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

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After years of steady contraction, hospital construction is expected to rebound due to increased healthcare demand. For this reason, industry research firm IBISWorld has updated a report on the Hospital Construction industry in its growing industry report collection.

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In addition to the broader downturn facing the construction sector, hospitals faced a high degree of fiscal uncertainty due to the Patient Protection and Affordable Care Act.

The Hospital Construction industry has faced challenging conditions in the five years to 2015 that have led revenue to decline overall during the period. According to IBISWorld Industry Analyst Edward Rivera, “In addition to the broader downturn facing the construction sector, hospitals faced a high degree of fiscal uncertainty due to the Patient Protection and Affordable Care Act.” Moreover, low profit margins during the economic recovery forced hospitals to shelve expansion plans and new construction work. However, after four years of steady declines since 2010, IBISWorld projects the industry to begin a rebound in 2015. Increased access to credit and low interest rates will enable industry operators to service pent-up demand.

The Hospital Construction industry encompasses both private and public hospital construction. “Gains in public hospital construction have helped offset the industry's losses due to rising demand for hospital construction by the federal departments of Defense and Veterans Affairs,” says Rivera. “In 2012, however, this trend reversed itself as reduced tax revenue caused states and local governments to cut funding for municipal construction projects.” Consequently, in recent years, public hospital construction has fallen at a faster rate than private hospital construction.

Over the next five years, however, the Hospital Construction industry is anticipated to rebound. Revenue is expected to grow steadily from 2015 to 2020 as the Patient Protection and Affordable Care Act expands health coverage to more than 32.0 million individuals, driving up the demand for hospital services. The gradual aging of the US population will also result in greater demand for hospitals. Hospital construction will also benefit from low interest rates, which will lower the costs of financing construction projects.

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

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IBISWorld industry Report Key Topics

The industry includes operators that engage in new work, additions and reconstruction projects for hospitals. These include both private and public hospital construction projects.

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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Gavin Smith
IBISWorld
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