Commercial & Heavy Construction Contractors
Brief Excerpt from Industry Overview Chapter:
Companies in this industry construct nonresidential buildings and structures such as highways and dams. Major companies include Bechtel, Fluor, Jacobs Engineering, Peter Kiewit Sons', and Turner Construction (owned by Germany's HOCHTIEF) in the US as well as China Railway Construction Corporation, Bouygues and VINCI (both in France), Skanska (Sweden), and STRABAG (Austria).
Global construction output of all types exceeds $7 trillion and is expected to reach $15 trillion by 2025. Among countries, major sources of global construction growth include Australia, Canada, China, India, Indonesia, Russia, and the US.
The US commercial and heavy construction contractors industry includes about 80,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $605 billion.
Commercial and heavy construction includes apartments, office and retail buildings, hotels, schools, public buildings, industrial and manufacturing buildings, highways and bridges, sewers, pipelines, power lines, power plants, and other civil engineering projects.
Demand depends heavily on the health of the economy, including corporate profits and local government budgets. The profitability of individual companies depends on accurate project bids and efficient operations. Large companies have advantages in their ability to engage in multiple projects simultaneously and in many types of construction. Small companies can compete effectively by specializing, working in a limited geography, or serving as subcontractors on larger projects. The industry is highly fragmented.
The commercial construction industry is intensely competitive. Barriers to entry are low, since large upfront capital expenditures are not required....
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