Sector Description
The Sector as a Whole
The Construction sector comprises establishments primarily engaged in the construction of buildings or engineering projects (e.g., highways and utility systems). Establishments primarily engaged in the preparation of sites for new construction and establishments primarily engaged in subdividing land for sale as building sites also are included in this sector.
Construction work done may include new work, additions, alterations, or maintenance and repairs. Activities of these establishments generally are managed at a fixed place of business, but they usually perform construction activities at multiple project sites. Production responsibilities for establishments in this sector are usually specified in (1) contracts with the owners of construction projects (prime contracts) or (2) contracts with other construction establishments (subcontracts).
Establishments primarily engaged in contracts that include responsibility for all aspects of individual construction projects are commonly known as general contractors, but also may be known as design-builders, construction managers, turnkey contractors, or (in cases where two or more establishments jointly secure a general contract) joint-venture contractors. Construction managers that provide oversight and scheduling only (i.e., agency) as well as construction managers that are responsible for the entire project (i.e., at risk) are included as general contractor type establishments. Establishments of the "general contractor type" frequently arrange construction of separate parts of their projects through subcontracts with other construction establishments.
Establishments primarily engaged in activities to produce a specific component (e.g., masonry, painting, and electrical work) of a construction project are commonly known as specialty trade contractors. Activities of specialty trade contractors are usually subcontracted from other construction establishments, but especially in remodeling and repair construction, the work may be done directly for the owner of the property.
Establishments primarily engaged in activities to construct buildings to be sold on sites that they own are known as for-sale builders, but also may be known as speculative builders or merchant builders. For-sale builders produce buildings in a manner similar to general contractors, but their production processes also include site acquisition and securing of financial backing. For-sale builders are most often associated with the construction of residential buildings. Like general contractors, they may subcontract all or part of the actual construction work on their buildings.
There are substantial differences in the types of equipment, work force skills, and other inputs required by establishments in this sector. To highlight these differences and variations in the underlying production functions, this sector is divided into three subsectors.
Subsector 236, Construction of Buildings, comprises establishments of the general contractor type and for-sale builders involved in the construction of buildings. Subsector 237, Heavy and Civil Engineering Construction, comprises establishments involved in the construction of engineering projects. Subsector 238, Specialty Trade Contractors, comprises establishments engaged in specialty trade activities generally needed in the construction of all types of buildings.
Force account construction is construction work performed by an enterprise primarily engaged in some business other than construction for its own account, using employees of the enterprise. This activity is not included in the construction sector unless the construction work performed is the primary activity of a separate establishment of the enterprise. The installation and the ongoing repair and maintenance of telecommunications and utility networks is excluded from construction when the establishments performing the work are not independent contractors. Although a growing proportion of this work is subcontracted to independent contractors in the Construction sector, the operating units of telecommunications and utility companies performing this work are included with the telecommunications or utility activities.
IBISWorld Industry Research Report
Construction in the US (23)
Revenue 2025
$3723.7bn
Growth 2025
1.53%
Key Trends
The Construction sector has benefited from relatively low interest rates, providing an accommodative borrowing environment
The value of private nonresidential construction grew in the years prior to the pandemic
High interest rates will raise the capital needed for construction
Products and Services
NAICS Hierarchy 23 - Construction
NAICS Code 23 - Construction sits in the 2-digit Construction sector. NAICS codes can be 2- to 6-digits and the further along the hierarchy, the more detailed and specific the category will be. Learn more about the structure of NAICS codes
2 Digits: 23
Sector Title: Construction
3 Digits 4 Digits 5 Digits 6 Digits
-
-
2361 Residential Building Construction
-
2362 Nonresidential Building Construction
-
23621 Industrial Building Construction
-
23622 Commercial and Institutional Building Construction
-
-
-
-
2371 Utility System Construction
-
23711 Water and Sewer Line and Related Structures Construction
-
23712 Oil and Gas Pipeline and Related Structures Construction
-
23713 Power and Communication Line and Related Structures Construction
-
-
2372 Land Subdivision
-
23721 Land Subdivision
-
-
2373 Highway, Street, and Bridge Construction
-
23731 Highway, Street, and Bridge Construction
-
-
2379 Other Heavy and Civil Engineering Construction
-
23799 Other Heavy and Civil Engineering Construction
-
-
-
-
2381 Foundation, Structure, and Building Exterior Contractors
-
23811 Poured Concrete Foundation and Structure Contractors
-
23812 Structural Steel and Precast Concrete Contractors
-
23813 Framing Contractors
-
23814 Masonry Contractors
-
23815 Glass and Glazing Contractors
-
23816 Roofing Contractors
-
23817 Siding Contractors
-
23819 Other Foundation, Structure, and Building Exterior Contractors
-
-
2382 Building Equipment Contractors
-
23821 Electrical Contractors and Other Wiring Installation Contractors
-
23822 Plumbing, Heating, and Air-Conditioning Contractors
-
23829 Other Building Equipment Contractors
-
-
2383 Building Finishing Contractors
-
23831 Drywall and Insulation Contractors
-
23832 Painting and Wall Covering Contractors
-
23833 Flooring Contractors
-
23834 Tile and Terrazzo Contractors
-
23835 Finish Carpentry Contractors
-
23839 Other Building Finishing Contractors
-
-
2389 Other Specialty Trade Contractors
-
23891 Site Preparation Contractors
-
23899 All Other Specialty Trade Contractors
-
-
NAICS Resources
Can't find the NAICS Code you are looking for? Full NAICS Code Directory
NAICS Code Directory
Each NAICS Code is part of a 2-digit Sector. Select a Sector category from the table below, then drill down to discover the industries within that Sector.
