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

Since the Municipal Building Construction industry heavily relies on government investment, it has struggled over the past five years amid diminished tax revenue and declining federal outlays. Industry revenue contracted in 2014 as investment in education and healthcare buildings dwindled. Industry growth is expected to be aided by strong growth in the education and healthcare segments of the industry. Over the five years to 2023, industry revenue is expected to decrease, primarily due to an accelerated decline in local and state government investment. Though the education and healthcare sectors have been supporting growth in the industry, these markets are expected to continue their current deceleration...purchase to read more.

Industry Statistics & Market Size
Revenue
$177bn
Annual Growth 13-18
1.6%
Forecast Growth 18-23
Profit
Employment
150,043
Businesses
42,114
Market Share of Companies
There are no companies with a dominant market share in this industry

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 Investment Chapter

    The Municipal Building Construction industry is characterized by a low level of capital intensity. In 2018, for every dollar spent on labor, the industry spends $0.08 on capital. The industry is highly reliant on labor, with a relatively low depreciation rate of 0.4% in 2018. This ratio is measured through industry wage and depreciation rates; however, this can be slightly misleading, as many firms within the industry rent a large proportion of equipment used for jobs. This enables firms within the industry to avoid depreciation and storage costs for large equipment and to stay up to date with the latest technology. In fact, capital intensity has fallen from an estimated $0.09 per dollar spent on labor in 2013...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..

    shopping_cartPURCHASE OPTIONS

    What's in this report

    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
  • Slight 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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Yield on 10-year treasury note (2009-2023)

  • 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 funded by 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.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Municipal Building Construction contains five-year forecasts and data analysis that can help you identify and mitigate risks in potential new markets. Position yourself as an expert with internal stakeholders by using our comprehensive industry research to inform your reports, proposals and presentations. Our business information will save you money by helping you make better decisions, faster.

    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.

    Contact Us

    Want to speak to a representative? Call us.

    clear