Structural Steel and Precast Concrete Contractors
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 3,800 structural steel and precast concrete contractors in the US erect, assemble, and install structural elements of buildings. Large firms may offer design/build services or fabrication services. Firms may also offer repair or restoration services.
Dependence on Nonresidential Construction Activity
Demand for structural steel, reinforcing steel, and precast concrete is primarily dependent on nonresidential construction activity, which can be cyclical and influenced by economic conditions.
Hazardous Work
Structural iron and steel work is one of the top 10 most hazardous occupations in the US, as the incidence of injury and illness for structural steel and precast concrete contractors was 14% higher than the national average in 2022.
Nonresidential Construction Spending Resilient
Nonresidential construction spending continues to grow at a healthy rate, despite some challenges, including inflation and higher interest rates.
Industry size & Structure
The typical structural steel and precast concrete contractor operates out of a single location, employs about 20+ workers, and generates between $4 million and $5 million annually.
- The structural steel and precast concrete contracting industry consists of about 3,800 companies that employ about 85,000 workers and generate between $15 billion and $16 billion annually.
- The industry is fragmented; no true national firm dominates, however the largest companies, such as Span Construction & Engineering and Crossland, operate it numerous states. Integrated companies design, fabricate, and install structural steel products.
Industry Forecast
Structural Steel and Precast Concrete Contractors Industry Growth
Recent Developments
Nov 8, 2024 - Multifamily Developer Confidence Mixed
- Multifamily developers’ confidence was mixed in the third quarter of 2024, according to the National Association of Home Builders (NAHB) latest Multifamily Market Survey. The Multifamily Production Index (MPI) rose two points in Q3 2024 to 40 compared to the third quarter of 2023. The Multifamily Occupancy Index decreased by seven points to 75 over the same period. An MPI or MOI reading of 50 or more indicates that multifamily production or occupancy, respectively, is growing. Multifamily developers’ headwinds include a tight lending environment, higher borrowing costs, regulations, and land availability. The NAHB forecasts that multifamily construction activity will remain weak for about another year amid a significant volume of projects under construction. Multifamily construction is expected to return to more robust growth near the end of 2025.
- North American construction and engineering spending in 2024 is expected to grow by about 5%, according to FMI’s fourth-quarter 2024 North American Engineering and Construction Outlook. With growth of 29%, public safety will lead 2024 nonresidential building construction, followed by manufacturing (21%), amusement and recreation (10%), transportation (5%), and educational (4%). Commercial construction spending is expected to decline 8% in 2024 amid weaker demand for warehousing space. Lodging construction spending is forecast to drop 6%, and stubbornly high office vacancies will continue to weigh on new office construction, which is projected to rise 1% in 2024. Amid moderating interest rates, single-family construction spending is forecast to rise 5% in 2024. A recent jump in new apartment supply is expected to reduce multifamily spending by 4% in 2024. With an increase of 14%, water supply will lead 2024 growth in the infrastructure sector, followed by sewage and waste disposal (9%), power (7%), and highway and street (4%).
- Demand for building design services remained soft in September, according to an October report by the American Institute of Architects (AIA). The AIA’s Architecture Billing Index (ABI) was flat at 45.7 in September. Any reading of 50 or more indicates growth in architectural billings. September was the twentieth consecutive month to see a downward trend in billings. The score for new project inquiries dropped to 51.6 in September compared to 52.4 in August, but the index for new design contracts increased from 47.3 to 48.3. The AIA’s Chief Economist, Kermit Baker said, “Despite recent rate cuts by the Federal Reserve, many clients remain on the sidelines with regard to proceeding on planned projects. And while new project opportunities also emerge, clients are cautious about which to pursue. Fortunately, architecture firms report backlogs of 6.4 months on average, which remain above pre-pandemic levels and are an indication that there is existing work in the pipeline.”
- In October, the Department of Transportation (DOT) announced $4.2 billion in grants for infrastructure projects, the latest awards funded through the Infrastructure Investment and Jobs Act. The grants will fund a total of 44 projects. The National Infrastructure Project Assistance (Mega) program is providing $1.7 billion in funding for 11 projects, and the Infrastructure for Rebuilding America (INFRA) will provide $2.5 billion for 33 projects. The DOT grants will fund highway, bridge, port, and other infrastructure projects in several states, and projects in three states (Arizona, Massachusetts, and Rhode Island) received grants from Mega and INFRA.
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