Industry Analysis & Industry Trends
Although slowed investment activity during the recession cooled demand for the industry's services, pursuit of natural gas has kept business flowing over the past five years. Looking forward, the industry is projected to recover strongly. From 2013, IBISWorld forecasts that continued investment in unconventional domestic energy sources (gas shale and oil sands), pressure to repair and replace aging infrastructure and recovery in the residential construction markets will support industry performance... purchase to read more
Industry Report - Industry Investment Chapter
The Oil and Gas Pipeline Construction industry carries a moderate level of capital intensity. For every dollar spent on labor, the average industry firm will invest about $0.20 in capital equipment. This industry has substantial capital inputs relative to most construction industries. This industry allocates about 3.0% to 5.0% of revenue to capital expenditures on plants and equipment, though smaller-scale contractors typically lease equipment on a piecemeal basis or through subcontracting to specialist operatives (e.g. crane operators and structural steel erectors).
The basic machinery required in this industry involves earthmoving equipment (e.g. dozers, backhoes, trackhoes, ditching machines and motor graders) and specialist tunneling and pipeline equipment (e.g... purchase to read more