Tunneling through: A rebound in local and state government spending will foster industry growth

The Tunnel Construction industry undertakes new construction and maintenance services on transport and utility tunnels. Over the past five years, the winding down of federal stimulus programs and declines in federal funding for transportation have hampered industry revenue growth. Nevertheless, the industry is expected to resume growth over the next five years, in light of broad-based economic growth and a rebound in local government spending. As employment and consumption increases, municipalities and state governments will have a wider tax revenue base to undertake tunnel construction. Industry operators will, however, continue to contend with the threat of political gridlock, which may stall or suspend planned tunnel projects...purchase to read more.

Industry Statistics & Market Size
Revenue
$4bn
Annual Growth 13-18
-0.2%
Forecast Growth 18-23
Profit
Employment
7,207
Businesses
591
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Broad-based economic growth and a recovery in federal funding for transportation will support revenue growth
  • Several federal grants and initiatives stepped in to fund and support industry projects
  • State governments will have a wider tax revenue base to undertake tunnel construction
  • Industry Report - Industry Analysis Chapter

    The Tunnel Construction industry undertakes new construction and maintenance services on transport and utility tunnels. Industry revenue is primarily tied to local, state and federal funding for investment in transportation infrastructure. Over the past five years, the winding down of federal stimulus programs and declines in federal funding for transportation have hampered industry revenue growth. Industry revenue is projected to decline at an annualized rate of 0.2% to $4.1 billion over the five years to 2018, which includes a 1.6% revenue dip in 2018 alone. Additionally, local and state government investment activity is expected to decline, putting downward pressure on industry revenue. Acc...purchase to read more.

    Additional Insights for the Tunnel Construction Industry

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

  • Ability to compete on tender
  • Having contracts that are favorable to purchaser
  • Ensuring pricing policy is appropriate
  • IBISWorld analysts also discuss how external factors such as Federal funding for transportation and Local and state government investment in the Tunnel Construction industry impact industry performance..

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    What's in this report

    What is the Tunnel Construction Industry?

    This industry constructs tunnels; the types of industry projects include new work, reconstruction and repairs. This industry does not include road and highway construction activity.

    Industry Products
  • New construction
  • Repair and maintenance
  • Industry Activities
  • Transportation tunnel construction, repair and maintenance
  • Utility tunnel construction, 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
  • Federal funding for transportation
  • Local and state government investment
  • Value of private nonresidential construction
  • Yield on 10-year Treasury note

  • Current Performance
  • Federal assistance supports early revenue growth
  • Industry trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Sustained government support fuels industry activity
  • Project profiles
  • Table: Tunnel Construction Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Tunnel Construction Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Land Development
  • Engineering Services
  • Public Administration
  • Road & Highway Construction
  • Road & Highway Maintenance

  • Key Selling Industries
  • Asphalt Manufacturing
  • Construction
  • Heavy Equipment Rental
  • Sand & Gravel Mining
  • Stone Mining

  • Products & Services
  • New construction
  • Other
  • Repair and maintenance
  • Chart: Tunnel Construction Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • State government
  • Local government
  • Federal government
  • Private sector
  • Chart: Major Market Segmentation for the Tunnel Construction Industry

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

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Tunnel 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 Tunnel 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 Tunnel Construction Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Federal funding for transportation (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Safetea-Lu
  • Short for the Safe, Accountable, Flexible, Efficient Transport Equity Act: A Legacy for Users. Developed in 2005, the third in a series of federal multiyear infrastructure funding programs.
  • Tender
  • A written offer or bid to contract goods or services at a specified cost or rate.
  • Toll Road
  • A road that drivers must pay to use.
  • Tunnel
  • An artificial underground passage, especially one built through a hill or under a building, road or river.
  • What Our Customers Say

    Why buy this report?

    The Tunnel Construction industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

    IBISWorld industry market research reports enable you to:
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    This report on Tunnel 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 Tunnel 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 Tunnel Construction, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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