Industry Analysis & Industry Trends
When the recession caused the economy to plummet, intense pressure was put on government budgets, especially at the local and state levels. Consequently, these governments began to reduce their investment in infrastructure projects such as roads and highways, negatively affecting the industry. However, in the five years to 2019, the government's need to repair, replace and expand the nation's deficient infrastructure, coupled with urban sprawl, will generate demand for road and highway projects and subsequently support revenue... purchase to read more
Industry Report - Industry Investment Chapter
The Road and Highway Construction industry exhibits moderate levels of capital intensity. In 2014, for every dollar industry participants spent on labor, $0.17 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, requires minimum equipment use. Similarly, larger companies tend to invest more into heavier equipment than smaller ones. Nevertheless, as in most construction sectors, a lot of industry work requires extensive manual labor.
In the five years to 2014 capital intensity has slightly increased... purchase to read more