Construction Project Management Services in the US Industry Market Research Report Now Available from IBISWorld
Despite the bursting residential housing bubble that plunged the US economy into recession, Construction Project Management Services industry firms weathered the recessionary conditions well through the ensuing recession as a result of backlogged work and funds from the American Recovery and Reinvestment Act. Continued public-sector construction funding and rebounds in private-sector construction will be the primary drivers of growth in the next five years. The increased scale and complexity of public- and private-sector construction projects and processes will also require greater oversight and coordination that industry firms are well positioned to offer. For these reasons, industry research firm IBISWorld has added a report on the Construction Project Management Services industry to its growing industry report collection.
Los Angeles, CA (PRWEB) July 13, 2012
The Construction Project Management Services industry navigated recessionary declines in the construction sector to post impressive growth over the past five years. From 2007 to 2012, IBISWorld estimates industry revenue grew at a 9.6% average annual rate to $15.6 billion. According to IBISWorld industry analyst Doug Kelly, “Industry operators continued to benefit from the trend of project owners and construction firms outsourcing project management functions to cut their staffing costs and keep projects on tight budgets and schedules.” New worker safety, environmental protection and building material standards further spurred demand for industry services.
The industry experienced strong growth in 2007 due to increases in public- and private-sector construction. “Despite the bursting residential housing bubble that plunged the US economy into recession, industry firms weathered the recessionary conditions well through 2008 as a result of backlogged work,” says Kelly. From 2009 onward, Construction Project Management Services industry growth was supported by the American Recovery and Reinvestment Act (ARRA), which invested about $35.1 billion and $28.4 billion in federal funding into transportation and infrastructure projects, respectively, to counter contracting construction demand from the private sector. Consequently, IBISWorld estimates that small rebounds in commercial and utilities construction, combined with the renewal of the ARRA in 2011 will push up revenue over 2012.
Not all industry operators fared well over the past five years, though, especially small firms with a narrow market focus. IBISWorld estimates that while the number of industry firms increased at a 0.6% average annual rate over the past five years to about 3,957, the industry experienced declines in 2009 and 2010 due to the contraction in private non-residential construction. Larger industry players that had the scale, specialized services and resources were better able to compete for large-scale federal government, infrastructure and utilities contracts. The industry is comprised primarily of large-scale construction and engineering companies, including Bechtel Group Inc., CH2M Hill Companies, Jacobs Engineering Group and URS Corporation, that offer project management services and specialize in various heavy construction, design and engineering projects. These large corporations have leveraged their favorable economies of scale to increase industry concentration over the past five years. Many of these firms acquired smaller project management services firms. Additionally, many used their massive scale to easily win substantial contracts that have contributed to strong growth over the past five years. Over the next five years, IBISWorld expects industry concentration to increase as these firms continue to win important contracts and acquire smaller, upstart project management firms.
Continued public-sector construction funding and rebounds in private-sector construction will be the primary drivers of growth through 2017. The increased scale and complexity of public- and private-sector construction projects and processes will also require greater oversight and coordination that industry firms are well positioned to offer. For more information, visit IBISWorld’s Construction Project Management Services in the US industry report page.
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IBISWorld industry Report Key Topics
The Construction Project Management Services industry includes firms that provide planning, supervising and budgeting services to construction projects. This includes all aspects of a client’s project, including estimating, scheduling, designing, engineering and contracting. Industry operators may also oversee community relations, safety programs, labor, cost control and coordination with the owner and other construction specialists.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
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