Rock solid: The end of recovery will lead to more-moderate industry growth

The Excavation Contractors industry derives more than three-fourths of its revenue from the private residential and nonresidential building market. The industry performed well over the five years to 2017, supported by increasing demand from downstream construction industries. In particular, improvement in industry performance corresponded with the rapid expansion in demand for excavation services in the booming housing market and nonresidential building market. Moving forward, industry revenue is expected to continue growing, albeit at a slower pace. With the total value of construction expected to surpass its prerecessionary levels, growth will become harder to sustain...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The industry benefited from increased demand for excavation services in the booming housing market and nonresidential building market
  • Increased federal spending on public works projects supported industry growth
  • As construction markets rebound from their recessionary lows, robust growth will become harder to maintain
  • Industry Report - Industry Products Chapter

    Large-scale operators typically dominate the excavation work done on residential subdivisions in the growth corridors surrounding major metropolitan areas. Contractors sometimes have an equity interest in developing serviced housing blocks, and may subcontract specific aspects of the excavation work to specialists or smaller contractors (e.g. compaction and dredging). Competitors in this segment of the industry generally have the capacity to undertake a wide range of operations in varying terrain and can establish operations across a wide geographical market. Many larger scale establishments operate as lessors or wholesalers of earthmoving and excavating equipment and provide labor input as part of the overall contract...purchase to read more.

    Additional Insights for the Excavation Contractors Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Excavation Contractors Industry are

  • Use of specialist equipment or facilities
  • Superior financial management and debt management
  • Having a good technical knowledge of the product
  • IBISWorld analysts also discuss how external factors such as Value of private nonresidential construction and Local and state government investment in the Excavation Contractors industry impact industry performance..

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    What's in this report

    What is the Excavation Contractors Industry?

    This industry primarily excavates land for building construction. Activities include drilling shafts, foundation digging and drilling and grading. The excavation work performed includes new work, additions, alterations and repairs.

    Industry Products
  • Excavation work for residential buildings
  • Excavation work for nonresidential buildings
  • Foundation digging
  • Trenching
  • Nonbuilding construction excavation
  • Industry Activities
  • Earthmoving
  • Excavating
  • Ground de-watering
  • Land clearing
  • Leveling and grading
  • Removing overburden
  • Trench digging
  • Foundation drilling
  • Drilling of shafts
  • Table of Contents

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

  • Current Performance
  • Downstream construction picks up
  • Tunneling forward
  • Industry profitability
  • Chart: Revenue Growth

  • Industry Outlook
  • Slow, sustained growth
  • Profit and entries
  • Table: Excavation Contractors Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Excavation Contractors Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Mining
  • Construction
  • Land Development
  • Landscape Design
  • Engineering Services

  • Key Selling Industries
  • Auto Mechanics
  • Construction & Mining Equipment Wholesaling
  • Explosives Manufacturing
  • Heavy Equipment Rental
  • Manufactured Home Wholesaling
  • Sand & Gravel Mining

  • Products & Services
  • Excavation work for nonresidential buildings
  • Excavation work for residential buildings
  • Foundation digging
  • Nonbuilding construction excavation
  • Trenching
  • Chart: Excavation Contractors Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Nonresidential building market
  • Residential building market
  • Nonbuilding construction market
  • Chart: Major Market Segmentation for the Excavation Contractors Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Excavation Contractors

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

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    American Recovery And Reinvestment Act (Arra)
  • An economic stimulus package enacted by Congress in 2009 to help create jobs and promote investment and consumer spending during the recession.
  • Excavation
  • To make a hole, hollow or uncover land by digging, scooping or grading.
  • Overburden
  • The loose material that overlies bedrock, typically the upper strata of a sedimentary deposit that covers and consolidates an ore deposit or coal seam.
  • Tender
  • A written offer or bid to contract goods or services at a specified cost or rate.
  • Word-Of-Mouth Referrals
  • The passing of information from person to person by oral communication.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Industry Market Report on Excavation Contractors is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    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 Excavation Contractors:
    • 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 Excavation Contractors 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 Excavation Contractors, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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