Construction Industry Market Research Reports, Analysis & Trends
Construction industry comprises companies that operate by developing properties in the architectural and civil engineering context where physical structures and buildings such as houses, complexes, malls, skyscrapers are built on a real property. Construction is a process and is a crucial and most integral part and service of any building or to develop infrastructure. Along with the construction process, there are two more important and intricate processes such as engineering and procurement in the form of logistics and materials. Construction industry encompasses budgeting, construction site safety, environmental impact, building materials and logistics along with public convenience/ inconvenience and lastly scheduling that are extremely crucial for the project completion. Basically the three major services for an entire project are usually provided by EPC contractors. And apart from contractors, the overall project includes aspects and responsibilities such as project managers, construction engineers, construction managers, logistics professionals, design engineers, project architects, surveyors, electricians, plumbers, skilled workers and lastly laborers.
The last few decades have been favorable to the construction industry with the innovation and creative designs having gained popularity and acceptance in major parts of the world, especially in urban areas. The industry suffered a slow down and a quite bit of strong toll during the recession due to the reliance of new housing construction on a favorable economic climate. The industry suffered a major hit as well in the investments aspect where major sectors very less likely to lose the money in either buying a property or constructing one. The major blow was when governments couldn't spend on infrastructural improvements such as schools and government properties at the time of economic downturn. All these factors affected the construction industry directly but since the recovery started, the industry has propelled to new heights and new improvements and new innovations. To curb the recession effects, the recovery was such that the stage to normal and stable economy in the construction industry, it was a mammoth task.
The way the industry's recovery began, it was in many ways due to the high energy costs that had a positive impact with construction industry being at the helm of building’s renovation and rebuilding to work as more energy efficient. And eventually more and more demand grew for more buildings and construction processes that have less harmful effects on the environment and they are expected to continue to rise across all developed and developing countries. In the overall completion of the project, factors such as design, finance and legal issues are all considered to be of the core importance before beginning the implementation of the planned project. All these factors come into play when there are many possible negative outcomes in a construction project such as structural collapse and cost overruns. Constructing process can be a private or public endeavor as the customer can choose construction firm or a group, where upon choosing, it can include construction management at risk, design & build, hard bid, design-build bridging, negotiating prices, and management contracting. In addition, the firms and groups have accountants, cost engineers, and mortgage bankers that work towards creating a financial plan for a construction project.
Construction Industry Trends
Globally the general infrastructure projects are part of the heavy and civil engineering construction contractors. According to MarketLine, the global construction and engineering industry is estimated and calculated to be valued at over $3 trillion by the end of 2015 and the growth rate is at more than 30% on a yearly basis until the end of 2015. The construction industry is involved in the construction of various structures, that includes houses, factories, schools, roads and bridges. In addition to constructing new buildings and physical and real structures, the construction industry also encompasses setting up new sites, repairs & maintenance and modifications and alterations of existing of old buildings and structures as well. Being one of the major contributors to the global economy, the construction industry has evolved as a mature industry with making changes in reshaping the organizations and firms operations, new policies, new and improved architectural innovations and most importantly the cost effective and satisfactory services provided for the customers.
In today's day and age, most contractors are particularly specialized in one kind of construction, that is they are either well versed and experienced in commercial or residential constructions. Their specializations are very well carried out and are implemented but there are also subcontractors that take responsibilities to specialty trade contractors that do specific works such as painting, carpentry and flooring and finishing. The heavy and civil engineering construction contractors responsibilities include construction and maintenance of sewers, bridges, tunnels and on special cases roads. Since the industry is growing at a rapid pace, while generating great incomes and revenues, it is at the same time employing and providing a large number of employment measures to the recent graduates or skilled professionals. In 2010 over 2.5 million people were employed for building constructions which accounts for over 50% of overall construction jobs, according to Associated General Contractors of America. The construction industry overall employs more than 5.5 million people across all hierarchies in the industry. Non-residential construction represented more than $285 billion revenue in 2010 and the non-building construction touched the value of $270 billion and residential buildings' revenue value crossed $250 billion. According to MarketLine, Asia-Pacific demographic is recording a greater attraction and investments which has reached the share of over 25% of the global construction and engineering and the overall market worth is growing with new emerging markets and their developing economies proving to be highly fruitful.
Major Construction Industry Players
Major players in the construction industry include ACS, Vinci, China Railways Engineer, China Metallurgical Group Corp, China Railway Construction Company, Betchel, Hochtief, Bouygues, Willmott Dixon, Bowmer & Kirkland, Mears, Miller, Kier, Larsen & Toubro, and DLF.