Heavy & Civil Engineering Construction

Heavy & Civil Engineering Construction

Brief Excerpt from Industry Overview Chapter:

Companies in this industry construct highways, streets, and bridges; utility systems; and other heavy and civil engineering projects, including subdivisions of land. Major companies include Bechtel, Fluor, Granite Construction, Kiewit, and The Walsh Group (all based in the US), as well as ACS Group (Spain), China State Construction (China), Skanska (Sweden), and VINCI (France).

COMPETITIVE LANDSCAPE

Heavy construction activity depends heavily on the health of the economy, including corporate profits and local government budgets. The profitability of individual companies depends on accurate project bids and efficient operations. Large companies have advantages in their ability to engage in multiple projects simultaneously and to provide wider ranges of services. Small companies can compete effectively by specializing, working in a limited geography, or serving as subcontractors on larger projects.

PRODUCTS, OPERATIONS & TECHNOLOGY

Highway and street work construction accounts for about 55% of the industry revenue. Other markets include construction of oil and gas pipelines and power and communication transmission line (about 45%). Heavy and civil engineering firms also offer construction services for addition, renovations, and alterations, as well as bridges and elevated highway construction. Operations focus on project bids, labor and equipment management, and material procurement. Larger companies may own much of their equipment and retain full-time crews, while smaller firms typically lease equipment for a particular project and hire much of their labor on a project basis.