Federal aid shielded the industry from the large declines faced by the construction sector.
New York, NY (PRWEB) January 06, 2014
The Heavy Infrastructure Construction industry is large and multifaceted. About 32.5% of annual revenue is derived from work on transport infrastructure projects (including marine transport, mass transit and railroad and highway infrastructure). Other important areas of industry activity include conservation and development projects (e.g. land reclamation and soil detoxification) and work on recreational infrastructure projects.
“As with most construction industries, heavy infrastructure contractors suffered losses during the Great Recession,” according to IBISWorld Industry Analyst Deonta Smith. Over the five years to 2013, industry revenue is expected to drop an average of 1.4% annually to $43.7 billion. This includes the anticipated decline of 0.9% in 2013, as private spending levels wane due to rising interest rates.
“The industry is highly fragmented, comprising of many small-scale contractors that service regional or niche construction markets,” says Smith. The largest industry firms include some of America's leading construction companies, but each accounts for less than 7.0% of annual industry revenue. These firms include: Bechtel Group, AECOM Technology Corporation, URS Corporation, the Walsh Group and Kiewit Corporation.
Going forward, continued improvements in the US economy, private-sector development and state and local governments' infrastructure funding will boost industry performance. Demand for heavy infrastructure construction is also set to get a boost from increased private nonresidential expenditure. Subsequently, industry employment is forecast to slightly increase.
For more information, visit IBISWorld’s Heavy Infrastructure Construction in the US industry report page.
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IBISWorld industry Report Key Topics
Firms in the Heavy Infrastructure Construction industry are responsible for the construction of a range of infrastructure projects, including: athletic fields, dams, docks, drainage projects, golf courses, parks, hydroelectric plants, subways and other mass transit projects. Establishments may include: heavy construction general contractors, design builders, engineer-constructors and joint-venture contractors.
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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