Heavy Engineering Construction in the US
Over the five years to 2019, the Heavy Engineering Construction industry has performed modestly. Most projects in this industry are carried out by state and local governments independently or in conjunction with the federal government. Consequently, industry revenue will track most closely with movements in federal, state and local government funding. Amid general economic volatility during the period, the sources of revenue for several industry projects have reshuffled. Prior to the current period, rising oil prices spurred strong investment in private railroad construction to increase freight capacity. However, this type of investment and construction has slowed over the five years to 2019 as oil prices plummeted. Over the five years to 2024, industry performance is expected to slow, with the industry having to contend with some countervailing factors. For example, though federal funding for transportation is expected to rise and local and state government investment is expected to hold industry revenue back. Additionally, rising interest rates are expected to increase borrowing costs for all levels of government, which may preclude any increase in the number of public works projects undertaken during the outlook period.
Operators in this industry are primarily engaged in heavy and engineering construction projects, with the exception of highway, street, bridge and airport construction. Work performed includes new work, reconstruction, rehabilitation and repairs. The industry also includes specialty trade contractors, if they are primarily active in activities related to engineering construction projects. Construction projects include waterworks, marine facilities development and open space improvement.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
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