
The construction industry's condition is typically correlated with the health of the economy. It is one of the nation's largest employers of people and capital. Government fiscal and monetary policy decisions influence all aspects of the industry. The size of federal and local budgets defines how much can be invested in infrastructure construction and improvements. Changes in tax laws, like the creation of building incentives, can motivate construction in certain areas. Interest rates drive long-term cost structures; fluctuations in the rate can determine the fate of projects. The biggest factor is growth in the economy as companies, individuals and governments reinvest.