Larger construction businesses are growing

Andrey Kamenov, Ph.D. Probability and Statistics

Here’s another interesting fact from the County Business Patterns 2013 data: after a five-year slide, the construction sector (and, most importantly, building construction subsector) finally started growing.

We will now provide some insight into the main drivers of the construction businesses growth. As you can see from the chart below, the larger companies (with at least 20 employees) suffered the biggest decrease in the total employment numbers: around 45 percent in five years. At the same time, the number of people working in very small companies (one to four employees) has also decreased significantly, but “only” by 20 percent.

In the last year, the total number of employees in small and medium construction businesses has not changed much (the dynamic is positive but rather small). On the other hand, larger companies have created more than 64,000 jobs in 12 months – an increase of almost 13 percent in just one year!

We should also note that the increase in the number of jobs usually leads to a small decrease in the average payroll, in part due to the companies filling mostly starting positions. This time, the average payroll has continued increasing for businesses from all size classes.

More than 12,500 new jobs are located in California. Overall, in most of the states relative growth is close to the nationwide numbers, with the western states showing consistently high numbers. The growth is lower in the Central U.S., and mixed numbers are registered in the eastern states.

Source: the US Census Bureau County Business Patterns data

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About Andrey Kamenov

Andrey Kamenov, Ph.D. Probability and Statistics

Andrey Kamenov is a data scientist working for Advameg Inc. His background includes teaching statistics, stochastic processes and financial mathematics in Moscow State University and working for a hedge fund. His academic interests range from statistical data analysis to optimal stopping theory. Andrey also enjoys his hobbies of photography, reading and powerlifting.

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