The industry has battled a difficult economic environment characterized by stalled spending on new construction.
New York, NY (PRWEB) December 05, 2014
From the construction of power plants, refineries and bridges to the repair and restoration of historic buildings, scaffolding contractors benefit from widespread demand across many markets. Nonetheless, the collapse of the housing market and the subsequent recession brought construction activity in most markets to a near halt, significantly hurting the industry's performance. “With the recovery of these markets, however, demand for industry services underwent a resurgence,” according to IBISWorld Industry Analyst Edward Rivera. Consequently, industry revenue is expected to grow at an average annual rate of 2.2% to $2.2 billion in the five years to 2014.
During the five-year period, residential construction slumped to historic lows, only to regain steam after 2011. As a result, the value of residential construction fell 21.2% in 2009 and another 2.5% in 2010 before growing 13.5% and 11.9% in 2012 and 2013, respectively. Nonresidential construction, the industry's largest revenue generator, also declined between the years 2009 and 2010 before returning to moderate growth in 2011 and robust growth in 2012.
The industry experienced its steepest decline in 2010, with an 8.7% drop in revenue. During the past five years, the industry battled a difficult economic environment characterized by stalled or canceled spending on new construction projects in the private and public sectors. “Companies increasingly relied on solid working relationships with past clients in order to keep crews busy and maintain profit margins,” says Rivera.
When the overall economy began its recovery, backlogged projects commenced, which increased demand for industry services. This recovery began in 2011, and has gained momentum since. Industry revenue is expected to grow in 2014, boosted by a resurgence in construction activity, primarily from residential markets. Continued recovery in downstream construction markets will help the industry accelerate growth in the next five-year period.
For more information, visit IBISWorld’s Scaffolding Contractors in the US industry report page.
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IBISWorld industry Report Key Topics
This industry leases, erects and dismantles scaffolding equipment. Scaffolding equipment can be used during construction, painting, exterior remodeling and other construction-related activities that require workers to operate above ground level.
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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