015 to 2018.

The report cites estimates that green construction will directly contribute 796,000 jobs to the US economy this year, while $53.6 billion of all wages will be directly accounted for by the green construction industry. By '18, these numbers will increase to 1.1 million and $75.6 billion, respectively. “According to predictions, by '18, the green construction industry will be in some way responsible for 38% all of construction jobs,” the report states.

GDP contributions from green construction between 2011 and 2014 totaled $188.8 billion and are projected to rise to a four-year indirect contribution total of $345.7 billion between this year and the end of '18, according to the report. Current induced GDP contribution projections for '15 total $70.8 billion and will increase to approximately $100.3 billion by '18.

“Green building is playing a massive role in the US construction sector, the clean and efficient energy sector and the US economy as a whole," says Rick Fedrizzi, USGBC's CEO and founding chair. 'More than 2.3 million US workers are taking home $134 billion annually in large part because of green building programs like LEED. Demand for green building will only continue to grow as individuals, businesses and institutions continue to prioritize sustainable approaches to the design, construction and operations of our built environment.”

Along with national jobs, GDP and labor earnings from green building, the study projects significant growth in its contribution to individual states' tax contributions and environmental asset indicators at both the national and state levels. Total state earnings related to LEED building construction projects are estimated to total $8.4 billion by '18. In Texas alone, almost 1.26 million jobs in the green building sector are projected between '15 and '18. As a result, green building will also contribute to significant savings across energy, trash, water and maintenance costs, the report states.

Instant Insights /

By 2018, 1 in 3 Construction Jobs May Be Green

Related Stories

Recommended For You