Brief Excerpt from Industry Overview Chapter:
Companies in this sector construct buildings or projects such as dams, highways, and utility systems. Major US companies include Fluor, Jacobs Engineering, Kiewit, and The Turner Corporation (a unit of Germany's HOCHTIEF); other major companies include China Railway Construction (China), Salini Impregilo (Italy), and VINCI (France).
The global volume of construction output is forecast to grow by 85% to $15.5 trillion by 2030, according to PricewaterhouseCoopers, with the largest construction markets -- the US, India, and China -- accounting for 57% of global growth. Other key markets include Japan, Germany, Spain, France, and Italy. Emerging markets such as India are growing quickly as a result of increased urbanization, rising populations, and the expanding middle class. Construction growth in China is expected to slow in some sectors such as housing and shift to health care, education, social infrastructure, and retail. Construction in some mature economies has been constrained by government deficits and austerity measures.
The US construction industry includes about 660,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $1.5 trillion.
Demand is driven by demographics and the health of the economy. The profitability of individual companies depends on their ability to bid accurately, secure contracts, and control costs. Large companies enjoy economies of scale in financing and the ability to offer a broad range of services in many locations. Smaller companies can compete effectively by specializing in particular services or focusing...
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook