| SIC Codes: | 1721 1731 1741 1742 1743 1751 1752 1761 1771 1791 1793 1796 1711 1623 6552 1611 1541 1522 1521 1389 1081 1622 |
| NAICS Codes: | 236118 238320 236220 237110 237120 237130 237210 237310 237990 238110 238120 238130 238140 238150 238160 238170 238190 238210 238220 238290 238310 236117 236116 236115 238990 238910 238390 238350 238340 238330 236210 |
Companies in this sector construct buildings or projects such as dams, highways, and utility systems. Major companies include Jacobs Engineering, KBR, Kiewit, and PulteGroup (all based in the US), as well as China Railway Construction, HOCHTIEF (Germany), and VINCI (France).
Demand is driven by demographics and the health of the economy. As the population grows, demand for housing, infrastructure, and natural resources also increases. Houses, roads, schools, hospitals, utilities, offices, shopping centers, and other buildings must be constructed, refurbished, or expanded in order to keep up with demand. The profitability of individual companies depends on their ability to secure contracts and control costs. Large companies enjoy economies of scale in financing and the ability of offer a broad range of services in many locations. Smaller companies can compete effectively by specializing in particular services or focusing on a certain geography. The industry is fragmented.
Major services include design, engineering, construction, project management and maintenance of buildings and structures. Commercial and heavy construction contractors focus on building nonresidential buildings (industrial, commercial, institutional) and heavy civil engineering projects. Residential construction contractors build multifamily housing, such as apartment complexes, and single family homes, in addition to acquiring and developing land. Nonresidential construction accounts for about two-thirds of the annual value of construction put in place in the US; residential construction accounts for about one-third.