Heavy load: Volatile funding and rising interest rates will weigh down industry revenue

The Heavy Engineering Construction industry's performance over the five years to 2017 was mixed, with revenue growing strongly early in the period, but falling in more recent years. Most projects in this industry are carried out by state and local governments independently or in conjunction with the federal government. Consequently, constrained state budgets have remained an overall drag on the industry's performance over the period. Over the five years to 2022, industry performance is expected to remain volatile, declining early in the period and then rising tepidly thereafter...read more.

Industry Statistics & Market Size
Revenue
$28bn
Annual Growth 12-17
-0.3%
Forecast Growth 17-22
Profit
Employment
99,365
Businesses
18,360
Market Share of Companies
There are no companies with a dominant market share in this industry
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Industry Threats & Opportunities

  • Industry operators have been forced to increasingly rely on renewed private investment
  • A more reliable source of revenue has emerged from the private sector
  • Federal investment in infrastructure may grow significantly depending on priorities
  • Industry Report - Industry Locations Chapter

    The location of businesses in the Heavy Engineering Construction industry is generally aligned with the population distribution in the United States. The most populous regions have the greatest concentration of industry businesses, with the exception of the Great Lakes region. This is reflective of the fact that larger areas of population generally have a greater need and higher demand for industrial facilities and services.The SoutheastThe distribution of activity in the Heavy Engineering Construction industry is most heavily concentrated in the Southeast region, with 30.2% of all industry establishments located there. The region is also the most populated in the United States, with 25.6% o...purchase to read more.

    Additional Insights for the Heavy Engineering Construction Industry

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

  • Development of a symbiotic relationship with another industry
  • Access to highly skilled workforce
  • Ability to effectively manage risk
  • IBISWorld analysts also discuss how external factors such as Federal funding for transportation and Local and state government investment in the Heavy Engineering Construction industry impact industry performance..

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    What is the Heavy Engineering Construction Industry?

    Operators in this industry are primarily engaged in heavy and engineering construction projects, with the exception of highway, street, bridge and airport construction. Work performed includes new work, reconstruction, rehabilitation and repairs. The industry also includes specialty trade contractors, if they are primarily active in activities related to engineering construction projects. Construction projects include waterworks, marine facilities development and open space improvement.

    Industry Products
  • Marine construction
  • Conservation and development construction
  • Mass transit and railroad construction
  • Hydroelectric power plant construction
  • Tunnel construction
  • Outdoor recreational areas
  • Harbor and port facilities construction
  • Industry Activities
  • Marine construction and repair
  • Mass transit construction
  • Harbor and port facility construction and repair
  • Conservation and development construction
  • Outdoor area development and construction
  • Hydroelectric plant construction
  • Power plant construction
  • Tunnel construction
  • Table of Contents

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

  • Current Performance
  • Growth in mass transit
  • Railroads and freight
  • Profitability and industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Federal transportation funding rebounds
  • Private funding
  • Decline in operators to slow
  • Table: Heavy Engineering Construction Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Heavy Engineering Construction Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Land Development
  • Rail Transportation
  • Ocean & Coastal Transportation
  • Inland Water Transportation
  • Port & Harbor Operations
  • Nuclear Power

  • Key Selling Industries
  • Architects
  • Construction
  • Engineering Services
  • Heavy Equipment Rental
  • Ready-Mix Concrete Manufacturing
  • Wholesale Trade

  • Products & Services
  • Mass transit and railroad construction
  • Marine construction
  • Other
  • Hydroelectric power plant construction
  • Conservation and development construction
  • Tunnel construction
  • Outdoor recreational areas
  • Harbor and port facilities construction
  • Chart: Heavy Engineering Construction Industry Products and Services Segmentation

  • Demand Determinants
  • Short and medium-term influences

  • Major Markets
  • Public sector
  • Private sector
  • Chart: Major Market Segmentation for the Heavy Engineering Construction Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciation and other
  • Chart: Cost Structure Benchmarking – Sector vs Heavy Engineering Construction

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Heavy Engineering 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 Heavy Engineering 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 Heavy Engineering Construction Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Value of Nonresidential Construction (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Conservation
  • Refers to the act of preserving or protecting natural resources and lands.
  • Mass Transit
  • Refers to transportation systems designed to move large volumes of individuals at the same time.
  • Petrochemical
  • Substances obtained through the refining and processing of petroleum or natural gas.
  • Why buy this report?

    IBISWorld’s industry research report on Heavy Engineering Construction provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    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 Heavy Engineering 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 Heavy Engineering 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 Heavy Engineering Construction, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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