BMI's Executive Summary

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Dominated by the private sector, the United States' (US) construction industry has the largest share in the global construction industry by size. Currently witnessing a contractionary fiscal policy and a slump in its housing sector, the US construction industry is forecast to register a slump in its year-on-year (y-o-y) growth in 2007, before gathering momentum once again in 2008. Comprising in excess of 600,000 construction companies, the nation's construction industry is forecast to contribute more than 9% to its gross domestic product (GDP) in 2008. This report forecasts the industry to log an average growth of 5.34% during 2008-2012.

The US construction industry draws impressive leverage from the fact that it has had a major influence on construction technology and procurement methods around the world. Also, the recent catastrophes such as Hurricane Katrina have prompted the US government to conduct an in-depth study to improve the country's infrastructure. The National Infrastructure Improvement Act of 2007 is one such initiative, which aims to assess the existing infrastructure, including roads, bridges and dams across the US and implement improvement programmes. Among other construction-related projects, there are about 800 water infrastructure projects in the pipeline across the county, cumulatively worth about US$21bn.

The US construction industry is highly vulnerable to natural disasters such as hurricanes, tornadoes and earthquakes. At the macroeconomic front, of late, persistent budgetary deficits have created immense pressure on the nation to reduce its construction expenditure. Further, the industry needs to be wary of a possible slowdown in the US economy, owing to the slump in its housing sector.

Despite the likely slowdown in 2007, reduction in the prices of construction materials signals growth opportunities in other construction segments including retail construction. According to BMI, the US construction industry is forecast to be valued at more than US$1,300bn in 2008 and to expand to more than US$1,800bn by 2012.

Executive Summary

Chapter 1 - Industry Trends and Developments

Market Overview

United States Economy in 2006 and 2007

United States Construction Industry in 2006 and 2007

Major Companies

Chapter 2 - Key Projects

Hurricane Katrina Disaster Reconstruction

Transport

Utilities

Residential and Commercial Construction

Table: US – Major Infrastructure Projects

Chapter 3 - Business Environment

Introduction

Ratings Overview

Table: Infrastructure Business Environment Indicators

Regional Overview – Americas

US: Business Environment Ranking

Limits of Potential Returns

Risk to Realisation of Potential Returns

Chapter 4 - SWOT Analysis

United States Infrastructure Industry SWOT

United States Political SWOT

United States Economic SWOT

Chapter 5 - Industry Forecast Scenario

Table: United States Industry Forecast Data

Risks

Chapter 6 - Macroeconomic Outlook

Table: United States – Macroeconomic Forecasts

Chapter 7 - Competitive Landscape

Table: Key Players

Chapter 8 - Company Monitor

Bechtel

Halliburton

Pulte Homes

Chapter 9 - BMI Forecast Modelling

How We Generate Our Industry Forecasts

Construction Industry

Sources