Town hall: Despite struggling municipal budgets, industry revenue will grow modestly

The Municipal Building Construction industry includes a wide range of noncommercial markets, including healthcare, education, religious buildings and government offices. Direct government funding accounts for almost all education and public building construction, while the private sector funds most healthcare construction. Since the industry heavily relies on government investment, it has struggled over the past five years amid diminished tax revenue and declining federal outlays. The largest factor affecting the industry is the tapering of federal assistance for construction related projects. As stimulus programs wind down, and the federal government pursues greater fiscal responsibility, the industry has been forced to rely more on sources of private investment...read more.

Industry Statistics & Market Size
Revenue
$187bn
Annual Growth 12-17
1.6%
Forecast Growth 17-22
Profit
Employment
147,386
Businesses
41,734
Market Share of Companies
There are no companies with a dominant market share in this industry
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Industry Threats & Opportunities

  • Municipal governments have stalled funding for public structures, resulting in a revenue decline
  • Amid intensified competition, operators have increasingly opted to use subcontracted labor
  • Growth in the private sector will result in more public-private municipal construction partnerships
  • Industry Report - Industry SWOT Analysis Chapter

    The Municipal Building Construction industry is currently in the mature stage of its economic life cycle. A mature industry is characterized by a rate of growth slower than that of the overall economy, increasing consolidation, stable and clearly segmented service offerings and wholehearted market acceptance. Over the past five years, the industry has contended with reduced public funding as federal stimulus programs enacted in the wake of the recession came to an end. As a result, industry revenue declined rapidly prior to 2011. Competition has increased within the industry, with fewer contracts available to industry operators.Industry value added (IVA), which measures an industry's contribution to the overall economy, is forecast to increase at an annualized rate of 5.5% o...purchase to read more.

    Additional Insights for the Municipal Building Construction Industry

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

  • Ability to negotiate successfully with regulator
  • Must comply with government regulations
  • Good project management skills
  • IBISWorld analysts also discuss how external factors such as Local and state government investment and Value of private nonresidential construction in the Municipal Building Construction industry impact industry performance..

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    What is the Municipal Building Construction Industry?

    This industry comprises contractors that are responsible for the complete construction (i.e. new work, additions, alterations and repairs) of institutional buildings, such as schools, hospitals, churches, civic centers and prisons. The industry also includes operators that perform construction management on institutional building projects. Types of operators include general contractors, design builders, engineer-constructors, joint-venture contractors and turnkey contractors.

    Industry Products
  • General contracting services
  • Remodeling contracting services
  • Construction management services
  • Other construction activities
  • Industry Activities
  • Church, synagogue, mosque, temple and related building construction
  • Hospital, medical building and clinic construction
  • Special medical and elderly care facility construction
  • Prison and corrective center construction
  • Law court construction
  • Primary, secondary and tertiary educational building construction
  • Preschool building construction
  • Gallery and museum construction
  • Community recreation, performance or meeting center construction
  • Public park and campground construction
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Local and state government investment
  • Value of private nonresidential construction
  • Population
  • Yield on 10-year Treasury note

  • Current Performance
  • Public and private sectors
  • Employment and profit
  • End of assistance
  • Chart: Revenue Growth

  • Industry Outlook
  • Slow return to investment
  • Input prices
  • Increasing consolidation
  • Table: Municipal Building Construction Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Educational Services
  • Healthcare and Social Assistance
  • Arts, Entertainment and Recreation
  • Religious Organizations
  • Public Administration

  • Key Selling Industries
  • Asphalt Manufacturing
  • Concrete Pipe & Block Manufacturing
  • Construction
  • Construction & Mining Equipment Wholesaling
  • Glass Product Manufacturing
  • Heavy Equipment Rental
  • Mineral Product Manufacturing
  • Professional, Scientific and Technical Services
  • Ready-Mix Concrete Manufacturing
  • Wholesale Trade

  • Products & Services
  • General contracting services
  • Construction management services
  • Remodeling contracting services
  • Other construction activities
  • Chart: Municipal Building Construction Industry Products and Services Segmentation

  • Demand Determinants
  • Determinants of public-sector investment
  • Determinants of private-sector investment
  • Determinants by type of building

  • Major Markets
  • Education sector
  • Healthcare sector
  • Recreation sector
  • Public safety sector
  • Religion sector
  • Chart: Major Market Segmentation for the Municipal Building Construction Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesRent and utilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Municipal Building Construction

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

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Municipal 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
    Table: Industry Data for the Municipal 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)
  • Yield on 10-year treasury note (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Development Consortium
  • A group of developers used to construct a building or complex.
  • Institutional Buildings
  • Buildings constructed for public benefit rather than commercial operations (e.g. schools, hospitals, prisons and museums). These buildings are generally funded by public or charitable organizations.
  • Public-Private Partnership
  • Refers to a venture that is undertaken by funding from both public and private organizations.
  • Tender
  • A written offer or bid to contract goods or services at a specified cost or rate.
  • Turnkey Contract
  • An agreement to construct a project through to its completion for end use.
  • Why buy this report?

    The Municipal Building Construction industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

    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 Municipal 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 Municipal 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 Municipal 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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