This industry fared well through the recession, reporting overall growth despite recent declines
Los Angeles, CA (PRWEB) March 24, 2012
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.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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