By: Janet Harrah
This is the third in a series of blog posts highlighting data results from the 2012 Economic Census for the Cincinnati MSA. The Economic Census is the U.S. Government's official five-year measure of American business and the economy. It is conducted by the U.S. Census Bureau in years ending in 2 and 7.
Last month we discussed Cincinnati’s commodity flow data. This month we are focusing on the construction sector. Unlike other industry sectors, data are not reported for counties and metropolitan areas. This post presents data for the states of Ohio, Kentucky and Indiana. The information on the construction industry includes data for residential and non-residential buildings; heavy and civil engineering construction; and specialty trade contractors.
The data show a decade of decline in the construction industry. Over the decade, 2002 to 2012, the number of construction jobs in Ohio, Indiana and Kentucky fell by 121,000 a decrease of 25 percent, with the largest losses occurring in construction of buildings, at nearly 42 percent and more than 71 percent of all jobs lost occurring between 2007 and 2012 during the latest recession. Total industry payroll declined by 20 percent after adjusting for inflation. The steeper decline in jobs compared to payroll is reflected in the 7 percent increase in average annual wage after adjusting for inflation.
Number of Jobs
In 2012, Kentucky’s construction industry had 64,000 jobs, down 24 percent from 2002, a loss of nearly 20,000 jobs. Similar trends are evident for Ohio and Indiana. Across the three states, the number of construction jobs over the past decade fell 25 percent, a decrease of 121,000 jobs.
Table 1: Number of Construction Industry Jobs
In 2012, Kentucky’s construction industry payroll totaled $2.8 billion, up just $122.5 million in a decade. After adjusting for inflation, payroll fell 18 percent. Across the three states, the industry’s payroll increased 2 percent, or $427 million, over the decade. Payroll fell by 20 percent, or $1.9 billion, adjusted for inflation.
Table 2: Annual Payroll ($1,000)
Table 3: Annual Payroll ($1,000) Adjusted for Inflation
Average Annual Wages
In 2012, the annual wage in the construction industry averaged $47,530 across the three states, up 36 percent from 2002. After adjusting for inflation, the average annual wage increased 7 percent over the 10-year analysis period.
Table 4: Average Annual Wage per Job
Table 5: Average Annual Wage per Job Adjusted for Inflation
Value of Sales
In 2012, the value of sales in the construction industry across the three states totaled $84 billion. Specialty trade contractors had sales totaling $41.2 billion accounting for 49 percent of the industry’s sales followed by construction of buildings (32 percent) and heavy and civil engineering construction (19 percent).
Across the three states Ohio accounted for $42.8 billion or 51 percent of the construction industry’s sales.
Table 6: Value of Sales, Shipments, Receipts, Revenues, or Business Done by Subsector (billions $)
If you are interested in these data for other states please contact CEAD at email@example.com.