Airport Terminal Construction in the US Industry Market Research Report from IBISWorld Has Been Updated

Despite this short-term drop in federal funding, the industry is expected to grow as these subsidies increase in the second half of the five-year period, local and state government investment resumes and private airlines invest in modernization projects with US residents taking more flights. For these reasons, industry research firm IBISWorld has updated a report on the Airport Terminal Construction industry in its growing industry report collection.

  • Share on TwitterShare on FacebookShare on Google+Share on LinkedInEmail a friendRepost This
Reduced federal funding and government investment hurt industry performance.

Los Angeles, CA (PRWEB) December 15, 2013

The Airport Terminal Construction industry comprises companies that engage in new terminal construction, reconstruction and additions. This industry also includes construction management companies as well as special trade contractors that assist larger businesses in the construction process. Over the five years through 2013, the industry has grown due to high levels of federal government funding. “While the majority of the US construction sector was disrupted by poor consumer and business sentiment, which led to plummeting private investment, the Airport Terminal Construction industry continued to grow,” according to IBISWorld Industry Analyst Jeremy Edwards. While revenue increased by only 0.8% in 2009 as a result of the recession, federal funding for transportation prevented deep losses. However, the industry significantly declined in 2011 because federal funding reduced, local and state government investments continued to fall and a shutdown of the Federal Aviation Administration hurt industry performance. Nonetheless, overall, industry revenue is projected to grow at an average annual rate of 2.7% to $8.4 billion over the five years through 2013, which includes a 4.5% increase in 2013 alone, as high federal funding for transportation subsists and terminal modernization work drives industry growth.

However, over the past five years industry profitability has declined. “Nevertheless, new companies have entered the industry as subcontractors seek work on new projects,” says Edwards. Consequently, industry operators are projected to increase at an average annual rate of 3.4% to 4,612 companies, during the five-year period.

Over the next five years, the industry is forecast to continue its expansion. However, revenue is projected to fall in 2014, as federal funding for transportation declines an anticipated 5.7% in the same year, due to budget sequestration and general spending cuts by the US government. Despite this short-term drop in federal funding, the industry is expected to grow as these subsidies increase in the second half of the five-year period, local and state government investment resumes and private airlines invest in modernization projects with US residents taking more flights.

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

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld industry Report Key Topics

Operators in this industry constructs airport terminals, with contractors specifically engaging in new terminal construction, reconstruction and additions. This industry also includes construction management companies and special trade contractors that also participate in the building of airport terminals.

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.


Contact

  • Gavin Smith
    IBISWorld
    +1 (310) 866-5042
    Email