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Commercial Construction Contractors
First Research, Aug 2009, Pages: 10
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Executive Summary
Brief Excerpt from Industry Overview Chapter:
The US commercial construction industry includes about 90,000 firms with combined annual revenue around $465 billion. Large companies include Bechtel, Fluor, and Turner Construction. The industry is highly fragmented, with many small companies working as subcontractors on larger projects.
Commercial construction includes apartments, office and retail buildings, hotels, schools, public buildings, industrial and manufacturing buildings, highways and bridges, sewers, pipelines, power lines, power plants, and other civil engineering projects.
COMPETITIVE LANDSCAPE
Demand depends heavily on the health of the US economy, including corporate profits and local government budgets. The profitability of individual companies depends on accurate project bids and efficient operations. Large companies have advantages in their ability to engage in multiple projects simultaneously and in many types of construction. Small companies can compete effectively by specializing, working in a limited geography, or serving as subcontractors on larger projects. Average annual revenue per industry worker is $290,000.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major industry services are constructing nonresidential buildings, including for industrial, commercial, and institutional use, and heavy and civil engineering projects. Commercial and institutional building construction accounts for 50 percent of industry revenue; heavy and civil engineering construction, for over 40 percent; and industrial building construction, about 5 percent.
Operations focus on bidding for projects and managing project plans, labor, equipment, and construction materials. Larger companies may own much of their equipment and retain full-time construction crews, while smaller firms typically lease equipment for a ...
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