Industry Analysis & Industry Trends
The Road and Highway Construction industry continues to face a host of issues including budgetary constraints and uncertainty surrounding government funding. Local and state governments, which are the largest sources of industry-specific project funding, have maintained prudent budgets since the recession, while federal programs like the Highway Trust Fund remain precarious. However, a recent transportation bill of $305.0 billion passed by Congress in December 2015 will prove a boon to industry demand. Furthermore, the private sector will be encouraged to help fill the investment gap through public-private partnerships... purchase to read more
Industry Report - Industry Investment Chapter
The Road and Highway Construction industry exhibits moderate levels of capital intensity. In 2016, for every dollar industry participants spent on labor, $0.18 will be spent on capital. Capital investment primarily consists of construction equipment such as earthmovers, pavers and compressors. Larger and more complex projects require companies to invest in heavier and more sophisticated equipment, while small projects like sign installation require minimum equipment use. Similarly, larger companies tend to invest more into heavier equipment than smaller companies. Nevertheless, as in most construction sectors, a lot of industry work requires extensive manual labor.
In the five years to 2016, capital intensity has slightly declined... purchase to read more