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

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The industry is forecast to continue growing during the next five years, supported by broad-based economic growth and a recovery in local government funding; subsequently, demand from private-sector development will increase, as more states and municipalities approve PPP projects. For these reasons, industry research firm IBISWorld has updated a report on the Tunnel Construction industry in its growing industry report collection.

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Federal stimulus money prevented industry revenue from diving in the past five years

The Tunnel Construction industry exhibited steady growth over the five years to 2015, as a result of sustained federal government support through various grants and initiatives. In the aftermath of the recession in 2010, industry performance was tied to funds distributed under the American Recovery and Reinvestment Act, before the Moving Ahead for Progress in the 21st Century (MAP-21) took over in 2012. As a result, in the five years to 2015, industry revenue is expected to increase. “Nevertheless, industry operators continue to face the challenges of low local and state government investments, leading to lower revenue growth in 2015,” IBISWorld Economic Analyst Darryle Ulama says in the updated report. Meanwhile, the private sector has expanded its role in infrastructure delivery via the growth of public-private partnerships (PPPs) finance schemes.

Over the past five years, utility tunnel maintenance and construction has emerged as one of the strongest needs in many states. Aging pipes and innovative plans to procure resources have prompted demand for tunnel construction projects. In addition, demand has grown alongside an increase in private toll roads; therefore, private investors have become significant sources of investment for the Tunnel Construction industry in recent years. As a result of foregone maintenance on utility tunnels and an increase in public private partnerships, demand for tunnel construction services has remained strong and has prompted industry expansion. In the five years to 2015, the number of establishments is expected to rise.

The Tunnel Construction industry is forecast to continue growing during the next five years, supported by broad-based economic growth and a recovery in local government funding. “Additionally, demand from private-sector development will increase, as more states and municipalities approve PPP projects,” Ulama says. Local governments' transportation outlays are expected to rebound, offsetting the drop off in federal stimulus investment. In the five years to 2020, revenue is projected to grow.

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

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IBISWorld industry Report Key Topics

This industry constructs tunnels. Types of projects include new work, reconstruction and repairs. This industry does not include road and highway construction activity.

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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