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Water & Sewer Line Construction in the US - Industry Market Research Report

United States water line construction market: $59.7 billion industry by 2018

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2014-04-03 04:27:02 - Water & Sewer Line Construction in the US - Industry Market Research Report - a new market research report on

During the five years to 2013, revenue in the United States water line construction market and sewer line construction industry is expected to decline at an average annual rate of 0.4%. Water and sewer infrastructure is essential for harnessing, cleaning and transporting vital water supplies to households and businesses. Once projects are completed, pipes are used to carry and filter storm water, pollutants and sewage. Starting in 2001, the housing boom led to extraordinary growth of investment in infrastructure developments. The housing bust and subsequent recession, however, induced a decline in government tax revenue, leading to a significant industry downturn.

In 2013, there are an estimated 11,190 companies operating in the industry. During the past five years, the number of industry



operators has grown at an average annual rate of 0.5%, with a decline of 2.3% in 2010 and 1.1% 2011.

These two years of decline were primarily due to state and local government budget cuts, which adversely affected demand for industry companies. Maintaining high levels of production became a major concern as municipalities shifted their priorities in the wake of the economic downturn and future uncertainty. In reaction to fewer available water and sewer line construction contracts, some operators left the industry, while others were acquired (e.g. Insituform Technologies is now part of Aegion Corporation). Looking forward, increases in residential and private nonresidential building construction are expected to drive growth.

During 2013, revenue is expected to rise 4.9% to $51.4 billion; a rebound in residential and commercial construction is expected to boost infrastructure construction and maintenance investment. IBISWorld forecasts that a recovery in the residential construction markets, improvements in state and local government investment, and increased private investment will support a healthy recovery for the industry. In the five years to 2018, the industry is forecast to record average annual revenue growth of 3.0% to total $59.7 billion. During this time, average profit margins are expected to increase from their current 19.2% share of industry revenue to 21.4%.

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