Engineering and Construction Idustry Profile

Industry Profile

The US Engineering and Construction Industry

Table of Contents

I. Name and Industry Description 2

II. Description of Industry Participants 4

III. Key Competitive Factors in the Industry 5

IV. Porter Analysis of Industry 7

Rivalry among Competitors 6

Threat of New Entrants 7

Threats of Substitutes 7

Buyer Power 7

Suppliers Bargaining Power 8

V. Strategic Group Map of Industry participants 9

VI. Ranking of industry participants 10

VII. Future Prospects of the Industry 11

Technological Change 12

Globalization 12

Increased Industry Cooperation 13

Network Organizations 13

Green Building 13

Mergers 14

Lack of Qualified Staff 14

Works cited 15

I. Name and Industry Description

The United States Engineering and Construction Industry (E&C I) consists of engineering companies and heavy construction contractors engaged in civil engineering projects, construction of commercial buildings, utilities and other industrial and municipal construction. The industry includes highway, tunnel, bridge, dam, water works and other civil engineering operations, as well as hotel, office buildings, industrial plants, utility plant and other large-scale construction projects. The industry excludes basic materials, such as raw cement, concrete and bricks, classified in Construction Materials; and residential building, classified in Homebuilding.[1] Historically, the industry has experienced strong growth trend, however, in 2009 it started to experience a decline. According to Datamonitor, the E&C I is expected to recover and gain momentum once again over the period up to year 2014.

It is estimated that in 2009 the US E&C I generated total revenues of $635.9 billion, which represents a compound annual growth rate (CAGR) of 7.3% for the period from year 2005 to 2009. This US growth is significantly larger (with almost 5%) than the European and Asia-Pacific industries. Approximately...