This article was originally distributed via PRWeb. PRWeb, WorldNow and this Site make no warranties or representations in connection therewith.
During the next five years, government regulation of power generation, such as the push for cogeneration power plants, will benefit industry performance. For these reasons, industry research firm IBISWorld has updated a report on the Heavy Industrial Facilities Construction industry in its growing industry report collection.
New York, NY (PRWEB) February 10, 2014
The Heavy Industrial Facilities Construction industry has slowly improved since experiencing large revenue declines following the financial crisis. Industry revenue surged in the mid-2000s as firms benefited from an increased demand for new plants from private power companies, which began in the late 1990s after the deregulation of the energy industry, according to IBISWorld Industry Analyst Jeremy Edwards. However, the industry's environment was radically altered by the recession when demand for industrial facilities development slowed and financing was restricted for all construction projects. The industry has yet to approach the revenue growth experienced during the prerecession boom.
However, the industry has slowly built momentum, with revenue rising each year since 2009. Demand for industry services has improved, as a move toward renewable and clean energy has reinvigorated downstream markets. In addition, government spending and fiscal stimulus packages have largely supported the industry. Rising business confidence and corporate profit margins are also leading to new investment, which has precipitated industry growth. Over the five years to 2014, the industry is projected to grow at an average annual rate of 1.9% $27.2 billion. However, the industry is expected to contract 0.7% in 2014, as subdued demand from the energy sector weakens demand for major facility construction.
As revenue improved during the past five years, the number of industry operators began to rise, which has increased the level of competition in the industry, says Edwards. Firms in the industry compete for jobs by submitting a bid, and investors seek the bid that will complete the intended project with high quality at the lowest cost. Consequently, industry profit margins have dwindled over the past five years.
The overall value of utilities construction, the availability of credit and the movement in specific downstream industries play a large role in guiding the direction of the Heavy Industrial Facilities Construction industry. During the next five years, government regulation of power generation, such as the push for cogeneration power plants, will benefit industry performance. Industry revenue should also receive a boost from the continued growth of renewable energies requiring new and more efficient transmission equipment.
For more information, visit IBISWorlds Heavy Industrial Facilities Construction in the US industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
Firms in the Heavy Industrial Facilities Construction industry primarily construct, alter, add to, repair and maintain industrial nonbuilding structures, such as chemical complexes, cement plants, refineries, incinerators, ovens, kilns, power plants (except hydroelectric) and nuclear reactor containment structures. Establishments in the industry may subcontract some of the actual construction work.
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 nations 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.
For the original version on PRWeb visit: http://www.prweb.com/releases/2014/02/prweb11565058.htm
Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact firstname.lastname@example.org.