Industry Analysis & Industry Trends
Despite the backlogs of demand experienced at the start of the recession, this industry eventually saw demand plummet because of failing businesses and very low household disposable income. However, the five years to 2018 will be a period of robust revenue growth for commercial construction companies, mainly because of the economic recovery. Falling vacancy rates mean that businesses will require more office space, while rebounding disposable incomes will raise demand for retail buildings... purchase to read more
Industry Report - Industry Investment Chapter
The Commercial Building Construction industry has a low level of capital intensity. IBISWorld estimates that for every $1.00 spent on wages, the average operator spends $0.11 in capital investment. Wages, whether for in-house employees or payments to subcontractors, account for the largest part of the industry's cost structure at 66.0% of revenue. On the other hand, depreciation (used as a proxy for capital investment) accounts for only 1.4% of revenue. General contractors rarely outright purchase whatever heavy equipment is used during construction; rather, heavy equipment and machinery is either rented or owned by subcontractors... purchase to read more