Construction

The Construction sector comprises establishments that primarily engage in the construction of buildings, roads and other structures. Industry firms also engage in construction activities related to utilities and other non-building related projects, such as site preparation and subdividing land.

Construction

Output ($b)1 IVA ($b)2 Market Size3 Employment (m)* Wages & Benefits ($m)* EBITDA ($m)4
$340.7 $133.1 8/18 1,226 $43.8 $92.7

Sector Overview

The Construction sector comprises establishments that primarily engage in the construction of buildings, roads and other structures. Industry firms also engage in construction activities related to utilities and other non-building related projects, such as site preparation and subdividing land. Construction activities include new work, additions, alterations, maintenance and repairs. Activities of these establishments are generally managed at a fixed place of business, while operators are generally separated into three main segments: (1) General Contractors; (2) Subcontractors; and (3) Speculative or Operative Builders.

General Contractors – This segment includes construction managers responsible for all aspects of individual construction projects. In addition to general contractors, these firms are also often referred to as design-builders, construction managers or joint-venture contractors.

Subcontractors – This segment refers to establishments that primarily engage in activities to produce a specific component of a construction project (e.g. masonry, painting, electrical work). Activities of specialty trade contractors are usually subcontracted from other construction establishments, but especially in remodeling and repair construction, the work may be done directly for the owner of the property.

Speculative/Operative Builders – Establishments in this segment primarily engage in activities to construct buildings to be sold on sites that they own. Operative builders produce buildings in a manner similar to general contractors, but their production processes also include site acquisition and securing of financial backing. Operative builders are most often associated with the construction of residential buildings. Like general contractors, they may subcontract all or part of the actual construction work on their buildings.

LARG Industry Reports

Los Angeles Research Group provides 27 industry reports detailing the Construction sector. Each report contains detailed information on output, employment, enterprises, establishments, assets, liabilities and profitability. LARG’s industry reports also provide in-depth information on market share concentrations, business structure (e.g., corporations, sole-proprietorships, partnerships), key economic indicators, supply chain data, debt ratios and new entrant trends, including survivor rates (i.e., percentage of new businesses that last longer than five years).

In addition to LARG’s standardized report information, LARG’s industry reports in the Construction sector also provide specialized statistics, including detailed information on housing starts, energy expenses, equipment costs and subcontractor payments. For more information on a particular industry, please click on the appropriate industry below.

Sector Growth5

Sector Cost Structure*

 
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