Highway, Street & Bridge Construction
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 8,600 construction companies in the US build transportation-related infrastructure; including highways, roads, streets, airport runways, and bridges. Companies may also build driveways and parking areas. Industry revenue consists of new construction (59% of industry sales), additions, alterations, or reconstruction (22%), and maintenance and repair (19%).
Dependence On Government Spending
The majority of industry revenue comes from publically funded programs, mainly state and local government projects.
Variability In Costs
With low margins, variability in the cost of materials and labor can be a challenge, particularly for fixed unit price and lump sum contracts.
Industry size & Structure
A typical highway, street, or bridge construction company operates out of a single location, employs about 43 workers, and generates about $14.4 million annually.
- The highway, street, and bridge construction industry consists of 8,600 companies that employ about 370,000 workers and generate $124 billion annually.
- Government contracts account for about 73% of industry revenue, and the majority of government contracts are issued by state and local governments.
- Large companies include Kiewit Corporation, Granite Construction, and US divisions of Skanska.
- Most small to medium-sized companies operate within a limited geographical market.
Industry Forecast
Highway, Street & Bridge Construction Industry Growth
Recent Developments
Jan 10, 2025 - Trump Policies to Impact Construction Sector
- While what a second Trump term could mean for the construction sector remains uncertain, some industry observers suggest there are clues from his first term and past policy statements, according to Construction Dive. About $294 billion in funding under the Infrastructure Investment and Jobs Act (IIJA) will pass to the Trump administration, and it’s possible the new administration could try to pull back some IIJA funding or allocate it in different ways, according to Brookings. President Trump will also likely favor traditional infrastructure, such as roads and bridges, over high-speed rail projects and efforts supporting electric vehicles. A Trump administration may also emphasize rural infrastructure projects and public-private partnerships for project funding. Highway Trust Fund dollars and advanced appropriations will most likely remain secure, according to SmartBrief.
- The total value of US highway and street construction put in place rose 0.2% in November 2024 compared to the prior month, according to the US Census Bureau. However, the value of US highway and street construction was down 3.6% compared to November 2023.
- US spending for highway and street construction in 2025 is expected to grow by about 3%, according to FMI’s fourth-quarter 2024 North American Engineering and Construction Outlook. While funding from the Infrastructure Investment & Jobs Act (IIJA) for programmed highway projects is scheduled to expire in 2026, FMI expects another round of fresh funding as temporary and grant projects are either extended or made permanent. Highway and street spending is forecast to rise 3% in 2026, then taper off to 2% growth in 2027 before rising by 4% in 2028.
- In an investment analyst conference call in late October, Granite Construction CEO Kyle Larkin said spending on public construction projects would likely remain healthy through 2030 and perhaps beyond, according to Construction Dive. Granite expects continued opportunities from public projects as only 40% of funding from the Infrastructure Investment and Jobs Act is projected to be spent by 2026.
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