Excavators in the US Industry Market Research Report from IBISWorld Has Been Updated

This industry experienced a deep contraction in its performance, which corresponded with the sharp decline in demand for excavation services in the depressed housing market, and recession-induced downturn of the nonresidential building market. For this reason, industry research firm IBISWorld has updated a report on the Excavators industry in its growing industry report collection.

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Demand for industry services will strengthen as downstream construction markets improve

New York, NY (PRWEB) January 04, 2014

The Excavators industry derives about three-quarters of its revenue from subcontracting services from private-sector clients, such as land development companies, institutional building contractors and residential contractors. The rest is derived from the excavation of land for nonbuilding construction (e.g. sporting fields, roadwork and water supply facilities). While nearly every construction project requires some kind of excavation work, the Excavators industry does not account for the total value of excavation work undertaken in the United States. Instead, industry activities are contested by general construction firms (i.e. contracted to construct a building or structure on cleared land), heavy construction contractors, highway and road contractors, engineering firms, demolition and wrecking contractors and other specialist contracting companies.

According to IBISWorld Industry Analyst Omar Khedr, “industry revenue registered a sharp decline during the recession and has taken several years to recover.” The deep contraction in the industry's performance corresponds with the sharp decline in demand for excavation services in the depressed housing market and the recession-induced downturn of the nonresidential building market. Some earthmoving contractors have benefited from a boost in federal funding for road, bridge and other infrastructure construction, but the extent of the slump in the downstream building markets has hit most contractors very hard. As a result, industry revenue is expected to fall at an average annual rate during the five years to 2013. Improving housing markets and a recovering economy helped turn the industry around in 2012, and growth is expected in 2013.

The Excavators industry has a low level of concentration, as it is mainly composed of small to midsize contractors that operate in specific regional markets. The four largest players (including Keller Group PLC, Malcolm Drilling Company and Berkel & Company Contractors Inc.) currently generate less than 10.0% of industry revenue (see IBISWorld report 23593 for major player market shares). Additionally, firms are increasingly offering services across several states or metropolitan areas in an attempt to lower downturn risks associated with local markets to increase revenue. “Demand for industry services is expected to strengthen with the continued recovery of the downstream construction markets,” says Khedr. Private residential and nonresidential building construction is expected to pick up further in 2014, while sustained growth in the infrastructure and public building construction markets is anticipated to be steady through 2018. IBISWorld therefore expects that industry revenue will grow in 2018.

For more information, visit IBISWorld’s Excavators in the US industry report page.

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IBISWorld industry Report Key Topics
Operators in the Excavators industry primarily excavates land for building construction. Activities include drilling shafts, foundation digging and drilling and grading. The excavation work performed includes new work, additions, alterations and repairs.

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.


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