Industrial Building Construction in the US Industry Market Research Report from IBISWorld Has Been Updated

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While lending standards will loosen over the next five years, interest rates are also expected to rise during this period, thereby increasing the cost of new industrial development. For these reasons, industry research firm IBISWorld has updated a report on the Industrial Building Construction industry in its growing industry report collection.

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Foreign demand for US goods will spur growth as more production facilities are needed.

The Industrial Building Construction industry is responsible for constructing factories, assembly plants and mineral processing mills. The health of the US manufacturing sector determines its growth, as most industry projects are related to buildings used to produce and distribute goods. Interest rates, property values and lending standards also influence growth because loans and bonds finance most developments and renovations.

Industry revenue is expected to fall an average annual 1.2% to $45.6 billion in the five years to 2013. During this period, the industry experienced significant revenue volatility. Government spending at the federal and local level protected the industry between 2008 and 2009 by channeling investments into manufacturing facilities and the automotive sector. However, cutbacks in government spending, coupled with overdevelopment and slow economic growth, caused industry revenue to drop 18.2% in 2010. The industry returned to positive growth in 2012, when industries like the Semiconductor Machinery Manufacturing industry (IBISWorld report 33329a) expanded production, thus, increasing demand.

Growth is expected to continue over the next five years as operators benefit from an improved economy and the reinvestment of corporate profit into new manufacturing and distribution structures. Foreign demand for US goods are also expected to boost industry growth. Additionally, foreign companies have expanded their manufacturing operations in the United States to be closer to their end-consumers. As a result, demand for new or remodeled industrial space is set to rise as manufacturers and industrial companies look to expand production, lifting industry revenue up by anticipated 2.3% in 2013.

While lending standards will loosen over the next five years, interest rates are also expected to rise during this period, thereby increasing the cost of new industrial development. Additionally, outsourcing basic manufacturing to countries with lower labor costs will continue to hinder investment into domestic manufacturing structures.

For more information, visit IBISWorld’s Industrial Building Construction in the US industry report page.

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IBISWorld industry Report Key Topics

The Industrial Building Construction industry is composed of contractors that are primarily responsible for the construction (e.g. new work, additions, alterations, maintenance and repairs) of industrial and manufacturing buildings. Establishments include general contractors, design-build companies and construction management operators.

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 or call 1-800-330-3772.

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Gavin Smith
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