Overview

Built up: Rising corporate profit and decreased office vacancy rates will boost demand

The Commercial Building Construction Industry Research Report measures market size, analyses current and future trends, and provides an indication of market share for the industry’s largest companies. IBISWorld’s collection of industry market research reports gives you insightful, up-to-date information on the supply chains, economic drivers, and key buyers and markets for hundreds of industries.

REPORT SNAPSHOT

Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Revenue
$204bn
Annual Growth
12-17
10.5%
Annual Growth
17-22
Profit
Employment
280,846
Business
71,182

Industry Threats & Opportunities

  • The industry’s downward slide reversed, thanks to a spike in nonresidential construction and corporate profit
  • Strong corporate profit and increased consumer spending encouraged new businesses to open
  • Industry demand will alleviate pressure on operators to compete on price
  • Industry Analysis & Industry Trends

    Though revenue growth faltered in the beginning of the five-year period to 2016, the Commercial Building Construction industry has benefited from increased demand for office space since 2012. Tight credit markets, stubbornly high unemployment and limited consumer spending also contributed to the industry's slow growth. However, the downward slide in revenue has reversed since 2012, thanks to a spike in nonresidential construction and corporate profit, as well as sustained growth in consumer spending. As a result, industry revenue is expected to increase over the five years to 2016. Over the five years to 2021, demand from downstream markets is anticipated to remain strong, along with increasing corporate profit.

    Industry Report - Industry SWOT Analysis Chapter

    The Commercial Building Construction industry is in the mature stage of its life cycle, and this is characterized by complete market acceptance, low levels of technological change and slow enterprise growth and merger activity. Over the 10 years to 2022, industry value added (IVA), a measure of the industry's contribution to the overall economy, is expected to rise at an annualized rate of 6.2%. Conversely, US GDP is anticipated to grow at an annualized rate of 2.0% during the same period. Though the industry's IVA is growing faster than the overall economy, much of its growth is due to the low initial levels during the beginning of this period caused by the lingering effects of the recession.

    Industry performance is tied closely to the overall health of the US economy. Whi

    Additional Insights for the Commercial Building Construction Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Commercial Building Construction Industry are

  • Access to highly skilled workforce
  • Ability to negotiate successfully with regulator
  • Ability to compete on tender
  • IBISWorld analysts also discuss how external factors such as Office rental vacancy and Value of private nonresidential construction in the Commercial Building Construction industry impact industry performance..

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    Industry Products

    What is the Commercial Building Construction Industry?

    This industry includes those companies primarily responsible for work on the construction (i.e. new construction, additions, alterations, maintenance and repairs) of office, retail, hotel, agricultural and entertainment buildings. Participants are general contractors or project managers. This industry excludes institutional buildings (e.g. hospitals and schools), heavy industrial buildings (e.g. factories and power plants) or infrastructure (e.g. communications towers or oil pipelines).

    Industry Products
    Design, bid, build contracts
    Design-build contracts
    Integrated product delivery contracts
    Construction manager at-risk contracts
    Construction management agency
    Industry Activities
    Office building construction
    Hotel and motel construction
    Restaurant, cafe and bar construction
    Retail store construction
    Shopping center or shopping mall construction
    Commercial warehouse construction
    Service and gas station construction
    Auto service and sales store construction
    Entertainment and recreation building construction (e.g. casinos, gyms, cinemas and arenas)
    Radio and television broadcast studio construction

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Office rental vacancy
  • Value of private nonresidential construction
  • Consumer spending
  • Corporate profit
  • Yield on 10-year Treasury note

  • Current Performance
  • Shoots of growth
  • Late bloomer
  • Industry structure and profitability
  • Chart: Revenue Growth

  • Industry Outlook
  • Increased consumer and business spending
  • Industry profit and employment
  • Contracts and convergence
  • Table: Commercial Building Construction Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Commercial Building Construction Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Wholesale Trade
  • Gas Stations with Convenience Stores
  • Department Stores
  • Real Estate Investment Trusts
  • Amusement Parks
  • Casino Hotels

  • Key Selling Industries
  • Cement Manufacturing
  • Concrete Pipe & Block Manufacturing
  • Construction
  • Construction & Mining Equipment Wholesaling
  • Glass Product Manufacturing
  • Heavy Equipment Rental
  • Iron & Steel Manufacturing
  • Property, Casualty and Direct Insurance
  • Wholesale Trade

  • Products & Services
  • Construction manager at-risk contracts
  • Design, bid, build contracts
  • Construction management agency
  • Design-build contracts
  • Integrated product delivery contracts
  • Chart: Commercial Building Construction Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Office buildings
  • Retail buildings (e.g. stores, malls and restaurants)
  • Lodging (e.g. hotels, motels and resorts)
  • Amusement and recreational buildings
  • Warehouses and storage
  • Other buildings (e.g. parking garages)
  • Farm buildings
  • Chart: Major Market Segmentation for the Commercial Building Construction Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Commercial Building Construction

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Commercial Building Construction Industry

  • Industry Globalization
    Major Companies
    There are no major players in this industry
    Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Commercial Building Construction Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Commercial Building Construction Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Office Rental Vacancy Rate (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    Computer-Aided Design (Cad)
  • The use of computer technology to aid the design and drafting of a part or product using software tools that can create two-dimensional drawings or three-dimensional models.
  • Developer
  • An enterprise that prepares a real estate site for residential or commercial use. A developer raises capital, gains zoning approvals and hires contractors to design, construct and develop property.
  • General Contractor (Gc)
  • Also called a prime contractor. An individual or company that manages the construction of a structure for a property owner or developer. A GC may retain a labor force or use subcontractors.
  • Write Down
  • To deliberately reduce the value of an asset to reflect its current market value.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Commercial Building Construction:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Commercial Building Construction market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Commercial Building Construction, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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