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The North America Heavy Construction Sectors : A Company and Industry Analysis (March 2006)


Description: This report examines the heavy construction industry including leading companies in North America, specifically the United States and Canada
Current Environment - Key Points
- The heavy construction sector in the US continued to grow in value in the third quarter of 2005 despite delays caused by the hurricanes which hit the Gulf Coast
- Spending on US construction projects continued to rise to US$1.13 trillion in October, as public sector outlays increased during the period, according to the Commerce Department
- In the third quarter of 2005, the Canadian sector grew by 1.2% as business investment continued its steady climb
- In Canada, office construction was the strongest performing category in the industrial construction segment in the first nine months of 2005
- Economic growth and increased government spending during the period boosted the revenues of leading companies in the US and Canada

Industry Profile - Key Points
- In the US, the value of new construction starts in October 2005 was US$668.5 billion with gains for non-residential building and non-building construction
- Meanwhile in Canada, the value of building permits increased to C$45.36 billion (US$39.01 billion), up 10.7% from the first nine months of 2004
- In the first half of 2005, exports for construction equipment totaled about US$6 billion in the US, due to the increased consumer confidence, low interest rate levels and the property boom around the world
- In Canada, both private and government sectors have committed about C$12 billion (US$10.32 billion) in new funds for infrastructure projects across the country
- The Federal Government of Canada played a major player in R&D, investing more than US$3.7 billion annually
Market Trends and Outlook - Key Points
- Non-residential rebuilding, after Hurricane Katrina that devastated the Louisiana and Mississippi Gulf Coast, will be predominately renovation and repair work rather than construction of new buildings
- The demand for heavy construction equipment in the US is projected to rise by 9.3% in 2006, following a 13.9% increase in 2005
- In the US, the construction of hotels and manufacturing plants is projected to experience the hottest growth in 2006
- The 2010 Winter Olympics are expected to generate up to C$7 billion (US$6.02 billion) in direct economic activity in Canada
- The Canadian Government continues to promote the green building concept and to educate Canadians on the importance of having sustainable buildings and their benefits to the environment
- The Canadian Construction Association projected that overall construction activity would grow by 1.2% in 2006


Contents: Current Environment - US
- Sector Overview
- Sector Performance
- Leading Companies:
- Construction Companies
- Reported Robust Third Quarter
Results
- Construction Equipment
Manufacturers
- Merger, Acquisition and Alliance
Activity
- Major Construction Projects
Current Environment - Canada
- Sector Overview
- Leading Companies
- Mergers, Acquisitions and Alliances
- Construction Projects in Progress
- Key Government-backed Programs
Industry Profile - US
- Industry Size and Value
- Construction Spending
- Construction Employment
- Industry Focus
- Construction Equipment Exports
Industry Profile - Canada
- Industry Size and Value
- Industry Focus and Sector
Investment
- Research and Development (R&D)
Market Trends and Outlook - US
- Hurricanes Affect Construction
Material Price Trends
- Buying Spree Continues for Big
Machinery
- Non-Residential Construction Poised
for Solid Gains
- The Use of IT Picks Up
- Market Outlook
Market Trends and Outlook -
Canada
- The 2010 Whistler Winter Olympics
- The Trend to Greener Buildings
- Market Outlook: Construction
Growth Expected to Slow
Currency Conversion Table
The Scope of this Report
Key References
Comparative Data
Regional Reports Coverage




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