Industry Analysis & Industry Trends
Most revenue from the Tunnel Construction industry comes from government spending. When tax revenue declined during the recession, state and local governments cut construction budgets, but federal stimulus kept the industry afloat; over the next five years, stimulus will continue to benefit the industry as the economy gains momentum and demand picks back up.... purchase to read more
Industry Report - Industry Analysis Chapter
The Tunnel Construction industry primarily performs new construction and maintenance services on transport and utility tunnels. Following the economic contraction, demand for transportation construction projects as a whole were suspended, delayed or canceled as federal and state governments re-allocated funding to other stimulus projects. As a result, revenue has declined at an annualized rate of 1.1% to reach $1.8 billion during this period. Although industry revenue has decreased, the federal government increased expenditures on tunnel construction projects in 2010, allowing for temporary relief.
During the recovery, demand from private investors increased, largely due to long-term concessions through public-private partnerships (PPP's) in the US toll road sector... purchase to read more