Georgia's Commercial Construction Industry Contributes $80.9 Billion to State Economy

A comprehensive economic impact report commissioned by Associated Builders and Contractors of Georgia demonstrates the commercial construction industry's substantial contribution to Georgia's economy, generating $80.9 billion in total economic output based on 2022 data. The sector directly and indirectly supported 549,347 full-time equivalent jobs while generating $49.2 billion in earnings for Georgia workers. Economic Research Services, Inc. produced the report, which was prepared by Dr. M. Keivan Deravi.

The report details how commercial construction serves as a powerful economic engine beyond just building structures. The industry generated $17.1 billion in gross payroll, which in turn created $37.4 billion in output when multiplier effects are considered. Non-payroll spending reached $21.8 billion, supporting local suppliers and generating $43.5 billion in output. State tax revenues from the industry totaled $2.7 billion, including $1.47 billion from income taxes and $1.22 billion from sales and use taxes.

Bill Anderson, president and CEO of ABC of Georgia, emphasized that commercial construction is building Georgia's economy, noting that the national organization named Georgia the top state for construction in 2024. The industry's impact extends far beyond construction itself, with manufacturing, services, trade, and transportation sectors being the largest beneficiaries connected to commercial development activities. Several high-profile projects exemplify this economic impact, including Google's new data center in Douglas County, Savannah Port's $4.5 billion expansion, and The Battery Atlanta's $1.1 billion mixed-use development.

Despite the industry's current strength, Anderson identified potential challenges ahead, including tariffs and immigration issues that create uncertainty for construction companies. Tariffs are impacting the cost of construction goods from lumber to steel, while immigration concerns loom over an industry already facing workforce shortages. Construction segments showing slowdown include multifamily projects and privately funded developments like new corporate headquarters, while data center projects and government projects continue moving forward.

Infrastructure projects such as the Atlanta Beltline, Stitch and PATH 400 continue to keep construction and engineering teams busy. With Georgia's pro-business climate, Sun Belt population growth, and ongoing infrastructure investments, the report underscores commercial construction's pivotal role in shaping the state's economic trajectory. The full report is available here with additional resources including an infographic about the report here and construction industry photos for media use here.