Overview

Alternate route: Congress' latest multibillion-dollar stimulus will improve industry demand

IBISWorld’s Road & Highway Construction market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

REPORT SNAPSHOT

Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Revenue
$107bn
Annual Growth
11-16
0.6%
Annual Growth
16-21
Profit
Employment
235,455
Business
13,870

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

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    Industry Analysis & Industry Trends

    The Road and Highway Construction industry experienced a host of issues in the five years to 2016, including budgetary constraints and weak investments in transport infrastructure early in the period. However, over the five years to 2016, industry revenue is expected to increase. Over the five years to 2021, industry revenue is expected to continue to increase as the need to rebuild, expand and repair existing road infrastructure, coupled with rising congestion caused by urban sprawl, will push authorities to invest in industry projects...

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    Industry Report - Industry Investment Chapter

    The Road and Highway Construction industry exhibits moderate levels of capital intensity. In 2016, for every dollar industry participants spent on labor, $0.17 will be spent on capital. Capital investment primarily consists of construction equipment such as earthmovers, pavers and compressors. Larger and more complex projects require companies to invest in heavier and more sophisticated equipment, while small projects like sign installation require minimum equipment use. Similarly, larger companies tend to invest more into heavier equipment than smaller companies. Nevertheless, as in most construction sectors, a lot of industry work requires extensive manual labor.

    In the five years to 2016, capital intensity has slightly declined. In ..

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    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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    Industry Products

    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, installing guardrails and public sidewalks). Establishments 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

    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
  • 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

  • Products & Markets
    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 administered
  • Locally administered
  • Private sector
  • Chart: Major Market Segmentation for the Road & Highway Construction Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    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 projects
  • Large-scale projects

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Road & Highway 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 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
    Key Statistics
    Table: Industry Data for the Road & Highway Construction Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Federal funding for transportation (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    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.
  • 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 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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