A 2024 study, conducted by Keivan Deravi, states that the construction industry’s total impact grew from $15 billion in 2015 to $17.2 billion in 2021.
The study, conducted on behalf of the Associated Builders and Contractors of Alabama, shows that in 2021, the total output produced by commercial construction in Alabama reached $9.4 billion, marking a 97% increase compared to 2015 figures.
“The interconnectedness of Alabama’s economy is evident as commercial construction drives growth across multiple sectors, with contractors building everything from local schools to embassies worldwide,” said Gov. Kay Ivey. “The impact of the business has been successful in emphasizing our workforce, and ultimately, the employment impact is equivalent to 200,000 jobs.”
Beyond the direct impacts on output, payroll and employment, the study estimates an earnings impact of $11.4 billion.
Jay Reed, president of Associated Builders and Contractors, said, “The data reveals commercial construction is a major industry and essential to Alabama’s economy. Seeing these numbers in black and white helps us discuss specifics when meeting with members, elected officials and beyond.”
Deravi says the study found commercial construction in Alabama comprises 6.7% of Alabama’s GDP and creates 7.2% of Alabama jobs.
“Such a significant contribution — 5% of a state’s economy — is a major player by any standard. In 2021 alone, the sector contributed over $600 million in state taxes, a sum that could cover the educational expenses of every student in both Jefferson and Shelby counties combined,” Deravi says.
