Flood gates: Long-awaited recovery of state and local government spending will spur growth

After a period of significant decline brought on by the recession, the Water and Sewer Line Construction industry has only recently begun to recover. Nonetheless, a return to buoyant investment conditions across downstream infrastructure markets will drive future growth in the industry. In the short term, industry growth will drive continued recovery in the housing market, with new residential construction necessitating investment in water and sewage lines and new treatment facilities. Long-term population growth and heightened regulatory requirements will also propel industry growth. Furthermore, regulation will drive water and sewer line construction, as environmental mandates force state and local governments to upgrade aging and unsafe infrastructure...read more.

Industry Statistics & Market Size
Revenue
$48bn
Annual Growth 12-17
1.9%
Forecast Growth 17-22
Profit
Employment
175,884
Businesses
16,050
Market Share of Companies
There are no companies with a dominant market share in this industry
What Our Customers Say

Industry Threats & Opportunities

  • Renewed government investment and residential construction will facilitate growth
  • Rising private sector demand has driven industry growth
  • Revenue growth will be driven primarily by a strong uptick in new residential construction
  • Industry Report - Industry Locations Chapter

    Population distributionThe geographic distribution of industry activity is strongly correlated with the distribution of the US population. Because the amount of water and sewer infrastructure required to service an area is largely dependent on the number of people that must be serviced, the location of industry operators mirrors population distribution. For example, the Southeast accounts for the largest share of industry establishments (26.8%), reflecting the region's large population share of 25.4%. Likewise, regions that have a smaller population are home to a relatively small share of industry establishments. Only 4.5% of industry establishments are located in New England, for example, which reflects the region's relatively small population share of 4.7%...purchase to read more.

    Additional Insights for the Water & Sewer Line Construction Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Water & Sewer Line Construction Industry are

  • Ability to compete on tender
  • Must comply with government regulations
  • Ability to alter range of services in favor of market conditions
  • IBISWorld analysts also discuss how external factors such as Value of utilities construction and Local and state government investment in the Water & Sewer Line Construction industry impact industry performance..

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    What is the Water & Sewer Line Construction Industry?

    This industry comprises contractors that are responsible for the construction, reconstruction and repair of water mains, sewers, drains, aqueducts, pumping stations, treatment plants and storage tanks. It also includes construction management companies and special trade contractors that are involved in water and sewer line construction. All structures that are integral parts of water and sewer networks are included in this industry.

    Industry Products
  • Sewer lines and other sewer infrastructure
  • Water mains and other water supply infrastructure
  • Sewage and water treatment plants
  • Highway-related construction
  • Building-related construction
  • Conservation and recreational construction
  • Industry Activities
  • Water main construction
  • Sewer construction
  • Drain construction
  • Water and sewer line construction management
  • Water and sewage treatment plant construction
  • Water and sewer line repair and maintenance
  • 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 utilities construction
  • Local and state government investment
  • Population
  • Value of residential construction
  • Yield on 10-year Treasury note

  • Current Performance
  • Downturn cripples downstream markets
  • Stimulus spending and renewed growth
  • Political divisions hamper growth
  • Consolidation continues
  • Chart: Revenue Growth

  • Industry Outlook
  • Buoyant demand boosts revenue and profit
  • Population spread spurs growth
  • Regulation necessitates reinvestment
  • Changing business model
  • Table: Water & Sewer Line Construction Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Water & Sewer Line Construction Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Agriculture, Forestry, Fishing and Hunting
  • Water Supply & Irrigation Systems
  • Sewage Treatment Facilities
  • Engineering Services
  • Road & Highway Construction

  • Key Selling Industries
  • Concrete Pipe & Block Manufacturing
  • Construction Machinery Manufacturing
  • Heavy Equipment Rental
  • Metal Pipe & Tube Manufacturing
  • Plastic Pipe & Parts Manufacturing
  • Sand & Gravel Mining
  • Valve Manufacturing

  • Products & Services
  • Water mains and other water supply infrastructure
  • Sewer lines and other sewer infrastructure
  • Sewage and water treatment plants
  • Highway-related construction
  • Other
  • Building-related construction
  • Conservation and recreational construction
  • Chart: Water & Sewer Line Construction Industry Products and Services Segmentation

  • Demand Determinants
  • Long-term drivers
  • Short- and medium-term drivers

  • Major Markets
  • State and local government funding
  • Federal government funding
  • Private sector funding
  • Chart: Major Market Segmentation for the Water & Sewer Line Construction Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesRent and utilitiesDepreciation and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Water & Sewer Line Construction

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Water & Sewer Line Construction 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 Water & Sewer Line Construction 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 Water & Sewer Line Construction Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Value of Utilities Construction (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Building Information Modeling (Bim)
  • The process of generating and administering an integrated digital model of the physical and functional characteristics of buildings rather than using separate sets of drawings.
  • Consent Decree
  • A judicial judgment that confirms a voluntary agreement by the participants in a lawsuit in which the defendant agrees to take specific actions without admitting fault or guilt for the situation.
  • Construction Management (Cm) At-Risk
  • A type of construction contract that features separate design and construction contracts. Criteria for final selection include factors other than just lowest total construction cost.
  • Design-Bid-Build
  • A type of construction contract that features separate design and construction contracts. The only criterion for final selection is lowest total construction cost.
  • Design-Build
  • A type of construction contract that combines design and construction contracts. The only criterion for final selection is lowest total construction cost.
  • Subcontractor
  • An individual or company hired by a general or prime contractor to perform a specific task as part of the overall project.
  • Tender
  • A written offer or bid to contract goods or services at a specified cost or rate.
  • Why buy this report?

    IBISWorld’s Industry Market Report on Water & Sewer Line Construction 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 Water & Sewer Line 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 Water & Sewer Line 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 Water & Sewer Line Construction, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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