Heavy Infrastructure Construction in the US Industry Market Research Report Now Available from IBISWorld

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While firms face subdued conditions and divergent trends in key downstream infrastructure markets, the Heavy Infrastructure Construction industry has managed to achieve overall annual growth since 2007. Public investment into water, sewer, transportation and conservation and development programs has supported demand for infrastructure construction services. Despite the beginning of an uptick in demand for industry services over the current year, profit margins are expected to remain contracted. Looking forward, continued improvements in the US economy, private-sector development and state and local governments' infrastructure funding will boost industry performance. For these reasons, industry research firm IBISWorld has added a report on the Heavy Infrastructure Construction industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

This industry fared well through the recession, reporting overall growth despite recent declines

The Heavy Infrastructure Construction industry is large and multifaceted; it specializes in projects ranging from wharves to hydroelectric dams to mass-transit systems. According to IBISWorld industry analyst Kathleen Ripley, about 32.5% of annual revenue is derived from work on transport infrastructure projects (including marine transport, mass transit and railroad and highway infrastructure). Other important areas of industry activity include conservation and development projects (e.g. land reclamation and soil detoxification), marine infrastructure construction and work on recreational infrastructure projects.

Heavy infrastructure contractors fared relatively well during the recession, despite most construction industries experiencing drastic declines in demand and revenue. Over the five years to 2012, industry revenue is expected to climb an average 0.5% annually to $44.1 billion. Although the Heavy Infrastructure Construction industry experienced solid growth overall, revenue fell 0.6% in 2009 and an additional 4.9% in 2010 due to the Great Recession. Despite the beginning of an uptick in demand for industry services over the current year, profit margins are expected to remain contracted. “Looking forward, continued improvements in the US economy, private-sector development and state and local governments' infrastructure funding will boost industry performance,” Ripley says. Over the next five years, industry growth is projected to pick up.

The industry is fragmented, comprising many small-scale contractors that service narrow regional or niche construction markets. The largest industry firms include some of America's leading construction companies, but none of them account for a significant share of industry revenue. These firms include: Bechtel Group, Kiewit Corporation, URS Corporation, AECOM Technology Corporation and the Walsh Group. For more information, visit IBISWorld’s Heavy Infrastructure Construction report in the US industry page.

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IBISWorld industry Report Key Topics

Firms in this industry are responsible for the construction of a wide range of infrastructure projects, including: athletic fields, dams, dikes, docks, drainage projects, golf courses, harbors, parks, reservoirs, canals, hydroelectric plants, subways and other mass transit projects. Establishments may include: heavy construction general contractors, design builders, engineer-constructors and joint-venture contractors.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

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.

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Gavin Smith
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