Geosynthetics Installation in the US Industry Market Research Report Now Available from IBISWorld

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The Geosynthetics Installation Industry has benefited from the increased use of geosynthetic materials in the construction of roads, railroads, landfills and other infrastructure. The materials' proven versatility and cost-effectiveness in applications relating to soil stabilization, erosion control and waste containment have boosted demand for installations across a number of other markets, including mining and agriculture. Due to the industry's dependence on the US construction markets, though, particularly government spending on public infrastructure, the recession had an adverse impact on the industry. As construction markets stabilize and the prevalence of geosynthetics as effective ground-modification materials continues to gain momentum, demand and revenue will turn around. Growth will also be fueled by increasing environmental regulation affecting many of the industry's downstream markets, including mining, agriculture and waste management. For these reasons, industry research firm IBISWorld has added a report on the Geosynthetics Installation industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Geosynthetic materials' versatility has supported demand across many markets

The Geosynthetics Installation Industry has benefited from the increased use of geosynthetic materials in the construction of roads, airfields, railroads, embankments, dams, landfills and other infrastructure. According to IBISWorld industry analyst Andrea Alegria, “The materials' proven versatility and cost-effectiveness in applications relating to soil stabilization, erosion control and waste containment have also boosted demand for installations across a number of other markets, including mining and agriculture.” Nonetheless, due to the industry's dependence on the US construction markets, particularly government spending on public infrastructure, the recession had an adverse impact on the industry. As such, industry revenue is expected to decline at an average rate of 0.2% per year in the five years to 2012.

The robust demand for geosynthetics installations that occurred prior to the recession helped support industry performance. In 2008, however, the Geosynthetics Installation industry began to experience dwindling backlogs and reduced demand for new installations as new construction activity in industrial, commercial and civil infrastructure projects plummeted. Despite the influx of stimulus dollars that spurred investment into construction of roads and highways, where geosynthetics installations were necessary, industry revenue declined each year from 2008 through 2010, with the steepest decline of 4.4% occurring in 2009. “Weakened demand for installations forced firms to lower prices, pressuring profit margins,” says Alegria. Smaller firms, unable to compete, exited the business or were absorbed by stronger ones during a period of increased consolidation, resulting in a 0.3% average annual decrease in the number of firms to about 2,163 in 2012.

The industry rebounded in 2011 as economic recovery led to gains in industrial activity, which boosted demand for installations in parking structures, manufacturing plants and mining and agriculture applications, and helped offset declines in infrastructure spending. In 2012, the industry is expected to grow as construction markets stabilize and the prevalence of geosynthetics as effective ground-modification materials continues to gain momentum. Growth will also be fueled by increasing environmental regulation affecting many of the industry's downstream markets, including mining, agriculture and waste management. Continuing technological advancements in product development will further widen the uses and applications for geosynthetics, creating new revenue streams for industry firms. As a result, a growing number of firms is expected to enter the industry and seek growth opportunities within niche markets for geosynthetics installation. For more information, visit IBISWorld’s Geosynthetics Installation in the US industry report page.

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IBISWorld industry Report Key Topics

This industry installs geosynthetic materials, which are primarily used in civil engineering and geotechnical applications.

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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