Road and Highway Services in the US Industry Market Research Report from IBISWorld has Been Updated

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While the Great Recession took a heavy toll on almost every US construction industry, robust federal stimulus investment in infrastructure development has supported the Road and Highway Services industry. For these reasons, industry research firm IBISWorld has updated a report on the Road and Highway Services industry in its growing industry report collection.

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Revenue will grow as state and local governments gain control of their budgets

The Road and Highway Services industry supplies specialized construction services for transportation infrastructure projects. The industry principally generates revenue as specialized trade subcontractors to road authorities and construction contractors on road maintenance and construction projects. Industry firms and those in aligned industries compete in the total market for road and highway services. The industry also faces competition from firms operating in specialized construction trades, such as concreting, painting and structural steel erection. According to IBISWorld Industry analyst Deonta Smith, “in the five years to 2013, total industry revenue is expected to climb at an average annual rate of 2.3% to total $16.1 billion”. While the Great Recession has taken a heavy toll on almost every US construction industry, robust federal stimulus investment in infrastructure development under the 2009 American Recovery and Reconstruction Act has supported the industry through this turbulent time. A large amount of projects funded by this act require road and highway services from the industry, including traffic barrier creation, road surface repaving, sign improvement and roadside facility formation. As such, industry revenue grew substantially in 2009 and 2010. Likewise, in 2013, revenue is projected to grow 1.3% as the Moving Ahead for Progress in the 21st Century Act (MAP-21) takes effect and state and local governments gain control of their budgets.

Looking forward, the federal commitment to highway and infrastructure funding and the overall health of the US economy will determine industry performance. In the five years to 2018, IBISWorld forecasts revenue will increase. “From 2013 on, the industry is projected to return to moderate growth with the new surface transportation bill, MAP-21, and further improvements in the US economy”, says Smith. Specifically, MAP-21 will work to improve bridges, fix roads and reduce congestion. Overall, consumer spending, private sector development and state and local governments' transportation funding are forecast to boost industry performance.

The Road and Highway Services industry has a low level of market share concentration. Road service contractors are typically small scale operators servicing narrow geographically dispersed or specialist markets. The industry has a fragmented structure and industry concentration is not expected to change significantly over the next five years. The larger scale contractors operate multiple establishments across several regional markets. A considerable number of large construction materials producers have acquired specialized road and highway service companies to vertically integrate their business models, create new revenue streams and expand their geographic reach. These localized subsidiaries typically retain their name and local identity while benefitting from the resources of the larger national organization.

For more information, visit IBISWorld’s Road and Highway Services in the US industry report page.

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IBISWorld industry Report Key Topics

Establishments in this industry are primarily subcontracted to provide specialist construction services for highway and street construction and maintenance projects (i.e. new work, reconstruction, periodic maintenance or repairs). The industry mainly includes specialist contractors that carry out discrete phases within a total highway and street construction project, such as highway grading, installing guardrails, installing street signage and line marking.

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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