Renewed funding and private sector development will stimulate future growth
Los Angeles, CA (PRWEB) March 18, 2012
The Road and Highway Services industry supplies specialized construction services for transportation infrastructure projects. The industry principally generates revenue as specialized trade subcontractors to road authorities and construction contractors on road maintenance and construction projects. In the five years to 2012, IBISWorld expects total industry revenue to climb at an average annual rate of 2.4% to total $15.9 billion, greatly exceeding the subdued pace of US GDP growth (0.6% per year), according to IBISWorld industry analyst Kathleen Ripley. While the Great Recession has brought a heavy toll on almost every US construction industry, robust federal stimulus investment in infrastructure development under the 2009 American Recovery and Reconstruction Act has supported the industry through this turbulent time. In 2012, revenue is projected to dip 1.9%, however, as this federal stimulus program ends and state and local governments struggle with budget deficits.
Looking forward, the federal commitment to highway and infrastructure funding and the overall health of the US economy will determine industry performance, Ripley said. In the five years to 2017, IBISWorld forecasts revenue will increase. From 2013 on, the Road & Highway Services industry is projected to return to moderate growth after a new surface transportation bill is signed and improvements in the US economy continue. Overall, consumer spending, private sector development and state and local governments' transportation funding is forecast to boost industry performance.
Road service contractors are typically small-scale operators servicing narrow geographically dispersed or specialist markets. Prominent players in the industry include Granite Construction Inc., a vertically integrated construction materials producer and heavy civil contractor; CRH plc, an international building materials group; and Holcim Inc., a Swiss company that supplies cement, asphalt and aggregates globally. For more information, visit IBISWorld’s Road & Highway Services report in the US industry page.
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IBISWorld industry Report Key Topics
Establishments in this industry are primarily subcontracted to provide specialist construction services for highway and street construction and maintenance projects (i.e. new work, reconstruction, periodic maintenance or repairs). The industry mainly includes specialist contractors that carry out discrete phases within a total highway and street construction project, such as highway grading, installing guardrails, installing street signage and line marking.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
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Barriers to Entry
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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.