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
Jul 10, 2024 - Data Center Construction Robust but Challenges Persist
- Investments in data centers are expected to remain strong, but construction firms serving the industry still face lingering headwinds, according to a recent report by CBRE. While data center pre-leasing rates in most regions exceed 80% - suggesting demand is in step with increasing supply – construction contractors are seeing challenges in power distribution access and supply chain constraints for key components, including transformers and circuit breakers. Industry observers suggest contractors can better manage supply chain issues and project delays by exploring supply chain alternatives and collaborating more closely with suppliers and other project stakeholders.
- Low- to medium-density multifamily building construction has grown to account for a larger share of the overall multifamily market in recent years, according to National Association of Home Builders Analysis of US Census Bureau data. In 2024, there were 450,000 multifamily housing unit completions, marking the highest level in 37 years. Of those, 216,000 were buildings with fewer than 50 units, which was the largest share for low- to medium-density buildings since 2006.
- Demand for building design services slipped in May from the prior month, as architectural billings remain soft, according to a June report by the American Institute of Architects (AIA). The AIA’s Architecture Billing Index (ABI) fell to 42.4 in May from April’s reading of 48.3. Any reading of 50 or more indicates growth in architectural billings. The score for new project inquiries fell to 52.1 in May compared to 54.8 in April, and the index for the value of new design contracts decreased from 49.2 to 45.6. The AIA’s Chief Economist, Kermit Baker said, "The decline in the May ABI score continues a year and a half of weakness in design billings at US architecture firms. However, firms only reported modest declines over the first half of this period. Over the past nine months, volatility has increased, and scores have softened more significantly, with the May score the weakest reported since the end of the pandemic recession."
- Midway through the five-year spending plan under the Infrastructure Investment and Jobs Act (IIJA), only about 38% of the funding has been announced, according to Construction Dive. So far, of the $1.2 trillion in spending authorized by the IIJA, about $454 billion in project spending has been announced. Of spending announced to date, bridges and roads have accounted for the largest share, followed by rail, broadband, power, and water, according to CNBC analysis of data released by the White House. However, some industry insiders suggest more spending is required to upgrade and repair the US’s aging infrastructure. In a recent report, the American Society of Civil Engineers (ASCE) gave US infrastructure the grade of “C minus” and rated US roads, bridges, airports, and water systems as being in “poor” to “mediocre” condition.
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