Green Building Poised to Lead All Sectors
Rapidly Outpacing Conventional Construction
The U.S. Green Building Council says in a new report that the green building segment is set to become the leader among all construction industry sectors.
Of all the sectors in the construction industry, green building is outdistancing them all.
The U.S. Green Building Council and Booz Allen Hamilton have issued a new report that says green building will account for more than 2.3 million jobs this year, and those jobs stand to contribute about $134.3 billion in labor income to green workers.
"The study also found that green construction's growth rate is rapidly outpacing that of conventional construction and will continue to rise," the Green Building Council said.
Moreover, green construction will account for more than 3.3 million U.S. jobs by 2018, according to the Green Building Council's study. That will comprise more than one-third of the entire U.S. construction sector, and generate $190.3 billion in labor earnings.
The industry's direct contribution to U.S. gross domestic product (GDP) is also expected to reach $303.5 billion from 2015-2018.
"Green building is playing a massive role in the U.S. construction sector, the clean and efficient energy sector and the U.S. economy as a whole," Rick Fedrizzi, CEO and founding chair of the USGBC, said. "More than 2.3 million U.S. 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."
"Our research shows that green building has created millions of jobs and contributed hundreds of billions of dollars to the U.S. economy, with the construction of LEED-certified buildings accounting for about 40 percent of green construction's overall contribution to GDP in 2015," David Erne, a senior associate at Booz Allen, said. "This industry is certainly on the rise, and aggressive growth in the green building sector is anticipated over the next four years."
Corporate executives have expressed caution about the national economy in the near future, as reflected in the 2015 CEO Economic Outlook Index.
The index, maintained by the Business Roundtable, is a composite of projections from chief executive officers about sales, and plans for capital spending and hiring during the next six months.
Overall, the index declined 7.2 points to 74.1 in the third quarter, from 81.3 in the second quarter.
CEOs now believe the U.S. gross domestic product will expand by 2.4 percent in 2015, which would be a 0.1 percentage point decline from the second-quarter projection, the Business Roundtable said.
Their expectations for sales dropped 11.1 points to 101.4, from 112.5. Their predictions on hiring declined 7.9 points to 50.7, from 58.6. Capital spending was cut 2.4 points to 70.3, from 72.7.
"The downward trend in CEO plans for investment and hiring continues to reflect reasonable caution regarding near-term prospects for modest U.S. growth," Randall Stephenson, chairman of Business Roundtable and chairman and CEO of AT&T Inc., said. "Business plans could be negatively affected if Washington fails to act on federal budgets, the debt ceiling and tax extenders."