As development booms in the Greater Philadelphia area, new research, released by General Building Contractors Association (GBCA), reveals the true economic impact of commercial construction within the city of Philadelphia and the five-county region of Bucks, Chester, Delaware, Montgomery, and Philadelphia counties. The study quantifies the multi-billion dollar influence of commercial construction activity, which spans investment in new construction and major renovations, the effect on employment and other key areas.
The “Economic Impact of New Commercial Construction and Major Renovation” research study analyzes data from 2013 to 2015 and reveals:
- Commercial construction has had a significant, positive effect on the city and region’s economy. Over the course of three years, commercial construction has generated an estimated economic impact of $6.5 billion in the city of Philadelphia and $13.6 billion in the five-county Philadelphia region.
- Construction activity spurred job creation both directly and indirectly. Specifically, the study found that each year, 27,700 direct, indirect, and induced jobs are supported in the five-county region as a result of commercial construction projects, with direct construction jobs accounting for the majority (63 percent) of employment opportunities. Over three years, employees within construction and affected industries, including healthcare, professional services, retail and dining, waste management, financial services, and more, earned an estimated $5.6 billion in wages and benefits.
- Philadelphia’s growing and evolving population has influenced commercial construction trends. Drawing upon city, state, and national data, the research explores how demographic changes, such as the influx of residents from the New York metropolitan area and the rise of millennials living in the city, are affecting demands for development.
- Specific neighborhoods in Philadelphia have played key roles in the city’s economic development. The study delves into how major building projects in University City, Center City, The Navy Yard, and other areas have helped to develop and shape Philadelphia’s economy.
Commissioned by GBCA, the study was conducted by Econsult Solutions. For more insights and to view the full report, visit www.gbca.com/resources/publications.
