This is marketing research on the construction industry and can include information on the background, market structure, definitions, competitors, trends and developments of construction and is related to other topics such as housing, building and infrastructure.

Table of Contents

[edit] Background

In the parlance of architecture and civil engineering, construction is considered as the building or assembly of any infrastructure. The construction industry consists of business organizations chiefly engaged in the use of concrete and asphalt to make building foundations and structures, parking areas and retaining walls, bridges, etc. and in the use of all materials to produce patios, private driveways, and private walks. The concrete work performed includes new work, extensions, alterations, and maintenance and repairs.

The construction industry is not a single-track phenomenon. Rather it consists of several sub industries that work in concert to produce the final structure. Even if it is seen as a single activity, it is actually a feat of multitasking. In general, the construction manager manages the entire affair, supervised by the project manager, design engineer or project architect.

When it comes to the onsite development of the project the construction industry heavily depends upon a large number of laborers to accomplish the physical task of construction.

[edit] Market Structure

Normally, three types of construction are recognized:

(1) Building construction (2) Heavy/highway construction (3) Industrial construction

Each type of construction calls for the involvement of a unique team to plan, design, construct, and maintain the project.

- Building construction involves creating structures on real estate properties. The majority of these projects are minor renovations. Almost all building construction projects include some common aspects - design, financial, and legal considerations. For larger projects the owner will generally employ a team of workers and advisors to produce an overall plan. This ensures that the project will progress to a sought-after end. Construction advisors normally include mortgage bankers, accountants, lawyers, insurance brokers, architects, and engineers.

- Heavy/Highway construction is the process of adding "infrastructure" to our public environment. The project owners are usually government agencies, either at the national or local level. As in building construction, heavy/highway construction will have design, financial, and legal considerations, generally undertaken to serve the public interest. As in building construction, the owner will assemble a team to create an overall plan to ensure that the goals of the project are met.

- Industrial construction, though a relatively small part of the entire construction industry, is a very significant business. Owners of these projects are usually large, profit making, industrial corporations. This industrial construction process requires highly specialized expertise in planning, design, and construction. Just like all construction, industrial construction requires a team of individuals to ensure project success.

The construction industry is divided into three major segments. The construction of building segment includes contractors, usually called general contractors, who build residential, industrial, commercial, and other buildings. Heavy and civil engineering construction contractors build sewers, roads, highways, bridges, tunnels, and other projects. Specialty trade contractors perform specialized activities related to construction such as carpentry, painting, plumbing, and electrical work.

Construction usually is done or coordinated by general contractors, who specialize in one type of construction such as residential or commercial building. They take full responsibility for the complete job, except for specified portions of the work that may be omitted from the general contract. Although general contractors may do a portion of the work with their own crews, they often subcontract most of the work to heavy construction or specialty trade contractors.

Specialty trade contractors usually do the work of only one trade, such as painting, carpentry, or electrical work, or of two or more closely related trades, such as plumbing and heating. Beyond fitting their work to that of the other trades, specialty trade contractors have no responsibility for the structure as a whole. They obtain orders for their work from general contractors, architects, or property owners. Repair work is almost always done on direct order from owners, occupants, architects, or rental agents.

U.S. Employment Numbers for Construction

[edit] Industry Definitions

• Architect – one who designs and or supervises construction

• Architects Basic Services - A recognized series of phases performed by an architect as follows: 1st Schematic Design Phase, 2nd Design Development Phase, 3rd Construction Document Phase, 4th Bidding or Negotiated Phase, 5th Construction Phase.

• Architectural Drawing -A line drawing showing plan and/or elevation views of the proposed building for the purpose of showing the overall appearance of the building.

• Building Code - The legal requirements set up by the prevailing various governing agencies covering the minimum acceptable requirements for all types of construction.

• Building Process - A term used to express every step of a construction project from it’s conception to final acceptance and occupancy.

• Construction Documents - All drawings, specifications and addenda associated with a specific construction project.

• Fixed Limit of Construction Costs - A construction cost ceiling agreed to between the owner and architect or engineer for designing a specific project.

• General Contractor - Properly licensed individual or company having primary (prime) responsibility for the work.

• Inspection – The act of inspector or an official examination or review of the work completed or in progress to determine its compliance with contract requirements.

• Owner-Architect Agreement - A written form of contract between architect and client for professional architectural services.

• Replacement Cost Estimate - A cost of constructing a building or structure that would have similar utility, but constructed with modern materials, current building standards, design and layout less depreciation. A land value and cost of on-site improvements can be added if desired.

[edit] Market Metrics

The international construction industry continues to thrive, as business remains strong for developed countries, and developing countries increasingly invest their own money and foreign investors' money in infrastructure.

- Construction makes a disproportionately large contribution to GDP. The value of the construction industry in the US in 2004 was $1 trillion, or 8% of gross domestic product, considerably higher than the construction industry’s share of employment

- Construction is a major source of jobs. The industry provides employment to 6.4 million workers at 732,000 companies—more than 5% of the total non-farm workforce and 6% of the private workforce.

- Almost 66% of US construction companies employ less than 5 people, 90% employ less than 20

- Construction is a major purchaser of manufactured products. In 2004, shipments of construction materials and supplies totaled $471 billion—11% of total manufacturing shipments. Shipments of construction machinery totaled $29 billion and increased by 43% from 2003.

[edit] Industry Players

Name	          		Country	     Sales ($BIL)	Market Value ($BIL)

Saint-Gobain			France	        $43.46                 $23.05
Bouygues			France		$31.75	               $17.73
Cemex				Mexico          $15.33                 $23.82
Lafarge                         France          $18.88                 $18.37
Vinci Group                     France          $26.49                 $18.26
CRH				Ireland		$16.66                 $17.52
Holcim				Switzerland     $11.59                 $17.59
Centex                          United States   $14.45                 $ 8.37
DR Horton                       United States   $14.25                 $10.65
ACS Group			Spain	        $14.87                 $13.13

Top 10 Global Contractors for 2007

     Rank 				Firm 

2007 	2006   

1	 1 		Bechtel, San Francisco, Calif

2 	 3 		Fluor Corp., Irving, Texas

3 	 5 		The Turner Corp., New York, N.Y.

4 	 4 		KBR, Houston, Texas

5 	 6 		Skanska USA Inc., Whitestone, N.Y.

6 	 7 		Bovis Lend Lease, New York, N.Y.

7 	 8 		Kiewit Corp., Omaha, Neb.

8	10 		PCL Construction Enterprises Inc., Denver, Colo.

9 	 9 		Jacobs, Pasadena, Calif. 

10 	17 		The Shaw Group Inc., Baton Rouge, La.

[edit] Recent Trends and Developments

To meet upcoming business challenges, construction companies require streamlining their operations in measurable ways — in technology, design, project management, human resources management, strategic planning, and costing. Obviously, an ongoing goal for even the most successful company should be to consistently improve operations and bottom-line profitability.

Construction is heavily dependent upon business cycles. Changes in interest rates and tax laws affect individual and business decisions related to construction activity. State and local budgets affect road construction and maintenance. Changes in regulations can result in new construction or stop planned projects. The effects of these various influences can be short term or long term.

[edit] Sources

• Most current U.S. Government Sources
• Wikipedia
• Blinkbits
• Forbes

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