The construction services sector (like architecture and engineering) is mature, fragmented, and competitive - with few barriers to entry and high volatility of demand. The global recession severely impacted this industry. In the US, the value of construction put in place during years 2009-2010 fell off a cliff when compared to the years leading up to 2007. This same phenomenon was witnessed in the developed economies of Western Europe, Canada and Japan. Global construction revenue is currently estimated at $2.5 - $3 trillion: an estimate buoyed significantly by infrastructure projects in emerging economies.
Everyone is impressed with overall work product.
Public sector infrastructure projects typically are awarded to heavy/civil engineering construction contractors- transportation (roads, bridges, tunnels, airports, rail), utilities (water, wastewater, water distribution/collection, reservoirs, dams), other (parking garages, stadiums, etc.). Private sector construction of new structures for commercial, institutional, industrial use, along with modification of existing structures is generally awarded to general construction contractors. Firms specializing in carpentry, electrical, plumbing, and roofing may be subcontractors to the general construction contractor.
Aging infrastructure in North America and parts of Europe could benefit greatly from a large injection of capital into public sector infrastructure projects- particularly transportation and utilities. A large injection of capital by the public sector would fuel hiring and equipment purchases among heavy/civil engineering construction companies. Unfortunately, cash-strapped governments are unable to fund much-needed infrastructure improvements. In North America, money is being spent in pipeline construction because of the need to move natural gas, and will be spent on LNG terminals as the US approves additional LNG export locations.
Geo Strategy Partners serves construction clients with customized research and analysis, consulting, and M&A support.
|General construction||Transportation construction||Water/wastewater construction|
|General and heavy/civil construction firms||Public entities||Pipeline construction firms|
|Companies that want insights from construction firms|
Concept testing for a designer and builder of prestressed concrete tanks, wastewater tanks, and concrete elevated tanks and their private equity firm
Market opportunity study for a construction contractor in an adjacent construction vertical (water & wastewater)
Strategic planning and market opportunity studies for the US subsidiary of a global construction company
Design of a customer satisfaction study to be used by worldwide project teams at the conclusion of an engagement
Concept testing with state transportation departments and private-sector transportation construction contractors for polymer-modified asphalt paving material
Unmet needs study for hand protection with pipeline construction welders
|Daelim Industrial||Fluor||Foster Wheeler|
|OHL||Saipem||Sumitomo Mitsui Construction Co|
|The Shaw Group||Layne Christensen|
We attribute our success in the construction segment to our database of contacts and our ability to reach hard-to-reach decision makers. To learn how Geo Strategy Partners can help you in this sector, contact us.