Building up: As the value of construction rises, demand will follow suit

The Demolition and Wrecking industry has been recovering from the effects of the recession, which drastically reduced demand for construction services. However, business has begun to pick up, and the industry is forecast to grow past its prerecession size. As the value of residential and nonresidential construction increases, the need for demolition for new structures increases as well. In addition, land development and construction markets are forecast to grow rapidly as economic growth encourages the construction of new retail and commercial space...purchase to read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies

Industry Threats & Opportunities

  • Strong construction activity has led to growing industry revenue and profit margins
  • With rising profitability and strong demand, industry participation has increased
  • Demographic shifts that include a growing urban population will spur industry demand
  • Industry Report - Industry Investment Chapter

    The Demolition and Wrecking industry has a medium level of capital intensity. For every $1.00 spent on wages, industry operators typically spend $0.17 in capital investment. The high capital costs and specialized heavy equipment associated with operating in the industry, similar to the Excavators industry (IBISWorld report 23593), make this industry one of the most capital-intensive in the construction sector.While labor costs are also substantial, consuming 23.7% of revenue, the purchase of depreciable equipment, including pulverizer and processing jaws and shears, hydraulic pusher arms, pulling wire ropes and winches, cranes, impact hammers and nibblers, constitute a large portion of industry expenses. Add...purchase to read more.

    Additional Insights for the Demolition & Wrecking Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Demolition & Wrecking Industry are

  • Ability to negotiate successfully with regulator
  • Ability to vary services to suit different needs
  • Experienced work force
  • IBISWorld analysts also discuss how external factors such as Demand from bridge and elevated highway construction and Government funding for highways in the Demolition & Wrecking industry impact industry performance..

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    What's in this report

    What is the Demolition & Wrecking Industry?

    Operators in this industry primarily wreck and demolish buildings and structures and sometimes sell salvaged materials. Other industry services include the clearing and recycling of debris, interior strip outs, handling of asbestos and hazardous materials, site remediation (decontamination and waste disposal), concrete cutting and explosive demolition. Excavation and land-clearing work is excluded from this industry.

    Industry Products
  • Total and selective demolition
  • Remediation and abatement
  • Recycling
  • Specialized concrete cutting
  • House relocation
  • Industry Activities
  • Predemolition planning and analysis
  • Total or selective demolition of buildings (e.g. offices, warehouses and apartments)
  • Total or selective demolition of structures (e.g. sport stadiums and oil rigs)
  • Demolition and rehabilitation of sites following fire or industrial explosion
  • Environmental cleanup
  • Asbestos removal
  • Selective dismantling and facade preservation of historic buildings
  • Implosion demolition of buildings and structures
  • Removal, disposal and sale of materials from demolition sites, including recycling
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from bridge and elevated highway construction
  • Government funding for highways
  • Value of private nonresidential construction
  • Value of residential construction
  • Yield on 10-year Treasury note

  • Current Performance
  • Surge in construction
  • Major contracts for major players
  • Chart: Revenue Growth

  • Industry Outlook
  • Commercial activity supports growth
  • Diversified services to widen margins
  • Table: Demolition & Wrecking Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Demolition & Wrecking Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Land Development
  • Bridge & Elevated Highway Construction
  • Manufacturing

  • Key Selling Industries
  • Chemical Wholesaling
  • Construction Machinery Manufacturing
  • Explosives Manufacturing
  • Heavy Equipment Rental
  • Local Specialized Freight Trucking

  • Products & Services
  • Total and selective demolition
  • Remediation and abatement
  • Specialized concrete cutting
  • Recycling
  • House relocation
  • Chart: Demolition & Wrecking Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Residential
  • Nonresidential
  • Nonbuilding markets
  • Chart: Major Market Segmentation for the Demolition & Wrecking Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesRent and utilitiesDepreciation and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Demolition & Wrecking

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Demolition & Wrecking Industry

  • Industry Globalization
    NorthStar Group Holdings LLC,
  • Table: NorthStar Group Holdings LLC - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Demolition & Wrecking 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 Demolition & Wrecking Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Value of Private Non-residential Construction (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Asbestos Abatement
  • The removal of asbestos-containing materials prior to building demolition through encapsulation to control fiber release and compliance with tight safety procedures for the personnel involved.
  • Brownfield
  • Abandoned or underused industrial and commercial sites available for redevelopment.
  • Decontamination
  • The removal of unwanted materials from buildings, soils or equipment by washing, chemical action, mechanical cleansing or other techniques.
  • Site Remediation
  • The process of removing pollutants and contaminants from a plot of land.
  • What Our Customers Say

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    • 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 Demolition & Wrecking 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

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