Detour ends: After a volatile recovery, the industry will return to modest, consistent growth

The Road and Highway Construction industry experienced a host of issues over the five years to 2018, mainly budgetary constraints and weak investments in transport infrastructure. Local and state governments, which are the largest sources of industry-specific project funding, have maintained prudent budgets since the recession, while federal programs like the Highway Trust Fund have remained precarious. Although the recession is over, its effects have continued to weigh on local and state governments. Over the five years to 2023, industry revenue is expected to increase. However, industry growth is expected to decelerate due to continued deadfalls in local and state government investment; overall, the industry is moving towards normalization...purchase to read more.

Industry Statistics & Market Size
Revenue
$128bn
Annual Growth 13-18
3.5%
Forecast Growth 18-23
Profit
Employment
281,357
Businesses
16,367
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The need to rebuild, expand and repair existing road infrastructure will push authorities to invest in industry projects
  • A fraction of demand for industry projects is derived from the private sector
  • Governments will have to allocate more funding to raise the standard of national infrastructure
  • Industry Report - Industry Products Chapter

    Highway, road and street construction, reconstruction and expansionThe majority of industry work is related to highway, road and street construction. In 2018, new construction projects account for an estimated 49.0% of industry revenue and include the construction of highways, roads, public sidewalks, curbs and relevant guardrails and signs. New highway and street construction typically involves seven stages of development: planning, design and project administration; clearing and earthworks; drainage; structures (e.g. bridges and culverts); alterations to public utilities (e.g. gas mains, sewerage and electricity cables); paving and surfacing; and project finishing (e.g. line-marking, guard rails and landscaping)...purchase to read more.

    Additional Insights for the Road & Highway Construction Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Road & Highway Construction Industry are

  • Access to highly skilled workforce
  • Having links with suppliers
  • Ability to compete on tender
  • IBISWorld analysts also discuss how external factors such as Federal funding for transportation and Local and state government investment in the Road & Highway Construction industry impact industry performance..

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    What's in this report

    What is the Road & Highway Construction Industry?

    Companies in this industry construct new highways, streets, roads and airport runways (excluding elevated roadways). The industry also includes highway and street construction management operators and special-trade contractors that perform subcontracting work on projects (e.g. grading, laying pavement and installing guardrails and public sidewalks). Operators may subcontract some or all of the actual construction work.

    Industry Products
  • Highway, road and street construction
  • Airport runways construction, reconstruction and additions
  • Existing highway, road and street reconstruction and additions
  • Private driveways and parking construction and additions
  • Industry Activities
  • Constructing highways, streets and roads
  • Constructing airport runways
  • Constructing private roads, driveways and parking lots
  • Installing highway and street lighting and signage
  • Constructing laneway and sound barriers
  • 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
  • Price of cement
  • Yield on 10-year Treasury note
  • Value of private nonresidential construction
  • Value of residential construction

  • Current Performance
  • Historic funding challenges
  • Private sector
  • Profit trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Infrastructure remains a critical challenge
  • Government spending
  • Private-sector involvement rises
  • Profit trends
  • Table: Road & Highway Construction Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Road & Highway Construction Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Land Development
  • Airport Operations
  • Administration of Government Programs

  • Key Selling Industries
  • Asphalt Manufacturing
  • Concrete Pipe & Block Manufacturing
  • Construction
  • Heavy Equipment Rental
  • Mining
  • Professional, Scientific and Technical Services
  • Ready-Mix Concrete Manufacturing
  • Steel Rolling & Drawing
  • Wholesale Trade

  • Products & Services
  • Highway, road and street construction
  • Existing highway, road and street reconstruction and additions
  • Private driveways and parking construction and additions
  • Airport runways construction, reconstruction and additions
  • Chart: Road & Highway Construction Industry Products and Services Segmentation

  • Demand Determinants
  • Public-sector funding determinants
  • Private-sector funding determinants

  • Major Markets
  • State- and locally administered
  • Private sector
  • Federally administered
  • Chart: Major Market Segmentation for the Road & Highway Construction Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Rent, utilities, depreciation, marketing and other expenses
  • Chart: Cost Structure Benchmarking – Sector vs Road & Highway Construction

  • Basis of Competition
    Small and local projectsLarge-scale projects
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Road & Highway 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 Road & Highway 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 Road & Highway Construction Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Federal funding for transportation (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Congressional Earmarks
  • Funds provided by Congress for projects or programs where the congressional direction circumvents Executive Branch merit-based or competitive allocation processes.
  • Earthwork
  • The excavation and piling of earth in connection with construction projects.
  • Public-Private Partnership
  • A partnership where the public sector fully or partially hands over construction, financing and management of infrastructure to the private sector.
  • Safetea-Lu
  • Abbreviation for Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users. Third in a series of federal multiyear transport infrastructure funding programs.
  • Transportation Equity Act For The 21St Century
  • Under this act, the federal government provides funding for pilot toll programs for interstate variable pricing and infrastructure rehabilitation.
  • What Our Customers Say

    Why buy this report?

    The Road & Highway 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.

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

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