On the road: Sustained federal support will lead to steady industry revenue growth

The Road and Highway Construction industry in Illinois experienced several issues over the five years to 2017, including budgetary constraints and weak investments in transport infrastructure early in the period. The industry has only recently resumed to grow, due to the passing of the five-year Fixing America's Surface Transportation Act in 2015. Moreover, the recent passage of the lockbox amendment is likely to quell anxieties in the near future. Over the next five years, the industry will experience steady growth as a result of sustained federal support and improved state and municipal budgets...read more.

Industry Statistics & Market Size
Revenue
$5bn
Annual Growth 12-17
2.7%
Forecast Growth 17-22
Profit
Employment
10,922
Businesses
607
What Our Customers Say

Industry Threats & Opportunities

  • The need to rebuild, expand and repair existing road infrastructure will encourage investment in industry projects
  • The support of federal funding resulted in revenue growth for most of the five-year period
  • If net migration continues to plague the state, lower tax revenue will lead to inadequate funding
  • Industry Report - Industry Key Buyers Chapter

    The Road and Highway Construction industry in Illinois exhibits low market share concentration, with the top four players accounting for less than 10.0% of industry revenue. The industry is characterized by many small-scale regionally dispersed participants. Small- to medium-sized contractors are usually involved in local projects where they have the proper connections and relationships with authorities. The fact that most small construction contracts are issued at the local level further contributes to the industry's geographically disperse composition. In addition, larger players subcontract work out to smaller companies when participating in large-scale projects...purchase to read more.

    Additional Insights for the Road & Highway Construction in Illinois Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Road & Highway Construction in Illinois Industry are

  • Access to highly skilled workforce
  • Having links with suppliers
  • Ability to compete on tender
  • IBISWorld analysts also discuss how external factors such as Federal funding for transportation and Local and State Government Expenditure in Illinois in the Road & Highway Construction in Illinois industry impact industry performance..

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    What is the Road & Highway Construction in Illinois Industry?

    Operators in this industry construct new highways, streets, roads and airport runways (excluding elevated roadways). The industry also includes highway and street construction management operators and special-trade contractors who perform subcontracting work on projects (e.g. grading, laying pavement, installing guardrails and public sidewalks). Industry operators may subcontract some or all of the actual construction work.

    Industry Products
  • Highway, road and street construction
  • Airport runways construction, reconstruction and additions
  • Existing highway, road and street reconstruction and additions
  • Private driveways and parking construction and additions
  • Industry Activities
  • Constructing highways, streets and roads
  • Constructing airport runways
  • Constructing private roads, driveways and parking lots
  • Installing highway and street lighting and signage
  • Constructing laneway and sound barriers
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Federal funding for transportation
  • Local and State Government Expenditure in Illinois
  • Value of private nonresidential construction in Illinois
  • Yield on 10-year Treasury note
  • Price of cement

  • Current Performance
  • Historic funding challenges
  • Profit trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Infrastructure remains a critical challenge
  • Government spending
  • Private sector involvement rises
  • Profit trends
  • Table: Road & Highway Construction in Illinois Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Road & Highway Construction in Illinois Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Land Development
  • Airport Operations
  • Administration of Government Programs

  • Key Selling Industries
  • Asphalt Manufacturing
  • Concrete Pipe & Block Manufacturing
  • Construction
  • Heavy Equipment Rental
  • Mining
  • Professional, Scientific and Technical Services
  • Ready-Mix Concrete Manufacturing
  • Steel Rolling & Drawing
  • Wholesale Trade

  • Products & Services
  • Existing highway, road and street reconstruction and additions
  • Highway, road and street construction
  • Airport runways construction, reconstruction and additions
  • Private driveways and parking construction and additions
  • Chart: Road & Highway Construction in Illinois Industry Products and Services Segmentation

  • Major Markets
  • State administered
  • Locally administered
  • Private sector
  • Chart: Major Market Segmentation for the Road & Highway Construction in Illinois Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesRent, utilities, depreciation, marketing and other expenses
  • Chart: Cost Structure Benchmarking – Sector vs Road & Highway Construction in Illinois

  • Basis of Competition
  • Small and local projects
  • Large-scale projects

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Road & Highway Construction in Illinois Industry

  • Granite Construction Inc.Kiewit CorporationLane Construction Corporation Lorig Construction Company
  • Table: Granite Construction Inc. - financial performance
  • Table: Kiewit Corporation - financial performance
  • Table: Lane Construction Corporation - financial performance
  • Table: Lorig Construction Company - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Road & Highway Construction in Illinois 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 Road & Highway Construction in Illinois Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Federal funding for transportation (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Congressional Earmarks
  • Funds provided by Congress for projects or programs where the congressional direction circumvents Executive Branch merit-based or competitive allocation processes.
  • Earthwork
  • The excavation and piling of earth in connection with construction projects.
  • Public-Private Partnership
  • A partnership where the public-sector fully or partially hands over construction, financing and management of infrastructure to the private-sector.
  • Safetea-Lu
  • Abbreviation for Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users. Third in a series of federal multiyear transport infrastructure funding programs.
  • Transportation Equity Act For The 21St Century
  • Under this act, the federal government provides funding for pilot toll programs for interstate variable pricing and infrastructure rehabilitation.
  • Why buy this report?

    The Road & Highway Construction in Illinois Industry Research Report measures market size, analyses current and future trends, and provides an indication of market share for the industry’s largest companies. IBISWorld’s collection of industry market research reports gives you insightful, up-to-date information on the supply chains, economic drivers, and key buyers and markets for hundreds of industries.

    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 Road & Highway Construction in Illinois:
    • 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 Road & Highway Construction in Illinois 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 Road & Highway Construction in Illinois, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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