Los Angeles, CA (PRWEB) June 30, 2012
As a result of robust federal stimulus investment in the nation's infrastructure, the Bridge and Tunnel Construction industry has escaped the huge drop in activity that most construction industries experienced in the past five years. Nonetheless, due to an anticipated reduction in public-sector investment in infrastructure development in 2012, along with weak demand conditions during and after the recession, the industry's revenue is expected to fall at an average rate of 0.3% per year to $24.0 billion over the past five years. “As the federal stimulus program ends,” says IBISWorld industry analyst Deonta Smith, “legislators have stalled on the creation of a new highway bill, and state and local governments cut infrastructure spending due to significant budget deficits.” In 2012 alone, revenue is estimated to decline 5.1%.
Employment in the Bridge and Tunnel Construction industry fell over the five years to 2012 as a result of competitive pressures and an increased reliance on subcontracted labor. Industry employment totals about 57,940 people in 1,307 establishments in 2012, down from a high of 66,682 employees in 2007 and 1,325 establishments in 2008. “Industry profit has also suffered,” Smith says, “because of stalled private sector construction and heightened price competition for federal transportation projects.” Average industry profit, though high compared with many construction industries, has fallen from 2007 levels. While over half of the industry’s revenue is generated by a small number of firms, the two largest companies, Bechtel Group Inc. and Kiewit Corporation, hold relatively small individual market shares.
The industry is forecast to return to moderate growth in 2013, with more substantial growth beginning in 2014. As the economy recovers, demand from private-sector development will normalize, and state and local governments' transportation outlays will rebound, offsetting the drop off in federal stimulus investment. A new federal transportation bill expected in 2013, pent-up demand from delayed projects and continued improvements in the US economy will support ramped-up performance for the industry. For more information, visit IBISWorld’s Bridge and Tunnel Construction in the US industry report page.
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IBISWorld industry Report Key Topics
This industry is composed of firms that primarily engage in the construction of bridges, viaducts, elevated highways, and tunnels, including new work, reconstruction and repairs. This industry does not include road and highway construction activity.
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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