Construction: Introduction


Companies that design, develop, build, or tear down structures, as well as companies that supply them, are all part of the construction industry. Currently in the U.S., the industry is depressed despite recently lowered interest rates. However, there is still activity in the private and government sectors, as well as small jobs such as remodeling. The outlook in Asia and Europe is more promising.

The Construction industry is Fragmented. The production in this industry is divided among a few different companies, however, no single firm has large enough share of the market to be able to influence the industry's direction or price levels.

Primary Demand Drivers

  • Economic health of domestic country
  • Government spending on infrastructure
  • Corporate profits
  • Growth in real estate investment

Profitability Drivers

  • Constant inflow of work
  • Accurate project bids
  • Efficient manufacturing operations