The industry will return to growth as demand from the construction sector recovers
Los Angeles, CA (PRWEB) January 24, 2013
The Surveying and Mapping Services industry provides a wide range of technical services. Clients use the industry to determine property lines, to aid in subdivision layout and design and for building and amenity layout. Operators also offer many specialist services, such as geospatial imaging (statistical analysis of remotely sensed imagery) and nautical mapping (sea and ocean mapping) services. “Demand for surveying and mapping services largely depends on the performance of downstream construction industries,” according to IBISWorld industry analyst Austen Sherman. “The surveying industry's primary markets are building and construction companies, government departments and agencies, land development companies, professional service firms and a variety of utility and mining firms.” Although the industry grew an estimated 1.5% in 2012, the recent recession proved too much to overcome during the past five years. As a result of the poor operating conditions, industry revenue is estimated to have fallen at an average annual rate of 1.9% to $7.0 billion in the five years to 2012.
Nevertheless, the recent rebound in demand has caused profit margins to expand well above its five-year low. “Profit contraction was particularly hard on small operators, though,” says Sherman, “because they rely heavily on the residential construction market, which was decimated by the recession.” These operators represent the majority of firms in the Surveying and Mapping Services industry. Their exit, combined with the contraction of larger firms hurt by reduced commercial and industrial construction, has resulted in a 0.6% annualized decline in the number of industry enterprises to 18,678 in the five years to 2012. Two larger operators in the industry include The Dewberry Companies and RBF Consulting. Given the industry's low concentration and localized operations of most players, industry market share concentration is not expected to increase drastically during the five years to 2017.
Fortunately for the industry, the next five years are anticipated to represent a period of growth for the construction sector. As a result, industry revenue is forecast to rise through 2017. The improvement will largely represent recovery instead of expansion for the Surveying and Mapping Services industry, with revenue not expected to surpass its 2007 peak until 2017. For more information, visit IBISWorld’s Surveying and Mapping Services in the US industry report page.
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IBISWorld industry Report Key Topics
Firms in this industry perform surveying and mapping services of the surface of the earth, including the sea floor. These services may include surveying and mapping of areas above or below the surface of the earth, such as the creation of view easements or segregating rights in parcels of land by creating underground utility easements, which give certain rights to real property without possessing it.
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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