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The North America Heavy Construction Sectors : A Company and Industry Analysis (August 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
- Volatile construction costs that surfaced after Hurricanes Rita and Katrina continued to create difficulties for builders and suppliers in the US
- In the first six months of 2006, merger, acquisition and alliance activity in the US picked up, with the heavy construction sector continuing to bustle with activity
- Strong economic growth in Canada fuelled growth in the heavy construction sector in the first quarter of 2006
- In Canada, the commercial and industrial construction market was the strongest performing category in the non-residential construction sector in the first half of 2006
- Despite higher construction costs, leading heavy construction companies in the US and Canada performed well during the first three months of 2006

Industry Profile - Key Points
- In the US, the value of new construction starts in April 2006 was US$699.7 billion, with moderate gains in the non-residential building and non-residential building construction
- The value of building permits in Canada declined to C$5 billion (US$4.41 billion) in April
- Due to higher material prices, the value of construction spending in the US rose to US$1.2 billion in April 2005, up 9.09% year-on-year from US$1.1 billion
- The level of construction employment in Canada rose by more than 6% in July 2006 to 1,073,900, up 7% from 1,003,600 a year earlier
- The Canadian Federal Government continues to play a major role in R&D for the heavy construction sector, investing more than US$3.7 billion annually
Market Trends and Outlook - Key Points
- The demand for heavy construction equipment in the US is projected to rise 9.3% in 2006, following an increase of 13.9% in 2005
- In the US, solid growth in heavy construction spending in the current economic expansion cycle may be slowing, but overall construction activity is forecast to grow faster than the economy for another few years
- The 2010 Winter Whistler Olympics are expected to generate up to C$7 billion (US$6.17 billion) in direct economy activity for Canada
- The Canadian Construction Association forecasts that overall construction activity would grow by at least 1.2% in 2006


Contents: Current Environment - US
- Sector Overview
- Sector Performance
- Leading Companies
- Construction Equipment
Manufacturers Remain Buoyant
- Merger, Acquisition and Alliance
Activity
Current Environment - Canada
- Sector Overview
- Leading Companies
- Construction Projects in Progress
Industry Profile - US
- Industry Size and Value
- Construction Spending
- Sector Employment
- Industry Focus
- Construction Equipment Exports
Industry Profile - Canada
- Industry Size and Value
- Industry Investment
- Research and Development
(R&D)
Market Trends and Outlook -
US
- Machinery Manufacturers
Expect a Good Year
- Katrina and its Aftermath
- Market Outlook
Market Trends and Outlook -
Canada
- Sector Employment to Remain
Strong in 2006
- 2010 Whistler Winter Olympics
- Market Outlook
Currency Conversion Table
The Scope of this Report
Key References
Comparative Data
Reports Coverage




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