Many types of construction projects and activities will drive demand for green building construction
Los Angeles, California (PRWEB) December 06, 2011
In the five years to 2016, revenue in the Green & Sustainable Building Construction Industry is forecast to increase at an average annual rate of 23% to $245.4 billion, including a rise of 18.3% in 2012. An upturn in total building construction activity will drive this growth, as the sector recovers from the aftermath of the Great Recession and the real estate market collapse. Additionally, firms will likely benefit from growing environmental concerns, consumer sentiment toward energy-efficient products and sustainable materials and demand for energy cost-savings renovations. This trend will likely be supported by ongoing government incentive programs, designed to promote sustainable building practices. For this reason, industry research firm IBISWorld has added a report on the Green & Sustainable Building Construction industry to its growing Commercial & Institutional Buildings report collection.
Over much of the past decade, environmental concerns have emphasized the importance of building design and construction that maximize the energy-efficiency and sustainability of homes, buildings and structures. Cities, counties and states have altered building codes to promote the use of energy-efficient building designs and products and sustainable materials, helping drive demand for green building construction. Tax subsidies and measurable cost savings have also supported this trend. Also, the establishment and acceptance of green building and energy-efficiency rating standards has invigorated demand for green and sustainable building construction. These standards include the US Green Building Council's Leadership in Energy and Environmental Design (LEED) program and the federal government's Energy Star program.
As a result of these trends, demand for green and sustainable building construction has increased dramatically over the five years to 2011, though overall construction has fallen. Consequently, IBISWorld estimates that revenue for the Green and Sustainable Building industry has risen at an average annual rate of 26.9% to $87.1 billion in the five years to 2011, including a 13.3% increase in 2011 alone. IBISWorld’s latest report provides an overview of the Green & Sustainable Building Construction Industry in the US which constructs energy-efficient buildings, such as LEED-certified buildings. In addition to being energy efficient, green buildings are largely composed of sustainable materials made from plastics and recyclable goods.
Many contractors in the industry operate over a range of construction sectors; as demand in one falters, operators will shift to more stable markets. A growing number of contractors have entered the green building construction market after traditional markets were decimated in the recession. As a result, competition within the industry has grown. According to IBISWorld’s latest report, Turner Construction has a prominent presence in the Green and Sustainable Building industry. The Turner Corporation is owned by Germany's largest construction firm, Hochtief, and operates one of America's largest construction firms, Turner Construction Company. Despite booming demand, profit margins have contracted slightly as operators increasingly compete for projects on price.
According to IBISWorld analyst, Kathleen Ripley, over the five years to 2016, the Green & Sustainable Building Industry is expected to experience exceptional growth, with revenue projected to increase at an average annual rate of about 23.0% to $245.4 billion. “Many types of construction projects and activities will drive demand for green building construction, as property owners, developers and regulators increasingly emphasize environmental protection, energy conservation and cost savings,” says Ripley. A recovery in construction activity will further support this growth, as demand for new construction projects rebounds in the aftermath of the subprime mortgage crisis and real estate bubble collapse
For more information, including latest trends, statistics, analysis and market share information, download the full report from IBISWorld on the Green & Sustainable Building Industry
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld Industry Market Research Reports Contain:
About this Industry
Industry at a Glance
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Jargon & Glossary
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.