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
Mar 10, 2025 - Tariff Plans Create Uncertainties
- In February, the Trump administration announced a 25% tariff on all US imports of steel and aluminum, a move that some in the construction sector worry could increase costs and reduce margins. The tariffs, which go into effect March 12, 2025, aim to level the playing field amid what the administration alleges is unfair dumping of low-cost steel imports on the US market. In February, Trump also announced 25% tariffs on imports from Canada and Mexico, then paused the tariffs for a month. The tariffs on Mexico and Canada went into effect on March 4 but were paused again on March 6. In 2024, US imports of iron and steel mill products were valued at about $10.7 billion and accounted for nearly 30% of total US iron and steel imports. Canada and Mexico account for more than a quarter of US cement imports, according to the Portland Cement Association.
- Raids by Immigration and Customs Enforcement (ICE) are prompting some foreign-born workers to stay home from their workplaces, disrupting key industries that rely on migrant workforces, including construction, according to The Wall Street Journal. The Trump administration has said that while it is focusing on undocumented people with criminal backgrounds, anyone in the country illegally faces increased risk. According to an analysis of US Census Bureau data by the American Immigration Council, undocumented immigrants make up about 14% of the US construction sector’s workforce. The Associated General Contractors of America said it had received anecdotal reports of rising absenteeism from member firms in several locations, including Florida, Georgia, Oklahoma, and Texas. Labor disruptions reduce construction firms’ ability to deliver projects on time.
- Soon after taking office, President Trump issued an executive order called “Unleashing American Energy” that included an order to pause and review funding processes that some legal experts suggest will likely have ramifications for the Biden-era Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA), according to Construction Dive. Many stakeholders found the order's wording unclear, prompting the Office of Management and Budget to issue a memo limiting the funding pause to programs the original order termed as part of the “Green New Deal.” Even with the clarifying memo, experts suggest the order could stop obligated funding for infrastructure projects that are already underway. The order is expected to face legal challenges. At the end of 2024, about $294 billion in funding authorized under the IIJA remained unspent.
- The US construction sector needs to hire 439,000 new workers in 2025 to keep pace with expected demand, according to a proprietary forecasting model developed by Associated Builders and Contractors (ABC). Amid anticipated interest rate cuts, an additional 499,000 construction hires will be needed in 2026. ABC’s President and CEO Michael Bellaman said, “The U.S. construction industry’s efforts to hire more workers to replace retirees and meet the demand for new construction projects gained momentum in 2024. That is fantastic news, but we still have a long way to go to shore up the talent pipeline. The data on the number of young people choosing a career in construction suggests that employing practical technology and innovation in educational programs and on jobsites helps maximize the productivity and efficiency of the construction workforce.”
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