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This report is the result of extensive market, company and deals research covering US construction market. It provides detailed segmentation of historic and forecast construction sales, segmented down to category and segment level; analysis of the leading US companies in the construction market; and analysis of the key financial deals involving construction players in the US. "The Future of Construction in the US" provides both top-level overview and detailed category-, segment- and company-specific insights into US construction industry environment. It is an essential tool for companies active across US construction value chain and for new players considering entering US's construction market.
Construction Market Trends
- Boom and bust: The construction market in the US saw strong growth in value during the period 2004-2007. However, the recession, which was rooted primarily in the housing market, led to a drastic decline in new construction value during 2008 and 2009.
- Mixed fortunes by sector: While contractors on infrastructure projects are faring well, residential and commercial building contractors are finding times tough. For example, Centex Corporation, a leading home builder in the US, announced poor performance and merged with Pulte Homes in 2008 to achieve cost savings in the tough market.
- Federal support: The US construction industry will receive about $130 billion as a part of the $789 billion economic stimulus package announced by President Obama's American Recovery and Reinvestment Act of 2009. This will be primarily in the form of state funding for transportation, power and water & sanitation, which will keep up spending on public investments and boost infrastructure projects in the US
- The three I's to prosper: Over 2009-2014, infrastructure construction, industrial construction and institutional construction are expected to perform well compared to the commercial and residential segments. The industrial segment is expected to see particularly good growth of 11.9% per year for 2009-2014.
Construction Equipment Trends
- Knock-on from weak construction: The construction equipment market primarily follows infrastructure and industrial construction. Given the present economic condition in the economy, all projects in the US, residential, non-residential and infrastructure are seeing a decline in spending. Although the federal stimulus fund is keeping up infrastructure projects, it is not enough to compensate the declines from state and private players.
- Flat growth to 2014: Given the slow market outlook for the construction industry in the US, the machinery market in the country is not likely to register sustainable growth prospects in the next five years. In fact, the market is expected to remain flat at a 0% CAGR till 2014, after which it is likely to register improvement.
Construction Materials Trends
-Slight fall in 2008: The US construction materials market was valued at US$124.5 billion in 2008, a decline of -0.1% on 2007. The market achieved a compounded annual growth rate (CAGR) of 3.3% over the period 2004-2008. Recovery expected: According to WMI, the US construction materials market is expected to be valued at US$128.7 billion in 2014, compared to an estimated value of US$124.8 billion in 2009. The market is expected to achieve a CAGR of 0.6% over the period 2009-2014.
- Concrete leads the market: The leading segment in US construction materials market was concrete, mortar & cement with US$64.3 billion of sales in 2008, accounting for 51.7% of the overall construction materials market. The second-largest segment was timber, lumber & wood, which accounted for a value of US$24.8 billion in 2008. Wood-based panels accounted for US$15.0 billion in 2008, was the third-largest construction materials segment
Construction Deals Trends
- Wide variance in values: The value of major completed acquisitions tracked by WMI up to the end of October 2009 was US$46.3bn. This value was US$32.5bn in 2008 and US$41.5bn in 2007.
The Future of Construction in the US : http://www.companiesandmarkets.com/r.ashx?id=I53CP0AO2191995
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