Structural integrity: Increased investment and downstream demand will boost industry revenue

The market for steel erection services only includes work that can be distinctly contracted out as a component of construction rather than general construction services. Overall, industry revenue is anticipated to grow at an annualized rate of 2.6% over the five years to 2018 to reach $13.2 billion. Over the next five years, sustained growth in the industry's downstream construction markets and renewed investment in infrastructure (e.g. bridges, tunnels and highways) will support the industry's expansion. However, an anticipated 3.9% annualized increase in the price of steel during the five-year period, partially attributed to recently announced steel tariffs imposed by the Trump Administration, is expected to pressure profitability growth for steel framers...purchase to read more.

Industry Statistics & Market Size
Revenue
$13bn
Annual Growth 13-18
2.6%
Forecast Growth 18-23
Profit
Employment
77,127
Businesses
11,366
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Sustained growth in downstream markets and continued investment in infrastructure will boost industry revenue
  • With increased demand for industry services, profitability for the industry has improved
  • Steel framing companies depend heavily on demand from infrastructure construction
  • Industry Report - Starting a New Business Chapter

    The Steel Framing industry has barriers to entry consistent with most other specialist construction trades. To operate in this industry, new entrants are required to hold the relevant structural steel erection qualifications (principally acquired through apprenticeship training and certification courses) and must obtain state-based licensure and registration.Beyond the mandatory qualifications, contractors are increasingly required to hold industry-based accreditation. Formal qualifications are recognized by the American Welding Society and American Institute of Steel Construction (AISC), and accreditations include the Certified Steel Erector and Certified Advanced Steel Erector AISC certifications. Mem...purchase to read more.

    Additional Insights for the Steel Framing Industry

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

  • Having a good reputation
  • Ability to compete on tender
  • Having a high profile in the market
  • IBISWorld analysts also discuss how external factors such as Value of private nonresidential construction and Government consumption and investment in the Steel Framing industry impact industry performance..

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    What's in this report

    What is the Steel Framing Industry?

    This industry comprises contractors that install steel and precast concrete to produce structural elements, building exteriors and elevator fronts. The industry also includes the installation of other steel products (e.g. setting rods, bars, rebar, mesh and cages) to reinforce poured-in-place concrete, cooling towers and metal storage tanks. The structural steel erection work performed includes new work, additions, alterations, reconstruction, maintenance and repairs.

    Industry Products
  • Structural steel erection
  • Steel fabrication
  • Additions and alterations to existing structures
  • Precast concrete installation
  • Industry Activities
  • Erecting metal and structural steel on buildings and structures
  • Erecting prestressed or precast concrete to produce structural elements
  • Erecting metal building exteriors
  • Erecting metal elevator fronts
  • Erecting structures on metal rods, bars, rebar, mesh and cages to reinforce poured-in-place concrete
  • Erecting cooling towers
  • Erecting metal storage tanks for nonliquids (e.g. grain silos)
  • Erecting metal storage tanks for liquids other than water
  • Erecting structural steel trusses or joists
  • Welding work on construction projects (e.g. MIG and TIG welding)
  • 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
  • Government consumption and investment
  • Government funding for highways
  • Yield on 10-year Treasury note
  • Price of steel

  • Current Performance
  • Recovering demand
  • Limiting factors
  • Chart: Revenue Growth

  • Industry Outlook
  • Infrastructure trends
  • Profit and industry size
  • Table: Steel Framing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Steel Framing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Agriculture, Forestry, Fishing and Hunting
  • Mining
  • Utilities
  • Water Supply & Irrigation Systems
  • Apartment & Condominium Construction
  • Industrial Building Construction
  • Heavy Engineering Construction
  • Commercial Building Construction
  • Municipal Building Construction

  • Key Selling Industries
  • Finance and Insurance
  • Heavy Equipment Rental
  • Industrial Machinery & Equipment Wholesaling
  • Manufacturing
  • Metal Wholesaling
  • Precast Concrete Manufacturing

  • Products & Services
  • Structural steel erection
  • Steel fabrication
  • Additions and alterations to existing structures
  • Precast concrete installation
  • Chart: Steel Framing Industry Products and Services Segmentation

  • Demand Determinants
  • Demand from the nonresidential building market
  • Demand from the nonbuilding construction market
  • Substitute products

  • Major Markets
  • Commercial building construction
  • Nonbuilding construction
  • Industrial building construction
  • Municipal building construction
  • Residential building construction
  • Other nonresidential building construction
  • Chart: Major Market Segmentation for the Steel Framing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Rent and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Steel Framing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Steel Framing 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 Steel Framing 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 Steel Framing 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 nonresidential construction (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Electric Arc Welding
  • A process by which a power supply is used to create an electric arc between the electrode and the base material; preferred for work on thick steel because the high intensity of the heat it generates.
  • General Contractor
  • The construction management company hired to oversee every aspect of a build-out, including hiring subcontractors and specialized labor.
  • Tungsten Inert Gas (Tig)
  • An arc-welding process that uses a tungsten electrode to produce the weld.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Industry Market Report on Steel Framing 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 Steel Framing:
    • 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 Steel Framing 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 Steel Framing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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