Is Concrete Contracting a Growing Industry?
Concrete remains an important building material in construction as it is used to build foundations, walls, and floors. For many years, the industry recorded a very low-income revenue but in the last 5 years, it has experienced a massive rebound due to the increased construction activities in both residential and commercial markets.
Regardless of its recent track record, many people are still reluctant to join the industry, unsure of whether or not the industry is a growing one. This article provides answers to the most frequently asked questions by people who wish to join the concrete contracting industry.
How big is the Concrete Contracting Industry’s Market Size in the US?
Although the concrete contracting industry currently does not have any major companies with a share larger than 5%, it has over 50,000 businesses and is currently the employer of over 200,000 people in the United States. Measured in revenue, the market size is summed up to about $6.6 billion in 2021. Also, the concrete contracting industry paid a total of $17 billion in annual wages in 2021.
It is expected to grow even more in the next 5 years as new opportunities in the industry have risen. Due to the upsurge in demand for new single-family and multifamily housing units in the US, there will be a need for new concrete foundations to be built, which is the major source of revenue for all concrete contracting companies.
What is the Growth Rate of the Industry in the US?
The concrete contracting industry in the US is growing at a moderate, steady pace. The industry is currently growing with advancements in industrialization, urbanization, and developments in infrastructure. As more and more people are shifting to concrete due to its versatility, efficiency and eco-friendliness, more opportunities are created in the concrete contracting industry.
Although revenue for the industry dropped by 0.9% as a result of the larger economic effects of the COVID19 pandemic, it has been reported by IBISWorld that the concrete contracting industry is expected to experience a growth rate of 3.4% by the end of 2021. Also, there was a 3.7% growth rate in the annual wages received by concrete contractors in the last 5 years.
What is the Future of the Concrete Contracting Industry in the US?
The revenue for the concrete contracting industry is expected to experience a steady rise over the next 5 years due to the surge in demand for residential and non-residential construction after the 2020 COVID19 pandemic. The IBISWorld also reported that the industry is expected to experience an expansion over the next 5 years as a result of the newly developed applications for the use of concrete which has gained fame in the last few years.
In addition, it is expected that there will be a steady increase in the wages received by contractors over the next 6 years.
In summary, the concrete contracting industry has experienced slow but steady growth, especially over the last few years due to innovations and the shift by more and more people to concrete rather than other building materials. Measured in revenue, the concrete contracting industry in the US has a current market size of about $6.6 billion, a 3.4% annual growth rate, and a 3.7% growth rate in annual wages.
It is expected that due to the new applications of concrete, the industry will experience a major surge in the next 5 years. In addition, since there are still many infrastructural goals to be achieved in the United States over the next several years, thus, there is a great opportunity for growth in the industry.