Conservation and development market snapshot, Part 1

Overview

• The conservation and development category of construction includes dams (non-power), dikes, levees, locks, breakwaters, bulkheads, tide gates, jetties, erosion control, retaining walls, sea walls and dredging (non-irrigation). It also includes facilities constructed for irrigation (e.g., draining, dredging, water collection systems, non-potable reservoirs), mine reclamation, fish hatcheries and wetlands.
• Based on 2022 data from the U.S. Census Bureau, the conservation and development category represents about 1% of total nonresidential construction. The majority of the work, roughly 57% in 2022, is driven by federal agencies.

Market Size

• $9.4 billion- Based on 2022 value of construction put in place (U.S. Census Bureau)

Reports on changes in the conservation and development industry. Courtesy: Morrissey Goodale

Outlook

• The conservation and development construction category is trending higher in 2023 and expected to increase further in 2024. During the first half of this year, spending has been 30% higher than it was in the same period last year, mostly driven by federal projects.
• With the passing of the Infrastructure Investment and Jobs Act (IIJA) and the more recent Disaster Supplemental Appropriations Act, several agencies will have additional support for dam safety, levees, breakwaters, jetties and other projects related to mitigation of and recovery from natural disasters, such as tornadoes, hurricanes, flooding and wildfires.
• Significant focus is being placed on coastal resilience projects, primarily through the National Oceanic and Atmospheric Administration (NOAA). The agency reports that 2022 tied 2017 and 2011 for the third-highest number of billion-dollar disasters (behind 2017 and 2005). There is an increasing trend of these types of events due to a combination of exposure, vulnerability and climate factors.

– Morrissey Goodale is a CFE Media and Technology content partner.