Cruising on: The industry is expected to benefit from new housing construction

As the residential and nonresidential markets continue to improve, IBISWorld estimates that revenue for the Paving Contractors industry will increase at an annualized rate of 4.2% to $36.2 billion over the five years to 2018, including an increase of 3.8% in 2018 alone. The five years to 2023 will be, overall, a more organic period of growth, with the residential segment slowing considerably while commercial segments shake off the effects of poor corporate profit levels in 2015 and 2016. Despite looming interest rate hikes, the Federal Reserve has shown that it will maintain relatively low rates over the next several years. Low interest rates will keep borrowing costs low and encourage new housing construction...purchase to read more.

Industry Statistics & Market Size
Revenue
$36bn
Annual Growth 13-18
4.2%
Forecast Growth 18-23
Profit
Employment
295,042
Businesses
200,806
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Low interest rates and increasing housing starts will encourage new housing construction
  • Industry operators derive revenue through new construction, repair and maintenance projects
  • The commercial segment is expected to be the largest source of potential industry growth
  • Industry Report - Industry Locations Chapter

    The Paving Contractors industry is characterized by a large number of small-scale establishments that aim to serve local areas. As a result, business locations tend to correspond highly with the distribution of the population across the United States. Since paving contractors rely on volume to stay in business, operators tend to locate themselves near densely populated areas and areas with high business activity.These trends are evident when looking at the percent of establishments in a particular region compared with the percentage of the population that resides in that area. For example, the Southeast accounts for 25.7% of the US population and houses 25.1% of the industry's establishments. Florida accounts for the largest number of establishments in the region with 9.1%. Flo...purchase to read more.

    Additional Insights for the Paving Contractors Industry

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

  • Having links with suppliers
  • Provision of superior after sales service
  • Ability to expand and curtail operations rapidly in line with market demand
  • IBISWorld analysts also discuss how external factors such as Housing starts and Number of businesses in the Paving Contractors industry impact industry performance..

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    What's in this report

    What is the Paving Contractors Industry?

    This industry comprises establishments that specialize in paving residential and commercial driveways and parking areas. Establishments in this industry typically use asphalt, concrete or brick when performing their paving services. Excluded from this industry are operators that pave streets and highways; these services are part of the Road and Highway Construction industry (IBISWorld report 23731a).

    Industry Products
  • Asphalt
  • Concrete
  • Industry Activities
  • Paving residential driveways
  • Paving commercial parking areas
  • Applying sealants to enhance pavements appearance
  • Repairing cracks in driveways and parking areas
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Housing starts
  • Number of businesses
  • Private spending on home improvements
  • Value of private nonresidential construction
  • year conventional mortgage rate
  • Value of residential construction

  • Current Performance
  • Housing markets
  • Commercial demand lags behind residential
  • Profit and industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Complete recovery
  • High-end driveways
  • Operational trends
  • Table: Paving Contractors Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Land Development
  • Home Builders
  • Apartment & Condominium Construction
  • Industrial Building Construction
  • Commercial Building Construction

  • Key Selling Industries
  • Asphalt Manufacturing
  • Cement Manufacturing
  • Clay Brick & Product Manufacturing
  • Ready-Mix Concrete Manufacturing
  • Stone, Concrete & Clay Wholesaling

  • Products & Services
  • Asphalt
  • Concrete
  • Other
  • Chart: Paving Contractors Industry Products and Services Segmentation

  • Demand Determinants
  • Residential market
  • Commercial market

  • Major Markets
  • Commercial
  • Single-family homes
  • Multifamily residences
  • Chart: Major Market Segmentation for the Paving Contractors Industry

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

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Paving 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 Paving 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 Paving Contractors Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Value of private nonresidential construction (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Aggregate
  • Sand, gravel or crushed stone materials, which are combined with cement and water to create concrete.
  • Agitator
  • A device that mixes cement, sand or gravel and water to form concrete; more commonly referred to as a cement mixer.
  • Sealer
  • A substance that is applied to paving materials to repel water and prevent UV degradation.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Paving Contractors Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Paving Contractors industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

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

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